Existing NHR Tax Holders Often Delay Financial Planning for Post-NHR Years

The Wealthy Expats in Portugal Survey Report 2025, which gathered insights from more than 1,000 international residents, indicates that a significant proportion of NHR beneficiaries had not engaged with regulated tax or financial professionals during the earlier years of their 10-year NHR period. As a result, some may be less prepared for the standard Portuguese tax framework that can apply after NHR status concludes, including progressive income tax rates that may reach up to 48%, depending on individual circumstances, income sources, asset structures and applicable law at the time.

Portugal Pathways, an organisation that provides information and introductions to regulated professionals for high-net-worth individuals navigating life in Portugal, noted that the findings highlight a broader awareness gap rather than a single planning failure.

“It was surprising to see how many families were unaware that their tax position could change materially once NHR ends,” said Steve Philp, Director at Portugal Pathways. “Everyone’s circumstances are different, and there is no single solution. However, understanding how the post-NHR framework works — and seeking regulated professional advice at an appropriate time — can help individuals make informed decisions.”

Philp emphasised that Portugal Pathways does not provide tax or financial advice, but instead introduces individuals to qualified, regulated professionals who can assess personal circumstances on an individual basis.

“In some cases, people only seek advice in years eight or nine of their NHR period,” he added. “At that stage, regulated advisers may still be able to review options, but earlier engagement generally allows more time for careful analysis rather than last-minute decisions.”

Portugal continues to attract international families with its lifestyle, healthcare, safety and cultural appeal. However, the report suggests that many new residents understandably prioritise settling in over addressing longer-term financial planning considerations.

According to the survey, this can leave individuals uncertain about how their tax position may evolve once the 10-year NHR period ends, particularly if they intend to remain tax resident in Portugal.

Daniel Simons, a Lisbon resident who participated in the survey, reflected on his own experience. “We moved from the UK and spent several years enjoying life in Portugal before speaking with a regulated cross-border tax adviser and wealth manager,” he said. “That conversation helped us understand how our position might change in future and what questions we should be asking. It gave us clarity, rather than a specific outcome being promised.”

In a number of case examples referenced in the survey, individuals who sought early, personalised advice from appropriately regulated tax and wealth professionals reported effective post-NHR tax rates in the range of approximately 5% to 11%. These outcomes were highly dependent on personal circumstances, including income profile, asset composition, residency decisions and the legal framework applicable at the time, and should not be interpreted as typical or achievable for all NHR tax holders.

Similarly, Niall Macdonald, a Portugal-based wealth manager, noted that reluctance to engage early is common. “Tax planning is complex, and it’s natural for people to put it off,” he said. “From a professional perspective, earlier discussions simply allow more time to analyse personal circumstances and consider appropriate options. There are no guarantees, and advice must always be tailored to the individual.”

The Wealthy Expats in Portugal Survey Report 2025 estimates that a substantial proportion of current NHR holders may see higher effective tax rates once the regime ends, depending on their individual circumstances and future legislative developments.

Rachel Whitmore, a professional living in Porto, described how early engagement helped her family better understand their position. “Portugal Pathways introduced us to independent, regulated tax and wealth advisers who reviewed our circumstances in detail,” she said. “Based on that personalised advice, we were able to plan with greater confidence. Our outcome reflects our specific situation and ongoing professional guidance, rather than something that would apply universally.”

Portugal Pathways explains that its role is to provide information and introductions, not advice. It offers an initial discovery call to help NHR holders understand what types of regulated professionals they may wish to speak with, based on their personal situation.

“With the right independent advice, individuals can make informed decisions about their future,” Philp concluded. “But there is no substitute for personalised guidance from appropriately qualified and regulated advisers.”