Living in Portugal: your tax residence, the IRS and the end of the NHR regime

You are considered a tax resident in Portugal if you have stayed there for more than 183 days, consecutive or not, during a 12-month period beginning or ending in the relevant year. You are also considered a resident, with fewer days, if you own property there under conditions that suggest an intention to keep and occupy it as your habitual residence. The Non-Habitual Resident (NHR) regime has been abolished for new arrivals and replaced by the IFICI (Portuguese Real Estate Tax), which provides for a special rate of 20%. This page does not cover the taxation of dividends for residents, real estate, or inheritances.

Your Portuguese tax residence

Article 16 of the Code of Income Tax on Natural Persons (CIRS), published on the Portuguese Tax Administration's Finance Portal, notably includes two criteria.

The 12-month period does not necessarily coincide with the calendar year. The text also provides for other cases, notably the crew of a ship or aircraft working for Portuguese entities, and public officials abroad. The page is presented as the current consolidated version. It refers to amendments to Law No. 82/2023 and Decree-Law No. 41/2016. The date displayed in the header is the date of consultation, not the date of the text.

And what about France? Becoming a resident of Portugal does not mean you cease to be a tax resident of France. French tax residency is based on three alternative criteria, only one of which is sufficient. If both countries consider you a resident, the tax treaty will determine who is considered, and its definition of residency will prevail over your domestic tax residency. These points are discussed in our pages on leaving France and on the tax treaty.

The IRS tax brackets in 2026

Portuguese personal income tax (IRS) is progressive. According to the government's information sheet "Portuguese Tax System, Applicable Rates 2026" (May 2026), for mainland Portugal, the tax brackets range from 12.5% for the portion of taxable income (rendimento coletável) up to €8,342 to 48% for the portion exceeding €86,634. Intermediate brackets are not shown; please refer to the information sheet.

In addition, there is a solidarity tax: 2.5 % on the portion of income between €80,000 and €250,000, and 5 % beyond that (columns for the mainland; the sheet gives separate columns for the Azores and Madeira).

The autonomous rate of 28 %

Article 72 of the CIRS provides for an autonomous rate of 28 % for several categories of income, including:

• the positive balance of capital gains and losses from certain disposal transactions (article 10 no. 1); ;
• capital income not subject to withholding tax; ;
• other income of non-residents without a permanent establishment.

For residents, the text provides an option to include some of this income in the progressive tax scale. However, it mandates this inclusion for the remaining capital gains from assets held for less than 365 days, when the taxable income, including the remaining balance, reaches the highest tax bracket (Article 72, paragraph 14): the rate of 28% does not cover this case. It also establishes a separate rate of 25% for residential rentals. The text on the Finance Portal incorporates the amendments up to and including Law No. 73-A/2025 of December 30, 2025.

Dividends. Article 72 does not specify a separate tax rate for dividends paid to residents; their taxation depends on the withholding tax stipulated in the preceding article. Therefore, the tax on dividends paid to a resident is not quantified here.

The end of the NHR regime

Paragraphs 8 to 12 of Article 16 of the CIRS, which contained the non-habitual resident regime, are reported as revoked by Law No. 82/2023 of December 29, 2023. A doctrinal note from the Portuguese tax administration (despacho of July 17, 2026) indicates that the NHR remained in force until December 31, 2023 and that the Finance Law for 2024 repealed it, replacing it with the IFICI.

For some people who became residents until December 31, 2024, the same information sheet mentions transitional provisions. These are not detailed here. If this applies to you, please read the information sheet.

IFICI in brief

The IFICI (Portuguese tax regime for income from employment and self-employment) is provided for in Article 58-A of the Tax Benefits Statute. It subjects net income from employment and self-employment of Portuguese origin to a special tax rate of 20% for 10 consecutive years. It is reserved for individuals who have not been residents of Portugal for any of the five preceding years and who carry out an eligible activity.

The application for registration must be submitted via the Finance Portal no later than January 15th of the year following the acquisition of tax residency. Portaria No. 52-A/2025, published on February 25, 2025, stipulates that the application must be submitted via the Finance Portal. Our dedicated page provides details on this system and its limitations.

What this page does not cover

The taxation of dividends for residents, capital gains on real estate, inheritance tax and its exemptions, the IMT (Immigration Tax), the IMI (Immigration Tax), and the formalities for settling in (tax identification number, registration certificate) are not covered. Check these formalities with the embassy or the AIMA (Immigration and Migration Agency) before settling in.

Numerical example (fictitious profile)

Situation. A Frenchman, a fictitious profile, stays in Portugal for 70 days from January to March, 60 days from June to August, and then 65 days from September to December, within the same 12-month period. He has no accommodation in Portugal.

Issue. He believes he is just a regular visitor, with no tax implications.

Strategy. He adds up his days of stay over the 12-month period, then compares them to the threshold of Article 16.

Result. His stays total 195 days: the threshold of 183 days is exceeded by 12 days. He meets the presence criterion of Article 16 (paragraph 2 of which specifies the calculation of days of presence, including partial presence). If he had stayed only 120 days, but had accommodation under conditions suggesting an intention to occupy it as his habitual residence, the second criterion could have applied. This calculation does not resolve the issue of dual residence with France.

What changes depending on your situation

• The number of days spent in Portugal over the 12-month period, and the availability of accommodation.
• Your residency situation in France, and the tie-breaker by the convention.
• The nature of your income: employment, self-employment, capital gains, rental income.
• Your eligibility for IFICI: history of residence and activity carried out.
• The date of your arrival, in relation to the end of the RNH.

These elements are examined on a case-by-case basis. No tax result can be announced without this examination.