Retirees in Portugal: What You Need to Know About the 2025 Tax Regime
If you're a retired expat living in Portugal , the new NHR 2.0 regime introduces important changes that might affect your pension taxation . Here’s what you need to know: Key Changes for Retirees in 2025 ✔ No More 10% Flat Tax on Foreign Pensions Previously, retirees benefited from a 10% flat tax rate on foreign pension income under the NHR regime. This is no longer available in NHR 2.0. ✔ Standard Progressive Taxation Pension income is now subject to Portugal’s standard income tax brackets , ranging from 14.5% to 48% , depending on the amount received. This means that some retirees will pay higher taxes than before. ✔ Who Can Still Benefit from the Old NHR Rules? If you applied for NHR before the end of 2023 and met the residency requirements (such as having a rental contract or house purchase), you may still qualify for the old rules, including the 10% tax rate for up to 10 years . Mandatory Reporting at the AT Portal As a tax resident in Portugal, you must comply...