Portugal's New IFICI Tax Regime: A Complete Guide for Expats and Investors

For over a decade, Portugal’s Non-Habitual Resident (NHR) tax regime was the golden ticket for expats and foreign investors. Retirees, remote workers, and high-net-worth individuals flocked to Portugal to benefit from its generous tax exemptions and relaxed lifestyle. But change has arrived.

As of January 1, 2024, the Portuguese government has officially replaced the NHR regime with a new, innovation-focused tax incentive: IFICI – Incentive for Scientific Research and Innovation. Nicknamed "NHR 2.0," IFICI is reshaping the landscape for those considering a move to Portugal and those already living here who may now qualify under different terms.

If you’re a skilled professional, startup founder, or entrepreneur looking to build a life in Portugal, this guide will break down what IFICI is, how it compares to NHR, who qualifies, and what it means for your future.

Why the Shift from NHR to IFICI?
Portugal’s original NHR regime was introduced in 2009 to attract foreign talent. It granted:
- A 10-year tax break on foreign income (including pensions and dividends).
- A 20% flat tax rate on Portuguese-sourced income for certain professions.

While wildly successful in bringing retirees and remote earners to Portugal, the NHR regime was criticized for failing to contribute meaningfully to the Portuguese economy. It mostly favored passive income earners rather than active contributors like researchers, executives, or start up founders.

IFICI changes that. It targets skilled professionals who actively work, innovate, and invest in Portugal.

What Is IFICI?

IFICI stands for Incentivo Fiscal à Investigação Científica e Inovação, or Incentive for Scientific Research and Innovation. This regime was formalized under Law No. 82/2023 and regulated by Portaria n.º 352/2024/1.

- The Perks: 20% Flat Income Tax: Applies to employment (Category A) and self-employment (Category B) income.

- Exemption on Foreign Income: Including dividends, interest, royalties, and capital gains, as long as they come from non-blacklisted countries.

- Capital Gains Exemption: From foreign company share sales (a big change from NHR).

- 10-Year Benefit: Just like the NHR, benefits last for a decade.

- Application Deadline: You must apply by January 15 of the year following your move (March 15, 2026, for those who become tax residents in 2025).

Who Can Apply for IFICI?

You qualify for IFICI if:

- You become a tax resident in Portugal.

- You haven’t been a tax resident in Portugal in the past five years.

- You have not benefited from NHR or other special tax regimes.

- You engage in an eligible professional activity in Portugal.

Note: Portuguese citizens who have lived abroad and have not been tax residents in Portugal for the last five years are also eligible to apply. This makes the regime especially attractive for returning talent and skilled professionals in the diaspora.

What Professions Are Eligible?

This is where IFICI becomes more selective than NHR. You must be actively engaged in work that contributes to Portugal’s innovation economy.

Eligible categories include:

- Scientific researchers and university professors.

- Executives and directors in innovative or export-oriented companies.

- Professionals working for certified startups.

- Tech professionals, engineers, and data scientists.

- Medical specialists, renewable energy experts, and R&D leaders.

Your eligibility will be reviewed by a specific public entity, depending on your professional field:

- FCT – for academia and research.

- AICEP and IAPMEI – for investment-focused roles.

- AT (Tax Authority) – for high-skilled professionals.

- Startup Portugal – for startup staff and founders.

Comparing IFICI vs. NHR

TL;DR (Too Long; Didn’t Read):

- NHR was broader and included retirees.

- IFICI is sharper and supports Portugal's innovation ecosystem.

- If you're working in science, tech, healthcare, or launching a startup, IFICI is for you.


FAQs: Everything You Were Wondering, Answered

Is IFICI only for tech professionals?

No. While tech roles are favored, IFICI applies to a variety of fields including science, engineering, medicine, and academia. What matters most is whether your activity contributes to innovation and economic competitiveness.

Is my foreign pension still tax-free?

Unfortunately, no. Pensions are no longer given preferential treatment under IFICI and are taxed under Portugal’s general progressive rates.

Can I qualify if I already used NHR in the past?

No. IFICI is exclusively for individuals who have never benefited from NHR or other tax incentive schemes in Portugal.

I have a remote job for a US company. Do I qualify?

Only if your job fits the eligible criteria and is recognized by the competent Portuguese authorities. Working remotely from Portugal does not automatically qualify you. Your activity must be considered a highly skilled contribution.

What happens if I miss the deadline to apply?

Then, sadly, you’re out of luck for that tax year. It is critical to apply by January 15 of the year after you move, or March 15, 2026 if you moved in 2025.

From an Expat’s Perspective: Why IFICI Makes Sense

If you're a Canadian tech lead, an American biotech founder, or a British R&D consultant, Portugal now offers:

- An enviable work-life balance.

- Access to EU markets.

- Low cost of living (compared to the US, Canada or UK).

- A strategic location with international connectivity.

- And now, a very competitive tax regime that rewards innovation.

IFICI may not offer the same perks to retirees, but for expats ready to roll up their sleeves and build something meaningful, Portugal is rolling out the red carpet.


Real Talk: Who Loses Out?

Let’s be honest: the IFICI regime isn’t great news if you’re planning to retire in Portugal and live off your pension or dividends. The tax breaks that once made Portugal a retiree haven are no longer on the table.

That said, Portugal still offers:

- Mild climate

- Beautiful beaches

- Safety

- Affordable healthcare

So if you’re not chasing tax breaks and simply want a better quality of life, Portugal remains an attractive choice.

Key Takeaways for Potential Movers

- IFICI is Portugal's new flagship tax regime.

- It favors active contributors: entrepreneurs, researchers, and professionals.

- It includes 10 years of tax benefits with a 20% flat rate and capital gains exemptions.

- You must apply early and meet the eligibility criteria.

If you’re wondering whether you fit the bill, speak with one of our relocation or tax experts.


At moviinn®, We Make Your IFICI Move Easy

Navigating tax regulations, visa applications, and relocation logistics is what we do best. Whether you’re launching your startup in Lisbon, taking a role with a Porto-based R&D company, or joining a certified health tech scaleup in Braga, we’re here to help.

Our expert team will:

- Assess your eligibility for IFICI.

- Connect you with certified startups, accelerators, or research hubs.

- Coordinate your tax residency registration and filing.

- Support you with immigration, tax planning, relocation, housing, schools, and more.

Ready to make your move?

Book a call with one of our specialists and let’s find out if IFICI is the gateway to your new life in Portugal.

Portugal is betting on talent. With IFICI, it’s your turn to bet on Portugal.

Book a free consultation today and start planning your move.