Portugal has emerged as an attractive destination for international talent and skilled workers, especially in sectors such as technology, research and innovation. In 2024, the country introduced NHR 2.0, an evolution of the Non-Habitual Resident (NHR) tax regime, with new conditions and incentives aimed at professionals from startups and research entities.
This new regime reinforces Portugal’s commitment to attracting global talent and promoting economic development through strategic tax advantages. In this article, we explain what NHR 2.0 is, how it works, and who can benefit from this incentive.
What is the NHR 2.0 Scheme?
The NHR 2.0 regime is an update of the already known Non-Habitual Resident status, which offers special tax conditions to citizens who move to Portugal. The new model maintains already known benefits, but introduces additional advantages for professionals in strategic sectors, with a focus on startups and scientific and technological research entities.
Key Benefits of NHR 2.0
Tax Reduction for Income from Skilled Work:
Startup workers and researchers have access to a reduced income tax rate of 20% on their earnings.
It applies to income earned in Portugal, as long as it is related to eligible professions, such as engineering, technology, management and scientific research.
Tax Exemption for Income Obtained Abroad:
Income from work or investment obtained outside Portugal continues to benefit from tax exemption, provided that it has already been taxed in the country of origin.
Benefits for Startup Employees:
Introduction of specific tax incentives for startup workers, including reduced taxation on stock option gains, a key benefit in attracting talent to emerging companies.
Incentives for Researchers:
Researchers in public or private entities can enjoy additional benefits, such as tax exemption on subsidies or awards related to scientific activities.
Validity of the Regime:
Tax benefits are valid for a period of 10 years, provided the individual meets the eligibility requirements.
Who Can Benefit from NHR 2.0?
The new regime is available for:
Foreign citizens: Who transfer their tax residence to Portugal.
Portuguese emigrants: Those who return to the country after a minimum period of 5 years abroad.
Professionals in qualified areas: Including engineers, managers, programmers, scientists, designers, among others listed in the official regulations.
To qualify, you must:
Establish tax residency in Portugal.
Not having been a tax resident in Portugal in the last 5 years.
Prove a link with an employer or institution within the qualified areas.
Steps to Join NHR 2.0
Registration with the Federal Revenue Service:
Apply for Non-Habitual Resident status on the Tax Portal after moving to Portugal.
Required Documentation:
Certificate of previous tax residence.
Employment contract or link with the startup or research entity.
Declaration of activity for self-employed workers.
Confirmation of Status:
The request will be evaluated by the Treasury, and, once approved, the statute will be valid for 10 years.
The Impact of NHR 2.0 in Portugal
NHR 2.0 aims not only to attract qualified workers, but also to consolidate the country as a leading technological and scientific hub in Europe. With this regime, Portuguese startups and research centers gain more direct access to international talent and incentives to retain high-level professionals.
Practical Example of NHR 2.0
Imagine a software engineer who decides to move to Portugal to work at a startup:
Annual salary: € 60,000.
Reduced income tax rate under NHR 2.0: 20% (instead of progressive rates that can reach 48%).
Estimated annual tax savings: €16,800, compared to the normal tax regime.
Furthermore, if the professional benefits from stock options, the applicable reduced taxation makes the compensation even more attractive.
Final Considerations
NHR 2.0 is a unique opportunity for startup and research professionals looking to live and work in Portugal. With clear tax benefits and support for strategic sectors, this regime positions Portugal as one of the most competitive destinations for qualified and innovative workers.
If you are planning to move to Portugal or invest in startups and research, it is worth exploring NHR 2.0 and ensuring you are taking full advantage of the tax incentives available.
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