NHR: closed
The non-habitual resident regime (2009–2023) taxed Portuguese income from listed professions at 20 % and exempted most foreign income for ten years, with foreign pensions at 10 % from 2020. It closed to new registrations on 1 January 2024; people registered by then keep their remaining years, and 2024 arrivals with a 2023 contract, lease or visa could still enter under the transitional rule. An Icelander arriving in 2026 cannot obtain it.
- Closed since 1 January 2024; existing holders keep their ten years
- IFICI: 20 % for ten years on Portuguese income from listed activities; foreign income exempt with progression; pensions excluded
- 15 % / 10 % — the Icelandic treaty withholding on dividends and interest becomes the only tax under IFICI
- 15 January registration deadline
IFICI: who qualifies
People who become tax resident without having been resident in Portugal in the previous five years, never held NHR, and earn income from a listed activity: higher-education teaching and research; qualified posts under contractual investment incentives or in companies under the RFAI regime; highly qualified professions in listed industrial and service companies exporting at least 50 % of turnover; qualified jobs in companies recognised by AICEP or IAPMEI; R&D staff eligible for SIFIDE; jobs and board seats in certified start-ups; activities in the Azores and Madeira. Registration with the competent body (FCT, AICEP, IAPMEI, ANI, Startup Portugal, or the tax authority for the professions list) by 15 January of the year after arrival; the regime is used once.
What it does
- 20 % flat on Portuguese employment or business income from the qualifying activity, for ten years, with the option of the general table if lower.
- Foreign salaries, business income, dividends, interest, rents and capital gains: exempt in Portugal, counted only to set the rate on other income (IRS Code, art. 81.º n.º 4).
- Pensions: not covered — Icelandic pension-fund payments are taxed at the progressive rates after the 4 587 € deduction.
- Income from listed tax havens: 35 %.
| Icelandic-source income under IFICI | Iceland | Portugal |
|---|---|---|
| Dividends from Icelandic companies | 22 % withheld, reduced to the treaty 15 % on form RSK 5.42 or refunded on RSK 5.43 | exempt |
| Interest | treaty 10 % | exempt |
| Gains on Icelandic shares | none | exempt |
| Rent from an Icelandic property | 22 % capital income tax after the 25 % allowance | exempt with progression |
| Salary from an Icelandic employer for work done in Portugal | none | 20 % only if the Portuguese activity is listed; an Icelandic employer with no Portuguese presence usually does not qualify |
| Pension fund, state pension | none (residence certificate) | taxed in full |
Steps
Five-year check
No Portuguese residence in 2021–2025 for a 2026 arrival; no NHR ever.
Qualify the activity
Employer's certification or CAE code and the profession list checked before the contract is signed.
Register by 15 January
With the body responsible for your category; late registration shortens the ten years.
Treaty forms in Iceland
RSK 5.42 for reduced withholding on dividends and interest; residence certificate for the pension funds.
We check IFICI eligibility against the current lists, file the registration and prepare the return with the exemptions and the Icelandic items under the right articles. Ask whether your job qualifies.
Questions
I am retiring from Iceland to Portugal. Is there a regime for my pension?
No. NHR is closed and IFICI excludes pensions. Icelandic pension-fund and state pensions are taxed only in Portugal (treaty art. 18), at the progressive rates after the 4 587 € deduction, with joint filing for couples.
Can I qualify through a start-up I found in Portugal?
Yes, once it is certified as a start-up under Lei n.º 21/2023 (Startup Portugal certification) and you hold a job or board seat in it. Certification has substance and timing requirements; it is not automatic.
Does IFICI change Icelandic tax on my Icelandic income?
No. Iceland applies its domestic rates reduced by the treaty regardless of the Portuguese regime; the treaty articles on dividends and interest have no subject-to-tax condition, so the Portuguese exemption costs nothing on the Icelandic side.
Sources and official references
- Estatuto dos Benefícios Fiscais, artigo 58.º-A — IFICI: activities, 20 % for ten years, five years of non-residence, NHR beneficiaries excluded — checked 18.9.2026
- Portaria n.º 352/2024/1 — IFICI registration by 15 January — checked 18.9.2026
- Código do IRS, artigo 81.º n.º 4 — exemption with progression for IFICI beneficiaries' foreign income of categories A, B, E, F, G — checked 18.9.2026
- Convention Portugal–Iceland — art. 10 (dividends 10 % / 15 %), 11 (10 %), 13 (gains), 18 (pensions) — checked 18.9.2026
- Skatturinn — capital gains tax 22 % on dividends, interest and gains — checked 18.9.2026