Regime Rate
10%
flat rate on eligible foreign income
Standard Top Rate
48%
without this regime
Duration
10 years
non-renewable
Target Profile
Skilled expats
Portugal
Tax Savings Illustration
Example: €150,000 Annual Gross Income
Under IFICI (ex-NHR)
€15,000
Standard Rate
€72,000
Annual Saving
€57,000
Eligibility Requirements
Who qualifies?
- Not been a Portuguese tax resident in the prior 5 years
- Establish tax residency in Portugal (183+ days or main home)
- Perform a qualifying activity (technology, research, arts, sport, teaching, C-suite)
- Apply in the year of becoming resident or the following year
- Non-EU/EEA nationals typically need a D7 or D8 visa first
How the Regime Works
Full details
Under IFICI, eligible income (including dividends, interest, capital gains, rental income from abroad, and qualifying Portuguese employment/self-employment income) is taxed at a flat 10% rate instead of the standard progressive rates up to 48%. The regime applies for 10 consecutive years from the year of registration. Applications are submitted via Portal das Finanças. The regime replaced the original NHR in 2024 following EU state aid review.
Regime vs Standard Rates in Portugal
| Tax Type | Standard Rate | Under This Regime | Saving |
|---|---|---|---|
| Income Tax (top rate) | 48% | 10% flat | €57k/yr saving on €150k |
| Capital Gains (foreign) | 28% | 10% flat | €27k/yr on €150k gains |
| Dividends (foreign) | 28% | 10% flat | Significant reduction |
| Corporate Tax | 21% | 21% | Unaffected |
| VAT | 23% | 23% | Unaffected |
Frequently Asked Questions
Who qualifies for the IFICI (ex-NHR)?
The IFICI (ex-NHR) is available to highly qualified professionals, researchers, expats, entrepreneurs. Key requirement: not been a portuguese tax resident in the prior 5 years. The regime lasts 10 years.
How much tax do I save with the IFICI (ex-NHR)?
On a gross income of €150,000, standard Portugal income tax is approximately €72,000 (48% top rate). Under the IFICI (ex-NHR), it is approximately €15,000 — a saving of €57,000/year. Actual saving depends on income composition and individual circumstances.
How do I apply for the IFICI (ex-NHR)?
Applications for the IFICI (ex-NHR) are submitted to the Portugal tax authority, typically within the first year of establishing residency. You will need proof of prior non-residency, evidence of qualifying activity or income, and valid residency documentation. A qualified local tax advisor is strongly recommended for the application process.
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.