IFICI (NHR 2.0) Tax Regime

Entrepreneurs, Professionals, and Value Creators Enjoy:

• Exemption on certain foreign-source dividends and royalties
• Exemption on certain foreign capital gains, including real estate and movable assets
• Favourable treatment of digital asset gains, subject to classification and compliance

Who is Eligible for Portugal’s IFICI Tax Incentive?

There are two primary routes to qualify for Portugal’s IFICI tax incentive:

‍Highly Qualified Professionals Route: 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 establishing a start-up in one of Portugal’s sectors that aligns with the regime’s objectives (this route also requires having 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, etc
7. Iّّndustrial & equiptment designer
8. University & higher education professors
9. Film, theatre, TV and radio director/producers

Robust Support for Professionals in 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.