Tax regime
IFICI, the NHR 2.0: the complete guide
IFICI taxes qualifying work income at a flat 20% for ten years. It replaced the old NHR in 2024 and is far narrower: it depends on what you do and who you work for, not just on moving here.
In short
- 20% flat IRS on qualifying employment (category A) and self-employment (category B) income, for 10 consecutive years.
- Most foreign income is exempt, though it can still count when working out the rate on any other income.
- Only for specific activities, certified by a public body or checked by the tax office. Moving to Portugal is not enough on its own.
- Apply by 15 January of the year after you become resident.
Who can apply
You need all of the following:
- You become tax resident in Portugal, and stay resident at some point in every year you use the regime.
- You were not tax resident in Portugal in any of the previous five years.
- You have never been a non-habitual resident (NHR), you are not using IRS Jovem, and you have not opted for the ex-resident regime.
- You work in one of the eligible activities below and earn income from it every year. A gap of up to six months between jobs does not break the regime.
Eligible activities
| Activity | Who certifies it |
|---|---|
| Teaching in higher education and scientific research, including scientific jobs | FCT |
| Qualified jobs and board roles in projects with contractual tax benefits for productive investment, or activities recognised as relevant to the economy | AICEP or IAPMEI |
| Research and development staff at companies using the R&D tax credit (SIFIDE) | ANI |
| Jobs and board roles at certified startups | Startup Portugal |
| Highly qualified professions at eligible companies (below) | Tax authority (AT) |
Highly qualified professions
This is the route most professionals moving for work will use. Three conditions have to be met together.
- The role is on the official list, by Portuguese profession code (CPP): directors and executives (112, 12, 13), science and engineering professionals (21, except 216), certain designers (2163.1), doctors (221), university teachers (231) and ICT professionals (25).
- Your qualifications: a doctorate (EQF level 8), or a bachelor's degree (EQF level 6) plus three years of proven professional experience.
- The company either made relevant investment under the RFAI investment regime, or works in an eligible sector (manufacturing, mining, ICT, R&D, higher education, health) and exports at least 50% of its turnover.
How to apply
| Step | Who | Deadline |
|---|---|---|
| Submit the IFICI registration on the Portal das Finanças (Serviços › Benefícios Fiscais) | You | 15 January of the year after you become resident |
| Certify the activity and tell the tax office | FCT, AICEP, IAPMEI, ANI or Startup Portugal | 15 February |
| Confirm the requirements for highly qualified professions | Your employer | 15 March |
| Registration result available in your Portal das Finanças area | Tax authority | 31 March |
If you become resident during 2026, your registration deadline is 15 January 2027. Filing late is not fatal, but the regime then only applies from the year you register, for whatever is left of the ten years.
Documents to have ready
- Your employment contract, or the company's commercial registration certificate if you are a director
- Your research grant contract, for scientific research
- Proof of your academic qualifications
- A declaration from the employer or entity confirming the activity requirements
- Your NIF, Portuguese tax address and Portal das Finanças access
How the 20% works
- For employees, 20% applies to salary after the standard employment deduction. For freelancers, it applies to the taxable part of your income.
- No personal deductions (health, education, family) reduce the tax, because the rate is flat.
- If the progressive rates would cost you less, you can choose to have all your income taxed together instead.
- Foreign pensions are not covered, and income from blacklisted low-tax jurisdictions does not get the exemption.
Keeping the regime
- The 10 years run from the year you register. If you leave Portugal and come back, you can use the years that are left, but you can only use IFICI once in your life.
- If your job or employer changes, report it on the Portal das Finanças by 15 January of the following year. A new role may need a new certification.
- Keep your contracts, payslips, certifications and proof of qualifications for 10 years. The tax office can ask for them in any year of the regime.
- If registration is refused, your income is taxed at the normal progressive rates.
Frequently asked questions
Is IFICI the same as the NHR?
No. IFICI replaced the non-habitual resident (NHR) regime for people who became resident from 2024. It also taxes qualifying work income at 20% for ten years, but only for specific activities.
What is the IFICI deadline?
You apply on the Portal das Finanças by 15 January of the year after you become tax resident in Portugal. For residence starting in 2026, the deadline is 15 January 2027.
Can remote workers for foreign companies get IFICI?
Not automatically. The activity and the employer must meet the IFICI rules. Some professionals qualify through a Portuguese company that meets the sector and export test.
Can I combine IFICI with IRS Jovem?
No. You cannot use IFICI while benefiting from IRS Jovem, and you cannot use it if you were ever a non-habitual resident.
Sources
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