--- title: "Portugal tax for new residents 2026: rates and regimes" url: https://settleanywhere.com/countries/portugal/tax/ lang: en updated: 2026-10-11 --- # Portugal tax Tax residence: More than 183 days in any 12-month period starting or ending in the tax year. 2 special regimes for new residents: Tax Incentive for Scientific Research and Innovation and Non-Habitual Resident regime. Checked against official sources on 11 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## Tax residence - More than 183 days in any 12-month period starting or ending in the tax year · Residence by presence. - Residence test in Art. 16 IRS Code. ## Special regimes for new residents Special regime ### Tax Incentive for Scientific Research and Innovation (IFICI) 20% tax Foreign-source income: IFICI (10 years) **Details** - On: Net Portuguese-source Category A (employment) and Category B Special 20% IRS rate on net Category A and B income from listed qualifying activities for 10 consecutive years; qualifying foreign-source income is generally exempt except Category H, with a 35% rate on certain low-tax-jurisdiction income. (sources 1, 2, 3, 4) #### Taxed on Net Portuguese-source Category A (employment) and Category B (business/professional) income from the Art. 58-A listed activities; foreign-source income generally exempt except Category H pensions and listed low-tax-jurisdiction items. #### Who it applies to - Become Portuguese tax resident and not have been resident in Portugal in any of the five preceding years. - Carry out an activity in Art. 58-A(1): qualified research or teaching, listed highly qualified professions (doctorate, or degree plus 3 years of experience), qualified jobs under investment contracts or recognised AICEP/IAPMEI activities, R&D staff, certified startups, or Azores/Madeira activities. - A job (posto de trabalho) under paragraphs a, b, d, f and g needs an employment contract; a service contract with a higher-education institution can qualify for teaching and research. - Register on the Finance Portal by 15 January of the year after becoming resident; later registration applies from the year of registration for the remaining period. - The right applies each year only while tax resident and still earning qualifying income; a new qualifying activity must start within six months. #### Exclusions - Not available to anyone who has benefited from the NHR regime or opted for Art. 12-A IRS Code taxation. - Usable once per taxpayer. - Category H (pension) income is outside the foreign-income exemption. - Income from listed low-tax jurisdictions is taxed at 35%. #### Days in the country - More than 183 days in any 12-month period starting or ending in the tax year · Portuguese tax residence if present more than 183 days, or if a dwelling is held on any day in the period in conditions suggesting intent to keep it as habitual residence. #### Tax residence Tax residence is determined under Art. 16 IRS Code; the benefit period is 10 consecutive years from the year of registration as resident. #### Visas No visa confers IFICI; it is claimed through tax residence, qualifying activity and registration. #### Other taxes IFICI concerns IRS only; VAT, social security and foreign taxes are separate. Checked against official sources on 10 Oct 2026 [Change log](https://settleanywhere.com/changes/) Special regime ### Non-Habitual Resident regime (repealed; transitional only) Tax relief Foreign-source income: NHR (transitional) **Details** - On: Existing NHR beneficiaries keep the regime until the end of the original 10-year period - Who: Registered as NHR on 1 January 2024 NHR was repealed from 1 January 2024. It continues only for people registered as NHR on that date and for those who became tax resident by 31 December 2024 and applied; applications after 31 March 2025 start only from the year of application and still end in 2033. (source 3) #### Taxed on Existing NHR beneficiaries keep the regime until the end of the original 10-year period; the 2024 registration cohort ends in 2033. #### Who it applies to - Registered as NHR on 1 January 2024. - Or became Portuguese tax resident by 31 December 2024, is 18 or older, was not resident in Portugal in the five previous years, and holds proof of a prior link to Portugal, such as a job promise, contract or posting agreement concluded by 31 December 2023, a lease concluded by 10 October 2023, or a residence visa or permit (or a started application) by 31 December 2023. #### Exclusions - Not available to people who became tax resident after 31 December 2024. - Late applications (after 31 March 2025) lose the years before the year of application. #### Tax residence Benefit period ends at the 10th consecutive year counted from the year of registration (2033 for 2024 registrants). #### Visas Not tied to a visa. #### Other taxes Social security, VAT and other taxes unaffected. Checked against official sources on 10 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## Standard rules and foreign-source income Standard rules ### Portuguese personal income tax (IRS): general progressive rates for 2026 Up to 48% tax **Details** - On: Taxable income (rendimento coletavel) of residents - Who: Tax resident under Art. 16: more than 183 days in a 12-month period - Limit: €8,342/yr ≈ $9,320 Resident individuals are taxed on worldwide income, including foreign-source income, at progressive rates from 12.5% up to 48% on the 2026 brackets set by the 2026 State Budget (Lei 73-A/2025: first bracket up to EUR 8,342, (≈ $9,320) top rate above EUR 86,634 (≈ $96,800)), plus an additional solidarity rate of 2.5% on taxable income above EUR 80,000 (≈ $89,400) and 5% above EUR 250,000 (≈ $279,000); non-residents are taxed on Portuguese-source income. (sources 5, 6, 4) #### Taxed on Taxable income (rendimento coletavel) of residents; the brackets entered are the Art. 68 wording introduced by Lei 73-A/2025 of 30 December 2025 (State Budget 2026), which updated the 2025 limits by the coefficient 1.0351. #### Who it applies to - Tax resident under Art. 16: more than 183 days in a 12-month period, or a dwelling kept as habitual residence. #### Limits - EUR 8,342 a year (≈ $9,320) · Upper limit of the 12.5% band - EUR 12,587 a year (≈ $14,100) · Upper limit of the 15.7% band - EUR 17,838 a year (≈ $19,900) · Upper limit of the 21.2% band - EUR 23,089 a year (≈ $25,800) · Upper limit of the 24.1% band - EUR 29,397 a year (≈ $32,800) · Upper limit of the 31.1% band - EUR 43,090 a year (≈ $48,100) · Upper limit of the 34.9% band - EUR 46,566 a year (≈ $52,000) · Upper limit of the 43.1% band - EUR 86,634 a year (≈ $96,800) · Upper limit of the 44.6% band; above this the rate is 48% - EUR 80,000 a year (≈ $89,400) · Additional solidarity rate of 2.5% applies to taxable income above this amount, up to EUR250,000 (≈ $279,000) (Art. 68-A) - EUR 250,000 a year (≈ $279,000) · Additional solidarity rate of 5% applies to taxable income above this amount (Art. 68-A) #### Days in the country - More than 183 days in any 12-month period starting or ending in the tax year · Residence by presence. #### Tax residence Residence test in Art. 16 IRS Code. #### Visas Visa type does not change ordinary IRS rates. #### Other taxes Social security and VAT are separate regimes; the additional solidarity rate is charged on top of the Art. 68 rates. Checked against official sources on 11 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## VAT, social security and other taxes - IFICI concerns IRS only; VAT, social security and foreign taxes are separate. - Social security, VAT and other taxes unaffected. - Social security and VAT are separate regimes; the additional solidarity rate is charged on top of the Art. 68 rates. ## Questions people ask ### When do you become a tax resident in Portugal? More than 183 days in any 12-month period starting or ending in the tax year (Residence by presence). Residence test in Art. ### Who qualifies for Tax Incentive for Scientific Research and Innovation? Become Portuguese tax resident and not have been resident in Portugal in any of the five preceding years. No visa confers IFICI; it is claimed through tax residence, qualifying activity and registration. ### Who qualifies for Non-Habitual Resident regime? Registered as NHR on 1 January 2024. Not tied to a visa. ### How are D8 nomad visa holders taxed in Portugal? No special regime in our records is tied to the D8 nomad visa. The standard rules apply: Resident individuals are taxed on worldwide income, including foreign-source income, at progressive rates from 12.5% up to 48% on the 2026 brackets set by the 2026 State Budget (Lei 73-A/2025: first bracket up to EUR 8,342, (≈ $9,320) top rate above EUR 86,634 (≈ $96,800)), plus an additional solidarity rate of 2.5% on taxable income above EUR 80,000 (≈ $89,400) and 5% above EUR 250,000 (≈ $279,000); non-residents are taxed on Portuguese-source income. ### How are D8 nomad (temporary stay) holders taxed in Portugal? No special regime in our records is tied to the D8 nomad (temporary stay). The standard rules apply: Resident individuals are taxed on worldwide income, including foreign-source income, at progressive rates from 12.5% up to 48% on the 2026 brackets set by the 2026 State Budget (Lei 73-A/2025: first bracket up to EUR 8,342, (≈ $9,320) top rate above EUR 86,634 (≈ $96,800)), plus an additional solidarity rate of 2.5% on taxable income above EUR 80,000 (≈ $89,400) and 5% above EUR 250,000 (≈ $279,000); non-residents are taxed on Portuguese-source income. ≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated. **Sources (6)** ## Official sources 1. [IFICI FAQ](https://info.portaldasfinancas.gov.pt/pt/apoio_contribuinte/questoes_frequentes/Pages/faqs-01018.aspx) · Portuguese Tax and Customs Authority (AT) · checked 2026-10-10 2. [Tax Benefits Statute Art. 58-A (IFICI)](https://info.portaldasfinancas.gov.pt/pt/informacao_fiscal/codigos_tributarios/bf_rep/Pages/EBF58A.aspx) · AT · checked 2026-10-10 3. [NHR registration: repeal and transition](https://info.portaldasfinancas.gov.pt/en/tax-information/getting-started-in-portugal/non-habitual-resident/register-as-a-non-habitual-resident/Pages/default.aspx) · AT · checked 2026-10-10 4. [IRS Code Art. 16 (tax residence)](https://info.portaldasfinancas.gov.pt/pt/informacao_fiscal/codigos_tributarios/cirs_rep/Pages/irs16.aspx) · AT · checked 2026-10-10 5. [IRS Code Art. 68 general rates (wording of Lei 73-A/2025)](https://info.portaldasfinancas.gov.pt/pt/informacao_fiscal/codigos_tributarios/cirs_rep/Pages/irs68.aspx) · AT · checked 2026-10-10 6. [IRS Code Art. 68-A additional solidarity rate](https://info.portaldasfinancas.gov.pt/pt/informacao_fiscal/codigos_tributarios/cirs_rep/Pages/irs68a.aspx) · AT · checked 2026-10-11