# Portugal 2025-2029 tax plan: what is proposed vs enacted [Moving to Portugal](/moving-to-portugal/) Article Updated 18 October 2026 Law as at 3 July 2026 4 min read Signed by our advisers · 4.7 on Google, 43 reviews The IRS rate cuts in Portugal's 2025-2029 government programme are law for 2025 and 2026, in the income-tax rate table; later cuts remain proposals. The 2027 State Budget proposal, submitted to Parliament on 8 October 2026, changes the law only once it is approved and published. No law has reopened NHR, which the 2024 State Budget law closed to new entrants from 1 January 2024, and IFICI remains the regime for eligible new residents. ## What Portugal's 2025-2029 tax plan proposes vs enacts Portugal's government published a programme for 2025-2029 that includes tax-related policy signals. Headlines suggesting "NHR is coming back" oversimplify what is a political programme, not a legislative act. ## What the 2025-29 government plan actually says Among its main measures, the programme commits to cutting IRS by EUR 2,000 million over the parliamentary term, EUR 500 million of it in 2025, especially for the middle class, and to reviewing and rationalising tax benefits. It also speaks of retaining talent and attracting investment, but it does not mention NHR or IFICI. A government programme is a statement of intent. It is not legislation. It does not create rights, obligations, or new regimes. ## Is Portugal bringing back NHR? The short answer: not in its original form, and not through this programme alone. The programme speaks of retaining talent and attracting investment, but it proposes no specific regime. Any change to IFICI, a new incentive regime or a change to the existing rules depends on future legislation. ## What the plan signals about IFICI IFICI succeeded NHR as the main tax incentive for new residents engaged in qualifying activities. The government programme does not mention IFICI, so it neither revokes nor replaces it. For details on IFICI eligibility and application, see our [IFICI practical guide](/insights/ifici-2026-guide/). ## Broader tax policy signals Beyond NHR and IFICI, the programme touches on several areas relevant to expats and cross-border taxpayers: - IRS rates. The income-tax rate table has already been changed twice: by the law of 22 July 2025 and by the State Budget for 2026 (law of 30 December 2025). Any further change needs a new law. On 9 October 2026 Parliament approved a third cut, for 2026 income, of 0.3 to 0.5 points in the first six bands; it awaits promulgation and the Government's decree-law. - Social security. References to contribution framework review, which could affect self-employed and business owners. - Investment incentives. Broader language about attracting foreign direct investment and entrepreneurship. - Real estate taxation. The housing tax package in the decree-law of 20 May 2026 is now law. It includes a 10% IRS rate on residential rents within the moderate-rent limit, relief for capital gains reinvested in moderate-rent housing, 6% [VAT](/guides/vat-tax-portugal/) on eligible construction and renovation work and a 7.5% [IMT](/guides/portugal-real-estate-tax-guide/) rate on homes bought by non-residents. Each measure has its own conditions and time limits. ## How to think about government programmes Government programmes in Portugal (and elsewhere) follow a pattern: 1. ### Programme published Political intent, not law. 2. ### State Budget proposed Specific measures drafted for the annual budget. 3. ### Parliamentary approval Budget voted on and potentially amended. 4. ### Publication in Diário da República Becomes law. 5. ### Administrative guidance Tax authority publishes implementation rules. Until step 4, nothing changes your filing position. Even after step 4, the effective date and transitional provisions matter. ## What this means for your tax planning If you are currently planning a move to Portugal, already resident, or in the middle of regime-related decisions: - Plan under current law. - The State Budget for 2026 (published 30 December 2025, in force from 1 January 2026) has since been enacted. It did not reintroduce NHR or restructure IFICI: IFICI remains the active framework for new arrivals, and NHR remains closed to new applicants apart from the NHR transitional cases. Continue monitoring future budgets, since the government's stated multi-year plan could still resurface in a later one. ## Comparison: NHR vs IFICI vs potential future framework | Feature | NHR (repealed for new entrants) | IFICI (current) | Future framework (speculative) | | --- | --- | --- | --- | | Eligibility | New residents, 5-year non-residency | Activity-dependent, entity validation | Unknown | | Income scope | Foreign + Portuguese qualifying income | Qualifying category A and B activity income, plus foreign-source A, B, E, F and G income exempt with progression | Unknown | | Duration | 10 years | 10 years | Unknown | | Tax rate | Former NHR: 20% on specified Portuguese Category A or B income, with category, source, treaty, and anti-abuse conditions for foreign-income relief | IFICI: 20% on eligible Portuguese Category A or B activity income | Unknown | | Status | Closed to new entrants from 1 January 2024, except the NHR transitional cases | Active for eligible taxpayers | Do not rely on a future framework until legislation is enacted | ## Frequently asked questions ### Is NHR coming back in 2026? The former NHR regime was revoked from 1 January 2024, subject to statutory transitional rules. IFICI is the current incentive under the tax-benefits rules for qualifying research and innovation activities. Government programmes and announcements are not law. ### Should I wait to move to Portugal until a better incentive is available? That is a personal decision, but from a tax planning perspective, delaying based on speculative future benefits is usually not productive. ### Does the government plan affect my existing NHR or IFICI status? A government programme does not itself change the law. NHR or IFICI treatment depends on the legislation applicable to the tax year, transitional provisions and continuing eligibility. Registration does not freeze every future tax rule. ### When will we know if anything actually changes? The most likely vehicle for concrete changes is the annual State Budget. The Government submitted the 2027 State Budget proposal to Parliament on 8 October 2026, and the final vote is scheduled for 24 November 2026. Its measures remain proposals until the budget law is approved and published in the Diário da República. This guide is by **[Telmo Ramos](/about/)**, our founder, an economist and member no. 16379 of the Ordem dos Economistas. ## Related guides - Guide · Law as at 19 October 2026 ### [IFICI: register by 15 January 2027](/guides/ifici/) IFICI was created by the 2024 State Budget law, the same law that closed NHR to new entrants. - Guide · Law as at 19 October 2026 ### [IRS 2025 in Portugal: correct a return or file late](/guides/irs-2025-portugal/) Filing Portugal IRS for 2025 income in 2026: Modelo 3, Anexo J and what to check when the normal deadline has passed or a return needs correcting. - Guide · Law as at 19 October 2026 ### [Portugal tax calendar 2026: every deadline](/guides/portugal-tax-calendar-2026/) Next dates: IFICI registration by 15 January 2027 for those becoming tax residents in 2026. The IRS return for 2026 income is filed from 1 April to 30 June 2027. ## Tell us about your situation We reply within 2 working days with the right service, its price and how to start. ## Tax Consultation A 30-minute call with your adviser, then a follow-up memo within 3 working days after the call. [Book a Tax Consultation](/book/) --- Source: https://taxbordr.com/insights/portugal-2025-29-government-plan/ General guidance only. Individual facts govern.