Returning to Portugal: how much IRS will I save and what do I need to sort out?

• Tax address: change it to Portugal on the Portal das Finanças (the tax portal) as soon as you return. That is when you start counting as resident.
• Your car without ISV (vehicle tax): you can bring your car without paying ISV if you lived abroad for at least 6 months and owned the car for at least 6 months before moving. Apply within 12 months of moving your residence. For 12 months from its Portuguese registration you cannot sell, rent out or lend it, and you must keep living in Portugal.
• Programa Regressar cash support: applications closed on 31 March 2026 and covered people who started work by the end of 2025. Check the Programa Regressar portal for any new round.
• Health and social security: register at your local health centre and check that your NISS (social security number) is active.

If you return after at least 5 full years abroad, 50% of your work income (employment and self-employment) is excluded from IRS, up to €250,000 a year, for 5 years. You must have lived in Portugal before, have your tax affairs in order and not have applied for NHR.

The regime covers people who become resident by 2026. For 2027 it depends on the 2027 State Budget, which proposes to extend it. The calculation is for a single person, with 2026 rates and the standard deductions. Estimate only, not tax advice.

The 2026 IRS rates may still be cut with effect from January (decree-law approved by the Government, awaiting publication). This page uses the rates currently in force.

Figures checked in October 2026 · Sources: AT: ficha sobre o art. 12.º-A do CIRS, AT: ficha sobre a isenção de ISV, Portal das Finanças, Programa Regressar

Estimate: An approximate result that depends on assumptions. Confirm important figures with the relevant authority.