The measure in question offers tax benefits for 10 years for people who move to the country, with income earned in Portugal being taxed at a rate of 20%. Income from abroad is generally exempt, except for pensions, which are taxed at a rate of 10%.

The "10-year rule" refers to the Non-Habitual Resident (NHR) tax regime, a highly attractive program that provides significant tax breaks for new residents for a decade. Under the NHR, qualifying individuals—such as "high value-added" professionals, retirees, and digital nomads—can benefit from a flat 20% income tax rate on Portuguese-sourced income, rather than the standard progressive rates that can reach 48%. Furthermore, most foreign-sourced income (like dividends, royalties, or rental income) may be entirely exempt from Portuguese tax if it can be taxed in the country of origin. While the Portuguese government began phasing out the original NHR at the end of 2023, a new version called the "Tax Incentive for Scientific Research and Innovation" was introduced for 2024 and beyond. It retains the 10-year duration and the 20% flat rate for specific professional categories, continuing Portugal's status as a major tax haven for global talent.