NHR 2.0: IFICI+
The IFICI+ Tax Benefit exclusively covers employment and self-employment income from activities related to science and technology, research and development, entrepreneurship, start-ups, and sectors fundamental to the Portuguese economy.
Moving from NHR to IFICI+ Tax Regime
Introduced in 2009, Portugal’s Non-Habitual Residence (NHR) regime allowed eligible individuals to become tax residents in Portugal while benefiting from reduced or exempted taxes on certain categories of income for up to 10 years. The NHR was particularly appealing to expats, retirees, skilled professionals and people living from passive income seeking favourable tax conditions.
However, in October 2023, the Portuguese government announced the termination of the NHR regime, effective January 2024. This shift marks the end of an era that has provided substantial tax advantages to thousands of expatriates living in Portugal. The NHR regime was repealed for new entrants from tax year 2024, subject to a transitional period that permitted late registrations only for individuals meeting strict grandfathering conditions. That transitional window ended on 31 March 2025.
Currently, no new NHR registrations are available. Individuals already recognized under NHR retain the status for the remainder of their original 10‑year period, subject to the applicable rules for their cohort.
The “New NHR”: Fiscal Incentive for Scientific Research and Innovation (IFICI+)
The new tax landscape in Portugal is defined by the Fiscal Incentive for Scientific Research and Innovation (IFICI+) programme, designed for highly qualified professionals moving to Portugal for residence and employment. Under this updated tax regime, individuals benefit from a special 20% Personal Income Tax rate on income from either dependent or independent work for a non-renewable period of 10 years.
The IFICI+ Tax Benefit exclusively covers employment and self-employment income from activities related to scientific and technologic research and development, which are now taxed at a rate of 20% for non-residents moving to Portugal, provided they have not been resident in Portugal for the last five years and are not currently benefiting from the “old” NHR .
Key Scope Features
- Focus on active income. Unlike the old NHR, IFICI+ centers on income from eligible professional activities (employment or independent work), not broad passive income.
- Duration and rate. The 20% flat PIT rate applies for up to 10 consecutive years and cannot be renewed.
- Documentation. Eligibility generally requires documentary evidence (e.g. recognition by AICEP or IAPMEI, certified startup status, R&D qualification, university/science‑system engagement).
Eligibility Criteria for the IFICI+ Tax Benefit Programme
To qualify for the new regime, applicants must meet the following conditions:
- They must become tax residents in Portugal.
- They must not have been tax residents in Portugal during the previous five years.
- Performs eligible activities within the categories defined in the statute.
Eligibility is tied to specifically listed categories.
In summary, the following are generally within scope:
- Higher education teaching and scientific research, and scientific roles within the national science and technology system, including roles in recognized technology and innovation centers and their governing bodies.
- Qualified positions associated with contractual tax benefits to promote productive investment under applicable tax legislation.
- Roles recognized by AICEP (Portugal’s trade and investment agency) or IAPMEI (the agency for competitiveness and innovation) as strategic or essential to the national economy, including roles in the Azores and Madeira where covered by regional rules.
- Research and development functions whose expenses qualify under the R&D tax incentive system provided in the Investment Tax Code.
- Roles with certified startups that meet statutory SME, turnover, and age thresholds, have headquarters or a permanent presence in Portugal (or meet minimum headcount in Portugal), and are not the result of a merger or split of a larger company.
- Activities performed by tax residents in the autonomous regions (Azores and Madeira) where expressly covered by legislation in force.
Key Differences Between the Old NHR and the New IFICI+
The IFICI regime, which replaces the former NHR, is focused on attracting highly qualified professionals engaged in scientific research, innovation, and strategically relevant qualified positions for the Portuguese economy.
Eligibility is tighter and coordinated with sectoral bodies: FCT (higher education/ research), AICEP and IAPMEI (qualified roles and economically relevant activities, with competence split according to company size), ANI (business R&D), the Tax Authority (highly qualified professions in companies benefiting from RFAI or with strong export profiles), and Startup Portugal (entities certified as startups).
The regime maintains a special 20% IRS rate on income from employment and self-employment arising from qualified activities, with applications centralized via the Tax Portal and with lists of professions and sectors defined by complementary acts from AICEP and IAPMEI, aligning the incentive with Portugal’s goals in research, innovation, and economic growth.
Portugal’s Tax Regimes Comparison: NHR vs. IFICI+
| Category | NHR (Non-Habitual Resident) | IFICI+ (The "New NHR") |
|---|---|---|
| Salary in Portugal | 20% flat rate (for high-value-added activities). | 20% flat rate for higher education professors, scientific researchers, start-up employees, and positions recognized by AICEP/IAPMEI. Progressive rates up to 53% for all other activities. |
| Interest Income | Exempt for 10 years (if income is potentially taxable in the country of origin). | IFICI+ taxpayers: Exempt if paid by a "whitelist" country, otherwise aggregated with other income. Others: 28% flat rate or aggregated and subject to progressive rates up to 53%. |
| Real Estate Capital Gains | Exempt for 10 years (if income is potentially taxable in the country of origin). | IFICI+ taxpayers: Exempt if capital is paid by a "whitelist" country, otherwise aggregated. Others: Aggregated with other income sources and subject to progressive rates up to 53%. |
| Share Capital Gains | Exempt for 10 years (if income is potentially taxable in the country of origin). | IFICI+ taxpayers: Exempt if paid by a "whitelist" country, otherwise aggregated. Others: Long-term gains (>365 days): 28%. Short-term gains (<365 days): 28% (income <€78,834) or aggregated up to 53% (income >€78,834). |
| Private Pensions | 10% flat rate. | Aggregated with other income sources and subject to progressive rates up to 53%. |
Application Process for IFICI+
To begin the application process for IFICI+, you must first prove your right to reside in Portugal. For EU, EEA, and Swiss citizens, this involves registering at their local city hall with a passport and EHIC Card. Non-EU citizens will need to obtain a residence permit, which can be acquired through various programmes such as the Golden Visa or the D7 passive income visa.
Next, obtaining a NIF (Tax Identity Number) is essential, as it is required for all legal and business activities in Portugal. Non-residents can secure a NIF through a representative, while residents can directly visit local tax offices with an ID and proof of residency.
Following this, you need to register as a tax resident in Portugal. This step is indispensable for formalising your tax status, and you may also use online simulators to gain a better understanding of your potential tax implications.
Finally, this tax benefit was formally regulated on 23 December 2024, through Regulation No. 352/2024/1. However, there is still no information available on the process for the application – the Government must inform if there will be a specific procedure for an application or if the tax benefit will be requested in the yearly tax return.
How UK Citizens Can Benefit from The IFICI+ Tax Regime
UK citizens can take advantage of Portugal’s new IFICI+ by benefiting from a reduced 20% tax rate on employment and independent work income for up to 10 years.
To qualify,
UK citizens must become tax residents, spend at least 183 days per year in Portugal, and not have been tax residents in Portugal for the previous five years. The programme is particularly advantageous for professionals in high-demand sectors such as research, IT, tourism, and agriculture, as well as those working in certified startups or companies recognised as vital to the national economy.
How US Citizens Can Benefit from The IFICI+ Tax Benefit
US citizens can benefit from Portugal’s IFICI+ regime by securing a 20% tax rate on income from qualified employment and independent work for a 10-year period.
To be eligible,
US citizens must become tax residents in Portugal, meaning they need to spend at least 183 days per year in the country or maintain a permanent residence. Applicants must not have been tax residents in Portugal during the previous five years. Despite US citizens having to report global income to the IRS, the IFICI+ regime’s benefits, along with available tax credits and the US-Portugal tax treaty, can help minimise overall tax liabilities. The regime is particularly suited for professionals in high-value sectors such as research, technology, and startups, making Portugal a compelling destination for skilled US professionals and entrepreneurs .
Minimum Stay Requirements
To qualify for the IFICI+ programme, you must reside in Portugal for at least 183 days, consecutive or non-consecutive, within a year. Applicants must also meet two basic criteria:
- The legal right to reside in Portugal (via EU/EEA/Swiss citizenship or residency).
- Non-residency for tax purposes in Portugal during the preceding five years.
Costs of the IFICI+ Tax Benefit
The IFICI+ programme offers a unique opportunity for highly skilled professionals seeking to establish themselves in Portugal. While the regime provides attractive tax incentives, it is essential to consider the detailed requirements and costs associated with relocation and establishing residency in Portugal.
If you are considering relocation to Portugal and are interested in the benefits of the new tax regime, our team is available to provide comprehensive support and guidance. If you require further information or assistance with the application process, please do not hesitate to contact us
Frequently Asked Questions (FAQ´s)
Is the NHR regime still available?
No. New NHR registrations closed for tax year 2024. A transitional window for specific grandfathered cases ended on 31 March 2025. Existing NHR beneficiaries keep their status for the remainder of their 10‑year period.
What replaced NHR?
A targeted framework commonly referred to as IFICI or IFICI+, focused on attracting highly qualified professionals in scientific research, innovation, and other expressly listed high‑value activities.
What is the core benefit of IFICI+?
A 20% Personal Income Tax (PIT) rate on qualifying employment and self‑employment income for up to 10 consecutive, non‑renewable years, subject to eligibility conditions.
Does IFICI+ cover passive income (dividends, interest, rents, pensions)?
Generally no. IFICI+ focuses on active income from eligible employment or independent work. Passive income is typically taxed under ordinary PIT rules.
Who qualifies for IFICI+?
Individuals who become Portuguese tax residents, have not been Portuguese tax residents in the previous five years, and perform activities within the statute’s listed categories (e.g., higher education/scientific research, R&D‑qualifying roles, AICEP/IAPMEI‑recognized strategic roles, certified startup roles).
Do I need to spend 183 days in Portugal to access IFICI+?
Not necessarily. Tax residency can be established by either more than 183 days’ presence in a 12‑month period or by having a habitual abode in Portugal. IFICI+ requires Portuguese tax residency plus the five‑year prior non‑residence condition.
How do I claim IFICI+ in practice?
The benefit is claimed through the tax system and supported by documentation (e.g., AICEP/IAPMEI recognition, certified startup status, inclusion in the national science and technology system, or R&D qualification). Some categories may require prior confirmations from competent agencies. There is no universally required separate portal outside the tax return for all categories. Always check current Tax Authority guidance.
What happens if I change employers during the 10‑year period?
Changing employers does not automatically end eligibility, provided your role remains within the listed categories and you maintain the required documentation (e.g., new employer remains a certified startup or recognized by AICEP/IAPMEI).
When does the 10‑year period start?
It is tied to the tax years in which you are Portuguese tax resident under the regime; your first year of residency generally counts as year one, even if it is a partial year. Ensure residency is properly formalized to start the clock.
Are there regional nuances (Azores/Madeira)?
Yes. Certain activities performed by tax residents in the autonomous regions may be expressly covered by regional legislation. Confirm regional rules where relevant.
How do UK and US tax rules interact with IFICI+?
UK: Consider the UK-Portugal double tax treaty. Residency may be established via 183+ days or habitual abode.
US: Worldwide taxation continues. Relief may be available via foreign tax credits, the US‑Portugal treaty, and potentially the Foreign Earned Income Exclusion; careful coordination is advisable.
How can Belion assist with obtaining Portugal's
IFICI+ Tax Benefit?
If you are considering becoming a tax resident in Portugal, you can rely on Belion to provide all the assistance you need.
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