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IFICI — NHR 2.0
Portugal's current special regime for qualifying professionals. 20% flat rate on Portuguese-source income for 10 years.
Legal basis: Art. 58-A EBF
Incentivo Fiscal à Investigação Científica e Inovação (IFICI), commonly called NHR 2.0, is the special income tax regime that replaced NHR Legacy from January 2024 onward. It grants a flat 20% income tax rate on Category A and B income from qualifying activities for 10 consecutive years. Qualifying activities are broadly defined — they include research, technology, innovation, highly qualified professions in strategic sectors, and others — but require prior AT approval via an application process. Unlike NHR Legacy, IFICI does not exempt foreign-source income or grant a flat 10% rate on foreign pensions. IFICI is particularly attractive for tech workers, consultants, researchers, and startup founders earning Portuguese-source income above roughly €65,000/year (where the effective standard IRS rate exceeds 20%).
Example
A software engineer earning €90,000 gross under IFICI pays €18,000 IRS (20%). Under standard IRS, they would pay approximately €26,000. IFICI saves roughly €8,000/year in this scenario.
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