The Non-Habitual Residents regime (“NHR regime”) as preivosuly known has been revoked by the Portuguese State Budget for 2024. However, the application of the regime currently in force is safeguarded (i) for taxable persons who are already registered as non-habitual residents (and as long as the 10-year period of application of the regime is not exhausted) and (ii) for taxable persons that meet certain exceptional circumstances foreseen in the transitory regime and that opt to relocate to Portugal in the course of 2024.

Nevertheless, the Portuguese State Budget has also created a new tax incentive for scientific research and innovation, that is applicable to taxpayers who (i) relocate their tax residence to Portugal, (ii) have not been tax resident in Portugal in the 5 previous years and (iii) receive income in connection with the following activities:

  • Teaching careers in higher education and scientific research;
  • Jobs and members of governing bodies with contractual benefits related to productive investment specifically established in Portuguese law;
  • Highly qualified professions, defined in the Ministerial Order no. 352/2024/1, develop in:
    • Companies that are benefiting (or have benefited in the last 5 years) from the tax regime to support investment (RFAI);
    • Eligible industrial and service companies which export (or have exported in the last 2 years) at least 50% of their turnover.
  • Research and development jobs for employees whose costs are eligible for the purpose of the system of tax incentives for research and development (SIFIDE);
  • Jobs and members of governing bodies who carry out economic activities recognized by AICEP or IPMAI as relevant to the national economy; and
  • Jobs and members of governing bodies in entities certified as startups.

The employment income received with the mentioned activities will be subject to tax, during a 10-years period, to a tax rate of 20 % and the foreign source passive income (interest, rental income) and capital gains, not sourced in a black-listed jurisdiction, will be tax exempt.

The application requires certain certifications to be concluded by Portuguese entities – such as the Foundation for Science and Technology (FCT), the National Innovation Agency (ANI), the Trade & Investment Agency (AICEP) and the Portuguese Tax Authorities.

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