Thinking of moving to Portugal? Here’s how to pay less tax, grow your business faster – and live better with Touchdown

Portugal’s new tax regime just made relocating even more attractive for global entrepreneurs, remote workers, and ambitious founders, and it’s so good it shouldn’t even be a thing.

It’s a powerful new tax regime called NHR 2.0 – designed to attract skilled professionals, researchers, and entrepreneurs. 

And if that sounds like you, here’s what you need to know.

What is NHR 2.0 – and why does it matter?

NHR 2.0 (short for “Non-Habitual Resident” 2.0) is Portugal’s updated tax incentive programme for newcomers. It's part of a broader push to attract high-value talent to the country – from startup founders and tech specialists to scientists, creatives, and remote executives.

At Touchdown, we specialise in helping globally mobile talent relocate to Portugal smoothly and strategically. From choosing the right business setup to navigating visas, tax, and compliance – we do the legwork so you can focus on building your life and business here.

NHR 2.0 is one of the best tools in your arsenal. Here’s why.

What’s in it for you?

✅ 20% Flat Tax Rate – Keep more of what you earn, with a simplified tax rate for qualifying income in Portugal. This applies for any work income you make inside of the country.

✅ Tax-Free Foreign Income – Pay zero Portuguese tax on dividends, capital gains, or rental income earned abroad. Yes, that means zero on everything you make from abroad. If you have a foreign company, you'll pay nothing in any dividends. And even if you sell your business: zero.

✅ 10-Year Guarantee – Lock in your tax benefits for a full decade, giving you long-term financial clarity. You get these benefits for 10 years.

NHR 2.0 replaces Portugal’s original NHR regime, which has attracted tens of thousands of professionals over the last decade. While it introduces stricter eligibility (and no longer exempts foreign pensions), it expands tax relief on foreign income – making it especially attractive for founders and remote workers earning globally.

Who qualifies – and how can you apply?

To benefit from NHR 2.0, you need to:

✅ Become a Portuguese tax resident (you must not have been one in the past five years)

✅ Be employed by – or be a board member of – a qualifying Portuguese company

✅ Or, start your own company operating in one of the eligible high-value sectors (see below)

Running your own company? No problem. You can qualify by setting up a Portuguese business that offers services or products in approved industries – or even through an employer-of-record model if your clients are abroad. 

At Touchdown, we help you structure this right from day one.

What if I became a resident in 2024? Did I miss the deadline?

No. You can still apply. The only difference is that instead of enjoying the NHR benefits for 10 years, you’ll “only” have access to 9.

However, 9 years of the best tax regime available in Europe is still a very good deal!

Other pathways to qualify

There’s more than one way in. NHR 2.0 also recognises:

• Startup founders & employees – If certified under Portugal’s startup ecosystem or if they received external investment

• Scientific researchers & academics – Working with Portuguese universities or R&D institutions

• Employees of companies receiving tax incentives – Including those under RFAI (productive investment) and SIFIDE (R&D investment)

• Residents in Madeira and the Azores – With additional eligible professions expected soon

Which sectors are eligible?

If you plan to qualify through your own company, make sure it operates in one of the following:

• Manufacturing

• Energy

• Civil Engineering

• Hospitality

• Publishing

• Video & Music Production

• IT Consulting & Software Development

• Information Services

• Holding Company Activities

• Fund Management

• Head Office Management

• Architecture & Engineering

• Scientific R&D

• Higher Education

• Healthcare

💡 Touchdown helps you navigate these sector classifications, match your role to the eligible list, and prepare a seamless application.

How to apply – and how Touchdown helps

Applications must go through the Portal das Finanças (Portugal’s tax authority), with supporting documents like:

• Proof of qualifications

• Employment contracts

• Startup certification or company registration

• Confirmation of eligible sector status

Ready to make the move? Let’s do it properly.

Portugal’s new tax regime is a game-changer – but only if you know how to make it work for you. That’s where Touchdown comes in. 

We specialise in relocation, tax strategy, and business setup for global professionals landing in Portugal.

👉 Want to know if you qualify? We’ll walk you through it – no jargon, just straight answers. Answer a couple of questions in the Touchdown Advisor to book a free introduction call with our team.