The Regressar Program, introduced by the 2019 State Budget, granted emigrants who returned to Portugal a 50% exemption from Personal Income Tax (IRS) regarding employment, business and professional income, provided they became residents in Portuguese territory in the years 2019 or 2020.
Following the 2022 State Budget proposal, the latter contains the possibility of extending said program until December 31st, 2023.
For this benefit to be granted, former residents who return to Portugal i) cannot have been residents in Portuguese territory in any of the three years prior to returning to Portugal, ii) are required to have been residents in Portugal before December 31st of 2017, 2018 and 2019, depending on the year of return being 2021, 2022 or 2023, respectively, and iii) need to have their tax situation regularized.
In addition to the already mentioned 50% exemption from taxation for a maximum period of five years (including the year in which they become residents), other measures are proposed, such as the concession of financial support, through the Institute of employment and professional formation (Instituto de Emprego e Formação Profissional – IEFP), to emigrants or relatives of emigrants who wish to start working in the Portuguese mainland, among other measures such as the co-payment of expenses regarding the return to Portugal of the former resident and the family members of his household.
This measure aims to support and encourage Portuguese emigrants to return to their country of origin, trying to reverse one of the negative characteristics associated with Portugal – its high emigration rate.