What new tax incentives are available for foreign residents in Portugal?
Foreign residents in Portugal can benefit from the new IFICI+ tax regime, which offers an attractive IRS rate of just 20%. This tax incentive is specifically designed to attract qualified workers, especially those in scientific research fields, making it a fantastic opportunity for professionals relocating to Portugal. The government has allowed registrations for this regime until March 15, 2025, covering those who became residents in 2024. Notably, this regime will begin operation on January 1, 2025, with retroactive effects for new residents from the previous year. This shift replaces the Non-Habitual Resident (NHR) status, providing a streamlined approach to incentivising skilled workers. However, it's essential to check for eligibility, as those who have resided in Portugal in the last five years may not qualify. The new initiative aims to enhance Portugal's appeal as a destination for innovation and talent, ensuring a vibrant and productive workforce. The government is expected to promote this initiative actively, facilitating a smoother transition for qualified individuals. Don’t miss out on this opportunity to benefit from reduced tax rates while living in a beautiful country. If you're considering relocating or investing in Portugal, now is the perfect time to explore your options. Check out the details and assess your eligibility for registration under this groundbreaking tax regime. For further information, feel free to contact a local expert or check government resources to get started. Don't wait too long; positions under this regime are expected to fill up fast!
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).
