Some expats in Portugal can benefit from the Non-Habitual Residency (NHR) tax codes, which provide significant exemptions for the first ten years of residence. NHR status is available to workers in qualifying professions and comes with two major advantages : First, you can live in Portugal as a resident but not pay tax on your worldwide earnings), and second, you will pay income tax on Portuguese earnings at a flat rate of 20%, rather than the standard progressive rates of up to 48%.