The special tax regime for Non-Habitual Residents (RNH) will end as of next year, according to the 2024 State Budget proposal (OE2024).

With the presentation of the OE2024 proposal on 10^th October, the Minister of Finance confirmed that the tax exemption regime for RNH will end, although people interested in benefiting from it can register until 31^st December 2023. 

Consequently, all proceedings which take place until the end of the year will be covered by the current law, meaning interested parties who fulfil the necessary requirements and are accepted will still benefit from this regime for a period of 10 years. 

This regime allowed those who had not been tax residents in Portugal for five years prior to joining to benefit from a reduced personal income tax rate (IRS) of 20% on labour income for a period of 10 years. It was accessible to professions of a scientific, artistic or technical nature considered to have high added value.

However, the OE2024 proposal creates a new tax incentive for scientific research and innovation (IFICI) which implies a similar regime, aimed at attracting and retaining highly qualified staff in the fields of scientific research, investment and business development.

Researchers and highly qualified workers who have become residents in Portugal (not having been tax residents for the last five years) will also be eligible for a 20% IRS rate for a period of 10 years, provided they have income within the following areas: 

• Higher education teaching and scientific research careers, including scientific employment in entities, structures and networks dedicated to the production, dissemination and transmission of knowledge, integrated into the national science and technology system
• Qualified jobs within the scope of contractual benefits for productive investment
• Research and development jobs for staff with a doctorate minimum qualification requirement, whose costs are eligible for the tax incentive system for research and business development.

The OE2024 proposal will now be examined in Parliament, with the final overall vote scheduled for 29^th November.