What is the new NHR 2.0 Program or IFICI?

What is the new NHR or IFICI Program?

IFICI is a tax regime aimed at highly qualified professionals who move to Portugal for residency and employment purposes. This new regime allows you to pay a special IRS rate of 20% (plus social security contributions) on income from dependent or self-employed work for a consecutive period of 10 years (non-renewable). This initiative is part of a broader strategy by Portugal to strengthen its knowledge-based economy and attract global talent in key innovative sectors. IFICI's tax advantages also apply to those who return to Portugal, such as Portuguese citizens who have lived abroad.

Who can apply for IFICI in Portugal?

• EU, EEA and Swiss citizens
• Foreign investors holding a Golden Visa
• D7 visa holders 
• D8 visa holders 
• D2 visa holders 
• D3 visa holders 
• Any person who qualifies as a highly qualified professional, who has not been fiscally resident in Portugal in the last five years

What are the requirements for the IFICI Program

• Not have been a tax resident in Portugal in the last 5 years;
• Not have benefited from the NHR or have not chosen to be taxed under the "ex-residents" regime. It doesn't matter if you left Portugal and returned to Portugal
• Carrying out an "eligible activity" in Portugal (under the required conditions, assessed annually)
• It must also carry out one of the eligible scientific research and innovation activities every year, with no interval exceeding 6 months.

Tax benefits of the IFICI program in Portugal

The IFICI tax regime is an excellent option to maximize your savings if you live and work in Portugal – here's why:

• Reduced IRS rate: A flat rate of 20% on income from work, as opposed to the typical progressive rates of 14% to 53%.
• Exemption from foreign income: Most foreign-sourced income, such as
  • :Work
  • independent
  • Income from investment capital (interest/dividends)
  • Royalties
  • Capital gains (previously not exempted in most cases)
  • Real estate income/gains.