Meanwhile, a 2021 survey by the NHR Global Association found that 40% of NHR residents had purchased a property in Portugal, while 60% were tenants. The same study also indicated that each NHR resident spent, on average, around €1,000,000 on property purchases in Portugal.

However, as of 1 January 2024, the NHR programme underwent a major transformation with the introduction of NHR 2.0. While still offering substantial tax benefits, the revamped regime is now specifically designed to attract highly skilled professionals and individuals working in sectors deemed strategically important for Portugal’s economic development. The changes signal a shift from the broad eligibility of the original NHR scheme to a more targeted approach aimed at drawing talent that will contribute to Portugal's long-term growth, particularly in fields such as science, technology, healthcare and research.


The New Rules of the Game: Understanding IFICI’s Advantages and Criteria
At the heart of the NHR 2.0 regime (referred to as IFICI - Tax Incentive for Scientific Research and Innovation) is a 20% flat income tax rate on qualifying Portuguese-source employment and self-employment income. Certain foreign-source income, such as salaries, dividends, royalties, interest, rental income and capital gains, can also be exempt from taxation, provided they meet specific criteria. However, foreign pension income will now be taxed at Portugal's standard progressive rates.

To qualify for IFICI, individuals must become tax residents of Portugal after 1 January 2024, must not have been tax residents in Portugal for the previous five years and must hold higher education qualifications or equivalent professional experience. Applicants must also work in sectors recognised as strategic to Portugal’s economy, including fields like teaching, scientific research, technology, healthcare and innovation.

David Moura-George, Managing Director of Athena Advisers Portugal, comments: "Portugal’s shift towards a more targeted NHR regime underscores its commitment to attracting top-tier talent in sectors that are crucial to the future of its economy. For skilled professionals, this offers a clear opportunity to benefit from favourable tax rates while contributing to Portugal’s growth in innovation and technology."


Where Talent Meets Opportunity: Portugal’s Dual Appeal
While IFICI primarily targets professionals, it still presents opportunities for real estate investors and individuals engaged in passive income streams. Portugal remains an attractive location for property investment, with its high quality of life, affordable real estate market, and business-friendly environment.

Portugal continues to be a sought-after destination for both investors and professionals. The country offers a pleasant climate, a high quality of life, and a comparatively affordable real estate market when contrasted with other Western European capitals. As of October 2025, the average national housing price in Portugal stood at €2,970 per square metre, while Lisbon city centre prices ranged between €6,000 and €8,000 per square metre. Premium locations can exceed €10,000 per square metre. These factors, coupled with the tax incentives under NHR 2.0, make Portugal one of the most desirable locations for skilled professionals and retirees alike.

The regime also continues to encourage investment in Portugal's growing sectors, including technology startups, export-driven industries, and research and development. Moreover, the Autonomous Regions of the Azores and Madeira offer unique regional incentives for those choosing to settle and work there.

David Moura-George notes that: "While NHR 2.0 may narrow eligibility for some, Portugal’s real estate market remains a compelling attraction for investors. The country offers an appealing blend of high-quality living, affordable property prices, and strong demand—particularly in Lisbon and Porto. The new regime complements Portugal’s real estate sector, making it an attractive destination for long-term investment."

A Strategic Shift for Portugal
IFICI reflects Portugal’s strategic shift towards knowledge-based industries and innovation. Although the new regime is more restrictive than its predecessor, it remains an appealing option for professionals working in high-demand sectors such as technology and healthcare. For those whose income is primarily from passive sources like pensions, the new regime may offer fewer advantages compared to the original NHR.

Professionals and investors looking to take advantage of this new tax framework should carefully assess their eligibility and consult with legal and tax advisors to ensure they meet the necessary requirements. IFICI positions Portugal as a forward-thinking destination, appealing to those who can contribute to the country’s long-term growth and innovation agenda.

"NHR 2.0 represents a strategic shift by the Portuguese government, one that will continue to attract professionals at the forefront of innovation while ensuring long-term sustainability in sectors critical to the country’s future. The regime positions Portugal as a leading destination for talent, and it’s an exciting time for those seeking to align their expertise with the country’s economic growth.", concludes David Moura-George.

Looking to get a clearer grasp of the Portuguese NHR regime? Catch the replay of our webinar to explore it further: Understanding the NHR 2.0 - Eligibility, Changes and Next Steps