Portugal was the tax haven for pensioners and the wealthy for ten years. Since 2024 the NHR regime is restricted; what remains is a cheap cost of living outside Lisbon, no wealth tax and a property market where the capital is dearer than Berlin.
The short answer
Cheap in daily life, Lisbon and the Algarve expensive, tax advantages only for specialists in research and innovation.
milinia’s take
- NHR 2.0 applies only to certain jobs in research, innovation and start-ups: a 20 percent flat tax for ten years.
- German pensions have been taxed normally for newcomers since 2024, up to 48 percent.
- Property: Lisbon €5,500 per square metre, Porto €3,800, Algarve €3,500, inland under €1,500.
- No wealth tax, but AIMI from €600,000 of property value at 0.7 percent.
Living and costs
28 percent below Germany on the national average, but Lisbon has almost doubled since 2015: a one-bedroom flat in the centre €1,100, in Porto €850, on the Algarve €900. Groceries, restaurants and services stay cheap, electricity and cars are dearer than in Germany. Whoever lives in the Alentejo or central Portugal gets by on half.
Taxes
Income tax reaches 48 percent plus a solidarity surcharge. The old NHR regime with 10 percent on pensions and tax exemption for foreign income has been closed to newcomers since 2024. The successor IFICI applies only to university lecturers, researchers and employees of certified innovation companies: 20 percent on Portuguese employment income for ten years, foreign income tax-free. Capital gains 28 percent flat or on application at the tariff. No wealth tax, but the AIMI surcharge on property holdings above €600,000 at 0.7 to 1.5 percent. No inheritance tax for spouses and children, 10 percent stamp duty for others.
Property
Lisbon €5,500 per square metre, Cascais €6,000, Porto €3,800, Algarve €3,500, inland under €1,500. Rental yields 4.5 to 5.5 percent, falling in Lisbon because of rent regulation and tourism restrictions. Closing costs: transfer tax IMT progressive up to 7.5 percent, stamp duty 0.8 percent, notary and registry around 1 percent. The golden visa via property was abolished in 2023 but remains possible via funds from €500,000.
Gold, portfolio, bank
Investment gold VAT-free, dealers in Lisbon and Porto. German brokers usually keep serving Portuguese residents. An account needs the NIF tax number, which non-residents can get too.
What emigrants underestimate
The wages: the minimum wage is €870, the median under €1,500. Whoever wants to work locally earns a third of Germany. The sums work for people with income from outside: pensioners, remote workers, the wealthy. And the damp in winter: Portuguese houses are rarely insulated, heating costs are an issue.
Try it yourself
Travel Budget CalculatorCountry, days, people, style: your daily budget and travel fund, with buffer and cash share.Income Tax CalculatorEnter taxable income, read off tax, marginal rate and average rate, with joint assessment.Frequently asked questions
Does NHR still apply to pensioners?
No, not for newcomers since 2024. Whoever was registered in 2023 keeps the ten years.
How high is the transfer tax?
IMT progressive by price, up to 7.5 percent for owner-occupation, for second homes from the first euro; allowance around €100,000 for owner-occupation.
Can I stay longer on tourist status?
As an EU citizen yes, from three months with registration. You become tax resident from 183 days or with a main residence.
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