Portugal introduced the
IFICI – Regime de Incentivo Fiscal à Investigação Científica e Inovação as part of the State Budget for 2024, with the objective of attracting highly qualified professionals and fostering innovation, scientific research, and strategic economic activities.
This regime is set out in
Article 58.º-A of the Estatuto dos Benefícios Fiscais (EBF) and was later fully regulated by
Portaria n.º 352/2024/1, of 23 December, with subsequent clarifications and amendments issued in early 2025
Purpose of the IFICI regime The IFICI was designed to replace and modernize previous special tax regime, known as NHR, aligning Portugal’s tax policy with international competition for talent. Its main goal is to
encourage qualified professionals to relocate to Portugal and contribute to sectors considered relevant for scientific development, innovation, export capacity, and economic growth.
Who is the IFICI for? The regime applies to
individuals who become tax residents in Portugal and meet all of the following conditions:
- They were not tax residents in Portugal in any of the previous five years;
- They carry out qualified professional activities expressly defined by law;
- They submit a formal application for registration within the legally established deadlines.
Eligible activities include roles linked to
scientific research, higher education, innovation, technology, startups, industrial and export-oriented companies, as well as certain
highly qualified professions, subject to validation by the competent authorities.
Tax framework and key benefit Under the IFICI regime, qualifying income is subject to a
special flat IRS rate of 20%, applicable to:
- Employment income (Category A);
- Professional or self-employment income (Category B);
provided that such income arises
exclusively from Portuguese sources and from qualifying activities.
Foreign-source income is, as a rule,
exempt from IRS, although taken into account for rate progression where applicable.
Duration of the regime The IFICI benefit is granted for a
maximum period of 10 consecutive years, starting from the year in which the taxpayer becomes resident and is successfully registered under the regime.
Importantly, the law allows for
temporary interruptions. If the individual ceases to be tax resident in Portugal and later returns, the regime may be resumed for the
remaining eligible years, provided all requirements are met again.
Key conditions and exclusions To maintain the benefit, the taxpayer must:
- Remain tax resident in Portugal during each applicable year;
- Continue to earn income from qualifying activities;
- Comply with all reporting and registration obligations.
The IFICI
cannot be combined with:
- The former Non-Habitual Resident (NHR) regime;
- The ex-resident tax regime (Article 12.º-A of the IRS Code);
Additionally, the IFICI can only be
used once per taxpayer, even though it may be paused and resumed within the 10-year period.
Why the IFICI matters The IFICI represents a strategic shift in Portugal’s approach to talent attraction: it is
more targeted, more regulated, and more closely aligned with innovation and productivity goals. For professionals and companies planning international relocation or expansion, understanding the correct enquadramento of this regime is essential to assess eligibility, tax impact, and long-term planning.
If you have questions about the IFICI regime or wish to proceed with the registration process, our team is here to help.
Contact us to secure your IFICI status with confidence.