Portugal IFICI (NHR 2.0): the 20% regime that replaced NHR

What this covers

IFICI stands for Incentivo Fiscal à Investigação Científica e Inovação. People often call it NHR 2.0, but it is narrower than the old NHR regime. It applies only to category A (employment) and category B (business and professional) income that comes from activities listed in article 58.º-A, such as higher-education teaching and research, highly qualified professions in certain companies, jobs in certified startups and research and development roles. The Tax Authority (AT) says foreign-source income of people in the regime is generally exempt, except pensions (category H), with special rules for income paid from listed low-tax jurisdictions.

Understand what replaced NHR

The State Budget Law for 2024, Lei n.º 82/2023 of 29 December, revoked the non-habitual resident regime from 1 January 2024. AT's NHR leaflet says it was replaced by the tax incentive for scientific research and innovation in article 58.º-A of the Tax Benefits Statute (EBF).

IFICI is not a general regime for anyone who moves to Portugal. It depends on the work you do. Retirees, people living on investment income and remote workers whose job is not on the list do not fall within it just by becoming resident.

Tax residence itself still follows article 16.º of the IRS Code. A person is resident if they stay more than 183 days in any 12-month period that starts or ends in the tax year, or if they have a home in conditions suggesting they intend to keep it as a habitual residence. See the Portugal country record and the tax residence entry.

Check who the regime applies to

Under article 58.º-A(1), the regime covers people who become tax resident in Portugal, were not resident in Portugal in any of the five previous years, and earn income from one of the listed activities. Nationality does not matter. AT's FAQ says Portuguese citizens who meet the conditions can use it too.

Article 58.º-A(10) excludes people who benefit from or have benefited from the NHR regime, and people who opted for taxation under article 12.º-A of the IRS Code. AT's FAQ adds that the regime can be used only once per taxpayer.

Each year in the 10-year period, the person must be resident in Portugal at some point in the year and keep earning income from a qualifying activity. A gap of up to six months between qualifying activities does not break continuity.

Compare the listed activities

Article 58.º-A(1) lists seven groups of activity. The table summarizes them in plain terms and shows where Portaria n.º 352/2024/1 says the registration request goes. The details, such as profession codes and company tests, are in the ordinance and its annexes.

IFICI qualifying activities and registration bodies (EBF article 58.º-A and Portaria n.º 352/2024/1, checked 9 November 2026)
Activity (article 58.º-A(1))	Plain description	Where the request goes
a)	Higher-education teaching and scientific research, including research jobs in the national science system and roles in recognized technology and innovation centers	FCT (Foundation for Science and Technology)
b)	Qualified jobs and company board roles under contractual investment tax benefits	AICEP
c)	Highly qualified professions listed in Annex I of the ordinance, in companies with investment tax benefits or in industrial and service companies with listed activity codes that export at least 50% of turnover	AT (Tax Authority)
d)	Qualified jobs and board roles in entities recognized by AICEP or IAPMEI as relevant to the national economy	AICEP or IAPMEI
e)	Research and development staff whose costs qualify for the business R&D tax incentive	National Innovation Agency (ANI)
f)	Jobs and board roles in companies certified as startups under Lei n.º 21/2023	Startup Portugal
g)	Work by residents of the Azores and Madeira, as set by regional legislative decree	Regional governments

Know what the 20% rate covers and for how long

Article 58.º-A(2) taxes net category A and B income from the qualifying activity at a special IRS rate of 20% for 10 consecutive years, counted from the year of registration as a resident in Portugal. The taxpayer can still opt to aggregate this income with other income and use the general rates.

Other Portuguese-source income, such as rent from a Portuguese property or income from an activity that is not on the list, follows the general IRS rules. AT's FAQ says the 20% rate can also be used for withholding on qualifying income once the person shows the paying entity proof that the registration was filed.

If a person stops being resident and later returns, AT's FAQ says the remaining years of the 10-year period can resume, but the period does not restart. Its example is a person who started in 2024, left in 2029 and returned in 2030, who can use the regime from 2030 to 2033.

Look at how foreign income is treated

Article 81.º(4) of the IRS Code applies the exemption method to foreign-source income in categories A, B, E, F and G of people covered by article 58.º-A. Those categories are employment, business, capital income such as dividends and interest, rental income and capital gains. The exempt income is still counted when setting the rate on the person's other income.

Pensions (category H) are not in that list. AT's FAQ says foreign-source income is generally exempt except category H, so foreign pensions follow the general rules.

Article 81.º(5) sets special rules for income paid by entities in jurisdictions on Portugal's list of clearly more favorable tax regimes. AT's FAQ says that income is taxed at 35%, and gives the example of dividends from a company in the United Arab Emirates. Treaty rules with the source country can also matter, so check them with an adviser.

Register by 15 January of the following year

Article 2.º(1) of Portaria n.º 352/2024/1 says people registered as resident in Portugal must file their IFICI registration request by 15 January of the year after the year they become resident. AT's FAQ gives the example of people who became resident in 2025, who had to apply by 15 January 2026.

Late registration does not close the regime, but it costs years. Article 58.º-A(7) says the 20% rate then applies from the year of registration and only for the rest of the 10-year period. AT's example: residence in 2025 and an application filed on 10 January 2029 gives six years, 2029 to 2034.

The ordinance also sets yearly dates. Changes, such as a new employer, and the end of the qualifying activity must be reported by 15 January of the following year. Other registration bodies send their information to AT by 15 February, and AT makes the registration status available in the taxpayer's area of the Portal das Finanças by 31 March. The ordinance applies to people who become resident from 1 January 2024 and was amended in 2025 by Portaria n.º 52-A/2025/1.

Check the NHR transitional rules

Article 236.º of Lei n.º 82/2023 kept NHR alive for some people. AT's leaflet says people already registered as NHR on 1 January 2024 keep the regime for the rest of their 10-year period. Its example: someone who started in 2021 keeps NHR until 2030.

People who became resident in 2023 could apply for NHR with effect from 2023 by 31 March 2024. People who became resident by 31 December 2024 could apply with effect from 2024 if they met the NHR conditions and held one of the listed items. These include an employment contract or promise signed by 31 December 2023, a lease or property reservation signed by 10 October 2023, a child's school enrollment by 10 October 2023, a residence visa or permit valid until 31 December 2023, or a visa or permit procedure started by 31 December 2023.

AT's leaflet says an application for 2024 filed after 31 March 2025 and granted takes effect only from the year of the application, for the rest of the 10 years counted from 2024. A person who has had NHR cannot later move into IFICI.

Common misconceptions

IFICI is NHR under a new name and applies to anyone who moves to Portugal.IFICI applies only to category A and B income from the activities listed in article 58.º-A(1) of the Tax Benefits Statute, for people not resident in Portugal in the five prior years. Retirees and investors without a qualifying activity are outside it.

Missing the 15 January deadline means losing the regime for good.Article 58.º-A(7) says a late registration takes effect from the year it is made, for the rest of the 10-year period. Years before the registration are lost, not the whole regime.

Foreign pensions are exempt under IFICI, as they were under the later NHR rules.Article 81.º(4) of the IRS Code lists categories A, B, E, F and G for the exemption method. AT's FAQ says category H (pensions) is the exception.

Someone with NHR can switch to IFICI when NHR ends.Article 58.º-A(10) excludes people who benefit from or have benefited from the NHR regime.

Questions to take to a professional

Does my job or board role fall within one of the activities in article 58.º-A(1), and which body handles my registration?
In which year do I become resident under article 16.º of the IRS Code, and what is my registration deadline?
Was I resident in Portugal in any of the five years before I became resident?
How will my foreign dividends, interest, rent, gains and any pension be taxed, given the treaty with the source country?
Does any of my foreign income come from a jurisdiction on Portugal's list of clearly more favorable tax regimes?
What must I report by 15 January if I change employer or stop the qualifying activity?
If I held or applied for NHR, which transitional rule applies to me?

Questions people ask

Is NHR still available in Portugal in 2026?

Not for new applicants in general. Lei n.º 82/2023 revoked NHR from 1 January 2024. People registered by then keep it for the rest of their 10 years, and a transitional rule covered some people who became resident by 31 December 2024 and met listed conditions.

What is the IFICI tax rate?

Article 58.º-A(2) sets a special IRS rate of 20% on net employment and business income from qualifying activities, for 10 consecutive years. Other Portuguese-source income follows the general rates.

What is the deadline to apply for IFICI?

Portaria n.º 352/2024/1 says the request is due by 15 January of the year after you become resident. A late request takes effect from the year it is made, only for the remaining years.

Can remote workers for foreign companies use IFICI?

Only if the work falls within one of the listed activities and the related conditions, such as working for a qualifying company. AT's FAQ says the qualified-job route through AICEP needs an employment contract. Being resident and working remotely is not enough on its own.

Are foreign dividends taxed under IFICI?

Article 81.º(4) of the IRS Code applies the exemption method to foreign category E income of IFICI beneficiaries, with the income counted for setting the rate on other income. AT's FAQ says income paid from listed low-tax jurisdictions is taxed at 35%.

Who can register for IFICI?

People who become tax resident in Portugal, were not resident there in the five previous years, carry out a listed activity and have not had NHR. AT's FAQ says the regime can be used once.

Where this guide stops. A Portuguese certified accountant or tax lawyer reviews whether an activity qualifies and files the registration and returns. The registration request goes to the body named in the ordinance for that activity, such as FCT, AICEP, IAPMEI, AT, the National Innovation Agency or Startup Portugal. FlagSage does not decide whether your job qualifies, file anything, or tell you whether the regime suits your situation.

Sources

Countries covered: Portugal
Sources: 6 sources listed above
Tax year: Current rules as checked
Review: Not professionally reviewed
Sources checked November 9, 2026