Tax
IFICI in Portugal: the complete guide to NHR 2.0.
Everything you need to know about Portugal's tax incentive for scientific research and innovation: legal framework, qualifying activities, tax benefits, foreign income exemptions, application process, and deadlines.
What is IFICI?
IFICI, the Incentivo Fiscal à Investigação Científica e Inovação, is the tax regime that replaced Portugal's Non-Habitual Resident (NHR) programme. It was introduced by the 2024 State Budget Law (Lei n.º 82/2023, 29 December), which added Article 58-A to the Estatuto dos Benefícios Fiscais (EBF), Portugal's Tax Benefits Statute.
The regime came into effect on 1 January 2024 and applies to new tax residents who carry out professional activities in sectors deemed strategic for the Portuguese economy: scientific research, innovation, technology, certified startups, and export-oriented industries, among others.
Unlike the original NHR, which cast a wide net over retirees, investors, and a broad range of professionals, IFICI is deliberately narrower. The policy intent is straightforward: replace a regime that attracted passive capital with one that incentivises productive talent and economic contribution within Portugal.
The implementing regulations were finalised by Ordinance 352/2024/1 (23 December 2024), later amended by Ordinance 52-A/2025/1 (25 February 2025). These define the eligible highly qualified professions, the applicable CAE codes for industrial and service companies, and the registration procedures with the relevant government agencies.
Key legislation
Article 58-A of the Estatuto dos Benefícios Fiscais (EBF)
Ordinance 352/2024/1, 23 December 2024
Ordinance 52-A/2025/1, 25 February 2025
Despacho 2416-A/2025, 20 February (official registration form)
Ofício Circulado 20276, 26 February 2025 (Tax Authority guidance)
Avisos 4812/2025 and 5309/2025 (IAPMEI / AICEP: qualified professions and relevant activities)
Who qualifies for IFICI?
Under Article 58-A(1) of the EBF, read together with Article 16(1) and (2) of the Portuguese Income Tax Code (CIRS), individuals must meet all of the following conditions:
Become a Portuguese tax resident. Under Article 16 CIRS, typically by spending more than 183 days in Portugal in a calendar year, or by maintaining a habitual residence that demonstrates an intention to stay.
Not have been tax resident in the prior 5 years. The applicant must not have been considered a Portuguese tax resident in any of the five calendar years immediately preceding the year they establish residency.
Carry out a qualifying activity. Must earn income each year from one of the eligible activities listed in sub-paragraphs (a) through (g) of Article 58-A(1). A gap of up to 6 months between qualifying activities is permitted.
Register on time. Submit a registration application through the Portal das Finanças by 15 January of the year following the year of becoming tax resident. Late registration is possible but limits the effective period.
The seven qualifying pathways
Article 58-A(1) of the EBF defines seven categories of eligible activities, each verified by a different government agency.
For pathway (c), applicants must generally hold at least an EQF Level 6 qualification (bachelor's degree) with 3 years of professional experience, or EQF Level 8 (PhD) without experience requirements.
a) Higher Education & Scientific Research. University teaching and scientific employment in entities within the national science and technology system. Includes positions in technology and innovation centres recognised under Decree-Law 126-B/2021. Verified by FCT.
b) Contractual Investment Benefits. Qualified positions and board members in projects benefiting from contractual investment incentives under Chapter II of the Tax Investment Code (Código Fiscal do Investimento). Verified by AICEP.
c) Highly Qualified Professions. Professionals listed in Annex I of Ordinance 352/2024, employed by companies with RFAI-eligible investments or by industrial/service companies with eligible CAE codes that export ≥50% of turnover. Verified by AT / IAPMEI / AICEP.
d) Economically Relevant Activities. Positions in entities whose activities are recognised by AICEP or IAPMEI as relevant to the national economy, including attracting productive investment and reducing regional asymmetries. Verified by AICEP (turnover ≥ €75M) or IAPMEI (below €75M).
e) R&D Personnel (SIFIDE). Personnel whose costs are eligible under the tax incentive scheme for business R&D (SIFIDE), as defined in Article 37(1)(b) of the Tax Investment Code. Verified by ANI.
f) Certified Startups. Employees and board members of entities certified as startups under the Portuguese Startup Statute (Law 21/2023, 25 May). Verified by Startup Portugal.
g) Autonomous Regions (Azores & Madeira). Positions and activities carried out by tax residents in the Azores and Madeira, under terms to be defined by regional legislative decree. Verified by Regional Governments.
The IFICI tax benefit
The core benefit is a flat 20% tax rate on net employment income (Category A) and self-employment income (Category B) earned from qualifying activities, for a period of 10 consecutive years from the date the individual first becomes a Portuguese tax resident.
This replaces the progressive IRS brackets, which can reach 48% at the highest tier, plus the solidarity surcharges of 2.5% (on taxable income between €80,000 and €250,000) and 5% (above €250,000), meaning the effective marginal rate in the standard regime can exceed 53%.
The 20% rate can be applied at source: employers may withhold at the special rate once the employee presents proof of their IFICI registration application. All other income categories not connected to the qualifying activity remain subject to standard progressive taxation.
Treatment of foreign-sourced income
Foreign-sourced income is, as a general rule, exempt from Portuguese tax under IFICI. The exemption method is the standard mechanism for eliminating double taxation and applies across all income categories: employment (Category A), self-employment (Category B), investment income (Category E), rental income (Category F), and capital gains (Category G).
The key condition is that the income may be taxed in the source country under an applicable Double Tax Treaty (DTT). Portugal maintains DTTs with over 80 jurisdictions, so the exemption is broadly available in practice. This covers dividends, interest, royalties, rental income, and capital gains from most treaty partner states.
However, the exemption operates with progressivity (isenção com progressividade): while the foreign income itself is not taxed, it is taken into account when determining the applicable rate for other Portuguese-source income that falls under the progressive brackets. This is a technical but meaningful distinction from the old NHR regime, where the exemption generally operated as a full exemption.
Income from blacklisted jurisdictions (listed in Ordinance 150/2004) does not benefit from the exemption and is instead subject to a standalone tax rate of 35%.
How to apply for IFICI
The registration application is submitted through the Portal das Finanças, using the official form approved by Despacho 2416-A/2025. Verification is split between the Tax Authority (residency requirements) and the competent agency for each qualifying pathway.
Obtain a NIF and establish tax residency. Register as a Portuguese tax resident. This means obtaining a NIF (tax identification number) and updating your tax address on the Portal das Finanças to a Portuguese address.
Begin a qualifying activity. Sign an employment contract, incorporate a company, take up a board position, or commence scientific research in an eligible entity. The activity must be in place before you apply.
Gather supporting documents. Employment contract (for employees), current commercial registry certificate (for board members), grant contract (for researchers), proof of academic qualifications, and a declaration from the employer attesting compliance with IFICI requirements.
Submit your application on the Portal das Finanças. Navigate to Services, Tax Benefits, IFICI Registration, Submit Request. Complete the official form and upload the required documentation within the applicable deadline.
Verification by the competent agency. The relevant agency (FCT, AICEP, IAPMEI, ANI, or Startup Portugal) reviews whether your activity meets the requirements. If documents are missing, you'll be notified and given 10 business days to respond.
Confirmation by the Tax Authority. The AT makes the registration status available by 31 March each year. A confirmation document is published in your personal area on the Portal das Finanças. From this point, your employer may apply the 20% withholding rate.
Registration deadlines
The standard deadline is 15 January of the year following the year in which the individual becomes a Portuguese tax resident. Late registration is possible under Article 58-A(7), but the benefit will only take effect from the year of registration and will last for the remaining period of the 10-year window.
NHR vs IFICI: key differences
Frequently asked questions