Portugal closed the non-habitual resident (NHR) regime to new applicants from 1 January 2024. It was replaced by the tax incentive for scientific research and innovation (IFICI), often called "NHR 2.0". IFICI applies a 20% rate to eligible Portuguese employment and self-employment income for 10 years, but only for specific qualifying activities.
It depends on
IFICI covers teaching and research, qualified roles in certified or recognised companies, R&D staff and startup employees, not retirement or passive income as such.
You must not have been tax resident in Portugal in the previous five years or have used NHR, Programa Regressar or IFICI before.
Registration is due by 15 January of the year after you become resident; late requests shorten the benefit period.
Who needs it
This matters to professionals from Germany considering Portugal for work in research, higher education, technology or another highly qualified role with an eligible employer. Retirees and people living on investment income generally gain little from IFICI, because it rewards specific professional activities and foreign pensions are not among the exempt categories. People already registered under NHR keep it for the rest of their 10-year period, and a closed group could still join under transitional rules for 2024. Anyone weighing a move should check the activity criteria and the German side, including the double taxation agreement and exit questions, with a qualified tax adviser.
How it works
- 1
Confirm prior non-residence
You must not have been Portuguese tax resident in any of the previous five years, nor have benefited from NHR, Programa Regressar or IFICI.
- 2
Check that your activity qualifies
Eligible activities are set out in art. 58.º-A of the Tax Benefits Statute (EBF) and Portaria n.º 352/2024/1; most require certification by FCT, AICEP, IAPMEI, ANI or Startup Portugal.
- 3
Become tax resident
Residence usually follows from more than 183 days in Portugal in a 12-month period, or from keeping a home there as your habitual residence.
- 4
Register on the Portal das Finanças
Submit the IFICI request; once it is filed, employers can withhold tax at 20%.
by 15 January of the following year - 5
File annual returns
Eligible Portuguese income is taxed at 20%, while most foreign employment, business, capital, rental and capital-gains income is exempt; income from listed low-tax jurisdictions is taxed at 35%.
What it costs
Key facts
| Fact | Value | Source | Checked |
|---|---|---|---|
| NHR (Residente Não Habitual): availability for new residents | Revoked from 1 January 2024 | 1 | checked 15 October 2026 |
| NHR transitional rule for 2024 | Tax residence by 31 December 2024 plus a qualifying tie (e.g. work contract by 31 December 2023; lease, property promise or school enrolment by 10 October 2023) | 1 | checked 15 October 2026 |
| IFICI ('NHR 2.0'): rate on eligible Portuguese employment and self-employment income | 20% | 2 | checked 15 October 2026 |
| IFICI: duration | 10 consecutive years | 2 | checked 15 October 2026 |
| IFICI: prior non-residence condition | Not tax resident in Portugal in any of the previous 5 years | 2 | checked 15 October 2026 |
| IFICI: registration deadline | By 15 January of the year after becoming tax resident | 2 | checked 15 October 2026 |
| IFICI: foreign-source income | Generally exempt for categories A, B, E, F and G; 35% if paid by entities in listed low-tax jurisdictions | 2 | checked 15 October 2026 |
| Tax residency test | More than 183 days in any 12-month period starting or ending in the tax year, or a home held as habitual residence | 3 | checked 15 October 2026 |
Common mistakes
- Assuming IFICI treats pensions like NHR did; foreign pensions are not among the exempt categories.
- Missing the 15 January registration deadline, which shortens the 10-year period.
- Moving before confirming that the employer or role is certified for an eligible activity.
- Overlooking the five-year prior non-residence condition after earlier stays in Portugal.
FAQ
Is NHR completely gone?
For new residents, yes. NHR was revoked from 1 January 2024, with transitional rules in the 2024 State Budget law (Lei n.º 82/2023). People already registered keep it until their 10-year period ends. The transitional rule covered people who became resident by 31 December 2024 and had qualifying ties, such as a work contract by 31 December 2023 or a lease by 10 October 2023.
Can retirees use IFICI?
Generally not to much effect. IFICI is linked to qualifying professional activities such as research, teaching, highly qualified jobs in eligible companies and work for certified startups, and foreign pensions are not among the foreign income categories it exempts. Retirees moving from Germany should review the double taxation agreement and the general Portuguese rules with a tax adviser.
Do remote workers for a German employer qualify?
Usually not, unless the role fits one of the listed activities. Most IFICI categories depend on the Portuguese employer or entity being certified or recognised, for example by AICEP, IAPMEI, ANI or Startup Portugal, or on teaching and research. Check eligibility with the certifying body or a tax adviser before relying on the 20% rate in your planning.
How is foreign income treated under IFICI?
Most foreign-source employment, self-employment, capital, rental and capital-gains income is exempt in Portugal for the 10-year period, while income paid by entities in jurisdictions on Portugal's list of clearly more favourable tax regimes is taxed at 35%. An exemption in Portugal does not mean the income is untaxed elsewhere; the source country may still tax it under the relevant treaty.
Sources
- Autoridade Tributária e Aduaneira, Residente Não Habitual – RNH: inscrição nas Finanças (May 2024) (opens in a new tab)Authority · checked 15 October 2026
- Autoridade Tributária e Aduaneira, Incentivo fiscal à investigação científica e inovação (IFICI) – folheto informativo (March 2025) (opens in a new tab)Authority · checked 15 October 2026
- Autoridade Tributária e Aduaneira – Portal das Finanças, Alteração de não residente para residente (cidadãos estrangeiros) (opens in a new tab)Authority · checked 15 October 2026
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