What is the IFICI regime?
The new Portugueses tax regime is called Incentivo Fiscal à Investigação Científica e Inovação (IFICI), known informally as NHR 2.0, and was introduced in 2024. It is aimed at qualified professionals, replaces the former Non-Habitual Resident (NHR) regime, and is designed to position Portugal as a global hub for scientific research, technology, and innovation-driven industries.
Under this regime, eligible taxpayers may benefit from a flat 20% personal income tax (IRS) rate for 10 consecutive years, covering employment and self-employment income derived from eligible activities.
This initiative is part of a broader fiscal strategy to attract high-value foreign talent, returning Portuguese nationals, and innovative businesses in strategic sectors such as R&D, education, IT, green energy, and scientific research (and some more).
Key Advantages of IFICI for Expats and Professionals
- 20% flat tax rate on eligible professional income
- Valid for 10 years
- Applicable to employment or freelance income in Portugal
- Allows international mobility for experts and entrepreneurs
- Designed to replace and improve the former NHR framework
Whether you are planning to move to Portugal, considering a tax-efficient structure for remote work, or returning as a Portuguese citizen, IFICI may significantly reduce your effective tax burden — but only if properly structured and submitted.
Who is Eligible for the IFICI Regime?
Eligibility under the IFICI regime requires that you:
- Hold tax residency in Portugal;
- Have not been a Portuguese tax resident in the past 5 years;
- Derive income from high-value-added activities listed in the law;
- Are engaged in:
- Scientific research
- Academic teaching
- Technological innovation
- Employment in certified startup ecosystems
- Highly qualified roles in R&D, engineering, IT, life sciences, or green tech
Note: The list of eligible professions is not exhaustive, and supporting documentation is required. Flow Legal offers legal analysis to assess if your role or project qualifies under the criteria defined by the Portuguese Tax Authority (AT).
How to Apply for IFICI?
Applying for the IFICI tax regime is a non-automatic process. It must be strategically planned, properly documented, and submitted to the AT with supporting evidence.
At FLOW Legal, we follow a structured three-phase method:
Phase 1 – Legal-Fiscal Feasibility Study
- Tax residency assessment
- Activity eligibility review
- Cross-border analysis (exiting prior tax residence)
- Strategic memo on viability, risks, and options
Outcome: Written opinion + planning roadmap
Phase 2 – IFICI Application & Submission
- Preparation of tax residency registration (if needed)
- Employer or self-employment documentation review
- Formal application submission to the Portuguese Tax Authority
- Liaison with tax advisors, if required
Phase 3 – Ongoing Support (Optional)
- Monthly tracking of application status
- Legal representation in AT requests
- Notifications, appeals, and clarifications
Can I Use IFICI as a Basis for Residency?
No. IFICI is a tax regime and not a residence permit. But you can combine your wish to live in Portugal and a fiscal benefit. If you are relocating to Portugal, IFICI can be combined with a residence visa application, according to the potential of your profile to qualify into the program.
This integration offers the full legal and tax framework for relocation.
Explore our full Relocation Services or speak directly with our Visa Experts.
Why FLOW Legal?
At FLOW Legal, we offer a premium legal relocation service, combining:
- Legal expertise in immigration and tax law
- Strategic alignment with your business or professional plan
- Coordination with accountants and financial advisors
- Support in English, Portuguese, and other languages
We are not just document preparers — we are your legal partners in Portugal.
Ready to Secure Your IFICI Status?
Start with a private consultation and discover how to maximize the new Portuguese tax regime while ensuring legal compliance. Whether you’re an expat, entrepreneur, or a returning citizen — we’re here to help.
