We must level with you.

Portugal is one of the best places in the world to live as a remote worker. The lifestyle is real: beaches, climate, safety, international community, great cafés, good food, and genuinely warm people.

But many digital nomads arriving here in 2025 and beyond don’t realise something important.

NHR — the famous tax benefits regime that Portugal ran for more than a decade — is over.

Digital nomads are inherently smart and optimistic people. They are used to figuring things out themselves, taking advice from friends, and assuming that things will work out. They move fast. They build things quickly. They plan as they go.

That mindset works incredibly well in technology.

It can be extremely dangerous in tax.

The reality is that many of those same smart, optimistic people — often earning six-figure incomes — can end up paying effective tax rates approaching 70% in Portugal once income tax and social security are combined.

That is not an exaggeration.

Portugal’s progressive income tax rates reach 48% at roughly €80,000 of income.

A solidarity surcharge can add up to 5%.

Social security contributions can reach 21% for self-employed individuals, and even higher for employment income.

Suddenly, what looked like a lifestyle upgrade becomes a financial shock.

There is a new regime — IFICI.

It is a good system, and when used correctly it can work very well. But it is also new and complex, and qualifying for it does not simply happen because someone is good at writing code or building a startup.

The reality is that many digital nomads are not taking the right steps early enough, and as a result they risk losing the ability to qualify for IFICI — not just for this year, but potentially forever.

At FRESH Legal Group, we have submitted more IFICI applications than any other firm we know of. We have also designed specialised structures specifically for digital nomads.

With proper planning and responsible support, digital nomads can achieve effective tax rates around 15% and protect their Portugal dream.

We support thousands of expatriates navigating life and business across borders.

And if you are planning your move to Portugal, we are here to help you do it properly.