NHR

Key Benefits of the Non-Habitual Resident Status

Savings

The Future

Security

Full tax exemption on overseas income or up to 10%. 

Pay a flat rate of 20% on salary received in Portugal for the exercise of a High Added Value activity.

Enjoy retirement without tax on your overseas pension.

Pass on wealth without inheritance or gift taxes, including to your children and/or spouse.

Protect your wealth and assets in a tax expempted / tax free white listed jurisdiction.

Earn income on your overseas investments tax free or at a preferencial rate.

NHR Introduction

"EUROPE´S BEST KEPT SECRET"

"It is not a surprise that Portugal is becoming a top choice for Ultra and High Net Worth Individuals who wish to take up residence in the European Union.​​​​" (P.W.C Portugal)

"EUROPE´S BEST KEPT SECRET"

"It is not a surprise that Portugal is becoming a top choice for Ultra and High Net Worth Individuals who wish to take up residence in the European Union.​​​​" (P.W.C Portugal)

In 2009 Portugal introduced a beneficial voluntary Personal Income Tax (PIT) regime for non habitual residents aiming to attract talent in high value added activities and Ultra and High Net Worth Individuals (UHNWI’s) and their families to Portugal.

2026 Update:

The Portuguese government announced in 2023 that the well-known Non-Habitual Residency (NHR) tax regime, which had long attracted retirees and foreign residents, would officially end in January 2024. A transition period allowed some applicants to still join the old NHR system, but that window closed in March 2025.

The NHR program has now been replaced by the Tax Incentive for Scientific Research and Innovation (IFICI). This new regime is open to fresh applicants, but it offers more limited and targeted tax benefits, focusing mainly on qualified professionals in research, innovation, and highly skilled sectors.

What is IFICI?

IFICI (Incentivo Fiscal à Investigação Científica e Inovação) is the Portugal’s new Tax Incentive for Scientific Research and Innovation . It offers 10 years of tax incentives to highly qualified professionals who choose to establish their fiscal and permanent residence in Portugal, as outlined in the Personal Income Tax Code (CIRS).

This regime is available to individuals engaging in eligible, highly skilled professional activities within Portugal, as specified by the relevant legislation and an upcoming Ministerial Order, which the Portuguese government is yet to issue.

Benefits of the NHR 2.0 /IFICI

Portuguese-Sourced Income

Eligible professionals under IFICI benefit from a 20% flat tax rate on Portugal-sourced employment and self-employment income. This is significantly lower than the standard progressive rates, which can reach up to 48% for top earners. The flat rate applies to qualifying activities performed for approved Portuguese entities, offering simplicity, stability, and predictable tax planning.

Foreign-Sourced Income

IFICI provides a 0% tax rate (full exemption) on a wide range of foreign-sourced income, including:

• Foreign employment income
• Foreign self-employment income
• Dividends, interest, and royalties
• Capital gains from securities, crypto assets, and other investments
• Intellectual property income
• Foreign rental income

Who qualifies for IFICI?

The IFICI regime is available only to individuals who meet specific professional and residency requirements:

Qualified Background

 Applicants must hold relevant academic credentials or have at least three years of professional experience in an eligible scientific, research, or innovation field.

New Tax Residents

You must become a tax resident in Portugal and must not have been a Portuguese tax resident in any of the previous five years.

Eligible Professional Activities

Only those engaged in approved activities related to scientific research, technological development, and innovation can qualify.

Eligible Activities for Scientific Research and Innovation Program

The IFICI regime covers a defined list of professions and sectors linked to scientific research, innovation, and high-value economic activity. Eligible categories include:

1) Teachers and Scientific Researchers

Professionals engaged in academic teaching or scientific research at recognized institutions.

2) Qualified Jobs and Corporate Body Members in Productive Investment Sectors

Roles linked to projects benefiting from Portugal’s productive investment incentives, including:

• Extractive and manufacturing industries
• Tourism and tourism-related services
• Information technology and digital services
• Agriculture, aquaculture, fish farming, and forestry
• Research, development, and high-tech activities
• ICT, audiovisual, and multimedia production
• Defense, environment, energy, and telecommunications
• Shared service centers
• 
  

3) Highly Qualified Professions (as defined by Government Ordinance)

Professionals carrying out eligible activities must fall under one of the following roles:

• General and executive managers
• Administrative and commercial service managers
• Production and specialized services managers
• Specialists in physical sciences, mathematics, engineering, and related technical fields
• Industrial product or equipment designers
• Physicians/medical doctors
• University and higher education professors
• ICT specialists and technology professionals

4) Qualified Positions in Entities Recognized by AICEP or IAPMEI

Workers or corporate body members in companies whose activities are certified by AICEP, E.P.E. or IAPMEI, I.P..

5) R&D Personnel Eligible Under Portugal’s Corporate R&D Tax Incentives

Professionals directly involved in research and development activities validated under Portugal’s R&D incentive system.

6) Employees and Corporate Body Members of Certified Startups

Workers in companies officially recognized as startups under Portuguese law.

7) Professionals Working in the Autonomous Regions

Individuals employed in eligible activities located in the Azores or Madeira.

How to Apply for IFICI

The application process for IFICI follows a path similar to the former NHR system. Here are the key steps:

Step 1: Secure Residency in Portugal

If you are a non-EU citizen, you must hold a valid residencency permit. If you are an EU citizen, you need to obtain your Residency Certificate (CRUE).

Step 2: Become a Portuguese Tax Resident

You must meet the residency criteria—typically spending 183 days in Portugal per year or having a habitual residence in the country.

Step 3: Obtain Your NIF

A Portuguese tax identification number (NIF) is required before you can register or apply for any tax regime.

Step 4: Update Your Tax Address

Register as a tax resident by updating your official tax address to your Portuguese residence on the Tax Authority portal.

Step 5: Submit Your IFICI Application

Once your residency status is confirmed, you can apply for IFICI through the Portuguese Tax Authority within the required time frame.

Required Documentation

• Proof of non-residency: Documentation confirming you have not been a Portuguese tax resident at any time in the previous five years.
• Professional or academic evidence: Diplomas, certificates, or records showing relevant academic qualifications or at least three years of professional experience in an eligible field.
• Verification of eligible activity: Proof of employment or self-employment in a qualifying sector, such as an employment contract, service agreement, startup registration, or academic appointment.
• 
  

Key Differences Between NHR and IFICI

The shift from Portugal’s original NHR regime to the new IFICI (often referred to as NHR 2.0) brings several important changes:

Eligibility Scope

The former NHR program offered broad tax advantages to many types of professionals. The IFICI regime is far more selective, focusing only on highly qualified individuals working in scientific research, innovation, and technological development.

Employer Requirements

Under IFICI, eligible professionals must work for Portuguese entities with real economic activity in the country. Freelancers and individuals working for foreign employers without Portuguese operations generally do not qualify.

Foreign Income Rules

The original NHR granted wide exemptions on foreign-sourced income, including pensions. IFICI maintains exemptions for many foreign income categories but excludes pension income, making it less attractive for retirees.

Overall, the IFICI regime is designed to attract specialized talent in fields that support Portugal’s long-term innovation strategy. While it still offers strong tax incentives, it comes with stricter criteria and a more targeted focus compared to the original NHR.

In 2009 Portugal introduced a beneficial voluntary Personal Income Tax (PIT) regime for non habitual residents aiming to attract talent in high value added activities and Ultra and High Net Worth Individuals (UHNWI’s) and their families to Portugal.

2026 Update:

The Portuguese government announced in 2023 that the well-known Non-Habitual Residency (NHR) tax regime, which had long attracted retirees and foreign residents, would officially end in January 2024. A transition period allowed some applicants to still join the old NHR system, but that window closed in March 2025.

The NHR program has now been replaced by the Tax Incentive for Scientific Research and Innovation (IFICI). This new regime is open to fresh applicants, but it offers more limited and targeted tax benefits, focusing mainly on qualified professionals in research, innovation, and highly skilled sectors.

What is IFICI?

IFICI (Incentivo Fiscal à Investigação Científica e Inovação) is the Portugal’s new Tax Incentive for Scientific Research and Innovation . It offers 10 years of tax incentives to highly qualified professionals who choose to establish their fiscal and permanent residence in Portugal, as outlined in the Personal Income Tax Code (CIRS).

This regime is available to individuals engaging in eligible, highly skilled professional activities within Portugal, as specified by the relevant legislation and an upcoming Ministerial Order, which the Portuguese government is yet to issue.

Benefits of the NHR 2.0 /IFICI

Portuguese-Sourced Income

Eligible professionals under IFICI benefit from a 20% flat tax rate on Portugal-sourced employment and self-employment income. This is significantly lower than the standard progressive rates, which can reach up to 48% for top earners. The flat rate applies to qualifying activities performed for approved Portuguese entities, offering simplicity, stability, and predictable tax planning.

Foreign-Sourced Income

IFICI provides a 0% tax rate (full exemption) on a wide range of foreign-sourced income, including:

• Foreign employment income
• Foreign self-employment income
• Dividends, interest, and royalties
• Capital gains from securities, crypto assets, and other investments
• Intellectual property income
• Foreign rental income

Who qualifies for IFICI?

The IFICI regime is available only to individuals who meet specific professional and residency requirements:

Qualified Background

 Applicants must hold relevant academic credentials or have at least three years of professional experience in an eligible scientific, research, or innovation field.

New Tax Residents

You must become a tax resident in Portugal and must not have been a Portuguese tax resident in any of the previous five years.

Eligible Professional Activities

Only those engaged in approved activities related to scientific research, technological development, and innovation can qualify.

Eligible Activities for Scientific Research and Innovation Program

The IFICI regime covers a defined list of professions and sectors linked to scientific research, innovation, and high-value economic activity. Eligible categories include:

1) Teachers and Scientific Researchers

Professionals engaged in academic teaching or scientific research at recognized institutions.

2) Qualified Jobs and Corporate Body Members in Productive Investment Sectors

Roles linked to projects benefiting from Portugal’s productive investment incentives, including:

• Extractive and manufacturing industries
• Tourism and tourism-related services
• Information technology and digital services
• Agriculture, aquaculture, fish farming, and forestry
• Research, development, and high-tech activities
• ICT, audiovisual, and multimedia production
• Defense, environment, energy, and telecommunications
• Shared service centers
•  

3) Highly Qualified Professions (as defined by Government Ordinance)

Professionals carrying out eligible activities must fall under one of the following roles:

• General and executive managers
• Administrative and commercial service managers
• Production and specialized services managers
• Specialists in physical sciences, mathematics, engineering, and related technical fields
• Industrial product or equipment designers
• Physicians/medical doctors
• University and higher education professors
• ICT specialists and technology professionals

4) Qualified Positions in Entities Recognized by AICEP or IAPMEI

Workers or corporate body members in companies whose activities are certified by AICEP, E.P.E. or IAPMEI, I.P..

5) R&D Personnel Eligible Under Portugal’s Corporate R&D Tax Incentives

Professionals directly involved in research and development activities validated under Portugal’s R&D incentive system.

6) Employees and Corporate Body Members of Certified Startups

Workers in companies officially recognized as startups under Portuguese law.

7) Professionals Working in the Autonomous Regions

Individuals employed in eligible activities located in the Azores or Madeira.

How to Apply for IFICI

The application process for IFICI follows a path similar to the former NHR system. Here are the key steps:

Step 1: Secure Residency in Portugal

If you are a non-EU citizen, you must hold a valid residencency permit. If you are an EU citizen, you need to obtain your Residency Certificate (CRUE).

Step 2: Become a Portuguese Tax Resident

You must meet the residency criteria—typically spending 183 days in Portugal per year or having a habitual residence in the country.

Step 3: Obtain Your NIF

A Portuguese tax identification number (NIF) is required before you can register or apply for any tax regime.

Step 4: Update Your Tax Address

Register as a tax resident by updating your official tax address to your Portuguese residence on the Tax Authority portal.

Step 5: Submit Your IFICI Application

Once your residency status is confirmed, you can apply for IFICI through the Portuguese Tax Authority within the required time frame.

Required Documentation

• Proof of non-residency: Documentation confirming you have not been a Portuguese tax resident at any time in the previous five years.
• Professional or academic evidence: Diplomas, certificates, or records showing relevant academic qualifications or at least three years of professional experience in an eligible field.
• Verification of eligible activity: Proof of employment or self-employment in a qualifying sector, such as an employment contract, service agreement, startup registration, or academic appointment.
•  

Key Differences Between NHR and IFICI

The shift from Portugal’s original NHR regime to the new IFICI (often referred to as NHR 2.0) brings several important changes:

Eligibility Scope

The former NHR program offered broad tax advantages to many types of professionals. The IFICI regime is far more selective, focusing only on highly qualified individuals working in scientific research, innovation, and technological development.

Employer Requirements

Under IFICI, eligible professionals must work for Portuguese entities with real economic activity in the country. Freelancers and individuals working for foreign employers without Portuguese operations generally do not qualify.

Foreign Income Rules

The original NHR granted wide exemptions on foreign-sourced income, including pensions. IFICI maintains exemptions for many foreign income categories but excludes pension income, making it less attractive for retirees.

Overall, the IFICI regime is designed to attract specialized talent in fields that support Portugal’s long-term innovation strategy. While it still offers strong tax incentives, it comes with stricter criteria and a more targeted focus compared to the original NHR.

In 2009 Portugal introduced a beneficial voluntary Personal Income Tax (PIT) regime for non habitual residents aiming to attract talent in high value added activities and Ultra and High Net Worth Individuals (UHNWI’s) and their families to Portugal.

2026 Update:

The Portuguese government announced in 2023 that the well-known Non-Habitual Residency (NHR) tax regime, which had long attracted retirees and foreign residents, would officially end in January 2024. A transition period allowed some applicants to still join the old NHR system, but that window closed in March 2025.

The NHR program has now been replaced by the Tax Incentive for Scientific Research and Innovation (IFICI). This new regime is open to fresh applicants, but it offers more limited and targeted tax benefits, focusing mainly on qualified professionals in research, innovation, and highly skilled sectors.

What is IFICI?

IFICI (Incentivo Fiscal à Investigação Científica e Inovação) is the Portugal’s new Tax Incentive for Scientific Research and Innovation . It offers 10 years of tax incentives to highly qualified professionals who choose to establish their fiscal and permanent residence in Portugal, as outlined in the Personal Income Tax Code (CIRS).

This regime is available to individuals engaging in eligible, highly skilled professional activities within Portugal, as specified by the relevant legislation and an upcoming Ministerial Order, which the Portuguese government is yet to issue.

Benefits of the NHR 2.0 /IFICI

Portuguese-Sourced Income

Eligible professionals under IFICI benefit from a 20% flat tax rate on Portugal-sourced employment and self-employment income. This is significantly lower than the standard progressive rates, which can reach up to 48% for top earners. The flat rate applies to qualifying activities performed for approved Portuguese entities, offering simplicity, stability, and predictable tax planning.

Foreign-Sourced Income

IFICI provides a 0% tax rate (full exemption) on a wide range of foreign-sourced income, including:

• Foreign employment income
• Foreign self-employment income
• Dividends, interest, and royalties
• Capital gains from securities, crypto assets, and other investments
• Intellectual property income
• Foreign rental income

Who qualifies for IFICI?

The IFICI regime is available only to individuals who meet specific professional and residency requirements:

Qualified Background

 Applicants must hold relevant academic credentials or have at least three years of professional experience in an eligible scientific, research, or innovation field.

New Tax Residents

You must become a tax resident in Portugal and must not have been a Portuguese tax resident in any of the previous five years.

Eligible Professional Activities

Only those engaged in approved activities related to scientific research, technological development, and innovation can qualify.

Eligible Activities for Scientific Research and Innovation Program

The IFICI regime covers a defined list of professions and sectors linked to scientific research, innovation, and high-value economic activity. Eligible categories include:

1) Teachers and Scientific Researchers

Professionals engaged in academic teaching or scientific research at recognized institutions.

2) Qualified Jobs and Corporate Body Members in Productive Investment Sectors

Roles linked to projects benefiting from Portugal’s productive investment incentives, including:

• Extractive and manufacturing industries
• Tourism and tourism-related services
• Information technology and digital services
• Agriculture, aquaculture, fish farming, and forestry
• Research, development, and high-tech activities
• ICT, audiovisual, and multimedia production
• Defense, environment, energy, and telecommunications
• Shared service centers
• 
  

3) Highly Qualified Professions (as defined by Government Ordinance)

Professionals carrying out eligible activities must fall under one of the following roles:

• General and executive managers
• Administrative and commercial service managers
• Production and specialized services managers
• Specialists in physical sciences, mathematics, engineering, and related technical fields
• Industrial product or equipment designers
• Physicians/medical doctors
• University and higher education professors
• ICT specialists and technology professionals

4) Qualified Positions in Entities Recognized by AICEP or IAPMEI

Workers or corporate body members in companies whose activities are certified by AICEP, E.P.E. or IAPMEI, I.P..

5) R&D Personnel Eligible Under Portugal’s Corporate R&D Tax Incentives

Professionals directly involved in research and development activities validated under Portugal’s R&D incentive system.

6) Employees and Corporate Body Members of Certified Startups

Workers in companies officially recognized as startups under Portuguese law.

7) Professionals Working in the Autonomous Regions

Individuals employed in eligible activities located in the Azores or Madeira.

How to Apply for IFICI

The application process for IFICI follows a path similar to the former NHR system. Here are the key steps:

Step 1: Secure Residency in Portugal

If you are a non-EU citizen, you must hold a valid residencency permit. If you are an EU citizen, you need to obtain your Residency Certificate (CRUE).

Step 2: Become a Portuguese Tax Resident

You must meet the residency criteria—typically spending 183 days in Portugal per year or having a habitual residence in the country.

Step 3: Obtain Your NIF

A Portuguese tax identification number (NIF) is required before you can register or apply for any tax regime.

Step 4: Update Your Tax Address

Register as a tax resident by updating your official tax address to your Portuguese residence on the Tax Authority portal.

Step 5: Submit Your IFICI Application

Once your residency status is confirmed, you can apply for IFICI through the Portuguese Tax Authority within the required time frame.

Required Documentation

• Proof of non-residency: Documentation confirming you have not been a Portuguese tax resident at any time in the previous five years.
• Professional or academic evidence: Diplomas, certificates, or records showing relevant academic qualifications or at least three years of professional experience in an eligible field.
• Verification of eligible activity: Proof of employment or self-employment in a qualifying sector, such as an employment contract, service agreement, startup registration, or academic appointment.
• 
  

Key Differences Between NHR and IFICI

The shift from Portugal’s original NHR regime to the new IFICI (often referred to as NHR 2.0) brings several important changes:

Eligibility Scope

The former NHR program offered broad tax advantages to many types of professionals. The IFICI regime is far more selective, focusing only on highly qualified individuals working in scientific research, innovation, and technological development.

Employer Requirements

Under IFICI, eligible professionals must work for Portuguese entities with real economic activity in the country. Freelancers and individuals working for foreign employers without Portuguese operations generally do not qualify.

Foreign Income Rules

The original NHR granted wide exemptions on foreign-sourced income, including pensions. IFICI maintains exemptions for many foreign income categories but excludes pension income, making it less attractive for retirees.

Overall, the IFICI regime is designed to attract specialized talent in fields that support Portugal’s long-term innovation strategy. While it still offers strong tax incentives, it comes with stricter criteria and a more targeted focus compared to the original NHR.

In 2009 Portugal introduced a beneficial voluntary Personal Income Tax (PIT) regime for non habitual residents aiming to attract talent in high value added activities and Ultra and High Net Worth Individuals (UHNWI’s) and their families to Portugal.

2026 Update:

The Portuguese government announced in 2023 that the well-known Non-Habitual Residency (NHR) tax regime, which had long attracted retirees and foreign residents, would officially end in January 2024. A transition period allowed some applicants to still join the old NHR system, but that window closed in March 2025.

The NHR program has now been replaced by the Tax Incentive for Scientific Research and Innovation (IFICI). This new regime is open to fresh applicants, but it offers more limited and targeted tax benefits, focusing mainly on qualified professionals in research, innovation, and highly skilled sectors.

What is IFICI?

IFICI (Incentivo Fiscal à Investigação Científica e Inovação) is the Portugal’s new Tax Incentive for Scientific Research and Innovation . It offers 10 years of tax incentives to highly qualified professionals who choose to establish their fiscal and permanent residence in Portugal, as outlined in the Personal Income Tax Code (CIRS).

This regime is available to individuals engaging in eligible, highly skilled professional activities within Portugal, as specified by the relevant legislation and an upcoming Ministerial Order, which the Portuguese government is yet to issue.

Benefits of the NHR 2.0 /IFICI

Portuguese-Sourced Income

Eligible professionals under IFICI benefit from a 20% flat tax rate on Portugal-sourced employment and self-employment income. This is significantly lower than the standard progressive rates, which can reach up to 48% for top earners. The flat rate applies to qualifying activities performed for approved Portuguese entities, offering simplicity, stability, and predictable tax planning.

Foreign-Sourced Income

IFICI provides a 0% tax rate (full exemption) on a wide range of foreign-sourced income, including:

• Foreign employment income
• Foreign self-employment income
• Dividends, interest, and royalties
• Capital gains from securities, crypto assets, and other investments
• Intellectual property income
• Foreign rental income

Who qualifies for IFICI?

The IFICI regime is available only to individuals who meet specific professional and residency requirements:

Qualified Background

 Applicants must hold relevant academic credentials or have at least three years of professional experience in an eligible scientific, research, or innovation field.

New Tax Residents

You must become a tax resident in Portugal and must not have been a Portuguese tax resident in any of the previous five years.

Eligible Professional Activities

Only those engaged in approved activities related to scientific research, technological development, and innovation can qualify.

Eligible Activities for Scientific Research and Innovation Program

The IFICI regime covers a defined list of professions and sectors linked to scientific research, innovation, and high-value economic activity. Eligible categories include:

1) Teachers and Scientific Researchers

Professionals engaged in academic teaching or scientific research at recognized institutions.

2) Qualified Jobs and Corporate Body Members in Productive Investment Sectors

Roles linked to projects benefiting from Portugal’s productive investment incentives, including:

• Extractive and manufacturing industries
• Tourism and tourism-related services
• Information technology and digital services
• Agriculture, aquaculture, fish farming, and forestry
• Research, development, and high-tech activities
• ICT, audiovisual, and multimedia production
• Defense, environment, energy, and telecommunications
• Shared service centers
•  

3) Highly Qualified Professions (as defined by Government Ordinance)

Professionals carrying out eligible activities must fall under one of the following roles:

• General and executive managers
• Administrative and commercial service managers
• Production and specialized services managers
• Specialists in physical sciences, mathematics, engineering, and related technical fields
• Industrial product or equipment designers
• Physicians/medical doctors
• University and higher education professors
• ICT specialists and technology professionals

4) Qualified Positions in Entities Recognized by AICEP or IAPMEI

Workers or corporate body members in companies whose activities are certified by AICEP, E.P.E. or IAPMEI, I.P..

5) R&D Personnel Eligible Under Portugal’s Corporate R&D Tax Incentives

Professionals directly involved in research and development activities validated under Portugal’s R&D incentive system.

6) Employees and Corporate Body Members of Certified Startups

Workers in companies officially recognized as startups under Portuguese law.

7) Professionals Working in the Autonomous Regions

Individuals employed in eligible activities located in the Azores or Madeira.

How to Apply for IFICI

The application process for IFICI follows a path similar to the former NHR system. Here are the key steps:

Step 1: Secure Residency in Portugal

If you are a non-EU citizen, you must hold a valid residencency permit. If you are an EU citizen, you need to obtain your Residency Certificate (CRUE).

Step 2: Become a Portuguese Tax Resident

You must meet the residency criteria—typically spending 183 days in Portugal per year or having a habitual residence in the country.

Step 3: Obtain Your NIF

A Portuguese tax identification number (NIF) is required before you can register or apply for any tax regime.

Step 4: Update Your Tax Address

Register as a tax resident by updating your official tax address to your Portuguese residence on the Tax Authority portal.

Step 5: Submit Your IFICI Application

Once your residency status is confirmed, you can apply for IFICI through the Portuguese Tax Authority within the required time frame.

Required Documentation

• Proof of non-residency: Documentation confirming you have not been a Portuguese tax resident at any time in the previous five years.
• Professional or academic evidence: Diplomas, certificates, or records showing relevant academic qualifications or at least three years of professional experience in an eligible field.
• Verification of eligible activity: Proof of employment or self-employment in a qualifying sector, such as an employment contract, service agreement, startup registration, or academic appointment.
•  

Key Differences Between NHR and IFICI

The shift from Portugal’s original NHR regime to the new IFICI (often referred to as NHR 2.0) brings several important changes:

Eligibility Scope

The former NHR program offered broad tax advantages to many types of professionals. The IFICI regime is far more selective, focusing only on highly qualified individuals working in scientific research, innovation, and technological development.

Employer Requirements

Under IFICI, eligible professionals must work for Portuguese entities with real economic activity in the country. Freelancers and individuals working for foreign employers without Portuguese operations generally do not qualify.

Foreign Income Rules

The original NHR granted wide exemptions on foreign-sourced income, including pensions. IFICI maintains exemptions for many foreign income categories but excludes pension income, making it less attractive for retirees.

Overall, the IFICI regime is designed to attract specialized talent in fields that support Portugal’s long-term innovation strategy. While it still offers strong tax incentives, it comes with stricter criteria and a more targeted focus compared to the original NHR.