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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 (current) | NHR (legacy) |
|---|---|---|
| Status | Open. Replaced NHR for new tax residents from 1 January 2024. | Closed to new applicants since 1 January 2024. Existing registrations continue. |
| Headline rate | 20% flat on qualifying Portuguese-source employment and self-employment income. | 20% flat on Portuguese-source income from listed high-value activities. |
| Foreign-source income | Exemption on foreign employment, self-employment, investment, rental, and capital-gains income, by category. | Broad foreign-source exemptions or reductions, depending on income type and treaty. |
| Pensions | Not covered. Foreign pensions are taxed under the standard rules with treaty allocation. | Foreign pensions taxed at a reduced rate under the later NHR rules. |
| Who qualifies | Activity-based: your role must fit a qualifying path such as innovation, R&D, listed professions, recognised investment projects, or university and research. | Almost any new resident not Portuguese tax-resident in the prior five years. |
| Duration | 10 consecutive years. | 10 years from registration. |
| How you apply | Registration request by 15 January to the competent body for your path, with AT handling some paths and the annual IRS return carrying the correct declaration. | Historic registration with the tax authority before the regime closed. |
The figures and dates above describe the regimes as Taxbordr explains them on its IFICI and NHR pages. Exact rates, categories, and deadlines should be confirmed against the law in force for your residency year before you rely on them.
Why the Switch from NHR to IFICI Matters
NHR rewarded becoming a Portuguese resident. IFICI rewards a qualifying activity. That is the whole shift. Under NHR, a retiree, a remote employee, and a founder could all expect broadly similar treatment. 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: only people already registered before the regime closed, for the remainder of their original 10-year period, subject to ongoing requirements.
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?
Not for new arrivals. Portugal closed NHR to new applicants from 1 January 2024. If you registered before then, your existing 10-year period generally continues, subject to ongoing requirements. New residents look to IFICI instead, if their activity qualifies.
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.
