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.

The deadline for submitting applications for Portugal’s NHR 2.0 / IFICI tax regime has been extended to March 31, following recent regulatory changes. The Tax Office will be the sole point of entry for applications, and companies are required to withhold 20% IRS tax at source. The 10-year benefit period begins from the first year of employment in Portugal.

Portugal has introduced a new streamlined service allowing foreign residents to apply for their Tax Identification Number (NIF), Social Security Number (NISS), and National User Number (NNU) in a single application. This can be done online using a digital mobile key or at designated Cidadão spaces across the country.

The initiative simplifies bureaucratic procedures, eliminating the need for multiple in-person visits to government offices. It is available to foreign citizens with a residence permit, EU nationals, and individuals with refugee or international protection status.

March 31 is the final day to review and validate expenses for IRS tax deductions. Ensuring that all expenses are correctly recorded is essential for accurate tax reporting and maximizing eligible deductions.

Taxpayers can check their registered expenses on the AT portal and submit any necessary claims before the deadline.

Starting April 2nd, citizens of European countries, including Portugal, will need to apply for an Electronic Travel Authorization (ETA) to visit the United Kingdom. The process is fully digital, quick, and costs just €12.

The ETA offers several advantages, including a simplified entry process, faster border clearance, and multiple entries within its validity period. It also enhances security and immigration control, making travel to the UK more efficient and convenient.

On April 1, 2025, Portugal introduced a Fast Track (Via Verde) for Immigration to speed up work visa processing for foreign professionals with job offers. Under this system, visas should be issued within 20 days, provided all legal requirements, including an employment contract and insurance, are met.

The initiative does not apply to immigrants already in Portugal, though it has been well received. To prevent system overload, AIMA may temporarily suspend the fast-track process if necessary.

Lisbon is making it easier to travel after dark with a major expansion of its night bus network. Carris Metropolitana has rolled out new lines and updated schedules, now offering over 70 buses between 9 PM and 6 AM throughout the Lisbon Metropolitan Area (AML).

The improved service brings more frequent connections and wider coverage, ideal for night-shift workers, students, and late-night travelers. This move is part of the city’s ongoing efforts to make public transport more accessible, safer, and reliable at all hours.

Anyone who lived or earned income in Portugal during 2024 must file their personal income tax (IRS) return between April 1 and June 30, 2025. The deadline is fixed and does not change, even if it falls on a weekend or public holiday. All filings must be submitted online via the Portuguese Tax Authority’s website.

Filing is mandatory for Portuguese residents with taxable income, non-residents who earned income in Portugal, and anyone claiming deductions for housing, education, or dependents. Residents must report worldwide income, while non-residents only need to declare Portuguese-sourced income.

Portugal’s centre-right AD coalition has proposed changes to the Golden Visa program that could significantly affect those seeking citizenship. Key suggestions include increasing the minimum residency period and requiring applicants to prove they have genuinely lived in Portugal—excluding time spent abroad or in irregular situations.

These adjustments are not yet confirmed and will depend on the outcome of the 18 May 2025 legislative elections. If approved, they may impact current and future Golden Visa holders.

Portugal’s immigration agency has announced that, starting April 28, 2025, it will no longer accept incomplete applications for residence permits or renewals. All submissions must include every required document — no exceptions. Applicants are advised to double-check their paperwork before submitting to avoid delays or rejections.

Starting May 6, 2025, AIMA began notifying 4,574 immigrants to leave Portugal within 20 days. This first wave affects those whose residence applications were rejected, who failed to submit required documents, or who are under a Schengen entry ban. In total, 18,000 people will be notified, according to Minister António Leitão Amaro. Those who do not leave voluntarily may face forced deportation and up to a 10-year entry ban.

If you own property in Portugal, it’s time to pay your IMI (Municipal Property Tax). The number of installments depends on the amount due. Payments up to €100 must usually be made in May, but this year the deadline has been extended until the end of June. For amounts between €100 and €500, payments are made in May and November. If the amount exceeds €500, the payment is split across May, August, and November. You can pay online via the Tax Authority portal or at authorized banks. Don’t miss the deadline to avoid fines.

In the May 2025 national election, Portugal’s center-right Democratic Alliance secured the most seats in parliament but fell short of a majority. Prime Minister Luís Montenegro is expected to govern without forming a coalition.

Meanwhile, the far-right Chega party made historic gains, matching the Socialist Party in seats and signaling a major shift in the country’s political direction. Although no immediate changes are expected, the results reflect growing polarization and public demand for reform.

As of May 19, 2025, Portugal has begun implementing a new generation of digital border control systems at airports, seaports, and land crossings. These changes are part of a broader EU strategy to modernize border security and improve how short-term visitors are processed. Although primarily targeting non-EU travelers with short-stay visas, all passengers should prepare for possible delays during the transition. The full Entry/Exit System (EES) rollout is expected by October 25, 2025.

Three interconnected systems are now active: VIS4EES, which replaces traditional passport stamps with biometric tracking; PASSE+, Portugal’s national platform for automated border checks; and Portal das Fronteiras, giving authorities unified access to entry, visa, and travel data. These changes mark a significant step toward smarter, more secure travel into Portugal.

June is festival season in Portugal, with lively street parties honoring St. Anthony, St. John, and St. Peter – a must-see cultural experience across the country!

In Lisbon, the biggest night is June 12–13, when the city celebrates St. Anthony with colorful street decorations, traditional marches down Avenida da Liberdade, and parties in neighborhoods like Alfama and Graça. Expect grilled sardines, caldo verde, music, and dancing all night long. Porto comes alive on June 23–24 for St. John’s Day, with fireworks, concerts, and the fun tradition of tapping heads with plastic hammers in the streets.

Wherever you are in Portugal, it’s a unique time to experience the country’s vibrant culture and community spirit.

If you own property in Portugal, it’s time to pay your IMI (Municipal Property Tax). If the total amount is €100 or less, the full payment is due by the end of June. For amounts between €100 and €500, it’s paid in two parts (June and November). If it’s more than €500, it’s split into three instalments: June, August, and November.

You can check your amount due and payment reference through the Finance Portal by navigating to: Situação Fiscal Integrada → IMI → Documentos de Cobrança

The new Portuguese government program, approved in June 2025, outlines major reforms including streamlined state operations, modernized labor laws, and stricter immigration controls with updates to nationality and family reunification policies. It also pledges a €2B income tax cut, lower corporate taxes, investment in health and education (including a phone ban in early schools), accelerated housing development, faster justice procedures, anti-corruption efforts, and immediate defense spending increases to 2% of GDP.