IFICI — the NHR successor

Author & regulatory separation. Content author: Siegfried Perini. Mortgage brokerage in Spain and Portugal is carried out under the §34i permit of Olga Nikushkina (BAFA-notified). This information does not replace legal or tax advice.

What was NHR — 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.

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.