Portugal · Salary

Portugal: income tax for new residents after the NHR regime ended

By Leonard Chioveanu · Updated 22 October 2026 · 7 min read

For years, Portugal's NHR regime offered newcomers a flat 20% rate. It closed to new applicants from 2024. Most new residents now pay the normal progressive rates of 12.5% to 48% plus 11% social security, unless they qualify for the new IFICI regime or IRS Jovem.

Normal income tax (IRS)

Portugal has nine brackets, from 12.5% on the first €8,342 to 48% above €86,634. Employees deduct a fixed €4,587 (or their social security, if higher) before tax. Above €80,000 a solidarity surcharge of 2.5% applies, and 5% above €250,000.

Single, no dependants, mainland rates for 2026. Portuguese salaries are paid 14 times a year, with extra payments for summer and Christmas. Madeira and the Azores have lower rates.

IFICI: the new 20% regime

The incentive for scientific research and innovation (IFICI), often called "NHR 2.0", taxes qualifying income at a flat 20% for 10 years, and exempts most foreign income. It is much narrower than NHR. You must:

• not have been tax resident in Portugal in the previous five years;
• work in an eligible role, such as researchers and university teachers, jobs in certified start-ups, highly qualified roles in companies with qualifying investment or export activity, and certain R&D jobs;
• usually hold at least a degree with relevant professional experience;
• register by 15 January of the year after you become resident.

On a €60,000 qualifying salary, a flat 20% means €12,000 of tax instead of about €15,375, so net pay rises to about €41,400 a year.

IRS Jovem for under-35s

If you are 35 or younger, part of your work income is tax-free for the first 10 years after you start working: 100% in the first year, 75% in years two to four, 50% in years five to seven and 25% in years eight to ten. The exemption is capped at 55 times the social support index (IAS), about €29,000 a year. It does not apply in years when you use IFICI or another special regime. Your years of work in other countries count towards the 10, so check where you stand.

Things to sort out early

• NIF (tax number), needed for almost everything.
• Residence: you are resident if you spend more than 183 days in Portugal in any 12-month period, or have a home you intend to live in.
• Savings income is taxed at a flat 28% unless you choose to add it to your other income.

Calculate your Portuguese net salary →

This guide is general information based on the tax rules we could verify for 2026, not tax or financial advice. Rules change and personal situations differ, so check with the tax authority or a qualified adviser before you act. Spotted a mistake? Email contact@expatcents.com.