Where can I find more details about the 20% IRS rate for foreign residents?
To find detailed information regarding the 20% IRS rate for foreign residents in Portugal, individuals can consult the official government announcements or the local tax authority's website. This favourable tax rate is an integral part of the new IFICI+ tax regime aimed at attracting skilled workers, particularly those engaged in scientific research. Registration for this reduced tax rate is available for individuals who obtained residency in Portugal in 2024, and interested applicants should act before the deadline on March 15, 2025. As part of this incentive, newcomers to Portugal can experience not only lower tax liabilities but also a welcoming environment that supports mobility and career growth. The restructuring of previous tax options allows a clearer pathway for skilled professionals to relocate and thrive. The government has pledged to ease the process, making it easier for foreign residents to acclimatise while taking advantage of the substantial tax reductions. Furthermore, keeping abreast of local law changes and regulations will benefit those from diverse backgrounds looking to invest in their future within Portugal. If you seek personal assistance or have specific questions regarding the registration process or qualifications, our team can guide you through the details and help facilitate a smooth transition. Connect with us today to delve deeper into the benefits awaiting you!
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).
