Portugal Expat Tax Insights | Taxbordr Guides & Updates

Portugal 2025-2029 Tax Plan: Policy Signals vs Enacted Law

Written by Telmo Ramos | 15/06/2025

What This Guide Covers

Portugal's government published a programme for 2025-2029 that includes tax-related policy signals. This guide explains what the plan actually says about NHR, IFICI, and broader tax policy, what it does not say, and how to think about it without over-reacting to political 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

The programme document includes language about attracting talent and investment to Portugal, maintaining competitive tax incentives, and reviewing the effectiveness of existing measures. Some of this language has been interpreted as signalling a potential revival or expansion of NHR-type benefits.

In practice, a government programme is a statement of intent. It is not legislation. It does not create rights, obligations, or new regimes. Between a programme statement and an applicable law, there are multiple legislative and regulatory steps.

Is Portugal Bringing Back NHR?

The short answer: not in its original form, and not through this programme alone.

What the programme signals is a willingness to consider further incentive frameworks. Whether that results in changes to IFICI, a new incentive regime, or modifications to existing rules depends on future legislative action.

Planning based on what a government programme might become is speculative. Planning based on what the law currently is remains the professional standard.

What the Plan Signals About IFICI

IFICI replaced NHR as the primary tax incentive for new residents engaged in qualifying activities. The government programme does not explicitly revoke or replace IFICI. If anything, the language suggests continuation and potential refinement of incentive frameworks.

For taxpayers currently in the IFICI application process or already registered, nothing in the programme changes your current obligations or treatment. For details on IFICI eligibility and application, see our IFICI practical guide.

Broader Tax Policy Signals

Beyond NHR and IFICI, the programme touches on several areas relevant to expats and cross-border taxpayers:

  • IRS rate adjustments. Possible modifications to income tax brackets or rates, which would affect all residents.
  • 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. References to housing market measures that could affect property owners and landlords.

Each of these requires specific legislative implementation before it changes any taxpayer's position.

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.

The useful approach is to monitor developments without making premature planning decisions based on headlines.

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:

  • Do not pause planning waiting for potential future incentives. Plan under current law.
  • Do not ignore IFICI because you heard NHR might return. IFICI is the available framework now.
  • Monitor the State Budget for 2026 when it is published — that is where programme intentions become concrete proposals.
  • Document your positions based on current rules. If rules change, you adjust from a documented baseline.

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 Primarily Portuguese-source qualifying income Unknown
Duration 10 years 10 years Unknown
Tax rate 20% flat on qualifying income; exemptions on foreign income 20% flat on qualifying income Unknown
Status Closed to new applicants (transitional rules for some) Active and accepting applications No legislation proposed

FAQ

Is NHR coming back in 2026?

There is no legislation currently proposed to reinstate NHR in its original form. The government programme includes language about competitive tax incentives, but a programme is not a 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. Plan under current rules and adjust if legislation changes.

Does the government plan affect my existing NHR or IFICI status?

No. A government programme does not change existing law. If you are already registered under NHR or IFICI, your treatment continues under the rules that were in place when you registered.

When will we know if anything actually changes?

The most likely vehicle for concrete changes is the annual State Budget. Monitor the budget proposal for 2026 when it is published, typically in the autumn of the preceding year.

Last reviewed: February 8, 2026. Educational content only. Not personal tax or legal advice. Tax outcomes depend on your facts, filing history, and applicable law at the time of filing.