Portugal Gains Talent as US Clashes Over Skilled Visas

While the incoming US administration bickers publicly over visas to attract skilled workers, Portugal, in contrast, is continuing to roll out the red carpet.

The United States has watched on as Elon Musk enraged many of the Make America Great Again (MAGA) supporters after calling for more use of the H-1B visa to attract highly skilled foreign workers in the tech sector.

While receiving the backing of President-elect Donald Trump, many of his high-profile supporters suggest such a practice works against their ‘jobs for Americans’ mantra.

It’s all very different to the welcoming approach indicated by recent statements from Portugal’s Minister of Economy, Pedro Reis, having announced that the much-anticipated regulations for the Tax Incentive for Scientific Research and Innovation (IFICI) or NHR 2.0 tax regime, as it has been referred to—a tax incentive aimed at highly-skilled foreign workers and entrepreneurs—are expected to be finalised imminently.

Portugal has long established itself as a welcoming place for the highly-skilled, entrepreneurs and international investors.

The Tax Incentive for Scientific Research and Innovation (IFICI) will allow those eligible to receive a 20% reduced tax rate.

Paul Stannard, Chairman and Founder at Portugal Pathways, said: “Entrepreneurs, academics and highly skilled foreign workers eyeing Portugal as a destination for their expertise will be heartened by the smooth transition of the NHR regime into the IFICI.

“The proposals for this new tax regime for internationals and their companies would greatly benefit the Portuguese economy and are likely to sustain the ongoing trend of international inward investment into Portugal.

“It’s a very different situation than that in the US where political divide once again acts as a fault line in the nation’s fragile persona.”

The IFICI regime – originally dubbed NHR 2.0 – will apply to highly skilled workers and wealth and job creators.

Those Portugal is keen to attract with the regime are workers in the fields of technology and innovation, scientific research, and higher education teaching.

However, unlike the original NHR tax regime, the IFICI initiative excludes pension income—a significant shift—but it is set to offer significant benefits to entrepreneurs regarding capital gains taxes.

The aim is very much to boost Portugal’s economic standing by attracting the world’s best international talent, incentivising its own population, and expanding on a highly trained workforce.

Meanwhile, Portugal’s key pull factors – economic growth, safety and security, access to European markets, culture, lifestyle, climate and quality of life – are continuing to also prove irresistible to entrepreneurs, talent, and investors.

Adds Paul Stannard: “Through our Portugal Investment Owners Club platform, we’ve witnessed a strong appetite for investing in Portugal’s future. We already have significant investment commitments for 2025, and confirmation of this new tax regime would, in our view, trigger significant inward investment through investing in alternative investment funds in Portugal that are also approved for Golden Visa residency-by-investment in Portugal, which support investment in Portugal’s future.

“Portuguese alternative investment funds such as Portugal’s Future Fund focus on supporting industry sectors driving the country’s future GDP growth trajectory.”

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