IFICI (NHR 2.0)
- Flat rate
- 20%
- Duration
- 10 years
- Legal basis
- Art. 58-A EBF, Portaria 352/2024
Eligibility
- R&D activities (≥ 15% R&D spend) or certified startup
- Higher-education research roles
- Highly-qualified roles in exporting industrial / service companies
- Specific eligible CAE codes
- Formal registration with AT and confirmation of qualifying activity
What is IFICI?
IFICI — Incentivo Fiscal à Investigação Científica e Inovação — is Portugal’s successor to the Non-Habitual Resident (NHR) regime, effective from 2024. It grants a flat 20% income tax rate on qualifying Portuguese-source employment (Cat. A) and self-employment (Cat. B) income for 10 consecutive years, provided the taxpayer’s activity meets the statutory requirements under Art. 58-A EBF and Portaria 352/2024.
Unlike NHR, which was open to any qualifying new resident, IFICI is activity-gated: the flat rate only applies once AT confirms the taxpayer’s role falls within an eligible category.
Key benefits
- 20% flat rate on eligible Portuguese-source Cat. A and Cat. B income — compared to the top progressive rate of 48% under standard IRS, plus a solidarity surcharge of up to 5% on income above €80,000.
- Foreign Cat. A / B / E / F / G income exempt under double-taxation treaty conditions (income that may be taxed in the source country).
- 10 consecutive years from the year of first registration with AT.
What IFICI does not cover
Foreign pensions are taxed at standard progressive rates under IFICI. This is the principal practical difference from NHR Legacy, which granted a 10% flat rate on foreign Cat. H income. Taxpayers whose primary income is a foreign pension should check whether they enrolled under NHR Legacy before the 2024 cut-off — those who did retain the 10% rate for the remainder of their 10-year window.
Eligible activities
IFICI requires engagement in one of the following categories:
- R&D-intensive companies: employers that spend ≥ 15% of turnover on research and development, or certified startups recognised under Portuguese law.
- Higher education and scientific research: roles at universities, polytechnics, or recognised research institutions.
- Highly-qualified functions in exporting companies: specific roles listed in Portaria 352/2024 at industrial or service companies with qualifying CAE codes that derive a significant share of revenue from exports.
Registration requires formal application to AT with supporting documentation confirming the qualifying activity. The 20% rate is not self-certifying — AT must approve the application before the benefit applies.
IFICI vs NHR Legacy
| IFICI (NHR 2.0) | NHR Legacy | |
|---|---|---|
| Open to new applicants | Yes (from 2024) | No (closed Jan 2024) |
| Eligibility | Activity-gated | Open to qualifying new residents |
| PT-source income rate | 20% flat | 20% flat (HVA activities) |
| Foreign pensions (Cat. H) | Standard progressive | 10% flat |
| Foreign income (Cat. A/B/E/F/G) | Exempt under DTT | Exempt under DTT |
| Duration | 10 years | 10 years |
Calculator note
This tool applies the 20% rate only when you confirm your activity qualifies via the eligibility checkbox. Without that confirmation the flat rate is not applied, even if IFICI is selected as your regime — reflecting the AT approval requirement.