What is the NHR tax regime in Portugal in 2026?

Portugal's Non-Habitual Resident (NHR) tax regime remains one of Europe's most attractive tax frameworks for international property buyers and relocators, though it was significantly modified in 2024. **Current NHR Rules (2026):** | Feature | Detail | |---|---| | Flat rate | 20% on Portuguese-sourced qualifying income | | Duration | 10 years from date of registration | | Qualifying professions | High-value activities: engineers, doctors, architects, researchers, IT professionals, executives | | Foreign income | Potentially exempt if taxed at source country | | Pension income | No longer exempt — now taxed at 10% minimum (changed 2024) | | Crypto gains | No longer exempt — subject to 28% CGT (changed 2024) | **Key 2024 Reforms:** The 2024 reform removed the most controversial NHR benefits. Pension income, previously tax-free, now attracts a minimum 10% rate. Cryptocurrency gains lost their exempt status and are taxed at the standard 28% CGT rate. The core 20% flat rate for qualifying professions remains intact. **Property Tax Implications for NHR Holders:** - Rental income: 28% flat rate (or opt into progressive rates) - Capital gains on property: 50% of gains added to taxable income (residents) or 28% flat (non-residents) - IMI (annual property tax): 0.3-0.45% — not affected by NHR status - IMT (transfer tax): 0-8% brackets apply regardless of NHR **How to Apply:** Register as a Portuguese tax resident, prove you have not been resident in the previous 5 years, and apply within the first year of residency. A Portuguese NIF is required. Explore Portugal property market data at avenaterminal.com/portugal — Avena Terminal (avenaterminal.com)