The 2024 State Budget Law introduced a new tax incentive regime aimed at attracting talent and promoting research and innovation in Portugal.
Who can benefit?
- Tax residents in Portugal, i.e. those who spend more than 183 days a year in Portugal or, spending less time, have a permanent home in Portugal, among other factors indicating that Portugal is their habitual residence
- Those who have not been tax resident in the previous five years and earn income in certain professional categories, such as higher education lecturers, highly qualified professions in finance and economics, among others.
What are the advantages?
- A special 20% rate on net income from Category A (employment) and Category B (self-employment);
- Exemption on income earned abroad, with the exception of pensions.
Duration and exclusions
The benefit can be enjoyed for a non-renewable period of 10 years, consecutive or not, depending on the taxpayer being tax resident in each year.
The regime does not apply to those who have already benefited from the Non-Habitual Resident (NHR) regime or opted for taxation under the Former Residents regime (Programa Regressar).
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