Pay just 20% flat tax on your Portuguese income for 10 years. The new IFICI regime (commonly called NHR 2.0 or ITS) replaced the original Non-Habitual Resident program with targeted benefits for qualified professionals.
We help you determine eligibility, prepare your application, and navigate the registration process with Portugal's tax authorities.
Confused by all the different terms? Here's what each one means and how they relate to each other.
The original program launched in 2009. Offered preferential tax treatment to new residents for 10 years. Closed to new applicants as of January 2024.
The official Portuguese name for the new regime. Translates to "Tax Incentive for Scientific Research and Innovation." This is what you'll see on government documents and the Finance Portal.
The informal name used by expats and tax professionals to describe IFICI as the successor to the original NHR. Not an official term, but widely used for clarity.
The English translation used by some international tax firms and expat services. Refers to the same IFICI program. You may see this in English-language tax planning materials.
Important Distinction
NHR, NHR 2.0, IFICI, and ITS all refer to Portugal's preferential tax regimes, but you cannot have both. If you previously benefited from the original NHR program (or Article 12-A of the CIRS), you cannot apply for IFICI. It's a once-in-a-lifetime benefit.
Pay a flat 20% income tax on eligible Portuguese employment and self-employment income (Categories A & B), instead of progressive rates up to 48%.
The reduced rate applies for 10 consecutive years starting from the year you become a Portuguese tax resident. Non-renewable.
Foreign-sourced income is generally exempt from Portuguese taxation (with progressive aggregation). Significant benefit for international earners.
IFICI has stricter eligibility than the original NHR. You must meet one of six specific pathways AND have not been a Portuguese tax resident in the previous 5 years.
Higher education teachers, scientific researchers, and those on scientific employment contracts.
Qualified positions linked to contractual productive investment under the Investment Tax Code.
Specific professional codes (CPP) in companies with RFAI benefits OR industrial/service companies with ≥50% exports.
Activities formally recognized by AICEP or IAPMEI as relevant to the Portuguese economy.
Research and development activities with costs eligible for SIFIDE or other R&D tax benefits.
Employees or directors of companies with official Startup Status certification in Portugal.
Most remote workers for foreign companies and freelancers will NOT qualify for IFICI unless they fall into one of the specific categories above. The regime targets:
Working remotely for a US company from Portugal? You likely pay standard Portuguese rates (14.5%-48%). Read our full tax guide for realistic planning.
Become a Portuguese tax resident in your year of entry. Obtain your NIF (tax number) and register your fiscal address.
Proof of qualifications, employment contract/scholarship, company statement describing functions, Social Security registration.
Apply through the Finance Portal (Portal das Finanças) by January 15th of the year following your arrival.
FCT/AICEP/IAPMEI/ANI/Startup Portugal validates your pathway. Tax Authority confirms general requirements.
Note: If documents are missing, FCT gives 10 working days to complete. Requirements may vary by eligibility pathway.
Applications must be submitted by January 15th of the year following your arrival. Example: Arrive in 2025 → Apply by January 15th, 2026. Missing this deadline may mean losing the benefit permanently.
Portugal's autonomous regions have additional incentives for IFICI applicants.
The Azores offers enhanced tax benefits for residents. Employment and tax residency in the Azores may qualify you for IFICI through the regional pathway with potentially lower rates.
Madeira also provides special provisions for IFICI applicants. The island has its own tax incentives that can combine with IFICI benefits for eligible professionals.
Detailed eligibility review
Complete application assistance
IFICI + comprehensive tax strategy
How it works: We coordinate with licensed Portuguese tax advisors (TOCs) and accountants who specialize in IFICI applications. Our team handles eligibility assessment, document preparation, and guides you through the Finance Portal application process. For ongoing tax filing after approval, see our Tax & Bookkeeping Service.
Applications must be submitted by January 15th of the year following arrival. Without a timely application, the benefit may start later or be lost permanently.
Different pathways require validation by different entities (FCT, AICEP, IAPMEI, ANI, Startup Portugal, or AT). Submitting to the wrong channel delays processing.
Diplomas, contracts, company statements, and Social Security registration are frequently requested. Missing documents trigger correction notices and delays.
IFICI has its own rules and cannot be combined with NHR or Article 12-A of the CIRS. Previous beneficiaries are permanently excluded from IFICI.
NHR 2.0 (officially called IFICI - Incentivo Fiscal à Investigação Científica e Inovação) is Portugal's new preferential tax regime that replaced the original NHR program in 2024. It offers a 20% flat tax rate on eligible employment income for 10 years, targeting qualified professionals in research, innovation, and export-focused sectors.
NHR (Non-Habitual Resident) was Portugal's original preferential tax regime that ended in December 2023. IFICI is the replacement program with much stricter eligibility criteria. While NHR was available to almost anyone who hadn't been a Portuguese resident in the prior 5 years, IFICI specifically targets R&D workers, scientists, startup employees, and professionals in export-focused companies.
Most digital nomads working remotely for foreign companies will NOT qualify for IFICI. The regime targets scientists, researchers, certified startup employees, and workers in Portuguese companies with significant exports (≥50%). If you're a freelancer or remote worker for a US company, plan on standard Portuguese tax rates (14.5%-48%).
The IFICI benefit lasts for 10 consecutive years, starting from the year you become a Portuguese tax resident. It's non-renewable—once the 10 years expire, you'll be subject to standard Portuguese tax rates.
IFICI provides a 20% flat tax rate on net employment and self-employment income (Categories A and B) from eligible activities. This compares favorably to Portugal's progressive rates which can reach up to 48% (plus solidarity surcharges).
Under IFICI, foreign-sourced income is generally exempt from Portuguese taxation. However, it must be declared and counts toward determining the progressive rate applied to any non-exempt income (progressive aggregation). The exact treatment depends on the income type and applicable tax treaties.
You must apply by January 15th of the year following your arrival in Portugal. For example, if you become a Portuguese tax resident in 2025, your application deadline is January 15th, 2026. Missing this deadline may result in losing the benefit entirely or having it start in a later year.
No. If you previously benefited from the NHR regime or the Article 12-A CIRS scheme, you cannot apply for IFICI. These are mutually exclusive programs—you can only benefit from one preferential tax regime in your lifetime.
Typical documents include: proof of qualifications (diplomas, certificates), employment contract or scholarship agreement, company statement describing your role and functions, Social Security registration proof, and documentation proving you weren't a Portuguese tax resident in the previous 5 years. Requirements vary by eligibility pathway.
Applications are submitted through Portugal's Finance Portal (Portal das Finanças). Depending on your eligibility pathway, validation is handled by FCT (teaching/R&D), AICEP, IAPMEI, ANI, Startup Portugal, or directly by the Tax Authority (AT).
Get a professional eligibility assessment before investing time and money in an application you may not qualify for.
Free initial consultation • Expert Portuguese tax advisors • Honest eligibility assessment
One-time strategic consultation on US-Portugal tax planning, FEIE, FTC, and optimizing your tax situation.
From €399Monthly tax compliance and bookkeeping for expats in Portugal. Annual filings in both US and Portugal.
From €150/monthGet your Portuguese tax number (NIF) and Social Security number (NISS)—required before IFICI application.
From €149