Portugal has long been an attractive destination for expats, investors, and retirees seeking a favorable tax environment and high quality of life. The Non-Habitual Residency (NHR) regime has been a key part of this appeal, offering significant tax advantages to foreign residents. In 2024, Portugal introduced a new version of this scheme — NHR 2.0 — with revised terms and a focus on high value-added professions.
If you're considering relocating to Portugal or investing in Portuguese real estate, understanding the details of the NHR 2.0 regime could help you make the most of your move. In this article, we'll break down the key changes, benefits, and eligibility criteria of the new NHR 2.0 program.
The Non-Habitual Residency (NHR) 2.0 regime was introduced to replace the original NHR scheme, which ended for new applicants in 2023. The new version maintains Portugal’s reputation as a tax-friendly destination while refining the eligibility criteria to target professionals in high value-added sectors.
Under NHR 2.0, qualified individuals can benefit from:
The program is designed to attract highly skilled professionals, encouraging them to contribute to Portugal’s economy through their expertise and investments.
To qualify for NHR 2.0, you must meet the following general requirements:
✔️ Become a tax resident in Portugal — You must spend at least 183 days per year in Portugal or have a permanent residence in the country.
✔️ Not have been a tax resident in Portugal in the five years before your application.
✔️ Engage in a high value-added profession — This includes specific professions and fields recognized for their economic contribution to Portugal.
One of the key differences in NHR 2.0 is the focus on high value-added professions. Eligible applicants must work in one of the following areas or have relevant qualifications:
This targeted approach ensures that Portugal attracts skilled professionals who will positively impact the country’s economy and workforce.
The tax advantages under NHR 2.0 remain one of the main draws for foreign residents:
✅ Reduced Income Tax on Portuguese Income
Professionals working in high value-added sectors can benefit from a reduced personal income tax rate of 20% for a period of 10 years.
✅ Tax Exemptions on Foreign Income
Depending on the double taxation agreements in place between Portugal and the applicant’s home country, foreign income (such as pensions, dividends, and capital gains) may be exempt from Portuguese taxes.
✅ Capital Gains Tax Benefits
Income from capital gains may be subject to reduced rates or exemptions, depending on the nature of the asset and the country of origin.
✅ Wealth and Inheritance Tax Exemptions
Portugal does not impose a wealth tax or inheritance tax for direct family members, making it a financially attractive destination for estate planning.
The application process for NHR 2.0 involves several key steps:
For foreign property investors and homebuyers, NHR 2.0 presents an excellent opportunity to optimize your financial situation while benefiting from Portugal's stable real estate market.
At Divine Home, we specialize in helping international clients navigate the Portuguese property market with confidence. Our team of experienced real estate professionals can assist you with:
✔️ Finding the perfect property that meets your needs.
✔️ Understanding the financial and tax implications of your investment.
✔️ Connecting you with trusted legal and financial advisors to guide you through the NHR 2.0 application process.
If you're considering relocating to Portugal or investing in Portuguese real estate, now is the time to explore the benefits of NHR 2.0. The new regime offers incredible tax advantages for high-value professionals and investors — and Divine Home is here to help you make the most of it.
👉 Contact us today to find out how you can benefit from NHR 2.0 and secure your dream property in Portugal!
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