A targeted regime with clear benefits. If you qualify, it’s one of the most
efficient tax frameworks available in Europe.

Since 2024, Portugal’s tax incentive for new residents is the IFICI — Incentivo Fiscal à Investigação Científica e Inovação, also known as NHR 2.0.

It is designed for qualified professionals relocating to Portugal to work in innovation, technology, research, and related sectors.

Unlike broader residency programmes, IFICI is not available to everyone. But for
those who qualify, the benefits are straightforward and substantial.

The two main benefits for up to 10 years

PORTUGUESE INCOME	FOREIGN INCOME
20% flat rate On qualifying employment or self-employment income	Exempt (in most cases) Broad exemption, with two key exceptions

Foreign income: a broad and highly favourable exemption

One of the most attractive aspects of IFICI is the treatment of foreign-source income.

In practice, most categories of foreign income — including:

• dividends
• interest
• capital gains
• rental income
• employment income from abroad
• business profits

may benefit from exemption from Portuguese taxation, depending on how the income is structured and sourced.

This represents a significant advantage for internationally mobile professionals with income streams outside Portugal.

There are, however, two important exceptions:

• Pensions — taxed in Portugal at standard progressive rates, which can reach 48–53%.
• Income from blacklisted jurisdictions — taxed at a flat 35% rate, applicable to income sourced from entities located in jurisdictions included on Portugal’s official tax haven list.

Who qualifies?

Eligibility under IFICI depends on both the type of professional activity carried out in Portugal and the nature of the entity involved.

The regime covers several distinct categories, including:

• Highly qualified professionals in listed occupations (technology, engineering, sciences, healthcare, education, among others) employed by qualifying companies.
• Members of corporate bodies in entities recognised by AICEP or IAPMEI as economically relevant.
• Directors and employees of startups certified under Portuguese law
• Researchers and teaching staff in scientific and higher education institutions.
• Professionals in companies operating in qualifying industrial and service sectors that meet export thresholds.

Eligibility criteria — including company requirements, activity classification, and supporting documentation — vary depending on the category.

Importantly, this is not a self-assessed regime. Applications are reviewed and validated by the relevant authorities (such as AICEP, IAPMEI, FCT, or Startup Portugal), depending on the case.

To qualify, you must:

• Not have previously benefited from the NHR regime or the Programa Regressar;

• Not have been a Portuguese tax resident in the previous 5 years.

Is IFICI worth it?

For the right profile, yes — without question.

A 20% flat rate on Portuguese income combined with a broad exemption on foreign income (with limited exceptions) creates a highly competitive tax framework at a European level.

The key is to confirm eligibility before becoming a tax resident — not after.

Work with us

We have already supported multiple IFICI applications — from initial eligibility assessment through to submission and follow-up.

If you are planning a move to Portugal, or have recently become a tax resident and want to understand whether IFICI applies to your situation, we can help you assess and structure your case with clarity.

Contact us at PortugalTaxes.pt to book a consultation and clarify your position regarding IFICI — NHR 2.0.

Disclaimer:
This website is for informational purposes only and does not constitute legal, tax, or financial advice. Individual circumstances vary, and we recommend consulting a qualified professional before making any tax-related decisions. PortugalTaxes.pt is not affiliated with the IRS, Portuguese Tax Authority, or Portal das Finanças. PortugalTaxes.pt is not affiliated with the IRS or Portuguese Tax Authority.