The IFICI (Incentivo Fiscal à Investigação Científica e Inovação) is Portugal's tax incentive regime introduced in 2024 to replace the original NHR. It offers a 20% flat tax rate on Portuguese-source qualifying income — for 10 years — to high-skilled professionals in technology, scientific research, healthcare, green energy, and strategic sectors. We file the registration with the Autoridade Tributária and deliver a written eligibility opinion as part of the package.
IFICI stands for Incentivo Fiscal à Investigação Científica e Inovação — Portugal's tax incentive regime introduced via the 2024 State Budget to replace the original NHR (Non-Habitual Resident) regime, which closed to new applicants on 31 March 2024.
The core benefit is the same as NHR: a 20% flat tax rate on Portuguese-source qualifying income for 10 consecutive years, plus relief from double taxation for certain foreign-source income under specific double-taxation treaty conditions.
What changed is who qualifies. The original NHR was broad — retirees, investors, freelancers, executives, almost anyone moving to Portugal could benefit. IFICI is narrower by design: it targets high-skilled professionals in strategic sectors, excludes retirees and passive investors, and ties eligibility to specific employers and activities. Portugal's stated policy goal is to attract talent that contributes to innovation, not just wealthy individuals seeking a tax break.
For someone in the right professional bucket, the practical impact is large: up to 28 percentage points of tax saved each year for 10 years. On a €100k salary, that compounds to over €250,000 of additional take-home pay across the decade.
Side-by-side comparison of the original NHR (closed) and the new IFICI (open) regimes:
| Old NHR (closed) | IFICI (current) | |
|---|---|---|
| Flat tax rate | 20% | 20% |
| Duration | 10 years | 10 years |
| Foreign pension exemption | Yes (10% from 2020) | No |
| Foreign rental / dividend exemption | Yes (with conditions) | Narrower — DTA-based only |
| Open to retirees | Yes | No |
| Open to passive investors | Yes (Golden Visa applied) | No |
| Requires university degree | No | Yes — EQF Level 6+ or PhD |
| Eligible sectors | Very broad ("high value-added") | Specific: tech, research, healthcare, green energy, strategic sectors, certified start-ups |
| Employer requirement | None | Must be Portuguese entity meeting economic criteria, or certified start-up / research institution |
| 5-year non-residence rule | Yes | Yes |
| Application deadline | 31 March of year following arrival | 31 March of year following arrival |
ⓘ Transitional rule: if you obtained a Portuguese residency visa (D7/D8/D2/Golden Visa) before 31 December 2023 AND established tax residence by 31 March 2024, you may still qualify for the original NHR under transitional provisions. We assess this case-by-case during onboarding.
You qualify for IFICI if all of the following are true:
If you're self-employed through your own Portuguese LDA (a common pattern — incorporate via D2 visa, then bill internationally through the LDA), the LDA itself can satisfy the "Portuguese entity" requirement. We design this structure during onboarding.
Detailed analysis of your situation — degree, sector, employer, prior tax residence, source of income — and whether you qualify. Delivered as a PDF document.
If your degree is from outside the EU, we advise on the recognition pathway (typically via Portuguese university or the DGES portal) and timeline.
We verify your tax residency status with the Autoridade Tributária and update your fiscal address / tax residency code where needed.
We file your IFICI registration via the AT online portal before the 31 March deadline of the year following your tax-residency start date.
If you have foreign-source income (dividends, royalties, capital gains), we review the applicable double-taxation treaty between Portugal and your country and advise on optimal structuring.
Once IFICI is granted, we hand off to a Portuguese-certified TOC (accountant) for ongoing IRS filings. We remain available for IFICI-specific questions during your first year.
Tell us your degree, profession, current employer (or LDA setup), and where you are in your move to Portugal. We reply within 24h with a written IFICI eligibility opinion. No sales call.
No spam. Privacy.
You can't apply for IFICI until you have a residency status in Portugal. If you don't have a visa yet, these are the typical pathways:
For remote workers with foreign employer. Most D8 holders LATER incorporate an LDA to qualify for IFICI. From $890.
The most direct IFICI path: D2 entrepreneur visa + Portuguese company = qualifying employer. From $1,490.
Before any visa, you need a NIF. Then plan your IFICI strategy on top. From $59.
IFICI (Incentivo Fiscal à Investigação Científica e Inovação) is Portugal's tax incentive regime introduced in 2024 to replace the original NHR (Non-Habitual Resident) regime. It offers a 20% flat tax rate for 10 years on qualifying Portuguese-source income from high-skilled professional activities. It is sometimes called "NHR 2.0" but is a distinct, more restrictive regime.
Eligibility is limited to new tax residents who have not lived in Portugal in the previous 5 years. Applicants must hold a university degree (EQF Level 6+) or PhD and work in: technology, scientific research, healthcare, green energy, R&D, qualified professionals in strategic sectors, or certified start-up workers. Employment must be with a Portuguese entity meeting strict economic criteria, or in certified start-ups and research institutions.
The old NHR (closed to new applicants since 31 March 2024) was broad — it covered retirees, investors, and most professionals, with exemptions on pensions and most foreign income. IFICI is much more restrictive: it excludes retirees and passive investors, focuses only on high-skill professionals in specific sectors, and requires employment with a Portuguese entity. Both regimes offer 20% flat tax on Portuguese-source qualifying income and 10-year duration.
Portugal's standard progressive IRS rates go up to 48% on income above €83,696/year (2026 brackets). For high earners in qualifying sectors, IFICI's 20% flat rate represents a saving of 28 percentage points on Portuguese-source professional income — for a €100k salary, that's roughly €28,000/year in tax saved. The benefit compounds across the full 10-year window.
IFICI provides relief from double taxation for certain foreign-sourced income (dividends, royalties, capital gains from a non-Portuguese source) under specific double-taxation treaty conditions. The rules are narrower than the original NHR — we review your tax residency, source-of-income breakdown and home-country treaty during onboarding.
After you become Portuguese tax-resident (typically after your D7/D8/D2/Golden Visa residency card is issued and you spend 183+ days in Portugal or establish your habitual residence there). The IFICI application must be filed by 31 March of the year following the year you became tax-resident. Miss this deadline and you forfeit IFICI permanently — the regime cannot be backdated.
No — they're separate regimes. If you were granted the original NHR before its closure, you continue to benefit from it for the remaining years of your 10-year window under the old rules. IFICI is only available to new applicants who became tax-resident after the regime opened.
Not directly — IFICI requires employment with a Portuguese entity. The most common workaround: incorporate a Portuguese LDA, sign a contract between your LDA and your foreign employer, and bill them. Your salary then comes from the LDA (the Portuguese entity), satisfying IFICI's employment requirement. We design this structure as part of the D2 + LDA + IFICI combo for clients who want to combine remote work with the 20% tax rate.
Leave your email and we'll send you a 2-minute checklist on whether you qualify for the 20% flat tax.