Tax Advisor & International Tax Expert
EU member. 20% flat tax (IFICI). Corporate tax falling to 17%.
The NHR programme has been closed to new applications since March 2025. The replacement, IFICI, has significantly stricter eligibility requirements.
Portugal was for years the insider tip among tax advisers: the NHR (Non-Habitual Resident) programme offered 10 years of tax advantages that few other EU countries could match. Since NHR closed in March 2025, the landscape has shifted – but Portugal stays on many people's relocation lists for good reason. The successor IFICI has stricter requirements, yet the falling corporate tax rate and outstanding quality of life keep Portugal firmly in the conversation.
Corporate Tax
Income Tax (top rate)
Capital Gains Tax
Dividend Tax
VAT
Inheritance Tax
Portugal's tax landscape is in transition. Corporate tax is dropping from 21% (2025) to 17% by 2028. SMEs pay just 15% on the first €50,000 of profit. The IFICI programme (NHR's successor) offers qualifying professionals a 20% flat tax for 10 years – but only for specific professions such as IT specialists, researchers and tech startup founders. For most entrepreneurs, retirees and passive investors, IFICI simply isn't available. Standard income tax rates remain high at up to 48%.
Tax framework conditions compared
Corporate Tax
Income Tax (top rate)
Capital Gains Tax
Dividend Tax
Compare estimated corporate tax on your business profits.
€200,000
Estimated annual savings
€17,265
17% less tax
Net after tax
€116,640
instead of €99,375
Simplified illustration. Actual tax burden depends on individual factors.
Every case is different. Tell me about yours – the initial assessment is free.
Enquire nowPortugal excels where the numbers don't tell the whole story: quality of life. Lisbon and Porto consistently rank among Europe's most liveable cities, and the Algarve offers one of the best climates in the world. The tech scene is growing fast (Web Summit, startup ecosystem), infrastructure is modern and costs sit comfortably below Western European levels. For EU citizens, relocating is straightforward. The D7 visa also gives non-EU nationals with passive income a route in. Portuguese is helpful but in Lisbon and along the Algarve, English goes a long way.
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Read moreBriefly outline where you stand – you'll receive a free initial assessment of your tax options in Portugal.
Get in touchAll information provided without guarantee. Tax regulations are subject to constant change. For individual advice, please consult a qualified tax advisor.
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