Expat Life & Events
March 5, 2025
Portugal's newly implemented Tax Incentive for Scientific Research and Innovation (IFICI), also known as the NHR 2.0 tax regime, is poised to transform the nation’s tax framework in 2025.
For individuals who became new tax residents in Portugal in 2024, the first deadline for that group of people only to apply for the IFICI (NHR 2.0) tax regime is March 15, 2025.
People can still apply for 2025, but this deadline is for those who became tax residents in 2024.
This tax regime provides substantial advantages for skilled professionals, entrepreneurs, researchers, and businesses focused on innovation.
The IFICI (NHR 2.0) tax regime introduces a flat 20% tax rate on income earned from eligible activities in Portugal, including both employment and self-employment.
Additionally, it grants a tax exemption for eligible foreign-sourced income, including capital gains and dividends. By offering these incentives, the regime seeks to attract international talent and enhance Portugal’s economic competitiveness.
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Understanding the IFICI (NHR 2.0) Tax Regime in Portugal
The IFICI (NHR 2.0) tax regime aims to position Portugal as a hub for innovation and technological advancement by attracting professionals engaged in scientific research, innovation, and other highly qualified activities.
It targets individuals who have not been tax residents in Portugal in the previous five years and who intend to carry out eligible activities within the country.
Eligibility Criteria for the IFICI (NHR 2.0) Tax Regime in Portugal
To qualify for the IFICI (NHR 2.0) tax regime, applicants must be new tax residents in Portugal and engage in activities classified as highly qualified.
The IFICI (NHR 2.0) tax regime in Portugal now covers a broader range of professions and sectors, making it more flexible and accessible to a wider pool of individuals. Here’s a full list of the eligible professions and sectors:
Eligible Professions:
• General Directors & Executive Managers
• Technicians & Intermediate-Level Science & Engineering Professions
• Directors of Production & Specialised Services
• Directors of Administrative & Commercial Services
• Directors of Hospitality, Catering, Trade & other Services
• Specialists in Physical Sciences, Mathematics, Engineering, and Related Fields
• Doctors
• University & Higher Education Professors
• Finance & Accounting Specialists (except auditors & accountants)
• ICT (Information & Communication Technology) Specialists
• Directors, Producers & Stage Managers in Film, Theatre, TV & Radio
Eligible Sectors & Activities:
• Education
• Construction
• Extractive Industries
• Manufacturing Industries
• Projects of Natural Interest
• Hospitality & Restaurants
• Interior Investment Projects
• Human Health & Social Support activities
• Utilities Sector (water, electricity, gas, etc.)
• Information & Communication activities
• Administrative & Support Services
• Consulting, Scientific & Technical Activities (head offices, engineering, R&D)
• Financial activities (holding companies & fund managers)
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Portugal’s IFICI (NHR 2.0) Tax Regime Application Process
The application process for the IFICI (NHR 2.0) tax regime involves several key steps. Applicants must register with the Portuguese Tax Authority or relevant entities, serving as a formal declaration of intent to benefit from the IFICI (NHR 2.0) tax regime.
The applicant's employer or contracting entity must provide accreditation, confirming the nature of the applicant's activities and their alignment with the eligible professions under the IFICI (NHR 2.0) tax regime.
The registration request must be submitted through the Finance Portal, the official online platform of the Portuguese Tax Authority.
The Tax Authority, in collaboration with other competent entities, will verify the information provided to ensure compliance with the eligibility criteria.
For individuals who became tax residents in Portugal in 2024, the deadline for submitting the registration request is March 15, 2025. In subsequent years, the deadline will be January 15 of the following year.
Contact Portugal Pathways about qualifying for the IFICI (NHR 2.0) tax regime in Portugal
Benefits of the IFICI (NHR 2.0) Tax Regime in Portugal
The primary benefit of the IFICI (NHR 2.0) tax regime is the application of a flat 20% tax rate on income derived from eligible activities and 0% tax on eligible foreign-derived income, including capital gains and dividends.
This rate is significantly lower than the standard progressive tax rates applicable in Portugal, making it an attractive option for qualified professionals. The tax incentive is valid for a period of 10 consecutive years and is non-renewable.
Important Considerations for the IFICI (NHR 2.0) Tax Regime in Portugal
Adherence to the submission deadline is crucial for those who became tax residents in 2024 under the new IFICI (NHR 2.0) tax regime, as late applications may result in the forfeiture of the tax benefits associated with the IFICI (NHR 2.0) tax regime.
This deadline does not apply to people who are applying for the new IFICI (NHR 2.0) tax regime for the 2025 tax year.
Ensuring that all required documents are accurately completed and submitted is essential, including proof of qualifications, accreditation from employers or service contractors, and any other relevant documentation as specified by the Portuguese Tax Authority.
Given the complexities involved in tax regulations, it is advisable to consult with tax advisors or legal experts familiar with Portuguese tax law. They can provide guidance tailored to individual circumstances, ensuring compliance and maximisation of benefits under the IFICI regime.
About Portugal Pathways
Portugal Pathways has supported hundreds of Golden Visa residency-by-investment applications and provides expert guidance through its professional supply chain network on luxury property, wealth management, and tax optimisation, including post-NHR tax regime planning, as well as private healthcare, IFICI tax incentive applications, money transfers and bespoke relocation solutions to enhance life and investments in Portugal.
Disclaimer: The information on the Portugal Pathways and Portugal Investment Owners Club (P Club for short) websites and in email communications is for general informational purposes only and should not be construed as legal, tax, or financial advice. You should consult and check with a qualified professional advisor before relying on any information provided on this website or in email communications. As it relates to investments in Golden Visas or other wealth management solutions offered by regulated and professional advisors, it is important to note that past performance is no guarantee of future returns. Private equities can be highly illiquid and come with risk and should always be under professional independent advice.
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