What is the new tax incentive for foreign residents in Portugal?
The new tax incentive for foreign residents in Portugal is aimed at attracting qualified workers, particularly in the fields of scientific research and innovation. This incentive, part of the IFICI+ tax regime, offers a reduced IRS rate of 20% on income from both dependent and independent work. Eligible individuals who obtained residence in Portugal in 2024 can register for this tax regime until March 15, 2025. The government has designed this initiative to stimulate human capital and encourage skilled professionals to settle in Portugal. With a focus on long-term economic benefits, this scheme replaces the non-habitual resident status, enhancing the appeal for those looking to establish themselves in the country. The Minister of Economy has indicated that the IFICI+ regime will officially start from January 1, 2025, which allows for retroactive benefits for qualifying residents from the previous year. It's important to note that individuals who have already resided in Portugal within the past five years are not eligible. This allows newcomers to effectively reduce their tax burden, making investment in Portugal more attractive. Besides lower taxes, residents can also benefit from Portugal's high quality of life, stunning landscapes, and rich culture. Those considering a move can find a welcoming community and excellent healthcare facilities. Furthermore, the possibility of networking in vibrant industries such as tech and research increases as Portugal continues to foster innovation. This initiative promises a solid ROI for individuals contemplating relocation to Portugal. Don’t miss out on this opportunity to explore the benefits of living and working in Portugal with tax incentives that support your financial planning. To learn more about how this can impact your investment, contact us today!
People who obtained residence in Portugal in 2024 will be able to register for the tax regime that replaced that of non-habitual residents, IFICI+, and will be able to do so until March 15, 2025, according to the Government.
The Minister of Economy, Pedro Reis, was speaking at the parliamentary committee on Economy, Public Works and Housing, as part of a regulatory hearing, and said that the ordinance regulating the tax incentive for scientific research, innovation and human capital (IFICI+) is about to be published.
The objective, stated the minister in response to questions posed by CDS-PP deputy Paulo Núncio, is for this new instrument to be operational from January 1, 2025, with the ordinance providing for a retroactive effect in order to cover those who became resident in Portugal in 2024.
In this first year of IFICI+ operation, interested parties will be able to register until March 15th, but in the future the deadline for registration will be January 15th (for those who became residents in the immediately previous year).
At issue is a new tax regime for attracting qualified workers, particularly in the areas of scientific research, to whom an IRS rate of 20% will be applied to income from dependent and independent work (categories A and B).
People who benefit or have benefited from the status of non-habitual resident or Return (aimed at former residents) are left out of IFICI+.
IFICI+ is also not accessible to people who have resided in Portugal in the last five years, a rule the same as that already existed for the Non-Habitual Resident Status (NHR).
