The “Regressar” Programme: Would this programme work for you?
At a glance:
• The 'Regressar' (Return) Programme is a tax scheme designed for individuals who are returning to live and work in Portugal after spending time abroad;
• While it can bring significant tax benefits, not all cases are eligible;
• Banco Carregosa is not responsible for handling your Return Programme. However, you can count on Carregosa NextGen to provide specialised support throughout your financial and investment journey when you return.
Returning to Portugal after several years abroad is not an easy decision. With changes to country, job and home, there are endless tasks to tick off the list. That’s why it’s common practice to put tax issues to one side until things are quieter. In this case, however, it is certainly worth finding out about state support. One of these is the Return Programme, which provides concrete "tax breaks” for several years, provided certain requirements are met.
Given the more favourable tax regime in the first few years after your return, it may be sensible to make important financial decisions, such as managing your income and defining a savings and investment strategy tailored to your new life in Portugal.
Find out what this support involves, what the advantages are, how to apply for it, and how we can help you take your first financial steps in this new phase.
What is the Return Programme?
The Return Programme aims to make it easier for individuals who decide to return to Portugal after living and working abroad.
The main measures include a more favourable tax scheme, financial support, and access to a credit line for individuals looking to invest, set up or develop a business project in Portugal.
This scheme applies to income obtained from employment or self-obtained in Portugal, provided that certain legal criteria are met.
Who can benefit from the Return Programme?
The Return Programme is aimed at individuals who have lived and worked abroad and are now returning to Portugal, provided they meet the legal requirements in force at the time of their return.
According to current legislation, you can benefit from the programme if you meet the following criteria:
• You have lived permanently in a foreign country for at least 12 months;
• You are once again considered a tax resident in Portugal, as defined by the terms of the Tax Authority;
• You start a professional activity in Portugal on an employed or self-employed basis in accordance with the applicable legal rules at the time;
• You have not been considered a tax resident in Portugal in the five years prior to your return, as defined under the terms of the IRS Code;
• You have regularised your social security and tax contributions with the Tax Authority;
• You are considered to be in compliance if you have previously received financial support from the IEFP (the Institute for Employment and Vocational Training).
Please note that the tax scheme associated with the Return Programme applies to all individuals who become tax residents of Portugal from 2019 onwards. This tax benefit is valid for a period of five consecutive years.
The Return Programme: what are the benefits?
One of the main benefits of the Return Programme relates to taxation by the IRS. However, there are other benefits that you should be aware of.
1. A more favourable tax scheme
This is the main benefit. Under the Return Programme, only 50% of employment income earned in Portugal is subject to income tax during the year of return and the subsequent four years.
This tax saving could provide a valuable opportunity to boost your savings or begin a more regular investment strategy. Directing this income differential towards specific financial goals can have a significant impact in the medium and long term.
2. Financial support available for those returning to Portugal
This support is intended to offset some of the costs associated with moving, such as travel expenses, transporting goods, and settling in. It is also intended to help with adapting to the labour market or starting a new career.
The IEFP also provides financial support equivalent to seven or five times the IAS (Social Support Index) for emigrants or their family members returning to Portugal to take up employment.
Support equivalent to seven times the IAS is granted in the case of:
• Indefinite employment contracts;
• Scholarship contracts that are expected to last for a minimum of two years;
• Starting a business or becoming self-employed.
Support equivalent to five times the IAS is granted in the case of:
• Fixed-term or unspecified term employment contracts with an initial or foreseeable duration of at least 12 months;
• Scholarship contracts for a minimum of 12 months and a maximum of 2 years.
Note: Support may increase by up to 20 % (up to a maximum of 3 times the Social Support Index (IAS) rate) for each person in the household if the new job is located in the interior of the country.
3. Credit line for investments and business creation
The Return Programme provides a specific credit line to support the creation of new businesses for those returning with a desire to invest. This support can help you access finance at an early stage, turning your ideas into concrete projects –provided you have a solid, sustainable plan.
How to apply for the Return Programme
Follow these steps to apply:
1. Update your tax residence status in Portugal
Begin by updating your tax address with the Tax Authority, stating the date on which you started living in the country. If you skip this step, you won’t be able to benefit from the programme’s tax scheme.
2. Gather all the necessary documentation
To apply for the programme, you must submit documents proving your background. Proof of residence abroad is usually requested, as well as documentation certifying the date of return. Where applicable, documentation relating to professional activity carried out in Portugal is also required. You can see all the documentation required here.
3. Choose the scheme when filling in your tax return
To access the tax scheme of the Return Programme, select the relevant option on your tax return for the year in which you become a tax resident in Portugal. This step is essential and must be completed within the legal deadline, or the benefit for that year will be lost.
4. Monitor the situation and clarify any uncertainties
Once you have submitted your application, it is important to keep an eye on your tax situation and make sure that the scheme has been applied correctly. If you have any doubts or encounter specific situations, seeking specialised support will help you avoid making mistakes and ensure the framework aligns with your needs.
In what situations does the Return Programme not work for you?
Despite its benefits, there are situations in which the Return Programme may not be the best option:
• If your income does not fit into any of the covered categories;
• If you are planning to move again within a short period of time;
• If you have a more complex asset structure involving international income.
How Carregosa NextGen can support you
Have you considered taking advantage of the Return Programme? Although Carregosa NextGen is not directly or indirectly involved in the Return Programme process, it can support you in various ways. Find out how:
Personalised financial support
Upon returning, people are often uncertain about how to reorganise their income, expenses and financial priorities. Personalised financial support can help you to organise your finances, set goals and establish a solid foundation for future decisions.
Medium- and long-term financial planning
It is essential to define financial goals in order to ensure a successful transition. Financial planning enables you to set realistic goals, such as creating a financial reserve, investing consistently, or planning to buy a house, and design a plan that suits your circumstances.
Savings and investment solutions
Different stages of life involve different levels of risk and expected returns. Carregosa NextGen offers savings and investment solutions to suit different profiles, from beginners to those seeking more advanced strategies.
Access to diversified financial instruments
The GoBulling Investor Trading Platform gives you access to a range of financial instruments, such as investment funds and capital market solutions. This allows you to build a portfolio that aligns with your objectives and time horizon.
Integration of savings accumulated abroad
Many people who return to Portugal have savings built up in other countries. Integrating this capital into a financial strategy tailored to the Portuguese context is an important step towards achieving financial planning that is both continuous and coherent.
Return Programme: FAQ
We have answered some of the most frequently asked questions about the Return Programme below.
1. Upon my return to Portugal, will the Return Programme be applied automatically?
No, you need to fulfil the legal requirements and select the scheme in your Portuguese tax return for the year in which you become a tax resident.
2. Will I be eligible for the Return Programme if I plan to return after 2026?
Some measures of the Return Programme, including support from the IEFP, are currently scheduled to run until March 2026. The applicable tax regime depends on the legislation in force at the time.
3. How does the tax benefit of the Return Programme work?
The tax scheme allows certain types of employment income, such as salaries or business and professional income, to be exempt from tax, provided the legal criteria are met. These criteria apply to tax residents who have not lived in Portugal in previous years, as defined by law.
4. Who is eligible to apply for the Return Programme?
Emigrants can apply for the purposes of the tax scheme, as can family members of emigrants in the case of IEFP support, as long as they meet the applicable programme criteria.
5. Can Carregosa NextGen help me to take advantage of the Return Programme?
Yes. Although Carregosa NextGen is not involved in the Return Programme application process, we can support you with financial management, savings, and investment decisions once you return to Portugal. A more favourable tax framework, such as the one provided for in this programme, makes it possible to structure financial objectives more effectively, create a consistent investment strategy and integrate savings accumulated abroad. You will always receive specialised support and solutions tailored to your profile.