The costs of applying for IFICI tax-exempt status can vary depending on factors such as professional fees, documentation requirements, and potential government processing fees. It's advisable to get a quote from a tax advisor or legal expert to understand the total costs based on your specific case.

Hiring an attorney is not strictly required to apply for Portugal’s Tax Incentive for Scientific Research and Innovation (IFICI), but legal guidance can be beneficial. The application process involves proving eligibility, submitting documentation, and navigating Portugal’s tax framework, which may require expertise in Portuguese tax law and regulatory compliance.

Official information is available from Portuguese Tax Authorities, AICEP (Portuguese Trade & Investment Agency) or IAPMEI (Institute for Competitiveness and Innovation). Consulting a tax advisor is also recommended to ensure compliance and maximise benefits under IFICI tax incentive.

While Madeira’s tax regime extends until 2028, upcoming elections may impact regulations. Future changes could affect IFICI+ eligibility for startups based in Madeira.

Yes, provided they meet the criteria, including recognition as an innovative business or received investment from venture capital or the Portuguese Development Bank.

Portugal's IFICI tax incentive applies to start-ups that meet specific criteria. To qualify, a start-up must be less than 10 years old, employ fewer than 250 people, and have an annual turnover below €50 million. Additionally, it must not result from a transformation or split from a large company and should not have any direct or indirect majority participation by a large company in its capital. The start-up must also be recognised as innovative or secure external investment. If this condition is not met, it can be addressed through a prior declaration issued by Start up Portugal, provided there is evidence that the company has an innovative business model, products, or services, or a rapidly scalable business with high growth potential.

Visa status alone does not determine eligibility. To qualify, you must establish tax residency in Portugal. Not have been a tax resident in Portugal in the previous five years and engage in eligible professional activities under IFICI. If your visa allows you to work in an eligible sector or start a business that qualifies for IFICI, you may be able to apply.

No, to qualify, self-employed individuals must provide services to a Portuguese entity while carrying out one of the listed activities and (depending on the route taken) engaged in eligible sectors like, for example, extractive or manufacturing industries, information and communication activities or research and development in the physics and natural sciences.

Beneficiaries under IFICI are still required to pay social security contributions in addition to the 20% tax rate on qualifying income.

Any change in professional activity could impact eligibility for the IFICI tax incentive. These changes must be reported by January 15 of the following year, along with supporting documentation. This is extremely important since the right to be taxed under the terms of this regime, in each year of the mentioned 10-year period, depends on the taxpayer being deemed as a tax resident in Portuguese territory, at any time during that year and continuing to earn, each year, income derived from the exercise of one of the specific activities listed.

Intellectual property income derived from qualifying R&D or innovation activities may eventually benefit from the 20% tax rate, subject to classification under IFICI regulations (and assuming these are derived by its original owner).

Portugal's IFICI tax incetive complements Portugal’s R&D tax credits, further incentivising professionals in research and innovation. However, specific overlaps depend on the nature of the activities and applicable tax rules.

No, individuals who have previously benefited from the NHR or Regressar regimes are not eligible for IFICI.

Yes, foreign-sourced income such as dividends, royalties, and rental income is tax-exempt under IFICI, provided it does not come from blacklisted jurisdictions (in some cases) or pension income.

For tax residents in 2024, applications must be submitted by March 15, 2025. For new tax residents in subsequent years, the deadline is January 15 of the following year.

Applications must be submitted to the Portuguese Tax Authorities (Portal das Finanças) or relevant agencies such as AICEP and IAPMEI, depending on the applicant's activity. Required documents may include proof of qualifications (e.g., degree certificates), employment contracts or self-employment verification and evidence of compliance with IFICI’s eligibility criteria.

Unlike the previous NHR tax regime, which was definitely broader in its scope of application, IFICI is specifically designed for individuals working in innovation, research, and export-driven industries, aligning with Portugal’s economic priorities.

Under Portugal's IFICI tax regime, for those applying through the highly qualified professions route (noting that other routes exist within the regime), a range of professions are eligible. These include general and executive managers, medical doctors, and IT and communication specialists. Additionally, managers of administrative and commercial services, as well as production and specialised services managers, qualify. Experts in fields such as physics, mathematics, engineering, and related technical disciplines are also eligible. Industrial and equipment designers, along with university and higher education professors, are included in the list of qualified professions.

Key benefits of Portugal's IFICI (NHR 2.0) tax incentive include a flat 20% tax rate on Portuguese-sourced employment and self-employment income derived from the activities encompassed by the regime. Non-Portuguese income (besides pensions) is tax exempt (including dividends, interest, rental, capital gains on real estate / securities and crypto related income). Eligibility for the tax incentive for up to 10 consecutive years.

Eligibility for the IFICI tax incentive is limited to individuals who become Portuguese tax residents and who have not been tax residents in Portugal for the past five years. Earn employment or self-employment income in eligible activities (ex. highly qualified professions including doctors, IT and communication experts or Industrial and equipment designers; job positions in certified start-ups; or teaching in higher education and scientific research).

Portugal's Incentive for Scientific Research and Innovation (IFICI), also known as NHR 2.0, is a tax regime introduced in the 2024 State Budget. It offers a flat 20% personal income tax (PIT) rate for employment and self-employment income earned within the scope of the specific activities detailed in the regime. The program aims to attract global talent, boost Portugal's economy, and strengthen its position as a hub for technological and scientific advancement.