Relocation intelligence

🇵🇹 Moving to Portugal: tax, residency and cost of living

IFICI expat regime (20% flat)

Thinking of moving to Portugal? Here is the tax, residency, property and quality-of-life picture in plain numbers, with sources.

Key facts

Top income tax
53%
Corporate tax
21%
Capital gains
28%
Wealth tax
No
Inheritance tax
No
Cost of living index
46.7
Safety
8/10
Internet quality
7/10
Visa-free destinations
188
Foreigners can own property
Yes
Residency in
0 months
Citizenship in
0 years

Taxes

Portugal levies progressive income tax up to 53% for residents, but newcomers may benefit for 10 years under the IFICI regime (formerly NHR) with a 20% flat rate on Portuguese-sourced income and exemption on many foreign-source items. Dividends and capital gains are generally taxed at 28%.

Residency and visas

EU/EEA citizens require no permit and may settle freely. Non-EU nationals have several routes including the D7 passive-income visa, D8 Digital Nomad visa and the Golden Visa (investment). Permanent residency is available after 5 years of legal stay.

Property ownership

Foreigners may fully own both residential and commercial property with no restrictions. There is no wealth tax specifically on real estate for foreigners, though IMI (municipal property tax) and AIMI (additional levy on high-value property) apply.

Cost of living and quality of life

Portugal scores highly on safety (GPI 2024: 7th most peaceful country globally) and offers a pleasant climate, rich culture and relatively low cost of living compared to Western Europe. Healthcare is accessible via the SNS (Servico Nacional de Saude) for residents.

Passport and mobility

The Portuguese passport provides visa-free access to 188 countries/territories and ranks in the top 5 of the Henley Passport Index 2025. As an EU member, Portuguese citizens enjoy free movement across the Schengen Area and the full EU.

Residency and visas

  • D7 Visto de Residencia para Pessoas com Rendimentos · €8,460/j · Residency in 5 years
  • D8 Visto para Nomadas Digitais · €38,400/j · Residency in 5 years
  • Autorizacao de Residencia para Atividade de Investimento (ARI / Golden Visa) · €500,000 · Residency in 5 years
  • D3 Visto para Atividade Altamente Qualificada · Residency in 5 years

Why people move to Portugal

  • IFICI regime: 10 years of reduced taxation

    Qualified expats pay only 20% IRS on Portuguese professional income for 10 years. Foreign pension, dividend and interest income may be exempt under certain conditions.

  • EU membership and Schengen access

    As an EU state, Portugal offers full Schengen mobility, EU legal protections and single-market access for entrepreneurs. Naturalisation after 5 years yields one of the world's strongest passports.

  • High quality of life at relatively low cost

    Lisbon and Porto offer modern urban life at lower costs than Amsterdam, Paris or Frankfurt. Stable climate, excellent gastronomy and a safe environment make Portugal attractive for families and retirees.

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Sources

Other destinations

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