
Portugal
IFICI Tax Regime
Overview
Portugal introduced in 2024 the IFICI regime (Incentivo Fiscal à Captação de Talento) as a replacement for the former NHR status. This new scheme provides a 20% flat tax rate on qualifying Portuguese-source income and tax exemptions on certain foreign income, aimed at attracting high-value individuals working in strategic sectors.
The regime is available for 10 years and includes stricter eligibility requirements than its predecessor.

Benefits
- Flat 20% income tax rate on Portuguese-source income from qualifying activities.
- Exemption on foreign employment income if taxed abroad under a double tax treaty.
- Exemption on foreign investment income (e.g., dividends, interest, capital gains) if certain conditions are met.
- Applicable for 10 consecutive years, non-renewable.
- No wealth tax, inheritance tax or gift tax in Portugal.
- Access to Portugal’s extensive double tax treaty network.
- Open to both EU and non-EU nationals relocating to Portugal.
- Available to employees, self-employed, and entrepreneurs in qualifying sectors.
- Compatible with other visa types, including D7, D8 (digital nomad), and HQA.
- Full access to Portuguese residency and healthcare system.
Requirements and Procedures
- Become tax resident in Portugal, staying more than 183 days/year or maintaining a habitual home.
- Not have been tax resident in Portugal in the 5 years prior to application.
- Apply for the IFICI regime within the first year of becoming tax resident.
- Engage in a qualifying activity, such as STEM, AI, green energy, higher education, scientific research, or management in international companies.
- Register with the Portuguese Tax Authority (AT) and request regime activation.
- Qualifying income must come from Portugal or abroad and meet substance criteria.
- Employment income from abroad must be taxed in the source country to be exempt.
- Submit annual tax return declaring the benefit and all relevant income.
- Maintain documentation proving sector of activity and eligibility.
- No automatic transition from NHR — must apply specifically for IFICI.


How Charfort can help you?
- Confirm your eligibility under the IFICI regime and identify strategic options.
- Assist with registration with Portuguese tax authorities and application filing.
- Define and verify whether your activity qualifies under the eligible sectors list.
- Help structure contracts and income sources to optimize tax benefits.
- Coordinate with your home country tax obligations and treaty advantages.
- Provide ongoing tax compliance and annual return assistance.
- Advise on residency options, visas, and relocation planning.
- Represent you before the AT if additional documentation or review is required.
- Offer tax guidance for business owners, freelancers, and remote workers.
- Monitor legal updates to preserve your status during the 10-year period.
Frequently asked questions
Everything you need to know about the process.
Contact us today
Charfort assists international clients in obtaining residence and citizenship under the respective programs. Contact us to arrange an initial private consultation.
