TSRI / IFICI
Tax Incentive for Scientific Research and Innovation in Portugal
Commonly known as NHR 2.0
Ready to make the most of living and working in Portugal? The Tax Incentive for Scientific Research and Innovation (TSRI / IFICI), aka NHR 2.0, is your golden ticket to amazing tax benefits.
This service is for you if you are relocating your fiscal residence to Portugal and you are...
An employee of a Portuguese entity
A service provider working in Portugal
A company manager involved in a Portuguese business
Why you’ll love IFICI (NHR 2.0)
Start your journey today!
Flat 20% Income Tax
On income earned from qualified professional activities in Portugal.
0% Tax on Foreign Income
Excluding pensions and income from tax havens like UAE or Hong Kong
10 Years of Benefits
That’s a full decade of savings and financial freedom
Sounds good? Let us help you make it happen!
Requirements
Eligibility Requirements for NHR 2.0 (IFICI)
Want to take advantage of the amazing tax benefits? Here’s what you need to know about eligibility:
1. Become a Tax Resident in Portugal
You’ll need to make Portugal your home and establish your tax residency here. It’s all about living the good life in a country with amazing tax perks.
2. No Recent Residency in Portugal (5 years)
If you’ve been a tax resident in Portugal in the past 5 years, this program isn’t for you. It’s all about fresh starts!
3. No Previous Beneficiaries of Certain Tax Regimes
If you’ve previously benefited from the Non-Habitual Resident (NHR) regime or the Youth IRS program, you can’t reapply for the IFICI tax benefits.
4. Engage in Eligible Activities in Portugal
To qualify, your work must fall into specific categories in Portugal. You can be:
- Employed with a contract 💼
- Providing services 🤝
- Serving as a company administrator 🧑💼
And you should engage in one of the following Eligible Activities:
🧑💻 Job Role: Any employment position or a role as a member of governing bodies
🎓 Academic Qualifications required: None
🏛️ “Employer” Requirement: The entity should be certified as a startup in Portugal
- 112: General directors and executives
- 12: Directors of administrative and commercial services
- 21: Physical scientists, engineers, and similar
- 221: Medical doctors
- 231: University professors
- 25: ICT specialists (software developers, analysts, etc.)
🎓 Academic Qualifications required:
You should have the following qualifications:
- Bachelor’s degree + 3 years of experience, OR
- Master’s degree (no experience required).
🏛️ “Employer” Requirements:
The company that you work for:
- Should Export at least 50% of its revenue; and
- Must have its primary business activity in one of the following sectors:
- Information and Communication Activities, including:
- IT consulting, programming, and related activities;
- Data processing, hosting, and web portals;
- Publishing
- Film, video, TV program production, sound recording, and music publishing
- Telecommunications
- Extractive Industries
- Manufacturing Industries
- Research and Development in Physical and Natural Sciences
- Higher Education
- Human Health Activities
🧑💻 Job Role
Your role should be qualified as “high qualified activity” – Your activity must fall under one of these Portuguese Occupation Classification Codes:
- 112 – General Director and Executive Manager of Companies
- 12 – Directors of Administrative and Commercial Services
- 13 – Directors of Production and Specialized Services
- 14 – Directors of Hospitality, Catering, Commerce, and Other Services
- 21 – Specialists in Physical Sciences, Mathematics, Engineering, and Related Technical Fields
- 221 – Medical Doctors
- 231 – University and Higher Education Professors
- 241 – Specialists in Finance and Accounting (except 2411)
- 25 – Specialists in Information and Communication Technologies (ICT)
- 2654 – Film, Theater, Television, and Radio Directors, Producers, and Related Professionals
- 31 – Mid-Level Technicians and Professionals in Science and Engineering
And company administrators, managers (“Gerentes”), or general directors.
🎓 Academic Qualifications required
Candidates must hold at least Level 5 of the European Qualifications Framework (EQF) or the International Standard Classification of Education (ISCED). This corresponds to short-cycle higher education, such as higher technical diplomas, foundation degrees, or advanced vocational training, positioned above secondary education but below a full bachelor’s degree.
🏛️ “Employer” Requirement
Must have its primary business activity in one of the following sectors:
- Consulting, scientific, technical, and similar activities – class 7010 and divisions 71 to 72;
- Administrative and support service activities – class 8211
- Extractive industries
- Manufacturing industries
- Electricity, gas, steam, hot and cold water, and air conditioning supply
- Construction
- Accommodation, restaurants, and similar activities
- Information and communication activities – divisions 58 to 63;
- Financial and insurance activities – classes 6420 and 6630;
- Education
- Human health and social work activities
🚨 At the moment, this option is not in force, pending regulation approved by the Regional Governments of Madeira and the Azores.
According to the general regime, it appears that anyone who works (not necessarily for an entity located in these regions or on the mainland) will be able to access the regime, provided they are tax residents in the Autonomous Regions of the Azores or Madeira.
- Teaching at higher education institutions or conducting scientific research.
- Scientific employment in national research networks.
- Positions in technology and innovation centers.
- R&D personnel eligible for fiscal incentives.
Ready to Apply?
If you meet these requirements, it’s time to make your move!
Let us guide you through the process. Get in touch with us to learn how you can qualify for these amazing tax benefits today.
Application Process for NHR 2.0 (IFICI)
Step by step
📄 Submission of Application
Get started by submitting your application for the tax regime no later than January 15 of the year following the one in which you became a tax resident in Portugal.
The submission should be directed to the appropriate entity based on your profession and activity, namely:
- Tax Authority – If you work in highly qualified professions in Industrial / Service Export Entities.
- Startup Portugal – For positions in certified startups, including roles in their governing bodies.
- Fundação para a Ciência e a Tecnologia (FCT) – For higher education teaching or scientific research roles.
- AICEP – For positions linked to investment benefits and in Economic Sectors Entities (whenever the consolidated annual revenue is higher than 75 million euros).
- IAPMEI – For positions linked to investment benefits and in Economic Sectors Entities (whenever the consolidated annual revenue is lower than 75 million euros).
✅ Employer Confirmation
For highly qualified activities performed in export-focused companies, your employer needs to confirm your role to the Tax Authority by March 15.
Employers will do this via the Portal das Finanças.
For other types of activities, the relevant entity must notify the Tax Authority about your application by February 15.
📬 Tax Authority Notification
By March 31 each year, the Tax Authority will notify you about the status of your enrollment. You can access this information and download a certificate confirming your enrollment status through your reserved area on the Portal das Finanças.
Start your application now and unlock these incredible tax benefits! 🙌
Don’t let this amazing opportunity slip by! Let us guide you through the application process with ease. Reach out today and get started!
Ready to Apply?
🚀 Important! You Can Be Your Own Boss!
You don’t need to work for someone else — you can start your own company in Portugal and apply for the NHR 2.0 program as a highly skilled professional. If you work in an eligible sector, you can enjoy the same benefits while running your business independently.
Need help getting started? We’ve got you covered!
Documentation
Required Documents for NHR 2.0 (IFICI) Application
To apply for the NHR 2.0 tax benefits, you’ll need to submit the following documents to the relevant authorities (Tax Authority, Startup Portugal, or other relevant entities):
Guiding Your Journey
Employment Contract or Services Agreement
A copy of the individual employment contract (or services agreement) when the activity involves a job position.
Commercial Certificate
An updated commercial certificate when the activity involves a role as a member of a governing body.
Grant Contract
A copy of the grant contract when the activity involves scientific research.
Proof of Academic Qualifications
Proof of applicable academic qualifications (whenever it’s a mandatory condition).
Declaration of Compliance
A declaration issued by the employing entity attesting compliance with the applicable requirements of the activity (not required for startups, but applicable for example, in qualified positions in service-exporting companies).
Additional Documents
Any additional documents that may be requested by the authorities.
How Step Inside Portugal Can Assist You
Our all-inclusive package is tailored to provide seamless support for qualifying under the NHR 2.0 regime, ensuring you meet the criteria and settle in Portugal without hassle.
A Brief Overview
Eligibility Analysis
We’ll evaluate your profile and activities to confirm your eligibility for the IFICI regime.
- Understand Your Eligibility: Receive clear guidance on whether you qualify before proceeding.
- Tailored Insights: Gain expert advice specific to your situation and activities.
Immigration Assistance
Portugal’s immigration process can be complex, especially for non-EU citizens. We simplify the journey for you.
- Tax and Legal Residency Guidance: Step-by-step support to establish residency (including residence visa for non-EU citizens).
- Document Preparation: Assistance in completing all required forms and submissions.
- Stress-Free Process: We handle the complexities so you can focus on your move.
Application to the Regime
We manage the entire process of applying to the IFICI regime.
- Document Preparation: Comprehensive handling of required materials.
- Authority Liaison: Coordination with relevant authorities for smooth processing.
- Timely Submissions: Ensuring every step is completed accurately and on time.
Package Prices
Full Assistance Package
This all-inclusive service guides you through every step of your relocation and integration into Portugal.
Why the Price Difference for Non-EU Citizens?
Non-EU citizens require a more complex immigration process to establish residency in Portugal. This includes assistance with the residence visa application and additional support in navigating the Portuguese immigration system. This extra process is reflected in the higher package price for Non-EU citizens.
IFICI Application Assistance Package
Designed for individuals who have already established their residency in Portugal or are managing their own immigration process.
Other Assistance You May Need
While these services are not included in the package, we’re here to support you every step of the way!
Set up of a Portuguese Company
Starting a business in Portugal? We’ll guide you through the process of choosing the right legal structure for your company and handle all the necessary registrations to get your business officially set up.
Certification of a Startup
Looking to certify your business as a startup? We’ll assist you in meeting all the requirements and help you access the benefits and incentives available for innovative companies.
Tax Planning for Foreign Income
Maximize your tax savings! Our personalized tax planning services will help you optimize your foreign income, including navigating the progression exemption. Stay compliant while minimizing your tax liability!
READY TO START?
Book 1-hour consultation to analyze eligibility for IFICI
Before committing to the full process, let’s make sure you’re eligible for the new tax benefits in Portugal that replaced the NHR regime.
Consultation Fee: €200 + VAT
If we determine that you are eligible for the IFICI and you decide to proceed with the full application process through us, the consultation fee will be deducted from the final package price!
What We'll Cover
This consultation is perfect if you’re looking for clear insights into how the new scheme applies to your specific situation.
During the consultation, we’ll cover:
The New Scheme
Understand how the tax system works for people under these specific routes.
Eligibility Analysis
We’ll discuss the most relevant route for your profile and how to qualify.
Income Streams
Focused discussion on your specific income streams and how they would be taxed in Portugal, with or without the IFICI. We’ll provide tax estimates.
Written Summary
You’ll receive a written summary with the key points discussed, including the tax estimates.
✨ Exclusive Bonus ✨
If we determine that you are eligible for the IFICI and you decide to proceed with the full application process through us, the €200 consultation fee will be deducted from the final package price!
FAQs
Your Questions Answered
Is it mandatory to have an employment contract, or can I be self-employed?
📄 According to the legislation, this regime applies to both employees (with an employment contract) and self-employed workers (freelancers). It is not mandatory to have an employment contract, as long as the activity performed meets the eligibility conditions for this regime.
What happens if I stop working for the entity? Will I lose the right to the regime?
❌ The right to be taxed under this regime during the 10-year period depends on the Applicant continuing to earn income from one of the eligible activities. If more than six months pass without engaging in a qualifying activity, the Applicant does not permanently lose the right to the regime but will lose the benefit for that year. Once an eligible activity resumes, the Applicant can requalify for the regime.
🗓️ It’s important to notify the relevant entity (Tax Authority, Startup Portugal, AICEP, etc.) by January 15 of the following year, including the termination date of the previous activity and the start date of the new qualifying activity.
Is it necessary to submit a new enrollment request if there is a change in the entity responsible for verifying the requirements or the company involved?
📑 Yes, a new enrollment request must be submitted if, by January 15 of the following year:
- There is a change in the entity with which the enrollment request must be filed.
- There is a change in the “employer.”
What happens if I stop being a tax resident in a given fiscal year? Will I lose the right to the regime?
🏡 The right to benefit from this regime depends on the Applicant being considered a tax resident in Portugal. If you don’t qualify due to non-residency for a year, you can resume the benefit when you meet the criteria again, within the 10-year period.
A person is considered a tax resident in Portugal if:
- They stay for more than 183 days in Portugal during a 12-month period.
- They maintain a dwelling in Portugal suggesting an intention to use it as their habitual residence.
What happens if I miss the January 15 enrollment deadline?
⏳ If you submit your enrollment after the deadline, you can only benefit from the regime starting from the year the enrollment is completed. The regime will apply for the remaining duration of the 10-year period, beginning from when you became a tax resident in Portugal.
Can I reapply for the regime after the 10-year period ends?
🔁 No, according to the law, an individual can only benefit from the regime once in their lifetime, even if they return to Portugal after spending time outside the country.
What is a startup?
🚀 A startup is a legal entity that meets the following criteria:
- Has been operating for less than 10 years.
- Employs fewer than 250 workers.
- Has an annual turnover not exceeding €50 million.
- Is not a transformation or spin-off from a large company, and does not have majority ownership by a large company.
- Has its headquarters or permanent establishment in Portugal or at least 25 employees in Portugal.
- Meets one of the following conditions:
- Innovative Business: Engages in R&D activities or is certified as part of a technology sector recognition process.
- Venture Capital Round: Has completed a venture capital funding round from a legally qualified entity.
- Portuguese Development Bank Investment: Has received investment from Banco Português de Fomento or its subsidiaries.
🚫 Exclusion: Companies engaged in real estate promotion, brokerage, investment, or development activities are not considered startups.
Startup status is recognised by means of a prior communication procedure addressed to Startup Portugal.
📄 Download Your Exclusive Info Guide!
Want to explore all the details about the IFICI / NHR 2.0 Regime?
Get our complete Informational Note with everything you need to know, neatly organized for you to read at your convenience and share with friends who might be interested!
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Relevant Notes 📌
Document Retention 🗂️
Taxpayers must retain documentation that proves the exercise of their activity, the corresponding income, and all other legal requirements justifying their eligibility for the regime. These documents must be presented upon request by the Portuguese Tax Authority (AT).
Exemption with Progression 💸
Foreign-sourced income is subject to a “progression exemption.” This means that if the taxpayer has income subject to progressive tax rates in Portugal, the exempt foreign income will still be considered when determining the applicable progressive tax rate.
Transitional Rules for Individuals Moving to Portugal in 2024 📅
Taxpayers who become residents in Portugal in 2024 may submit their enrollment request for the regime by March 15, 2025. The Portuguese Tax Authority will provide information on the status of these registrations by April 30, 2025.
Need More Information?
We’ve Got You Covered!
Still have questions or need more clarity before booking your 1-hour eligibility consultation? No worries—we’re here to help you every step of the way!✨
Simply fill out the form 📋, and one of our expert advisors will get back to you as soon as possible. Whether you need guidance, explanations, or just some extra details, we’re happy to provide the information you need to make the best decision with confidence!
👉 Reach out now and let’s get started! 🚀
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