IFICI (NHR 2.0)
The tax incentive for scientific research and innovation that replaced the NHR: eligibility, qualifying activities and registration.
Provided by VPA — Venture Partners Advogados, a law firm registered with the Portuguese Bar Association, with offices in Lisbon and Rio de Janeiro.
Overview
IFICI (the Tax Incentive for Scientific Research and Innovation), also known as 'NHR 2.0', replaced the Non-Habitual Resident (NHR) regime, now closed to new applicants. It targets people who become tax resident in Portugal, having not been so in the required prior years, and who carry out qualifying activities (notably research, innovation and highly qualified roles), applying a preferential rate to qualifying income for a limited period. VPA assesses eligibility, prepares the registration and coordinates with your accountant.
Common processes
- Eligibility assessment
- Qualifying activities
- IFICI registration
- Coordination with your accountant
- Interaction with tax residency
- Planning for new residents
Frequently asked questions
Is IFICI the same as the NHR?
No. IFICI is the successor to the NHR but is narrower, focused on scientific research, innovation and highly qualified activities. The NHR is closed to new applicants.
Who qualifies for IFICI?
In general, people who become tax resident in Portugal, having not been resident in the required prior years, and who carry out qualifying activities. We assess your case.
What income and rate does it cover?
It applies a preferential flat rate to qualifying employment and self-employment income, for a limited number of years.
I already have the NHR. Can I switch to IFICI?
Existing NHR beneficiaries generally keep their regime for the remaining period; the two are not usually combined. We confirm the best route for you.
Does the IFICI regime replace the NHR in Portugal?
Yes. The NHR (RNH) closed to new residents and was replaced by the IFICI for new tax residents. Existing NHR beneficiaries keep their regime until it ends; new arrivals are assessed under the IFICI. We confirm which applies to you.
Related areas
Specialists
Contact
For advice on this service, contact VPA — Venture Partners Advogados, Lisbon.