Does Portugal remain an attractive expatriate jurisdiction after the end of the NHR?
- Jun 25
- 8 min read
Summary
Introduction
Portugal has long embodied the European promise of a smooth expatriation. Pleasant climate, security, quality of life and a historically generous tax regime have attracted tens of thousands of active executives and retirees.
But the landscape has changed profoundly. The abolition of the non-habitual resident scheme, followed by the emergence of a new targeted scheme, has reshuffled the cards for anyone considering settling on the banks of the Tagus.
The question is therefore no longer merely geographical but strategic. Will Portugal remain a relevant jurisdiction for expatriation in 2026, and for which wealth profiles?
This article provides an overview of the current Portuguese tax framework. It is aimed at entrepreneurs, managers, and families seeking a coherent, secure, and legally compliant relocation.
Portugal, a popular European destination for expatriates
Portugal occupies a unique position in Western Europe. As a member of the European Union and the Eurozone, it offers the stability of a community framework while maintaining a more moderate cost of living than its northern neighbors.
Quality of life is a central argument. Lisbon, Porto and the Algarve concentrate established international communities, recognized health infrastructure and a dynamic entrepreneurial scene around tech.
Accessibility enhances this appeal. Air links to France, the rest of Europe, and America make the country a convenient base for mobile executives.
Language and culture facilitate integration. English is widely spoken in business circles, which lowers the barrier to entry for a family undergoing heritage relocation .
Taxation is not the sole determining factor in the decision to move abroad. The choice of a country also depends on children's schooling, access to healthcare, and the ease of maintaining an active professional life.
To better understand the country itself, the encyclopedic entry remains a good starting point. Portugal combines maritime heritage, Atlantic access, and a strong European connection—all factors that influence a decision to settle there.
The end of the NHR regime: what has changed since 2024
The non-habitual resident regime built Portugal's tax reputation. For ten years, it allowed many new residents to benefit from reduced taxation on certain foreign income and a flat-rate treatment on qualified professional income.
This scheme has been closed to new entrants. Since 2024, the classic NHR regime no longer accepts new applications, as the Portuguese legislature responded to internal criticism and European pressure regarding tax competition.
Those already registered retain their rights. Individuals who obtained status before the closure continue to benefit from it until the end of their ten-year period, subject to compliance with the initial conditions.
A transitional mechanism accompanied the closure. Some taxpayers meeting specific criteria related to an installation undertaken before a deadline were able to access the scheme under the transitional measures.
The scope of the change must be interpreted with nuance. The closure targets new residents, not existing ones, which clearly distinguishes the fate of long-standing residents from that of current applicants.
This reform does not signal the end of Portugal's attractiveness. It marks a shift from a broad and general advantage to a more selective framework, more focused on innovation and economic added value.
The new IFICI regime: who is it for and under what conditions?
Portugal has introduced a new targeted scheme. Known by the acronym IFICI, it targets scientific research activities, innovation and certain highly skilled functions, with a view to economic competitiveness.
The scope is more limited than the former NHR. The benefit is primarily aimed at profiles working in defined sectors, such as research, higher education, certified startups or highly qualified functions.
The core of the advantage lies in a preferential tax rate. Eligible professional income can benefit from a reduced flat-rate tax, along with specific treatment for certain foreign-source income.
Eligibility is subject to strict conditions. The candidate must not have been a Portuguese tax resident in previous years and must carry out an activity falling within the scope defined by the authorities.
The qualification of the profile is the decisive step. A preliminary analysis of the activity, status and income is essential to determine if the regime actually applies and to what extent.
Portuguese tax residency: conditions and procedures
Becoming a tax resident in Portugal is subject to clear criteria. Residency is assessed in particular by considering a presence of more than one hundred and eighty-three days per year or the availability of accommodation that suggests an intention to establish residence there.
The concept of center of interests is crucial. Tax residence is built around concrete elements: home, activity, economic and family ties, which must be consistent with an actual establishment of residence.
Leaving the French system must be done meticulously. A poorly documented change of residence can lead to disputes, hence the importance of organizing the departure based on the tax treaty between France and Portugal.
The administrative procedures follow a specific order. Obtaining a tax identification number, registering residence, opening accounts and complying with tax declarations mark the installation process.
The coherence of the application takes precedence over speed. A real, and not merely formal, installation forms the basis of a secure relocation in the face of the relevant administrations.
Income taxation, capital gains and inheritance
Apart from specific tax regimes, Portugal applies a progressive tax scale. The income of ordinary residents is taxed according to brackets, making prior analysis of one's profile all the more useful in anticipating the actual tax burden.
Capital gains on securities are subject to specific rules. Their treatment depends on the nature of the assets, the holding period, and the taxpayer's status—all variables that require a case-by-case analysis.
Inheritance planning has some notable specificities. Portugal does not provide for inheritance and gift taxes between relatives in the traditional sense, which may be of interest to families with a long-term planning perspective.
The international dimension must never be neglected. Reporting obligations linked to the automatic exchange of tax information require total transparency on accounts and structures held abroad.
Real estate ownership requires special attention. The rules applicable to properties located in France and Portugal vary according to the nature and use of the assets, which justifies a complete asset mapping.
Optimization remains inseparable from compliance. Sustainable tax optimization is built on strict adherence to the rules, and not on a pursuit of opacity doomed to failure.
What profiles of expatriates will Portugal be looking for in 2026?
Portugal remains highly attractive to innovative profiles. Researchers, founders of certified startups, and highly qualified talent find in the new framework an environment suited to their activities.
Active retirees remain attractive to the country. Even without the NHR scheme, the quality of life, security, and controlled costs remain strong arguments for long-term settlement.
Mobile executives see it as a credible European base. Membership in the European Union facilitates movement, access to the single market, and the structuring of activities with a continental reach.
Some profiles will find a better fit elsewhere. An executive seeking very low taxation on passive income may want to compare Portugal with other jurisdictions, as detailed in our study dedicated to Andorra .
Matching the profile to the jurisdiction is the keystone. It is precisely the role of a consulting firm to objectify this choice in light of each client's actual situation.
Portugal versus other European jurisdictions
Portugal is not the only credible European option. Malta, Cyprus, and Andorra offer distinct frameworks, each with its own strengths and constraints depending on the desired asset profile.
Malta relies on a proven non-domiciled regime. Its system attracts holders of foreign income who wish to control the taxation of their non-repatriated income.
Cyprus combines competitive taxation with European access. The country attracts executives and holding companies with its favorable treatment of certain dividends and capital gains.
Andorra plays the card of discretion and proximity. Its low taxes and quality of life attract wealthy families attached to a preserved environment.
Portugal stands out for its overall balance. The size of the country, quality of life, European integration and the new target regime make up a coherent proposition for innovative or long-term oriented profiles.
The Coreway method for a successful relocation
Coreway Consulting structures each project into five stages. This signature approach avoids improvisation and secures decisions at each milestone of the expatriation process.
It all begins with a discovery phase. The firm takes the time to understand the financial profile, family objectives and constraints specific to each client.
Next comes the analysis of suitable jurisdictions. Portugal is compared with other options in order to identify the most relevant solution, not the most fashionable one.
The recommendation is well-reasoned and documented. The client receives a clear recommendation, along with the tax, legal, and practical consequences of each scenario considered.
The coordination mobilizes the right experts. Lawyers, tax specialists, banks and local partners are being led from Dubai by the firm, which orchestrates the entire operation.
The installation completes the on-the-ground process. Coreway supports the effective implementation, from residency formalities to the first daily tasks, just as any consulting firm concerned with the final result would.
Comparative table: Portugal in summary
Criteria | Portuguese Framework 2026 |
European status | Member of the EU and the Eurozone |
Historical NHR Regime | Closed to newcomers since 2024 |
New device | IFICI focuses on research, innovation, and qualified profiles. |
Tax residence | Presence exceeding 183 days or permanent focus |
Inheritance between relatives | No inheritance tax in the traditional sense |
Suitable profiles | Researchers, founders, active retirees, mobile executives |
Testimony
Helene, 54, the head of a digital services company, shares her experience. After the closure of the NHR scheme, she feared that Portugal would no longer be a suitable location for her relocation project.
The analysis revealed a more nuanced reality. His activity and profile offered opportunities under the new scheme, provided his installation was properly structured.
The coordinated support made all the difference. The joint management of tax, legal and banking aspects allowed him to avoid the pitfalls of a rushed or poorly documented departure.
The final feeling is one of a well-managed decision. Helene describes a smooth transition, where each step had been anticipated, with no ambiguity regarding her reporting obligations.
Frequently Asked Questions
Does the NHR regime still exist in Portugal?
The non-habitual resident scheme has been closed to new arrivals since 2024. Beneficiaries already registered before the closure retain their rights until the end of their ten-year period.
What is the IFICI regime?
This is the new Portuguese tax scheme targeting research, innovation, and certain highly skilled professions. It replaces the old NHR with a more selective framework, geared towards economic value.
Is Portugal still an interesting place to retire?
Yes, even without the NHR scheme. Quality of life, safety, climate and a controlled cost of living remain strong arguments for a long-term settlement.
Should we be worried about the French exit tax when leaving for Portugal?
A change of residence must be carefully planned, as leaving the French system can trigger specific mechanisms. A preliminary analysis allows you to anticipate these effects and ensure a smooth departure.
How do I know if I am eligible for the new scheme?
Eligibility depends on your activity, status, and residency history. Only a personalized assessment of your situation can determine this with certainty.
Does Coreway operate on the ground in Portugal?
From its base in Dubai, the firm coordinates a network of local experts: lawyers, tax specialists, banks, and partners. Support is provided throughout the entire process, from initial research to successful relocation.
Assess your situation
Every expatriation project deserves a tailored study. Portugal may be the right answer, or just one option among other jurisdictions better suited to your assets.
The fee is determined after a wealth analysis. The support begins with a thorough understanding of your objectives, your assets, and your family constraints, upon initial contact .
Coreway Consulting manages the entire process. From initial discovery to final installation, the firm coordinates the necessary experts from Dubai to ensure a smooth relocation.
