Portugal, a long-favored destination for global citizens, is amplifying its allure with the evolved Non-Habitual Resident (NHR) program, now reborn as NHR 2.0. Officially named the Tax Incentive Scheme for Scientific Research and Innovation (IFICI), this updated initiative strategically attracts top-tier talent and families keen on contributing to high-growth sectors such as technology, advanced research, and cutting-edge innovation.
## NHR 2.0: Unlock Tax Advantages
Building on the success of its predecessor, which welcomed over 10,000 international professionals over 15 years, NHR 2.0, launched in 2024, offers compelling tax advantages. Enjoy a flat 20% income tax rate on employment and professional earnings within Portugal. Furthermore, take advantage of tax exemptions on most foreign-sourced income – dividends, interest, capital gains, and rental revenues – positioning Portugal as an attractive hub for international talent.
Christina Hippisley, General Manager of the Portuguese Chamber of Commerce in the UK, encapsulates the government’s vision: “NHR 2.0 demonstrates Portugal’s dedication to attracting top-tier professionals, building on the success of the past 15 years. By implementing financial incentives, Portugal enhances its already compelling lifestyle proposition for families contemplating relocation.”
## Beyond Tax Breaks: The Portuguese Lifestyle
While financial incentives are undoubtedly attractive, Portugal provides a rich, fulfilling lifestyle. Blessed with a pleasant climate, magnificent landscapes, and culturally rich cities, it’s a haven for families seeking a better quality of life. Whether you prefer the dynamic energy of Lisbon or Porto, the tranquil shores of the Algarve, or the unspoiled charm of Comporta, Portugal presents unique settings tailored to a breadth of lifestyles.
The Algarve, renowned for its pristine beaches, world-class golfing, and fresh seafood, is particularly appealing to families. Its array of international schools provides quality education options, affirming its practicality for expatriate families.
## Your Move to Portugal
With the full implementation of NHR 2.0, professionals considering relocating to Portugal can leverage a full decade of tax incentives while enjoying the country’s outstanding quality of life. Whether enticed by financial opportunities or envisioning a sun-soaked, healthier lifestyle, expats can discover a vibrant, flourishing home within Portugal’s expanding economy.
