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Programa Regressar (return programme): eligibility, IRS and simulator

Portugal's tax break for returning former residents

The Programa Regressar is the tax regime for former residents, in article 12-A of the IRS Code: people who become resident in Portugal again by 2026, after five full calendar years living abroad, pay IRS on only half of their salary and self-employment income for five years. The 2027 State Budget proposal extends it to returns in 2027. Below: a checker for the year you can return, an IRS simulator and how to claim the regime on your tax return.

By Elijah·UPDATED OCTOBER 2026·7 MIN·OFFICIAL SOURCES
KEY FACTS
The benefit
50% of employment and self-employment income is left out of IRS, for 5 years
Who
People who become resident again after 5 full calendar years abroad and lived in Portugal before
Until when
Returns up to 2026 under the law; 2027 in the Budget proposal, final vote on 24/11/2026
Year you left
Counts as a year of residence, even if you only lived here for part of it
Excluded
Anyone who ever applied for NHR; anyone with tax debts
How to claim
Automatic: IRS return (Annex A, box 4E) and a notice to your employer

1. Can I claim it?

YEAR YOU BECOME (OR BECAME) RESIDENT AGAIN
HAVE YOU EVER APPLIED FOR NHR STATUS?
IS YOUR TAX SITUATION IN ORDER (NO DEBTS TO THE AT)?
RESULTYou meet the date conditionsOnly if the 2027 Budget is approvedNot eligible for this yearCheck the years
The regime applies in:
year 12026year 22027year 32028year 42029year 52030

2. How much IRS do I save?

HOW YOU FILE IRS
€
Employment income for the year, including holiday and Christmas pay, before tax. Up to €250,000.
IRS SAVED PER YEAR (2026 RULES)€3,442.76

Type a gross annual salary above 0.

Above €250,000 a year the law's cap is read in different ways, so the simulator does not compute it.

IRS without the regime€4,810.64
IRS with the Programa Regressar€1,367.88
Income left out of IRS€15,000.00
Taxable income without / with€25,412.91 / €10,412.91
Over the 5 years, at 2026 values€17,213.80

Tax from the 2026 table before tax credits; with dependants or deductible expenses the IRS is lower in both cases. A minimum saving: see «Two readings of ours» below.

How this works

Two tools: the checker tells you whether your return year meets the dates in the law, and the simulator estimates 2026 IRS with and without the regime for employment income. Everything runs in your browser.

  1. 1
    The dates
    The checker applies article 12-A of the IRS Code as the AT (Tax Authority) reads it: the five years without residence are full calendar years, and the year you left counts as a year of residence even if you left in January. So the first return with the regime is six years after the last year you lived here. It then checks the deadline (2026 in the law, 2027 in the Budget proposal), NHR and your tax situation.
  2. 2
    IRS with and without the regime
    For your gross annual salary, the simulator works out 2026 IRS twice: on the full income and on half of it. Each time it subtracts the specific deduction (€4,587.09, or 11% Segurança Social if higher), applies the mínimo de existência (tax-free minimum) and the article 68 table in force, with the joint-filing quotient if you file jointly and the solidarity surcharge. The difference is the saving.
  3. 3
    Two readings of ours
    The AT has not published how the exclusion combines with the specific deduction and the tax-free minimum. We apply the specific deduction to the taxed half only, which gives a minimum saving: if the AT deducts contributions on the whole salary, the saving is larger for salaries above €41,700. The tax-free minimum uses the whole salary, because article 70 counts income «ainda que isentos ou excluídos de tributação» (even if exempt or excluded).

Programa Regressar conditions

In the IRS Code the Programa Regressar is the «regime fiscal aplicável a ex-residentes» of article 12-A. To leave 50% of your work income out of IRS you must meet five conditions at the same time:

  1. Become a tax resident of Portugal by 2026 (2027 if the 2027 State Budget is approved with the Government's proposal).
  2. Not have been resident in Portugal in any of the five previous years. The AT counts full calendar years: if you left in May 2021, 2021 is a year of residence.
  3. Have been resident in Portugal at some point before those five years.
  4. Have your tax situation in order.
  5. Never have applied for non-habitual resident (NHR) status, at any time.
LAST YEAR IN PORTUGALFIRST RETURN WITH THE REGIMESTATUS
20182024In the law (benefit to 2028)
20192025In the law (benefit to 2029)
20202026In the law (benefit to 2030)
20212027Only if OE2027 is approved
20222028No regime, approved or proposed

The full-calendar-year rule comes from AT binding rulings of 2025 and 2026 (cases 28751, 29960 and 30273), all on the same situation: leaving in the middle of a year. If you never moved your address abroad at the Finanças, the AT kept treating you as resident; its FAQ explains how to ask a tax office to backdate the foreign address with a tax-residence certificate from the other country.

How much you save: 2026 IRS examples

For a gross salary of €30,000 a year, filing alone, 2026 IRS falls from €4,810.64 to €1,367.88: €3,442.76 a year. The table shows other salaries, with the IRS table in force and 11% Segurança Social.

GROSS SALARY / YEARIRS WITHOUTIRS WITHSAVING / YEARIN 5 YEARS
€20,000.00€2,308.28€676.61€1,631.67€8,158.35
€30,000.00€4,810.64€1,367.88€3,442.76€17,213.80
€40,000.00€8,149.16€2,308.28€5,840.88€29,204.40
€60,000.00€15,374.92€4,810.64€10,564.28€52,821.40
€100,000.00€31,557.83€11,436.23€20,121.60€100,608.00

Tax from the art. 68 table (Lei 73-A/2025) plus the solidarity surcharge, before tax credits (dependants, health, education, general expenses), which lower IRS in both cases. Five years at 2026 values, without updates. Single filer, employment income only.

See which 2026 IRS bracket each half falls in, and how the monthly withholding tables work once your employer withholds on the taxed half only.

The five years of the regime

The regime applies in the year you become resident again and the four following years: someone who returns in 2026 has it from 2026 to 2030. The year of return counts as the first whatever the month you arrive, because residence is assessed on 31 December.

If you leave Portugal again during those years, you lose the regime for that year and the benefit lapses; that year you file two returns, one as a resident without the regime and one as a non-resident. To have it again, a later return would have to meet every condition from scratch.

How to claim the Programa Regressar on your IRS

There is no prior application: the regime is automatic and you invoke it in your return and with whoever pays you.

  1. During the year, if you are employed, give your employer a statement saying you are a returning former resident covered by article 12-A: withholding then applies only to the taxed part.
  2. If you issue recibos verdes (self-employed receipts), write on each one «Retenção sobre 50%, nos termos do artigo 12.º-A do Código do IRS».
  3. In the IRS return (Modelo 3), report salaries in Annex A, box 4A, with code 410 at the full amount, including the excluded part, and fill in box 4E with the year you became resident. Self-employed income goes in Annex B, box 3C (organised accounts: Annex C, box 3C) and foreign income in Annex J, box 4D.
  4. In every year of the regime you must stay resident and keep your tax situation in order.

Programa Regressar or IFICI: which one

They are alternatives. Opting for the Programa Regressar closes IFICI and IRS Jovem for good, and anyone who ever applied for NHR cannot have the Regressar.

Programa RegressarIFICI
LawArticle 12-A of the IRS CodeArticle 58-A of the Tax Benefits Statute
For whomFormer residents back after 5 full calendar years abroadNew residents (no residence in the previous 5 years) in qualifying jobs: research, higher education, certified startups, exporting firms and others
Benefit50% of category A and B income left out of IRS20% flat rate on the category A and B income from those jobs
Length5 years10 consecutive years
Closed toAnyone who ever applied for NHRNHR beneficiaries and anyone who opted for article 12-A

Check whether you fit IFICI with the NHR/IFICI checker and estimate the 20% rate with the IFICI simulator. If you are 35 or under, compare with IRS Jovem before you claim the Regressar, because the choice closes it.

Programa Regressar and the IEFP grant are not the same thing

«Programa Regressar» is also the name of the Government programme that grouped several measures for emigrants. The two best known are different: the article 12-A tax regime, which lowers IRS, and the Medida de Apoio ao Regresso de Emigrantes a Portugal (MAREP), an IEFP cash grant for people who started work in mainland Portugal. MAREP covered jobs started between 2019 and 2025, and the Portal das Comunidades states it ended on 31 March 2026; the Government announced a new portaria (ministerial order) for 2026, so check with the IEFP whether a new round has opened. The tax regime stays in force for returns up to 2026.

Frequently asked

What is the Programa Regressar?
It is the tax regime for former residents, in article 12-A of the IRS Code: people who move back to Portugal after five full calendar years abroad pay IRS on only half of their salary and self-employment income, for five years. The same name also covered an IEFP cash grant for emigrants, which is a separate measure and ended in March 2026.
Does the Programa Regressar continue in 2027?
Under the law in force, only for people who become resident by 2026. The 2027 State Budget proposal (Proposta de Lei 110/XVII, article 60) moves the date to 2027, and the final vote is scheduled for 24 November 2026. Until then, a return in 2027 depends on that approval.
I left Portugal mid-year. Does that year count?
It does. The AT considers the five years of absence to be full calendar years, and a year with partial residence is a year of residence. Someone who left in May 2021 does not qualify if they return in 2026: the first possible year is 2027, if the 2027 Budget is approved with the extension.
How do I claim the Programa Regressar on my IRS return?
There is no prior application. In the Modelo 3 return, you report your salary in Annex A with code 410, at the full amount, and give in box 4E the year you became resident again; self-employed income goes in Annex B, box 3C. During the year, hand your employer a statement so that withholding only applies to the taxed part.
Can I combine the Programa Regressar with IRS Jovem or IFICI?
No. Anyone who opted for article 12-A is shut out of IRS Jovem (article 12-B(9) of the IRS Code) and of IFICI (article 58-A(10) of the Tax Benefits Statute). And anyone who ever applied for non-habitual resident (NHR) status cannot have the Regressar regime.
Does my spouse qualify too?
Only if they meet the conditions themselves: each taxpayer is assessed separately and the regime can apply to both. In joint filing, the 50% exclusion applies to the income of whoever qualifies; the simulator lets you mark both cases.
What if I emigrate again during the five years?
You lose the regime for that year and the benefit lapses: the AT requires residence in Portugal in every year it applies. In the year you leave you file two returns, one as a resident without the regime and one as a non-resident. To get it back, a later return would have to meet every condition again.
OFFICIAL SOURCES
DISCLAIMER
I read article 12-A of the IRS Code, the AT binding rulings and circulars and the 2027 State Budget proposal in October 2026. The simulator estimates 2026 IRS (tax and solidarity surcharge) for employment income, with 11% Segurança Social; it does not apply tax credits (dependants, health, education, general expenses), so real IRS is lower in both scenarios. Two readings are mine, with no AT text behind them: the specific deduction on the taxed half and the tax-free minimum on the whole salary. Not tax advice: check on the Portal das Finanças before you decide.