The NHR 2.0, known as the Tax Incentive for Scientific Research and Innovation (IFICI), is a new tax regime that provides substantial savings for highly qualified professionals in Portugal.
Portugal’s tax landscape has been significantly reshaped by the recent regulations under this regime, aiming to attract and retain these professionals by offering attractive tax benefits.
The IFICI grants a flat tax rate of 20% on income derived from eligible employment and self-employment activities for up to 10 years, making it an appealing option for professionals looking to relocate to Portugal.
Additionally, foreign-sourced income, except for pensions, is exempt from taxation in Portugal, provided it is declared for tax progression purposes.
To qualify for IFICI, individuals must be new tax residents in Portugal, meaning they have not been considered residents in the last five years.
Eligible professions include teaching and scientific research roles in higher education institutions or national innovation centers, as well as positions in certified start-ups or economic activities recognized by government agencies, such as AICEP (Agency for Investment and Foreign Trade) and IAPMEI (Institute for SME Support). A PhD or a bachelor’s degree with three years of professional experience is also required.
IFICI also supports professionals working in industrial companies and export service sectors.
Certified start-ups must have been active for at least 10 years, employ fewer than 250 workers, and generate annual revenue below €50 million. They must also demonstrate innovation or secure external investments, such as venture capital or financing from the Portuguese Development Bank.
For individuals who became tax residents in Portugal during 2024, a transitional deadline applies until March 15, 2025, while all others must register by January 15 of the year following their residency.
It is important to note that this regime can only be requested once per taxpayer, and individuals who have already benefited from other tax regimes, such as the Non-Habitual Resident (NHR) regime or the Return Program, are not eligible.
