Regime Rate
20%
Under the IFICI
Standard Top Rate
48%
without this regime
Duration
10 yrs
Maximum 10 years from application
Target Profile
Flat Rate
Portugal
Tax Savings Illustration
Example: €150,000 Annual Gross Income
Under IFICI
€30 000
Standard Rate
€50 400
Annual Saving
+€20 400
Eligibility Requirements
Who qualifies?
- Researchers, highly qualified professionals, startups, crypto/VC activity
How the Regime Works
Full details
Replaced NHR in Jan 2024. 20% flat rate on Portuguese-source income; foreign income exempt if taxed at source. Registration within 3 months of arriving in Portugal.
Regime vs Standard Rates in Portugal
| Tax Type | Standard Rate | Under This Regime | Saving |
|---|---|---|---|
| Income Tax (top rate) | 48% | 20% | -28.0pp |
Frequently Asked Questions
What is the IFICI in Portugal?
The Incentivo Fiscal à Investigação Científica e Inovação is a special tax regime in Portugal that provides 20% flat rate to qualifying individuals or entities. Replaced NHR in Jan 2024. 20% flat rate on Portuguese-source income; foreign income exempt if taxed at source. Registration within 3 months of arriving in Portugal. Legal basis: Lei n.º 82/2023 de 29 Dec 2023.
Who is eligible for the IFICI?
Eligibility for the IFICI is limited to: Researchers, highly qualified professionals, startups, crypto/VC activity. Applicants typically must not have been Portugal tax residents during a specified prior period. Always verify current conditions at the source: Lei n.º 82/2023 de 29 Dec 2023.
How much tax do you pay under the IFICI?
Under the IFICI, you pay 20% flat rate on qualifying income — significantly lower than Portugal's standard top rate of 48%. On €150,000 gross, you save thousands of euros per year.
How long does the IFICI last?
The IFICI lasts for 10 years from the year you first qualify. After this period, standard Portugal tax rates apply unless you qualify for another regime or change tax residency.
How do I apply for the IFICI?
Registration within 3 months of arriving in Portugal. For complete application procedures, refer to: Lei n.º 82/2023 de 29 Dec 2023.
Other Special Regimes to Compare
Disclaimer: This information is for general guidance only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making residency or tax planning decisions.