The Return Program, initially established in 2019, was recently extended until December 31, 2026, extending the period so that more citizens can benefit from its measures.
The financial support is aimed at emigrants or family members who start working in mainland Portugal. The amount of support varies according to the type of employment contract:
• Open-ended employment contracts, business start-ups or self-employment, and scholarship contracts lasting two years or more: maximum support of €3,564.82 (seven times the value of the Social Support Index – IAS).
• Fixed term or uncertain employment contracts lasting at least 12 months, and scholarship contracts lasting between one and two years: support of €2,546.30 (five times the IAS).
In addition, there are increases of 20% for each member of the household who takes up residence in Portugal, up to a limit of €1,527.78 (three times the IAS). If the professional activity is carried out in a region in the interior of the country, the amounts are increased by 25%. There is also additional support for return travel expenses (up to €1,527.78) and for the recognition of academic or professional qualifications (up to €763.89).
In terms of tax benefits, the program offers a special tax regime for former residents, in accordance with Article 12-A of the IRS Code. This scheme provides for the exclusion from taxation of 50% of income from dependent work and business and professional income, up to the amount of €250,000, for a period of five consecutive years. To benefit from this scheme, the taxpayer must:
• Become tax resident in Portugal in 2024, 2025 or 2026.
• Not have been resident in Portugal in the five years prior to the return.
• Have been resident in Portugal in any period prior to December 31, 2018 (for returns in 2024), December 31, 2019 (for returns in 2025) or December 31, 2020 (for returns in 2026).
• Have their tax situation in order.
• Have not applied for registration as a non-habitual resident.
From a legal point of view, the implementation of the program requires the coordination of various areas of government and the creation of legal mechanisms to ensure the effectiveness of the proposed measures. The extension of the program until 2026, established by the State Budget Law for 2024 (Law no. 82/2023, of December 29), reflects the continuity of the state’s commitment to creating favorable conditions for emigrants to return.
The Return Program is a legal and political response to the migratory dynamics that characterize Portuguese society. By offering financial support and tax benefits, the program seeks not only to facilitate the return of emigrants, but also to value the skills acquired abroad, promoting social and professional reintegration in Portugal.
The legal analysis of the measures implemented reveals a concerted effort to create a legal framework favorable to return, respecting constitutional principles and ensuring compliance with current tax and labor regulations, so you can count on the experience of the of in Portugal for this purpose.