IFICI Portugal 2026 Tax Incentive Guide for New Residents

Learn how IFICI Portugal 2026 works, who qualifies, and how to structure your move with professional tax and legal advice from INLIS Consulting.

IFICI, the Incentivo Fiscal à Investigação Científica e Inovação, is Portugal’s newest strategic tax regime. Designed to attract highly qualified professionals, entrepreneurs, and investors, IFICI replaces the former Non-Habitual Resident (NHR) regime and offers targeted tax benefits for eligible new tax residents.

What Is IFICI NHR 2.0?

IFICI stands for Incentivo Fiscal à Investigação Científica e Inovação, a focused tax incentive regime implemented by the Portuguese government starting in 2024. It is often referred to in the market as NHR 2.0 because it succeeds the previous Non-Habitual Resident (NHR) tax program.

Unlike the broader NHR scheme, IFICI is highly targeted and is intended to attract individuals who:

• Become new Portuguese tax residents (not resident in Portugal during the previous five years)

• Perform eligible professional activities in Portugal

• Engage with eligible Portuguese entities through employment or certain qualifying professional relationships

Key Tax Benefits of IFICI

IFICI provides a clear set of tax incentives over a 10-year period once eligibility conditions are met.

Tax Feature	Benefit under IFICI
Flat tax rate on Portuguese-sourced eligible income	20% fixed rate (significantly lower than the normal progressive IRS scale up to ~53%)
Foreign-sourced income	Broad exemption from Portuguese tax on most foreign income (employment, dividends, capital gains, rental income), with reporting requirements
Duration	Benefits are applicable for 10 consecutive years
Pension income	Taxed at standard progressive rates (no exemption)
Income from blacklisted jurisdictions	May be subject to a 35% flat rate

Note: Social security contributions still apply and are separate from the tax benefits under IFICI.

Who Can Apply for IFICI in Portugal?

To qualify for the IFICI regime, applicants must meet the following conditions:

Basic Eligibility Criteria

Requirement	Detail
Portuguese tax residency	Must become a tax resident in Portugal from 2024 onwards and have not been resident in Portugal for the previous five years
No prior use of NHR	Must not have previously benefited from the old NHR regime or similar tax incentives
Eligible professional activity	Must perform work linked to qualifying roles or activities within Portugal
Eligible entity relationship	Income must be earned via an employment contract, a statutory board role, or certain service agreements with an eligible Portuguese entity

Annual eligibility is reassessed every year, and continued residence in Portugal with ongoing income from eligible activities is required.

What Roles and Activities Qualify Under IFICI?

IFICI is designed to support Portugal’s economic development and innovation agenda. The types of eligible professional roles and sectors include:

Eligible Roles	Typical Eligible Sectors
Scientific and academic research professionals	Scientific research & R&D
Highly skilled technical specialists	Information and communication technologies
Finance and accounting experts	Financial and insurance services
Directors and executive managers	Manufacturing, energy, and services
Healthcare and education professionals	Health and social support services
Film, media, and creative directors	Creative industries and cultural sectors
Engineering and technical experts	Engineering, consultancy, and technical services

All roles must be connected to an eligible economic activity carried out by the employing entity. A professional title alone does not determine eligibility.

Application Process and Deadlines

To access the IFICI regime, applicants must follow a defined process:

Step	Description
1. Establish Tax Residency	Become a Portuguese tax resident by meeting residency criteria
2. Registration Deadline	Apply for IFICI registration by January 15 of the year following residency commencement
3. Documentation	Provide documentation proving eligible activities and professional relationships
4. Annual Compliance	Confirm ongoing eligibility each year

If eligibility conditions change, such as employment or entity relationships, the applicant must inform the certifying body by the following January 15.

IFICI vs. Old NHR Regime

IFICI is not simply an extension of the previous Non-Habitual Resident (NHR) tax regime — it is a replacement with a narrower focus:

Feature	Old NHR	IFICI
Target group	Broader (retirees, pensioners, professionals)	Highly qualified professionals
Foreign income exemption	Very broad	Broad, but pension income is taxable
Flat tax rate	Up to 20% on certain income	20% on eligible income
Duration	Up to 10 years	10 years
Scope	Inclusive of passive income	Focused on qualified activities

Applicants previously under NHR cannot switch to IFICI, and retirees no longer qualify under the new rules.

Why Professional Legal Support Matters

The IFICI regime offers significant tax savings for eligible professionals, but it is complex and compliance-driven. Key reasons to seek legal assistance include:

• Confirming activity eligibility and aligning professional roles with legal classifications

• Ensuring proper entity relationships and contract structures

• Managing annual compliance and registration updates

• Advising on foreign-sourced income reporting implications

• Aligning tax residency with broader personal and business objectives

A tailored legal strategy enhances the likelihood of approval and long-term benefit realization.

Contact INLIS Consulting for IFICI Guidance

If you are considering relocating to Portugal for work, investment, or professional growth and want to understand your eligibility for IFICI Portugal 2026, INLIS Consulting can help with expert legal and tax advice tailored to your situation.

Contact INLIS Consulting for personalized support: https://www.inlis.pt/contact-us

IFICI Formula for Portugal 2026

The IFICI regime represents Portugal’s strategic tax incentive to attract global talent in research, innovation, and qualified economic activity, offering a 10-year tax framework with favorable rates and exemptions. Eligibility depends on residency status, role alignment, and professional engagement with eligible Portuguese entities.

Professional legal guidance from INLIS Consulting ensures your case is structured correctly, compliant with regulatory requirements, and optimized for long-term benefits.