LEGAL ALERT - NHR: high value-added activities ruled unconstitutional

In Judgment No. 366/2026 (Case No. 145/2025), the Portuguese Constitutional Court ruled unconstitutional a provision of the Personal Income Tax (IRS) Code that applies to Non-Habitual Residents (NHR).

The provision concerns the special 20% rate on self-employment income (category B) earned from high value-added activities of a scientific, artistic or technical nature. Article 72(10) of the IRS Code did not define those activities and left that definition to an administrative regulation.

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