Tax in Portugal for newcomers (IFICI)

Portugal's well-known NHR (non-habitual resident) regime closed to new applicants at the start of 2024. Its replacement is IFICI, nicknamed "NHR 2.0": a 20% flat rate on work income from qualifying activities in Portugal for 10 years. Unlike NHR it is not open to everyone, and mainly benefits highly qualified professionals, researchers and staff of innovative companies.

IFICI at a glance

Who qualifies?

• People who have not been Portuguese tax residents in the previous 5 years and have never benefited from NHR or IFICI.
• Staff in higher education and scientific research, R&D, certified startups and companies recognised by bodies such as IAPMEI and AICEP.
• "Highly qualified professions" in eligible companies, such as company directors, engineers, and science and IT professionals, usually with a degree or relevant experience.

For D7 holders and retirees

IFICI does not cover pensions or passive income. If you become resident on a D7, your foreign income may be taxed in Portugal under the general rules and double tax treaties. Plan your taxes before you move.

Steps

1. Check when you become tax resident (usually more than 183 days of presence or a main home in Portugal)
2. Update your NIF address and register as resident
3. File the IFICI application on the Portal das Finanças before 15 January of the following year
4. Have the employer or relevant body confirm the qualifying activity

Frequently asked questions

Can I still get NHR?

No. NHR is closed to new applicants; only limited transitional cases registered by March 2025. IFICI replaces it.

Does IFICI cover foreign pensions?

No. Pensions are not covered by IFICI.

What is the IFICI registration deadline?

15 January of the year after the year you became tax resident in Portugal.

This guide is general information, not personal tax advice; your position depends on your income, home country and tax treaties.