Tax
Portugal's NHR 2.0: What Property Investors Need to Know
The revised non-habitual resident regime brings new opportunities — and pitfalls — for cross-border real estate investors.
Fynn de Vries · 2026-04-15
What changed after NHR 1.0
Portugal’s original Non-Habitual Resident regime offered a flat 20% rate on certain foreign income for 10 years. The 2024 reform (IFICI) narrowed eligibility significantly — mainly targeting research, innovation, and specific high-value activities.
Impact on property investors
Most STR investors no longer qualify for NHR-style benefits. Rental income is taxed under standard Portuguese rules: 28% flat on net rental for non-residents, or progressive rates if you become tax resident.
Still attractive?
Portugal remains competitive on yields (especially Algarve and Porto) and AL licensing is manageable outside Lisbon’s restricted zones. Terrivio models Portuguese acquisition costs, IMI, and rental income tax in every analysis.