Are you a U.S. expat, entrepreneur, or remote worker considering a move to Portugal? The new NHR 2.0 tax regime, officially known as TISRI (Tax Incentive for Scientific Research and Innovation) or IFICI, in Portuguese, could be your best opportunity to optimize taxes while launching or relocating your business. With a 20% flat tax rate on Portuguese sourced employment/self-employment income and a full exemption on foreign income for up to 10 years, Portugal has become one of the most attractive destinations for global professionals.
What is NHR 2.0 / TISRI?
TISRI replaces the previous Non-Habitual Resident (NHR) program and introduces a more structured, forward-looking approach. Under TISRI, qualifying individuals can:
- Pay a20% flat income taxon eligible Portuguese-sourced employment and self-employment income
- Exempt all foreign-sourced income(except pensions) from taxation
- Maintain these benefits for10 years from your first year of tax residency
This is especially appealing to those with international income, such as U.S. expats with overseas investments or business revenues.
Two Powerful Ways to Qualify
The easiest and most realistic paths toqualify for NHR 2.0involvesetting up a Portuguese companyand holding a qualified position. Here's how:
1. Start a Certified Strategic Business (IAPMEI Route)
By incorporating a company in Portugal and aligning it with strategic sectors recognized by IAPMEI (Portugal’s economic development agency), you can become eligible. Your business should:
- Operate in key areas such as innovation, tech, or financial consulting (e.g)
- Manage or work in the company with a recognized academic or professional background
- Apply for IAPMEI certification as a "strategically relevant entity"
If you hold a qualified position (e.g., founder or executive with a board position) in the company, you may also access the full TISRI benefits. This path is ideal for entrepreneurs looking to relocate and scale operations in Portugal.
2. Set Up an Export-Oriented Company
This route involves launching a Portuguese company that earns50% or more of its revenue from exports(services or goods). To qualify, you must:
- Incorporate the business in Portugal
- Export the majority of your services or products
- Hold a qualified role (like manager or specialist)
There is no need for third-party agency approval - just clear proof of international activity and compliance. The application is analysed by the tax authorities themselves. U.S. digital nomads and service exporters find this route especially accessible.
Why U.S. Expats Should Act Now
Many Americans are searching forPortugal expat tax benefits, and for good reason. The country offers a rare chance to benefit from:
- Portugal foreign income tax exemptionfor U.S. investors
- A lowPortugal 20% flat taxon local income
- Legal residence in a European Union country
If you’re wonderinghow to move to Portugal and pay less tax, this is your answer. Under NHR 2.0, you can relocate your business, maintain your international income streams, and significantly lower your tax burden.
Tax Planning Tips for NHR 2.0 Success
To fully benefit from Portugal’s tax incentives for expats, be sure to:
- Avoid income from jurisdictions on Portugal’s tax haven list
- Structure your business to align with TISRI rules
- Maintain a qualifying position throughout the 10-year period
Final Thoughts
The TISRI / NHR 2.0 regime is more than just a tax break — it’s an invitation to build and grow something meaningful in Portugal. Whether you’re an entrepreneur, freelancer, or investor, Fresh Portugal can help you structure your business, secure your residency, and ensure compliance every step of the way.
Ready to qualify for Portugal's most powerful tax regime?
To move forward, we recommendbooking a consultation.
