Portugal income tax for foreigners: non-residents, IFICI (ex-NHR) and more
Your tax residency decides how much IRS you pay in Portugal. A plain-English summary of the regimes for people moving to or working in Portugal.
Resident or non-resident?
You are tax resident if you spend more than 183 days a year in Portugal, or have your habitual home here on 31 December. In the year you arrive or leave, residence can be split: you are resident only from the day you move here (or until the day you leave). Residents are taxed on worldwide income at progressive rates with deductions; non-residents only on Portuguese-source income at a flat rate.
Non-residents: flat 25%
Only Portuguese-source income is taxed, at a flat 25% withheld at source, with no personal deductions and no IRS Jovem. You normally still pay 11% Portuguese Social Security, unless you are covered by another country's system (for example with an EU A1 posting certificate).
EU/EEA residents (art. 17-A)
If at least 90% of your income comes from Portugal, you can elect to be taxed as a resident and get the difference back as a refund. Your employer still withholds 25% during the year.
IFICI — the successor of NHR
Qualifying professions (research, tech, startups…) pay 20% on eligible employment or freelance income for 10 years. NHR closed to new applicants in 2024. To qualify you must not have been resident in Portugal in the previous 5 years.
Programa Regressar
Former residents who return by 2026 after 5 years abroad have 50% of their work income excluded from IRS for 5 years (up to €250,000).
Example: €3,000 gross a month
Monthly withholding, single, no dependants, Mainland, €330 Social Security in every case:
| Regime | IRS withheld | Net/month |
|---|---|---|
| Resident (table I) | €663.14 | €2,006.86 |
| Non-resident (25%) | €750.00 | €1,920.00 |
| IFICI (20%) | €600.00 | €2,070.00 |
| Programa Regressar | €168.17 | €2,501.83 |
This is withholding only: a resident's final tax may be lower after deductions, while for non-residents the 25% is usually final. See the net salary guide.
Foreign income and double taxation
Once you are resident, income from other countries is also declared in Portugal — for example a salary from a foreign employer while you work remotely from here. If that income was already taxed abroad, you can generally deduct the foreign tax (a double taxation credit), within the limits of the law and of the treaty Portugal has with that country. Keep proof of the tax paid abroad.
Step by step when you arrive
- Get a NIF (tax number) and register your Portuguese address with the tax office once you live here.
- Confirm your status (resident, non-resident, IFICI or Regressar) and tell your employer, so withholding is right.
- Register with Social Security if you work in Portugal, employed or self-employed.
- File your IRS return the following year, flagging the regime that applies.
Common mistakes
- Thinking under 183 days is enough — a habitual home here on 31 December also makes you resident.
- Counting on NHR, which no longer accepts newcomers.
- Comparing regimes on monthly withholding instead of the final annual tax.
FAQ
Do non-residents pay more IMT when buying a home?
Since 25 May 2026, yes: a flat 7.5%, with exceptions. See the IMT guide.
I'm under 35 and just moved here. IRS Jovem or IFICI?
You cannot combine them; compare both in the calculator. See IRS Jovem.
I work remotely for a foreign company. Do I pay tax in Portugal?
If you are resident here, generally yes. Foreign employers do not usually withhold Portuguese IRS, so the tax is settled in your annual return — set money aside for it.
Do non-residents get an IRS refund?
Generally not, as the 25% is final — except under the art. 17-A election. See the IRS refund guide.