Aerial view over a city in Portugal with a view of the Atlantic Ocean

IFICI (NHR 2.0) Tax Regime

Explore Portugal’s IFICI Tax Regime

Portugal’s Tax Incentive for Scientific Research and Innovation (IFICI), also known as the NHR 2.0 tax regime, provides a 20% flat income tax rate on certain Portuguese-source employment and self-employment income for up to 10 years.

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Narrow cobblestone street in the center of Cascais in Portugal. Portuguese Riviera

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

Why choose Portugal’s
IFICI tax regime?

Portugal’s IFICI tax incentive provides an advantage for professionals seeking a tax-friendly and quality lifestyle destination. Here’s why it stands out:

Flat Tax Rates

A flat 20% personal income tax on Portuguese-sourced employment and self-employment income included within the regime’s activities.

Flat Tax Rates

A flat 20% personal income tax on Portuguese-sourced employment and self-employment income included within the regime’s activities.

Global Tax Benefits

Non-Portuguese income, excluding pensions, is tax-exempt. This includes dividends, interest, rental income, capital gains from real estate/securities, and crypto-related income (subject to individual circumstances).

Long-Term Incentives

Eligibility for a 10-year consecutive tax benefit period.

Exceptional Lifestyle

Portugal offers a high quality of life with its sunny climate, affordable living costs, world-class healthcare, and rich cultural heritage.

Strategic Location

Portugal provides easy access to global markets and a gateway to Europe.

Safety & Stability

Ranked as one of the safest countries globally, Portugal offers a peaceful and welcoming environment for individuals and families.

Flat Tax Rates

A flat 20% personal income tax on Portuguese-sourced employment and self-employment income included within the regime’s activities.

Global Tax Benefits

Non-Portuguese income, excluding pensions, is tax-exempt. This includes dividends, interest, rental income, capital gains from real estate/securities, and crypto-related income (subject to individual circumstances).

Long-Term Incentives

Eligibility for a 10-year consecutive tax benefit period.

Exceptional Lifestyle

Portugal offers a high quality of life with its sunny climate, affordable living costs, world-class healthcare, and rich cultural heritage.

Flat Tax Rates

A flat 20% personal income tax on Portuguese-sourced employment and self-employment income included within the regime’s activities.

Global Tax Benefits

Non-Portuguese income, excluding pensions, is tax-exempt. This includes dividends, interest, rental income, capital gains from real estate/securities, and crypto-related income (subject to individual circumstances).

Long-Term Incentives

Eligibility for a 10-year consecutive tax benefit period.

Exceptional Lifestyle

Portugal offers a high quality of life with its sunny climate, affordable living costs, world-class healthcare, and rich cultural heritage.

Flat Tax Rates

A flat 20% personal income tax on Portuguese-sourced employment and self-employment income included within the regime’s activities.

Global Tax Benefits

Non-Portuguese income, excluding pensions, is tax-exempt. This includes dividends, interest, rental income, capital gains from real estate/securities, and crypto-related income (subject to individual circumstances).

Long-Term Incentives

Eligibility for a 10-year consecutive tax benefit period.

Exceptional Lifestyle

Portugal offers a high quality of life with its sunny climate, affordable living costs, world-class healthcare, and rich cultural heritage.

Strategic Location

Portugal provides easy access to global markets and a gateway to Europe.

Safety & Stability

Ranked as one of the safest countries globally, Portugal offers a peaceful and welcoming environment for individuals and families.

Flat Tax Rates

A flat 20% personal income tax on Portuguese-sourced employment and self-employment income included within the regime’s activities.

Global Tax Benefits

Non-Portuguese income, excluding pensions, is tax-exempt. This includes dividends, interest, rental income, capital gains from real estate/securities, and crypto-related income (subject to individual circumstances).

Long-Term Incentives

Eligibility for a 10-year consecutive tax benefit period.

Flat Tax Rates

A flat 20% personal income tax on Portuguese-sourced employment and self-employment income included within the regime’s activities.

Global Tax Benefits

Non-Portuguese income, excluding pensions, is tax-exempt. This includes dividends, interest, rental income, capital gains from real estate/securities, and crypto-related income (subject to individual circumstances).

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Flat Tax Rates

A flat 20% personal income tax on Portuguese-sourced employment and self-employment income included within the regime’s activities.

Global Tax Benefits

Non-Portuguese income, excluding pensions, is tax-exempt. This includes dividends, interest, rental income, capital gains from real estate/securities, and crypto-related income (subject to individual circumstances).

Long-Term Incentives

Eligibility for a 10-year consecutive tax benefit period.

Exceptional Lifestyle

Portugal offers a high quality of life with its sunny climate, affordable living costs, world-class healthcare, and rich cultural heritage.

Strategic Location

Portugal provides easy access to global markets and a gateway to Europe.

Safety & Stability

Ranked as one of the safest countries globally, Portugal offers a peaceful and welcoming environment for individuals and families.

IFICI (NHR 2.0) Tax Regime
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Living in
Living in Quinta do Lago
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OR

Flat Tax Rates

A flat 20% personal income tax on Portuguese-sourced employment and self-employment income included within the regime’s activities.

Global Tax Benefits

Non-Portuguese income, excluding pensions, is tax-exempt. This includes dividends, interest, rental income, capital gains from real estate/securities, and crypto-related income (subject to individual circumstances).

UNSURE WHICH VISA?
Talk to our experts
Get in touch

Flat Tax Rates

A flat 20% personal income tax on Portuguese-sourced employment and self-employment income included within the regime’s activities.

Global Tax Benefits

Non-Portuguese income, excluding pensions, is tax-exempt. This includes dividends, interest, rental income, capital gains from real estate/securities, and crypto-related income (subject to individual circumstances).

Long-Term Incentives

Eligibility for a 10-year consecutive tax benefit period.

Exceptional Lifestyle

Portugal offers a high quality of life with its sunny climate, affordable living costs, world-class healthcare, and rich cultural heritage.

Strategic Location

Portugal provides easy access to global markets and a gateway to Europe.

Safety & Stability

Ranked as one of the safest countries globally, Portugal offers a peaceful and welcoming environment for individuals and families.

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Beautiful hideaway beach with jagged rocks in the water. Praia dos Tres Irmaos in Algarve region, Portugal
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

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.

Portugal’s IFICI tax incentive provides 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.

Bom Jesus do Monte Monastery, Braga, Portugal. Bright Blue Sky
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How to apply for Portugal’s IFICI Tax Incentive in 2025?

1

Determine the relevant authority

Identify the appropriate authority based on your activity (e.g., Tax Authorities, AICEP, or IAPMEI) to submit the enrollment request.

2

Complete initial registration

Register with the relevant authority to indicate your intention to apply for the IFICI tax incentive.

3

Submit your application

Ensure your application for the IFICI tax regime is submitted by January 15 of the year following your residency. For instance, if you obtain residency in 2025, the deadline will be January 15, 2026.

4

Employer verification

Employers must confirm that your role meets the eligibility criteria for highly qualified positions via the Tax Authorities’ portal.

5

Verify compliance

Depending on the relevant activity, check the corresponding compliance conditions (excluding export turnover thresholds and ensure your activity aligns with the regime’s requirements for industrial or service companies).

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How we help you secure your IFICI status

Navigating the complexities of Portugal’s IFICI tax incentive can be challenging, but we are here to make the process seamless for you. Our tailored approach ensures that your unique needs are met at every stage:

Initial discovery

We’ll assess your eligibility for the IFICI tax regime by understanding your professional background and goals.

Expert consultation

If eligible, we’ll arrange a detailed call with our tax and immigration experts to guide you through the application process and answer your questions.

Comprehensive planning

Our team will assist you in pre- and post-IFICI planning to ensure you maximise the benefits of the regime, while planning ahead to mitigate progressive taxes when your IFICI ends.

Initial discovery

We’ll assess your eligibility for the IFICI tax regime by understanding your professional background and goals.

Expert consultation

If eligible, we’ll arrange a detailed call with our tax and immigration experts to guide you through the application process and answer your questions.

Comprehensive planning

Our team will assist you in pre- and post-IFICI planning to ensure you maximise the benefits of the regime, while planning ahead to mitigate progressive taxes when your IFICI ends.

Initial discovery

We’ll assess your eligibility for the IFICI tax regime by understanding your professional background and goals.

Expert consultation

If eligible, we’ll arrange a detailed call with our tax and immigration experts to guide you through the application process and answer your questions.

Comprehensive planning

Our team will assist you in pre- and post-IFICI planning to ensure you maximise the benefits of the regime, while planning ahead to mitigate progressive taxes when your IFICI ends.

Client
case studies
view all
Name
Living in
Living in Quinta do Lago
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Meet our expert team

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FAQs
 
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Frequently asked questions on
IFICI (NHR 2.0) Tax Regime
.
How does Portugal's IFICI (NHR 2.0) tax incetive impact social security contributions?
Beneficiaries under IFICI are still required to pay social security contributions in addition to the 20% tax rate on qualifying income.
How does IFICI (NHR 2.0) tax incentive differ from the NHR tax regime?
Unlike the previous NHR tax regime, which was definitely broader in its scope of application, IFICI is specifically designed for individuals working in innovation, research, and export-driven industries, aligning with Portugal’s economic priorities.
How does IFICI interact with Portugal’s R&D tax credits?
Portugal's IFICI tax incetive complements Portugal’s R&D tax credits, further incentivising professionals in research and innovation. However, specific overlaps depend on the nature of the activities and applicable tax rules.
How can I minimise taxes on my foreign pensions before my NHR tax status expires?
It is advisable to first seek cross border tax and wealth management professional advice before taking any action. Strategies may include restructuring your pension into a more tax-efficient vehicle that is aligned to life in Portugal and the European financial regulations. Without planning, your pension income may be taxed at up to 48%.
How can I apply for Portugal's IFICI (NHR 2.0) tax incentive in 2025?
Applications must be submitted to the Portuguese Tax Authorities (Portal das Finanças) or relevant agencies such as AICEP and IAPMEI, depending on the applicant's activity. Required documents may include proof of qualifications (e.g., degree certificates), employment contracts or self-employment verification and evidence of compliance with IFICI’s eligibility criteria.
Does Portugal's IFICI tax incentive exempt foreign-sourced income?
Yes, foreign-sourced income such as dividends, royalties, and rental income is tax-exempt under IFICI, provided it does not come from blacklisted jurisdictions (in some cases) or pension income.
Does Portugal's IFICI (NHR 2.0) tax incentive apply to start-ups in Madeira’s special tax zone?
While Madeira’s tax regime extends until 2028, upcoming elections may impact regulations. Future changes could affect IFICI+ eligibility for startups based in Madeira.
Can I work in Portugal while on the Non-Habitual Residency (NHR) tax regime?
Yes, you can work in Portugal while on the NHR tax regime. However, the main tax benefits apply to passive income and pensions generated outside of Portugal.
Can start-ups with minimal revenue qualify for Portugal's IFICI?
Yes, provided they meet the criteria, including recognition as an innovative business or received investment from venture capital or the Portuguese Development Bank.
Can I renew or extend my NHR tax status?
No, NHR tax status is a one-time, 10-year tax incentive that cannot be renewed. After expiry, you will be subject to Portugal’s standard tax regime, making early tax planning crucial.
Can I apply for NHR tax status if I am already a resident in Portugal?
Yes, you can if you are not a tax resident in Portugal. The tax regime is only open to individuals who have not been tax residents in Portugal for the past five years. The NHR tax regime however, will end to new entrants on the 31st of December. The Portuguese government announced in their state budget for 2024, that anyone who has applied to secure NHR tax status in Portugal by December 31st, 2023, must be able to prove they have taken serious steps to prove intent to reside and pay tax in Portugal under NHR tax regime.
Can I benefit from 0% tax on the Non-Habitual-Residency (NHR) tax Programme alongside the D7 Visa?
The NHR Programme alongside the D7 Visa includes benefits such as 0% tax on all non-Portugal based passive income, such as dividends, royalties, rental income and 10% tax on pension income. It also offers the freedom to live and work in Portugal, travel freely within the EU Schengen area, apply for permanent residency or citizenship after five years, and access to Portugal's healthcare and education systems. Note: Portugal's NHR tax regime is no longer open to new applicants.
Can former NHR tax status beneficiaries apply for IFICI?
No, individuals who have previously benefited from the NHR or Regressar regimes are not eligible for IFICI.
Are there tax-efficient ways to protect wealth and inheritance after my NHR tax status expires ?
Yes, estate planning tools like trusts and gifting can help manage inheritance tax exposure. It is important to consult with a cross-border tax and wealth management professional. Professional guidance ensures your assets remain structured optimally under Portugal’s tax system.
Are there any restrictions on the type of passive income or pensions eligible for tax savings under the NHR tax regime?
Yes, there are restrictions on the income type eligible for the NHR tax regime. For example, income from Portuguese sources, such as rental income from a real estate property in Portugal, is unsuitable. The main benefit is on income held outside of Portugal such as pensions, rental income, dividends and royalties.