Project Description

Introduction

Portugal has long been considered one of the most attractive countries to live and work in. It boasts a mild climate, a high level of safety, hospitable and friendly people, and high-quality infrastructure. All this, combined with tax incentives, makes the country particularly attractive to professionals, investors, and entrepreneurs.

Until 2024, the most popular program among expats was the NHR (Non-Habitual Resident) program, which significantly reduced the tax burden on certain types of income. However, starting in 2025, the NHR was abolished and replaced by a new program: TISRI (Tax Incentive for Scientific Research and Innovation), also known as IFICI (Fiscal Incentive for Investigação Científica e Inovação).

In this article, we will take a detailed look at what the new IFICI regime is, how it differs from the previous Non-Habitual Resident (NHR) tax regime, and what additional benefits it offers over the now-defunct NHR tax regime.

  • Tax Benefits of IFICI

    1. Flat Tax Rate of 20%
    Income from employment or self-employment in qualifying activities is subject to a flat tax of 20%. By comparison, Portugal has a progressive income tax rate that can reach 53%—the savings are clear.

    2. 0% Tax on Foreign Income
    Most income earned outside Portugal is not subject to taxation in Portugal. However, unlike the NHR regime, pension payments from abroad are not included in the income tax exemption program.

    3. Valid for 10 years
    IFICI provides benefits for a full decade. Even if you temporarily leave the country, you can renew your eligibility and use the remaining years.

    Who is eligible for IFICI?

    Scientists, teachers, engineers, IT developers, company executives, specialists in biotechnology, medicine, green technologies, fintech, and startup executives…

  • What documents are required to submit an application?

    To apply for participation in the IFICI+ regime, the applicant must prepare the following documents:
    • Employment contract – if the applicant is employed.
    • Commercial registration certificate – for entrepreneurs and self-employed professionals.
    • Scholarship agreement or research contract – for employees of scientific and research organizations.
    • Diplomas and certificates – confirming qualifications and compliance with the requirements of highly skilled professions.
    • Other documents – additional materials that may be requested by relevant authorities depending on the specific case.

    Furthermore, IFICI+ participants are required to notify the tax authorities annually, by January 15 of the following year, of any changes in their professional status, as such changes may affect their eligibility to continue receiving tax benefits.

    IFICI – Requirements for Activities, Professions, and Organizations
    To qualify for tax benefits under the IFICI regime, the applicant must be engaged in one of the recognized professions or activities (in accordance with Article 58-A of the EBF and Portarium No. 352/2024/1). Requirements also apply to the organizations where these activities are carried out.

    Important: Starting in 2025, IFICI participants cannot simultaneously benefit from the IRS Jovem regime (tax incentives for young professionals).

  • What documents are required to submit an application?

    To apply for participation in the IFICI+ regime, the applicant must prepare the following documents:
    • Employment contract – if the applicant is employed.
    • Commercial registration certificate – for entrepreneurs and self-employed professionals.
    • Scholarship agreement or research contract – for employees of scientific and research organizations.
    • Diplomas and certificates – confirming qualifications and compliance with the requirements of highly skilled professions.
    • Other documents – additional materials that may be requested by relevant authorities depending on the specific case.

    Furthermore, IFICI+ participants are required to notify the tax authorities annually, by January 15 of the following year, of any changes in their professional status, as such changes may affect their eligibility to continue receiving tax benefits.

    IFICI – Requirements for Activities, Professions, and Organizations
    To qualify for tax benefits under the IFICI regime, the applicant must be engaged in one of the recognized professions or activities (according to Article 58-A of the EBF and Portarium No. 352/2024/1). Requirements also apply to the organizations where these activities are carried out.

    Important: Starting in 2025, IFICI participants cannot simultaneously benefit from the IRS Jovem regime (tax incentives for young professionals).

    Main Categories

    A) Research and Teaching
    • Professions: teachers, researchers, scientific staff.
    • Organizations: universities, research centers, structures engaged in the creation and dissemination of knowledge.

    Skilled Jobs
    • Requirements: Qualification at least at level 5 of the European Qualifications Framework (post-secondary education).
    • Organizations: Companies receiving tax incentives for productive investments.

    C-i) Highly Skilled Occupations (List in Portaria 352/2024/1)
    • Requirements:
    • Doctorate (level 8), or
    • Bachelor’s/Master’s degree (levels 6-7) + at least 3 years of proven experience.
    • Organizations: Companies that have benefited from investment tax incentives in the last 5 years.

    C-ii) Highly Skilled Professions (same list)
    • Similar requirements (PhD or Bachelor’s/Master’s degree + experience).
    • Organizations: Industrial and service companies (with specific CAE codes) exporting at least 50% of their turnover.

    D) Skilled Jobs Defined by IAPMEI and AICEP
    • Requirements: Qualification level 5 or higher.
    • Organizations: Companies recognized by IAPMEI or AICEP as strategically important for the national economy (e.g., investments, reduction of regional disparities).

    E) Research and Development
    • Requirements: Minimum level 4 education (complete secondary) + participation in research and development projects.
    • Organizations: Companies benefiting from R&D tax incentives, where personnel costs are considered eligible.

    F) Startups
    • Professions: Research and innovation-related jobs; management members.
    • Organizations: Certified start-ups (according to Law No. 21/2023).

    G) Activities in the Azores and Madeira
    • Professions and organizations: defined by regional legislation.

Conclusion

The IFICI regime has become an important tool for attracting highly qualified specialists and investments to Portugal. It offers the opportunity to significantly reduce the tax burden and receive 10 years of stable tax benefits.

Our company will help you understand all the tax nuances of NHR 2.0/IFICI status, prepare the necessary documents, and simplify bureaucratic procedures. We support clients through every stage—from application to annual reporting (IRS).