The scale of the change is significant. Once NHR ends, personal income tax rates can rise sharply, reaching up to 48%, or as high as 52% once social charges are included. For anyone who has spent eight, nine or ten years benefiting from a low-tax environment, this jump can come as a considerable surprise, particularly if gains have been allowed to build up without a transition plan in place.

The consistent advice from those who have navigated this process, or who advise others through it, is to start early. Waiting until 18 months or even two years before NHR ends is generally considered too late, since much of the financial benefit accumulated over the preceding years may end up being taxed at the higher rate. Instead, the recommendation is to begin cross-border planning somewhere between years three and five, and no later than year seven.

One route often highlighted is the use of Portuguese-compliant investment structures, which are designed to improve in tax efficiency over time, particularly from year eight onwards. With the right planning, some individuals have been able to keep their effective tax rate as low as 11.2%, or in some cases even lower.

The message throughout is clear: those who plan ahead retain far more control over their financial position, while those who delay risk losing much of what they've worked to build.

To plan ahead for the end of your NHR tax status, arrange a free discovery call with Portugal Pathways.