RNH 2.0 Portugal: A Complete Guide

In 2025, Portugal introduced an updated version of its well‑known Non‑Habitual Resident regime. The new RNH 2.0 was designed to align with the country’s evolving economic and fiscal priorities while continuing to attract international talent. Although the structure has changed, the regime still offers significant tax advantages, including a 20% flat income tax rate for qualified professionals working in strategic sectors of the Portuguese economy.

Below is a clear and practical overview tailored specifically for American and Canadian citizens considering relocation, investment or professional activity in Portugal.

✅ What Changed with RNH 2.0?

The previous Non‑Habitual Resident (NHR) regime was replaced in 2025 by RNH 2.0. The new version remains available to individuals who:

• become tax residents in Portugal, and

• have not been tax residents in the country during the previous five years.

RNH 2.0 grants a special 20% IRS tax rate on employment or self‑employment income earned in specific high‑value activities. This benefit applies for 10 consecutive years starting from the year the individual becomes a Portuguese tax resident.

✅ Who Qualifies for RNH 2.0?

To benefit from the regime, income must come from one of the following eligible categories:

1. Higher Education and Scientific Research

Teaching, research and scientific employment within Portugal’s national science and technology system, including roles in innovation and technology centres.

2. Qualified Positions Linked to Productive Investment

Highly skilled roles or corporate positions associated with projects benefiting from investment incentives.

3. Highly Qualified Professions in Specific Companies

• Companies that have made significant investments supported by fiscal incentives.

• Industrial or service companies exporting at least 50% of their turnover.

4. Activities Recognised by AICEP or IAPMEI

Qualified positions in entities considered strategically relevant for the national economy, particularly those attracting productive investment or reducing regional disparities.

5. Research and Development (R&D)

Activities whose costs are eligible under Portugal’s corporate R&D incentive system.

6. Certified Startups

Qualified roles or corporate positions in officially certified startups.

7. Activities in the Autonomous Regions

Qualified work performed by tax residents in the Azores or Madeira.

✅ How to Apply for RNH 2.0

Registration must be completed with the appropriate authority depending on the type of activity:

• FCT – Foundation for Science and Technology

• AICEP – Portuguese Trade & Investment Agency

• AT – Portuguese Tax Authority

• IAPMEI – Agency for Competitiveness and Innovation

• ANI / Startup Portugal

• Regional authorities of the Azores and Madeira

Professional guidance is strongly recommended, especially for American and Canadian applicants unfamiliar with Portuguese administrative procedures.

✅ Frequently Asked Questions

How do I maintain the benefit for the full 10 years?

You must:

• remain a tax resident in Portugal, and

• continue to earn income from an eligible activity each year.

You may change activities, provided the new one begins within six months of ending the previous one.

If I fail to meet the requirements one year, do I lose the regime permanently?

No. If you do not qualify in a given year, you may resume the benefit in any of the remaining years once you re‑establish tax residency and eligible income.

Can RNH 2.0 be combined with other tax incentives?

No. RNH 2.0 cannot be combined with the previous NHR regime or with the Programa Regressar.

✅ Conclusion

RNH 2.0 remains a strategic and competitive tax regime for qualified professionals looking to build a life or career in Portugal. For Americans and Canadians seeking a safe, stable and internationally connected country with favourable tax conditions, Portugal continues to stand out.

To make the most of the regime, it is essential to understand the eligibility rules, follow the required procedures and seek professional advice tailored to your personal and financial situation.

✅ Legal Disclaimer

This article provides general information and does not replace personalised tax or legal advice. Regulations may change, and individual circumstances vary. Always consult qualified professionals before making decisions regarding tax residency or financial planning in Portugal.