Once NHR status concludes, individuals who remain tax resident in Portugal may become subject to the standard Portuguese tax framework, including progressive income tax rates that can reach up to 48%, depending on personal circumstances, income sources, asset composition and the applicable law at the time.

According to industry professionals, a common challenge is that many NHR holders postpone engaging with regulated advisers until later in their NHR period, often assuming there will be sufficient time to address matters closer to the end.

Portugal Pathways, an organisation that provides information and introductions to regulated tax and financial professionals for internationally mobile individuals, notes that earlier awareness can help people better understand the questions they may need to consider — without implying that any single approach applies to everyone.

“Many NHR holders underestimate how their tax position could change once the regime ends,” said Steve Philp, Director at Portugal Pathways. “Everyone’s circumstances are different, and there is no universal solution. However, understanding the post-NHR framework earlier allows individuals to make informed decisions with appropriately regulated professionals, rather than reacting at the last minute.”

Philp emphasised that Portugal Pathways does not provide tax or financial advice and does not design or implement planning strategies. Any assessment or structuring is carried out solely by independent, regulated advisers, based on individual circumstances.

Without any planning or review, individuals who remain resident in Portugal after NHR may automatically fall under the standard progressive tax system. However, professionals stress that outcomes vary widely, and tax exposure depends on a range of personal factors rather than timing alone.

In one anonymised case referenced by advisers, a couple who sought professional advice very late in their NHR period faced a substantially higher tax bill after their NHR status ended. While such examples highlight the importance of awareness, advisers caution that individual experiences should not be viewed as typical or predictive of outcomes for others.

Survey data from the Wealthy Expats in Portugal study also suggests that a large proportion of NHR holders are uncertain about how their tax position may evolve post-NHR, particularly if they do not engage with regulated professionals until later years.

Niall Macdonald, a Portugal-based wealth manager, noted that this uncertainty is common. “It’s understandable that people focus on enjoying their new lifestyle,” he said. “From a professional standpoint, earlier discussions simply give more time to analyse individual circumstances and explore appropriate options. There are no guarantees, and advice must always be tailored.”

Eileen Brennan, a UK expat living in Portugal, shared her experience of seeking advice partway through her NHR period. “I didn’t initially appreciate how my income and pension might be taxed once NHR ended,” she said. “After being introduced to regulated advisers, I was able to review my situation in more detail. While I’m in a better position now, I learned that timing and personal circumstances can make a meaningful difference.”

Portugal Pathways explains that its role is limited to providing information and introductions. It offers an initial, no-obligation discovery call to help individuals understand what types of regulated tax or wealth professionals they may wish to speak with, based on their situation.

“With the right independent advice, people can gain clarity and confidence about their future,” Philp added. “But there is no substitute for personalised guidance from appropriately qualified and regulated advisers.”