Everything indicates that the government is studying a type of transitional period for foreigners with pending applications at the Foreigners and Borders Service (SEF).

According to a report by ECO, the Government will be available to create a transition period to allow requests that reach the Tax Authority (AT) after December 31, 2023, due to delays from SEF, to still be evaluated, namely “workers or pensioners coming from countries outside the European Union, Brazil or Portuguese-speaking African Countries (PALOP) that have their application for a resident visa pending”.

The Government's intention is to end the NHR status, which since 2009 has offered a reduction in IRS to new foreign residents and Portuguese citizens who have been out of the country for more than five years.

António Costa's idea will therefore be to end the NHR for new applications in 2024, but maintain the tax benefit for those who are already enjoying this status in Portugal.

The State Budget proposal for 2024 creates a tax incentive for scientific research and innovation, which will allow several professions to benefit from the IRS reduction for ten years.

Related article: End of NHR tax relief for non habitual residents in Portugal