IFICI, the Regime That Replaced NHR: Who Qualifies for 20%
The old non-habitual resident regime closed to newcomers in 2024. Its successor is narrower: it rewards specific jobs, not simply moving to Portugal.
IFICI (Incentivo Fiscal à Investigação Científica e Inovação), often called NHR 2.0, lets new tax residents pay a flat 20% IRS rate on work income from eligible activities for 10 years. It covers people not tax resident in Portugal in the previous five years who work in qualifying roles, such as research, certified startups or highly qualified jobs.
IFICI is set out in article 58-A of the Tax Benefits Statute (Estatuto dos Benefícios Fiscais, EBF), added by the 2024 State Budget law (Law 82/2023). It replaced the non-habitual resident regime (NHR) for new applicants. Rules below are as of November 2026; tax outcomes depend on your case, so check them with a certified accountant (contabilista certificado).
Who qualifies for IFICI?
You must become tax resident in Portugal, not have been resident in any of the previous five years, and carry out one of the activities listed in article 58-A(1) of the EBF:
| Eligible activity | Body that registers or confirms it |
|---|---|
| Higher-education teaching and scientific research, including jobs at recognised technology and innovation centres | FCT (Foundation for Science and Technology) |
| Qualified jobs and board roles under contractual investment tax benefits | AICEP |
| Highly qualified professions in companies that used investment tax support, or in industrial and service companies exporting at least 50% of turnover | Finanças (AT) |
| Other qualified jobs at companies recognised as relevant to the economy | IAPMEI or AICEP |
| R&D staff whose costs qualify for the corporate R&D tax incentive (SIFIDE) | National Innovation Agency (ANI) |
| Jobs and board roles in certified startups | Startup Portugal |
| Jobs in the Azores and Madeira, under regional rules | Regional governments |
The highly qualified professions and eligible business activity codes are set by ministerial order (portaria). Remote work for a foreign employer with no link to these categories does not qualify on its own.
How is IFICI income taxed?
Net employment (category A) and self-employment (category B) income from the eligible activity is taxed at a special 20% rate, unless you choose to add it to your other income at the normal progressive rates. The benefit lasts 10 consecutive years from the year you register as resident.
Foreign income gets the exemption method under article 81(4) of the IRS Code: employment, self-employment, capital, rental and capital-gains income from abroad (categories A, B, E, F and G) is exempt in Portugal, but still counted to set the rate on your other income. Foreign pensions are not in that list. Income paid by entities in jurisdictions on Portugal’s list of tax havens is taxed under separate, harsher rules.
How and by when do I apply?
Register by 15 January of the year after the year you became tax resident, under Ordinance 352/2024 as amended in February 2025. If you register late, the 20% rate applies only from the year of registration, for what is left of the 10-year period (article 58-A(7) of the EBF).
- Get a NIF and change your Finanças address to resident; see our guide to the NIF and resident status.
- Confirm which eligible activity applies to your job and which body handles it (FCT, AICEP, IAPMEI, ANI, Startup Portugal or Finanças).
- Collect proof from your employer: contract, role description, and the company’s eligibility, such as startup certification or export share.
- Submit the registration request by 15 January, following the procedure the ordinance sets for your category, and answer any request for documents from the certifying body. The FCT, for example, asks for missing documents by email within 10 working days.
- File your annual IRS return each year, declaring the IFICI income in the right annex.
The official text is in article 58-A of the Tax Benefits Statute on the Portal das Finanças.
What if I change jobs or leave Portugal?
Each year of the benefit depends on being tax resident at some point that year and earning income from an eligible activity. A gap of up to six months between one eligible job and the next does not break the chain.
If you lose the benefit for a year, you can resume it in later years of the original 10-year period once you are resident again and back in an eligible activity. The regime can be used only once in a lifetime.
What happens to people still on the old NHR?
People already registered as non-habitual residents keep the old regime until their 10-year period ends, under the transitional rules in article 236 of Law 82/2023. That law also let some people who became resident by 31 December 2024 join NHR, if they had, for example, a job contract, a lease or a residence visa or permit dated before set cut-offs in 2023.
Anyone who has benefited from NHR cannot use IFICI, and neither can someone who opted for the IRS Jovem regime for young workers under article 12-A of the IRS Code.
Bottom line
IFICI is a job-based incentive: the employer’s status and your role decide eligibility, not your nationality or wealth. Before you accept an offer, ask the employer in writing which IFICI category the job falls under and who will confirm it, because the 15 January deadline arrives only weeks after your first year ends.
FAQ
Is IFICI the same as NHR?
No. NHR was open to many professions and gave broad foreign-income exemptions, including on some pensions. IFICI covers fewer activities and does not exempt foreign pensions.
Can freelancers use IFICI?
Self-employment income (category B) qualifies only if it comes from an eligible activity. Freelancers on recibos verdes should check the category with an accountant before registering.
Do I need to be in Portugal for 183 days?
You must be tax resident under article 16 of the IRS Code, either more than 183 days in Portugal or a home you intend to keep as your usual residence.
Can I apply after the deadline?
Yes, but the benefit then starts only from the year you register, and the 10-year clock still counts from your first year as resident.
