RelyOn Relocation NEWSLETTER

Portugal’s new government has indeed announced plans to reintroduce a tax break system similar to the previous NHR regime. This decision comes after the previous administration had decided to end the NHR program in 2024.
Key Points of the New Tax Break System
The new tax incentive, which is part of a package of 60 measures aimed at stimulating economic growth, will offer:
1. A 20% flat income tax rate for foreign nationals.
2. This rate will apply only to salaries and professional income.
3. The tax breaks will not be extended to wealthy expatriate retirees.
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On October 1, 2024, the Portuguese Immigration Authority launched an innovative digital platform designed to simplify the citizenship application process. This new online platform provides applicants with a streamlined way to submit and track their applications in real-time, making the path to Portuguese citizenship faster and more transparent.

For those who already hold a Portuguese residence permit, this development is especially beneficial. The online system removes traditional bureaucratic barriers and offers a clear, accessible view of each application stage, allowing applicants to stay informed about the progress of their request from start to finish.

Portugal continues to enhance its appeal as one of the most convenient and traveler-friendly destinations in Europe. Exciting news for residents, tourists, and frequent flyers: a new high-speed train now connects Lisbon and Porto airports, making travel between these two key hubs faster and easier than ever.
The high-speed train significantly reduces transit time, allowing passengers to avoid traffic and lengthy transfers. Whether you’re catching a connecting flight, traveling for business, or exploring the beauty of Portugal, this new connection ensures a smooth and hassle-free experience.
This development is part of Portugal’s ongoing efforts to modernize its infrastructure and improve accessibility, further solidifying its reputation as a global hub for travelers and expats alike.

TAP Air Portugal has been ranked as Europe’s top airline for pet travel by AirAdvisor, standing out for its pet-friendly policies and customer care. TAP offers flexible options for transporting animals in the cabin or hold, allows up to five pets per passenger, and even features a unique loyalty program, Miles&Go Pets, designed for frequent pet travelers.

The ranking, which also highlighted Aegean, Lufthansa, KLM, and SAS, considered factors like transport flexibility, health and safety requirements, and documentation processes to ensure stress-free pet travel.

Portugal has approved a significant increase in the minimum wage, raising it from €820 to €870 starting January 1, 2025.

This change directly impacts various visa and residency requirements, including those that rely on proof of income. For example, the income requirement for some visas will now be €3,480 per month (870 x 4).

The government’s new plan also includes annual wage increases of €50, with the goal of reaching a minimum wage of €1,020 by 2028.

Portugal has been selected as one of the hosts for the 2030 FIFA World Cup, a historic achievement that puts the country in the global spotlight. This event will attract billions of viewers, boost tourism, and create incredible opportunities for businesses and residents alike.

The new government has unveiled a housing strategy with 30 measures to address the housing crisis. The “Build Portugal” plan focuses on increasing housing supply, promoting public housing, and improving affordability, with deadlines ranging from ten days to three months.

Key initiatives include unlocking 25,000 homes from the Recovery and Resilience Plan and revising the Soil Law to allow rustic land for affordable housing. Young buyers under 35 will benefit from IMT and Stamp Tax exemptions on properties up to €316,000.

The National Health Service (SNS) has launched the SNS 24 line with the option for phone consultations. The service is available after a medical triage and will operate in a pilot phase for three months. Video consultations can be accessed through the SNS 24 portal or app using a link sent via SMS, with doctors specializing in family and general medicine.

Portugal has set a new record, producing 60% of its electricity from renewable sources in 2024. This achievement shows the country’s strong commitment to clean energy and sustainability. With wind and solar power leading the way, Portugal is making great progress in reducing its reliance on fossil fuels and supporting a greener future.

MB Way has recently increased its transfer limits, providing users with greater flexibility when making mobile payments. The new changes allow for a single transfer of up to €2,000, making it easier for users to handle larger transactions.

Additionally, the monthly limit for incoming transfers has been raised to €5,000, with a maximum of 50 transactions allowed per month. These updates are designed to accommodate the growing demand for digital banking services and provide more options for users in Portugal.

People who become residents of Portugal in 2024 can register the IFICI+ tax regime, which replaced the NHR scheme, and will have until March 15, 2025, to do so.
The new tax regime aims to attract qualified professionals, particularly in scientific research, by applying a 20% IRS rate to income from both dependent and independent work (categories A and B).

Portugal has launched a new initiative offering free entry to national museums, historical monuments, archaeological sites, and cultural heritage locations for anyone with a Portuguese National ID and under-18s.

This is the perfect chance to explore Portugal’s rich history, art, and culture for free! If you live in Portugal or hold a Portuguese National ID, now is the time to visit the country’s iconic landmarks at no cost. Don’t miss out!

Mortgage interest rates have fallen to 3.98%, the lowest in a long time! This drop means lower monthly payments, with the average mortgage now at €401, saving you money compared to last month and last year.

The deadline for applications to benefit from the new Tax Incentive for Scientific Research and Innovation (IFICI) has been extended. Interested parties now have an additional two weeks to submit their applications and take advantage of the favorable tax conditions in Portugal.

Originally set for March 15, the new deadline is now March 31, 2025, following recent regulatory updates and the release of registration forms.

Portugal is making it easier for foreign children to start school! A new law lets schools place primary students in the right grade without complicated paperwork. This change applies to all students up to the 9th grade, including those returning to the country.

Before, the process was slow due to missing documents and other obstacles, making it hard for kids to settle in. With a 160% rise in foreign students, this update ensures faster and smoother integration.