IFICI - Portugal's New Tax Benefit Program for International Professionals (NHR 2.0)

Considering making Portugal your new home?

Let's explore one of the most attractive reasons to make this move - Portugal's new tax benefit program for expatriates, IFICI (also known as NHR 2.0).

Understanding IFICI: Your Gateway to Tax Benefits in Portugal

Following the conclusion of the previous NHR regime, Portugal has introduced IFICI, demonstrating its continued commitment to welcoming international professionals and entrepreneurs.

This new program offers significant tax advantages that could substantially impact your financial planning.

IFICI - Portugal's New Tax Benefit Program for International Professionals (NHR 2.0)

Key Benefits (Valid for 10 Years):

• A flat 20% tax rate on Portuguese-sourced income from employment or freelance work in scientific research and technological innovation sectors (compared to standard progressive rates of 0-48%)

• Tax exemption on most foreign-sourced income, including:

A - Employment income

B - Capital gains (stocks, crypto assets, real estate)

C - Interest and dividends

D - Property income *Note: Pensions and income from tax havens are excluded from these benefits.

Eligibility Requirements:

• Becoming a Portuguese resident from January 1, 2024

• Not having been a tax resident in Portugal in the previous five years

• Not currently benefiting from or having previously benefited from the NHR status

• Not having opted for the ex-residents tax regime

Seven Pathways to Qualification:

1. Higher Education & Research: Teaching positions or management roles in technology and innovation centers

2. Qualified Investment Projects: Management positions within contractual benefits for productive investment

3. Highly Qualified Professionals: Positions in companies with:

   • Significant investment support tax regime applications, or

   • Export-focused businesses (minimum 50% revenue from exports)

4. Strategic Economic Activities: Roles in organizations recognized for their economic significance

5. R&D Positions: Roles eligible under SIFIDE II tax incentives

6. Startup Ecosystem: Positions in certified startups

7. Regional Development: Specific roles in Azores and Madeira (subject to regional legislation)

While some application procedures are still being finalized, they're expected to be fully operational in the coming weeks. This applies both to company eligibility verification and individual applications.

Taking the Next Step

Navigating tax regulations in a new country can be complex, but you don't have to do it alone. The ChâteauBIZ team can help you with -

• Verify your eligibility for IFICI

• Guide you through the application process

• Manage your personal and/or company tax matters

• Handle your accounting needs

Want to explore whether IFICI is the right choice for your move to Portugal?

Feel free to connect and discuss how we can help you make an informed decision about your fiscal future in Portugal.