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The Latest Changes to the NHR in 2024


Over the last few weeks there has been a large-scale debate regarding the proposed end of the non-habitual resident (“NHR”) tax regime set in the 2024 Budget Bill.

The debate led to an overload of information, which was partially due to the challenges of issuing constant updates on each of the several stages of the legislative process. Moreover, the political turmoil that has since unfolded turned the discussion even more chaotic.

On this article, we will summarize what has been effectively approved by the Portuguese Parliament and what you need to know going forward.

Let’s go straight to the facts: the NHR as we have known for several years is indeed about to end on 31 December 2023, with a new regime that mimics most of its benefits (with the sole exception of those related to pension income) applying as from 1 January 2024 (we are calling it “NHR 2.0”), but with a different scope of beneficiaries.

Having said this, if you still want to access the “old NHR” after 31 December 2023, you will need to assess whether you fall under one of the grandfathering provisions set out below:

  1. Having a procedure, initiated by December 31, 2023, of granting a residence visa or residence permit, with the competent entities, in accordance with the current legislation applicable to immigration matters, namely through the request for an appointment or actual appointment for submission of the request for the granting of a residence visa or residence permit or, also, by submitting the request for the granting of a residence visa or residence permit; or

  2. Having a residence visa or residence permit valid until December 31, 2023; or

  3. Having a promissory or employment contract, promise or secondment agreement signed by December 31, 2023, whose duties must take place within national territory; or

  4. Having a lease contract or other contract granting the use or possession of property in Portuguese territory concluded until October 10, 2023; or

  5. Having a reservation contract or promissory contract for the acquisition of real rights over property in Portuguese territory concluded by October 10, 2023; or

  6. Having dependents enrolled at an educational establishment domiciled in Portuguese territory, completed by October 10, 2023.


For the avoidance of doubt, current NHR beneficiaries and taxpayers that, on 31 December 2023, are registered as NHR, will be able to benefit from the regime until the end of the 10-year period.

We will delve on the NHR 2.0 in our next article, but we can already anticipate that this regime will also apply for 10 years and to those that become tax residents of Portugal (having not been resident in the Portuguese territory in any of the previous 5 years).

The NHR 2.0 will have a 20% rate for employment/freelance (without any reference to the existing high-added value criteria) and an exemption on several categories of foreign-sourced income, such as dividends, interest, capital gains and rents.

For more information regarding NHR or Portugal's Golden Visa please send your questions to,  or book your Free Consultation below.

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