The IFICI tax regime: what changed after NHR

Many people move to Portugal with the well-known NHR (Non-Habitual Resident) regime in mind. But for new residents the classic NHR is no longer available — it has been replaced by IFICI (Incentivo Fiscal à Investigação Científica e Inovação), often called "NHR 2.0".

What IFICI is

IFICI is a tax incentive for professionals in science, innovation and other qualified fields who become Portuguese tax residents. The regime lasts 10 years and offers two key benefits: a preferential rate on Portuguese income and exemption for most foreign income.

Key benefits

• A flat 20% rate on income from qualified employment or self-employment in Portugal — instead of the progressive IRS scale (up to 48%).
• Exemption of foreign income — mainly salary, self-employment, dividends, interest, rent and capital gains from abroad (unlike the classic NHR, pensions are not covered).
• Valid for 10 consecutive years from the moment you register as a tax resident.

Who qualifies

The regime isn't for everyone — it targets qualified categories. Typically:

• Highly qualified professionals at companies with relevant activities or investments
• Higher-education teachers and researchers
• Founders and employees of certified startups
• Professionals in research, development and innovation

A mandatory condition: you must not have been a Portuguese tax resident in the previous 5 years.

How to apply and deadlines

First you become a Portuguese tax resident (NIF, residence registration), then you apply for IFICI with the relevant authority. The general rule is to do so by January 15 of the year following the year you became a resident. Missing the deadline usually means losing the right to the regime for that period.

This information is for general guidance only and is not tax advice. The list of qualified professions and IFICI conditions are set out in secondary legislation — before applying, check current sources or reach out to us for a personal calculation.