The recently introduced Tax Incentive for Scientific Research and Innovation (IFICI), commonly referred to as NHR 2.0, marks a pivotal shift in Portugal’s fiscal policy designed to attract top-tier global talent.
Replacing the widely known Non-Habitual Resident (NHR) regime, IFICI is tailored for highly skilled professionals, entrepreneurs, and innovators contributing to the nation’s strategic economic sectors.
Key Highlights of the IFICI (NHR 2.0)
– Flat Personal Income Tax: 20% on qualifying employment and self-employment income derived from Portugal.
– Foreign-Sourced Income: 0% tax on dividends, interest, capital gains, royalties, and certain business income—provided they are not sourced from Portugal and originate from a country with a Double Taxation Agreement (DTA).
– Foreign Pensions: Unlike the previous NHR, foreign pensions are now taxed at standard progressive rates (14.5% to 53%).
Eligibility Criteria
To apply for the IFICI, you must:
– Become a Portuguese tax resident after January 1, 2024.
– Not have been a Portuguese tax resident in the previous 5 years.
– Hold a high-level qualification (Bachelor’s + 3 years’ experience or PhD).
– Work in an eligible profession or company contributing to Portugal’s economic innovation.
Qualifying Professions Include
– Scientists, engineers, ICT professionals
– University professors and medical doctors
– Company directors and executives in R&D sectors
Eligible Companies Must
– Export at least 50% of turnover
– Operate in sectors such as extractive industries, ICT, higher education, R&D, and healthcare
Application Deadlines & Authorities
Applications must be submitted by January 15 of the year following residency.
– Startup route: Submit via Startup Portugal
– Economic relevance: Apply through IAPMEI or AICEP
– General professions: Managed by the Tax Authority
Required Documentation
– Proof of qualifications
– Employment or scholarship contracts
– Company certification and activity declaration
Income Tax Treatments
– Foreign income: Exempt if covered by a DTA
– Portuguese income: Flat 20% for eligible activities
– Pensions: Fully taxed under the progressive system
– Capital gains: Currently awaiting final regulation
Countries with DTA Agreements Include:
– United States, Canada, UK
– Most EU nations
– China, Japan, Singapore
– Brazil, UAE, and over 80 others
FAQs
1. Can former NHR holders apply?
No. If you were part of the old regime, you are not eligible for IFICI.
2. What about capital gains from abroad?
Awaiting final guidance—currently not guaranteed to be exempt.
3. Is there a minimum stay?
No, but you must maintain Portuguese tax residency.
4. After 10 years?
You’ll shift to the standard Portuguese tax regime.
5. Is the application process stricter?
Yes. The new system includes fixed deadlines, thorough checks, and detailed documentation.
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