WHAT IS IFICI?
IFICI (Tax Incentive for Scientific Research and Innovation) is Portugal's new 10-year tax incentive regime.
Introduced following the closure of NHR, IFICI is widely regarded as its successor and is often referred to as "NHR 2.0".
Designed to attract highly qualified professionals, entrepreneurs, academics and individuals working in research and innovation, the regime offers qualifying individuals a range of tax advantages when establishing tax residency in Portugal.
Who Typically Explores IFICI?
What Benefits Are Available Under IFICI?
For qualifying individuals, IFICI provides access to a range of tax advantages, including:
- A reduced 20% tax rate on qualifying Portuguese employment and self-employment income
- Exemption from Portuguese tax on certain categories of qualifying foreign-source income, including qualifying investment income and capital gains
- Benefits available for up to 10 years, subject to continued eligibility
- Access to one of Europe's most attractive locations for living, working and investing
Benefits depend on individual circumstances and eligibility.
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Key Factors That Influence Eligibility
Eligibility is assessed on a case-by-case basis.
Frequently Asked Questions
Yes. IFICI was introduced following the closure of Portugal's Non-Habitual Resident (NHR) regime and is widely regarded as its successor.
However, IFICI is more targeted than NHR and is designed for specific professional activities, innovation-focused sectors and qualifying individuals relocating to Portugal.
IFICI is often referred to as "NHR 2.0" because it was introduced following the closure of the Non-Habitual Resident regime.
However, the two regimes are not identical. IFICI has more targeted eligibility requirements, is designed for specific qualifying activities and professions and has some important additional benefits.
Individuals who become Portuguese tax residents and carry out qualifying professional, academic, scientific and research activities can be eligible for IFICI, subject to meeting the applicable requirements.
Certain entrepreneurs, founders and business owners may qualify depending on the nature of their activities and how they meet the regime's requirements. This may include entrepreneurs planning a future business exit or investment event where qualifying investment income or capital gains form part of their overall planning.
As eligibility is assessed on a case-by-case basis, professional advice is recommended before relying on the regime.
Yes. Portuguese tax residency is a fundamental requirement of the IFICI regime.
Individuals must generally establish Portuguese tax residency before accessing the benefits available under the regime.
Why Work With Us?
Led by Geoffrey Graham, Senior Partner, our team advises professionals, entrepreneurs, investors, academics and internationally mobile families on relocating to Portugal.
Beyond legal advice, we as a firm help clients develop a practical relocation plan and timetable, coordinating residency, visa, tax and wider relocation considerations to support a smooth transition.
By considering residency, tax, visa and commercial objectives together, we help clients plan their move with greater certainty and confidence.
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Considering a Move to Portugal?
Early planning allows time to assess eligibility, structure the relocation appropriately and coordinate residency, visa and tax requirements before moving to Portugal.
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Ready to more to Portugal?
If you are considering relocating to Portugal or would like to understand whether you could qualify for IFICI, contact our team for an initial discussion.