IFICI — the NHR successor
The Non-Habitual Resident regime ended in 2024. Its successor, IFICI, is far more narrowly defined. What you need to know as a foreign buyer in 2026.
Does Portugal's NHR tax regime still exist in 2026 — and what is IFICI?
No — the classic Non-Habitual Resident regime (NHR) closed to new applicants; it ended in 2024. Its successor is IFICI, considerably narrower. Where NHR targeted a broad range of newcomers with foreign income and retirees, IFICI is aimed mainly at qualified activities in research, science and certain high-value professions; pure lifestyle or retirement movers generally fall outside it. Anyone who already holds a valid NHR status keeps it for its remaining term — new entrants can only come in through IFICI and its conditions. For the property buyer this means the former tax break is no longer an automatic argument for Portugal. Whether the country pays off for you now depends on your specific type of income and status — that is tax advice. Financing a Portuguese property as a non-resident works independently of this, with a NIF and a tasación much as in Spain.
What was NHR Portugal — and why is it gone?
The old NHR programme (Non-Habitual Resident) offered reduced tax rates on foreign income — pensions, dividends, foreign salary — for ten years. It drew more than 50,000 foreigners to Portugal and pushed rents in Lisbon and the Algarve up sharply. Political pressure led to its abolition in 2023/2024. Anyone who applied for the status by the end of 2023 keeps it — all new applications have fallen under the far narrower IFICI regime since 2024.
IFICI Portugal — who can use it now
IFICI (Incentivo Fiscal à Investigação Científica e Inovação) has applied since 2024 and is far narrower than NHR. It is aimed at:
Research & science
Highly qualified work in research, development and science — typically universities, research institutions, R&D departments.
High tech & start-ups
Work in start-ups with a high innovation content — on an official list of occupational groups that is updated regularly.
Pure retirees & wealth managers
Precisely the main target groups of the old NHR (pensions, dividends without any activity) do NOT fall under IFICI. For them, ordinary Portuguese tax law applies.
Is Portugal still worth it in 2026?
For pure property buyers without tax optimisation through residence: yes, still. The loan-to-value ratios (80%), purchase costs (7–10%) and the property market itself remain attractive and unchanged. But anyone who was looking for NHR-style tax advantages should check with a Portuguese tax adviser whether their personal activity is IFICI-compatible. For purely private buyers resident in Germany, practically nothing changes.
Frequently asked questions
Can I still enter the old NHR programme?
Which occupational groups benefit from IFICI?
Is moving residence to Portugal still worth it today?
Does IFICI affect the property market?
Mortgage advice — free and without obligation
I compare banks in Spain, Portugal and Germany for your specific situation and find the right solution — with no upfront cost.
Read on
Related guide topics
Which bank in Spain pays the stage payments before handover?
Guide articles.
Which bank in Spain pays the stage payments before handover? →Your paid-off property in Spain is idle. It does not have to be.
Guide articles.
Your paid-off property in Spain is idle. It does not have to be. →What an equity release supports — ten calculations to check
Guide articles.
What an equity release supports — ten calculations to check →