About 60% of skilled foreign professionals who benefited from the non-habitual resident (Residente Não Habitual or RNH) tax regime have chosen to stay in Portugal, according to a new report. The data shows that most participants remained in the country even after their special tax benefits ended. The findings follow years of debate over the economic impact and fairness of preferential tax rules for foreign residents.
Most Expats Under NHR Tax Regime Remain in Portugal
Thursday, 8 October 2026AI summary
Context & Explainers
The non-habitual resident (Residente Não Habitual or RNH) tax scheme was a ten-year program offering a flat 20% personal income tax rate on qualifying Portuguese-sourced earnings and tax exemptions on most foreign income. Introduced in 2009 to attract qualified professionals and retirees, the government phased out the original regime at the end of 2023, replacing it with a more targeted scientific and business incentive. Studies show that roughly 60% of foreign residents who enrolled in the program chose to remain in Portugal after their tax benefits concluded.
