Glossary · Visas and tax regimes

NHR (Portugal)

Portugal's Non-Habitual Resident tax regime — a 10-year special status with reduced tax rates on certain income types.

The Non-Habitual Resident (NHR) regime was Portugal's flagship expat tax incentive for the 2010s and early 2020s. New entrants benefited from a 20% flat rate on Portuguese-sourced income from high-value-added activities, and partial or full exemptions on certain foreign-sourced income (pensions, dividends, royalties) — all for 10 years.

The classic NHR was phased out in 2024 for new applicants. A replacement regime (often called NHR 2.0 or IFICI) targets researchers, university professors, and qualified workers in innovation-related fields, with similar 20% flat-rate benefits but narrower eligibility.

If you're considering Portugal as a relocation destination, check whether your profession qualifies for the current regime before assuming the headline 20% rate applies. The standard Portuguese personal income tax is progressive and reaches 48% at the top bracket, so the gap is significant.

Where Mundevo uses this

Portugal cities — /countries

Related terms

Digital nomad visa

A residence permit category designed for remote workers earning income from outside the host country.

Beckham Law (Spain)

Spain's special tax regime for inbound workers — flat 24% income tax for up to 6 years instead of the progressive scale.

Effective tax rate

The actual share of your gross salary lost to taxes, blended across brackets — almost always lower than your top marginal rate.

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