Latest news and stories about nhr tax in government in Portugal for expats and residents.
An audit by the Inspectorate-General of Finance reveals that the tax expenditure for the non-habitual resident regime has surged by 181% since 2019, reaching 1.74 billion euros in 2024 amid concerns over regulatory oversight.
Miguel Relvas criticizes the government's lack of proactive measures to maintain economic competitiveness, proposing the implementation of non-habitual resident programs and Golden Visas to attract digital talent back to the country.
An audit by the IGF concludes that there are critical aspects in the control of the NHR regime that are not properly safeguarded and will persist until the end of the transitional regime in 2033.
The first expansion of the measure, still under António Costa, increased the weight of this benefit in fiscal expenditure. Even so, the State spends almost nine times more on non-habitual residents.
Portugal, once a top destination for retirees due to its favorable tax policies, affordable living, and appealing lifestyle, is experiencing a shift that is causing some expatriates to reconsider their plans. The country’s Non-Habitual Resident (NHR) tax regime, introduced in 2009, attracted many foreigners seeking low taxes, easy visas, and a relaxed environment. However, recent changes to tax laws, stricter residency requirements, and increased bureaucracy have eroded the appeal, leading to feelings of betrayal among loyal expats. These developments suggest Portugal's attractiveness as a retirement haven is diminishing, prompting some to explore alternative destinations.
Portugal, once a top destination for retirees due to its affordable living, favorable tax incentives like the Non-Habitual Resident (NHR) scheme, and welcoming culture, is experiencing a decline in its appeal. Recent policy changes—such as the reshaping of the NHR regime, stricter residency rules, and the reduction of the Golden Visa program—have led to feelings of betrayal among loyal expats. As a result, retirees are increasingly exploring alternative European countries, notably Greece, which offers similar benefits with more predictable and transparent policies. Portugal's shift in policies has prompted many to reconsider their plans, signaling a potential decline in its status as Europe's premier retirement haven.
The tax authority admits that a taxpayer registered as a non-habitual resident (NHR) may benefit from the Young IRS regime, provided they have never effectively used the tax advantages of that status and request its cancellation. This understanding is contained in a recent binding information from the Tax and Customs Authority (AT), published on the Finance Portal, which clarifies the matter.
Bernardo Correia benefited from the Non-Habitual Resident Status until 31 December 2025, receiving a 20% IRS (Portuguese income tax) rate, which covered six months of his time as Secretary of State for Digitalisation.
