Portugal NHR in 2026: IFICI and Paraguay Compared

If you wanted Portugal’s NHR regime, start by identifying which benefit mattered: living in Portugal, a particular tax treatment, or the ability to keep travelling. Those goals do not necessarily lead to the same replacement.

There are three different situations to consider: existing NHR status, eligibility under transitional rules, and a new move under the current rules.

What happened to NHR?

Portugal repealed NHR from 1 January 2024, with transitional provisions. Existing eligible holders can continue for the remainder of their ten-year period. An entirely new move in 2026 should not be planned on getting the old regime. Historic or transitional cases need checking against the relevant dates and evidence. Portuguese tax authority’s NHR guidance.

NHR was not a blanket exemption for every foreign payment. The treatment depended on the income category and applicable conditions. If you already hold the status, review your actual income rather than assuming all income is covered in the same way.

What does IFICI offer?

IFICI is the incentive for scientific research and innovation. Portugal’s tax authority describes a 20% rate on qualifying Portuguese employment and self-employment income for ten consecutive years. This is not limited to employees in every case, and it is not a universal rate for all freelancers. Official IFICI leaflet.

The eligibility review includes previous Portuguese tax residence, the qualifying activity or role, the relevant organisation and incompatible prior regimes. The authority’s FAQ also distinguishes foreign-income treatment, pensions and income from listed low-tax jurisdictions. Official IFICI eligibility and taxation FAQ.

Before choosing it, ask the adviser to identify the exact qualifying provision and evidence for your role. “I work in tech” or “my employer is foreign” is not a complete eligibility assessment.

Portugal and Paraguay solve different problems

Paraguay’s personal-income source rules are in Law 6380/2019. For the practical process and price, use our residency guide and cost breakdown.

What about Cyprus or Dubai?

They deserve a like-for-like comparison if they fit where you want to spend time. Cyprus has a conditional 60-day tax-residence route; counting days is not the entire test. Cyprus Tax Department’s criteria.

The UAE certificate guidance includes different evidence routes for physical presence and other qualifying circumstances. It is not accurate to describe every applicant as simply needing “90 days”. UAE Federal Tax Authority requirements.

For each option, compare the same things: immigration permission, personal tax residence, treatment of your income, company obligations, time in the country and recurring costs. A company-tax rate is not a personal-income-tax rate.

For a closer look at those two destinations, read our Paraguay versus Dubai tax-residency comparison.

If you already have NHR

Find the start and end of your approved period. Then compare the position after expiry with staying under ordinary Portuguese rules or moving elsewhere. Include property, pensions, business ownership and your family’s plans.

You do not need to move simply because another country advertises a lower rate. Nor should you wait until the final month to understand what changes. Use the actual end date and an adviser’s calculation, rather than political predictions about the programme.

Choose a route you can maintain

Write down where you want to live and work during the next two years, what you earn and which obligations remain in your current country. Have those facts reviewed before changing companies or making large disposals.

The home-country tax guide helps organise that review. If Paraguay remains on your shortlist, start with the masterclass, or see the done-for-you service when you are ready to discuss implementation.