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IFICI vs NHR, in One AnswerIFICI vs NHR: Side-by-Side ComparisonWhy the Switch from NHR to IFICI MattersWho Can Still Use Each Regime in 2026IFICI vs NHR, in One Answer
If you are moving to Portugal now, NHR is no longer available to you. Portugal closed the Non-Habitual Resident (NHR) regime to new arrivals from 1 January 2024 and replaced it with IFICI, the Tax Incentive for Scientific Research and Innovation.
The two regimes share a 20% flat rate on qualifying Portuguese-source income and a 10-year window, but they are built differently: NHR was open to almost any new resident, while IFICI is activity-based and only applies if your work fits one of its qualifying paths.
The real question is no longer "NHR or not", it is "does my activity qualify for IFICI, and what happens to the income IFICI does not cover".
This page sets out what changed, compares the two regimes side by side, and explains who can still rely on each. It is general information, not advice: the regime that applies to you depends on your facts and the law in force for your residency year, which Taxbordr confirms in a Tax Position Review.
IFICI vs NHR: Side-by-Side Comparison
| Dimension | IFICI | NHR Legacy and Transition |
|---|---|---|
| Entry | Portuguese residence after five years of non-residence plus an eligible EBF 58-A activity and no disqualifying prior regime | Preserved entitlement under Article 236 of Law 82/2023; earlier residence and transition evidence matter |
| Portuguese Work Income | 20% on qualifying net Category A/B income, with an aggregation option | 20% on qualifying listed high-value activity income under the preserved rules |
| Foreign Income | Exemption with progression for Categories A,B,E,F,G under CIRS 81(4), with the listed-jurisdiction exception; Category H pensions excluded | Category-specific exemption or pension treatment under the preserved version of the law |
| Pensions | Ordinary pension rules and treaty allocation | The applicable legacy version may provide exemption or 10% taxation; the entry date and conditions decide |
| Duration | Ten consecutive years measured from the first residence year, with statutory continuation/resumption conditions | Remaining part of the original ten-year period |
| Registration | Normally 15 January after the residence year; late registration starts benefits in that year for the remainder | Historic or transitional registration, including the statutory late-registration consequence |
The table distinguishes entry rules from tax treatment. See EBF 58-A, CIRS 81, the NHR transitional provisions reproduced with CIRS 16 and AT’s registration guidance.
Why the Switch from NHR to IFICI Matters
NHR rewarded becoming a Portuguese resident. IFICI rewards a qualifying activity. That is the whole shift. NHR used a broader residence-based entry test, but the result still differed by income category, qualifying activity and applicable exemption or pension rules. Under IFICI, eligibility turns on what you do and how your role is classified, so two people with the same income can land in different positions.
The group most affected is people who would have qualified for NHR almost automatically but do not have a qualifying IFICI activity. Pensioners are the clearest example: foreign pensions sat inside NHR, but they fall outside IFICI. For them the move is not "NHR closed, use IFICI instead", it is "plan the position without a special regime". Getting that wrong before arrival is expensive to unwind afterwards.
Who Can Still Use Each Regime in 2026
NHR: existing beneficiaries and people whose earlier residence and evidence satisfy the statutory transition rules may retain the remaining part of their original 10-year period. Qualifying late registration can start relief only for the remaining period; a new 2026 arrival does not enter NHR merely by moving.
IFICI: new tax residents whose qualifying activity fits one of the regime's paths and who elect and substantiate it correctly.
Neither: many new residents, including most pensioners, who need the position planned under the standard rules and the relevant treaty.
Which box you fall into is rarely obvious from a job title alone. IFICI eligibility depends on how the activity is classified and which authority governs it, which is exactly what a Tax Position Review confirms before you file or apply. If you want a quick indicative read first, try the IFICI eligibility checker.
Primary Sources
These official sources are the starting point for checking current rules before applying them to a client fact pattern.
Frequently asked questions
Is NHR Still Available in 2026?
NHR is not a new-entry route for someone first becoming Portuguese tax resident in 2026. Existing beneficiaries and qualifying historic or statutory transitional cases depend on residence dates and evidence. An eligible late request can apply from its registration year for the original period remaining; it does not start ten new years. IFICI is a separate option for new residents whose work and other circumstances meet its conditions.
Is IFICI Just NHR with a New Name?
No. They share a 20% flat rate on qualifying Portuguese-source income and a 10-year window, but NHR was open to almost any new resident while IFICI is activity-based. Many people who would have qualified for NHR do not qualify for IFICI.
Do Pensioners Qualify for IFICI?
Foreign pensions fall outside IFICI. Pensioners who would once have relied on NHR generally need the position planned under the standard rules and the relevant tax treaty, rather than a special regime.
How Do I Know If My Activity Qualifies for IFICI?
IFICI eligibility depends on how your role is classified and which authority governs the path, such as innovation, R&D, listed professions, recognised investment projects, or university and research. A Tax Position Review confirms eligibility before you elect the regime.
What If I Do Not Qualify for Either Regime?
You are taxed under the standard Portuguese rules, with treaty relief where it applies. With planning, residency timing and income structure still matter. The Tax Position Review sets out the position before you commit.
