IFICI (NHR 2.0) Tax Regime

Tax Advantages for Qualifying Professionals and Entrepreneurs

• Exemption on most foreign-source dividends, interest and royalties, subject to classification and applicable tax treaties
• Exemption on most foreign rental income, subject to classification and applicable tax treaties
• Exemption on foreign capital gains, including gains on securities — largely not covered under the former NHR regime — and, subject to classification, movable and digital assets

As a Portuguese tax resident, you can also travel visa-free across the 29 Schengen area countries, generally up to 90 days in any 180 days under current rules.

Who is Eligible for Portugal's IFICI Tax Regime?

Portugal's IFICI tax incentive is available through several qualifying activity routes; the two most common for Portugal Pathways clients are employment or self-employment in a highly qualified profession, and founding or joining a certified start-up in a qualifying sector.

Other routes exist for export-oriented roles, R&D personnel, higher-education and research staff, and projects recognised by AICEP or IAPMEI — eligibility depends on your specific activity, employer, and circumstances, and must be confirmed against current rules. Highly Qualified Professionals Route: applicants must gain employment or self-employment with a Portuguese entity in a highly skilled profession or an activity that aligns with the regime's objectives.

Start-Up Route: entrepreneurs establish a start-up in one of Portugal's qualifying sectors. This route also requires holding a job position in the certified start-up from which the income is derived. Both routes require the applicant to become a tax resident in Portugal and to have not been a tax resident in the country for the previous five years.

What Constitutes a Highly Qualified Profession?

1. General and executive managers
2. Medical doctors
3. IT & communication specialists
4. Administrative & commercial managers
5. Production & specialised service managers
6. Experts in physics, maths, engineering, and related fields.
7. Industrial & equipment designers
8. University & higher education professors
9. Film, theatre, TV and radio director/producers

Requirements for Export-Oriented Industrial and Service Companies

Companies must generate at least 50% of their turnover from exports OR operate in key sectors such as manufacturing, information technology, and research and development (R&D).

Certified start-ups must:

• Operate for less than 10 years.
• Employ fewer than 250 workers.
• Generate an annual turnover of less than €50 million.

Start-ups must also demonstrate innovation or secure external investments, such as venture capital or funding from the Portuguese Development Bank.