Portugal NHR 2.0: how IFICI replaced the NHR regime

By the HRPricing editorial teamReviewed October 18, 2026How we research and score

Portugal NHR 2.0 is the informal name for IFICI, the tax incentive for scientific research and innovation that replaced the non-habitual resident (NHR) regime for new applicants from 2024. It is widely reported to tax qualifying Portuguese work income at a flat 20% for up to 10 years, only in listed jobs. We could not confirm those terms on an official Portuguese source, so check them with the tax authority before you plan around them.

NHR 2.0 (IFICI) is Portugal's special personal income tax regime for new residents in qualifying research, innovation and highly skilled jobs, which replaced the non-habitual resident regime for new applicants.

On this page
  1. What NHR 2.0 means in practice
  2. What it does not change: social security
  3. How it shows up in payroll
  4. NHR 2.0 vs the old NHR vs a digital nomad visa

What NHR 2.0 means in practice

The old NHR closed to new entrants at the start of 2024. Its replacement, IFICI, is reported to keep a flat 20% rate on Portuguese employment and self-employment income while narrowing who can use it. As commonly described, a person must not have been tax resident in Portugal in the previous five years and must work in an eligible role: higher education teaching and research, jobs at certified startups, research and development staff, and certain highly qualified jobs at companies that hold tax benefits or that the investment agencies approve. Reports also describe most foreign-source income as exempt during the period, with exceptions.

The rate, the 10-year term, the five-year rule, the eligible jobs, the treatment of foreign income, the transition rules for the old NHR and the withholding mechanics on this page were not confirmed from an official Portuguese source. Check the current rules with the Autoridade Tributaria before relying on them.

What it does not change: social security

IFICI is an income tax regime, so it does not change social security. Under the general regime rates in our Portugal research, a Portuguese employer pays 23.75% and the employee 11%, with no ceiling, on all 14 payments: 12 monthly salaries plus the holiday and Christmas subsidies. Those rates come from a bank's rate sheet, because the Segurança Social pages could not be read, so treat them as a secondary source.

Example. On a EUR 34,000 salary (14 payments of EUR 2,428.57), the employer pays 23.75% x 34,000 = EUR 8,075 in social security and the employee pays 11% x 34,000 = EUR 3,740, with or without IFICI. Work-accident insurance comes on top. See what it costs to employ someone in Portugal and the Portugal minimum wage (EUR 920 a month in 2026, paid 14 times).

How it shows up in payroll

The employer, or the employer of record if you hire through one, withholds income tax monthly. Ask your EOR before the start date whether it can apply an IFICI rate in monthly withholding or whether the difference is left for the annual return; we did not confirm how this works. the published EOR fees we track run from $99 to $699 per employee per month (checked Oct 16, 2026), compared in EOR pricing.

NHR 2.0 vs the old NHR vs a digital nomad visa

  • Old NHR: closed to new applicants from 2024; people already in it are reported to keep it for the rest of their period.
  • NHR 2.0 (IFICI): a narrower job list and, as reported, the same 20% headline rate on qualifying Portuguese work income.
  • Digital nomad visa: an immigration status, not a tax regime. A digital nomad who becomes Portuguese tax resident pays normal rates unless the job qualifies for IFICI.

If your company has no entity in Portugal, compare an EOR against setting up an entity.

Frequently asked questions

What is Portugal NHR 2.0?
NHR 2.0 is the informal name for IFICI, the incentive for scientific research and innovation that replaced Portugal's non-habitual resident regime for new applicants from 2024. It is reported to tax qualifying Portuguese work income at a flat 20% for up to 10 years; we could not confirm those terms on an official Portuguese source.
What are the NHR 2.0 requirements?
Under IFICI a person generally must not have been Portuguese tax resident in the previous five years and must work in an eligible job, such as higher education research, a certified startup, R&D or an approved highly qualified role. Confirm the current list with the Portuguese tax authority.
Is the old Portugal NHR program still open?
No. The non-habitual resident regime closed to new entrants at the start of 2024. People already registered are reported to keep it for the rest of their period; confirm your own status with the Portuguese tax authority.
Does NHR 2.0 lower employer costs in Portugal?
No. It is an income tax regime only. Employers still pay social security on all 14 payments: 23.75% in our Portugal research (a secondary rate sheet), so EUR 8,075 on a EUR 34,000 salary.
Can a remote worker for a US company use NHR 2.0?
Only if the job falls in an eligible category. As IFICI is commonly described, remote work for a foreign company is not by itself a qualifying activity. Confirm with the Portuguese tax authority.
Sources (5)
  1. DGERT (Portugal): Retribuicao minima mensal garantida para 2026 (checked Oct 16, 2026)
  2. Deel: Deel pricing page (checked Oct 16, 2026)
  3. Payoneer Workforce Management (Skuad): Skuad pricing page (checked Oct 16, 2026)
  4. Oyster: Oyster pricing page (checked Oct 16, 2026)
  5. Native Teams: Pricing (checked Oct 18, 2026)

This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.