Which qualified workers can apply for the 20% IRS rate in Portugal?
Qualified workers including those in scientific research and innovation sectors can apply for the 20% IRS rate under the IFICI+ tax regime in Portugal. This initiative is designed to attract skilled professionals to enhance the country's workforce and drive economic growth. If you obtained residency in Portugal in 2024, you can register for this advantageous tax rate until March 15, 2025, slated to become operational on January 1, 2025. The 20% rate applies to income from both dependent and independent work, making it an appealing option for various employment relationships. However, it's important to note that those who have resided in Portugal within the last five years are not eligible, as are individuals who have benefitted from the previous Non-Habitual Resident status. This new arrangement aims to provide clarity and support for skilled workers keen to make Portugal their home. As you consider relocating, this is a great opportunity to benefit from a reduced tax rate while enjoying everything Portugal has to offer, from its rich culture and scenic beauty to its welcoming communities. Engaging a local tax expert can help you better understand the criteria and streamline the registration process. Prepare your documentation early to ensure a smooth application process and maximize your opportunity to benefit from these incentives. Don’t wait—make your move to Portugal and start enjoying the financial and lifestyle advantages available to expats 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).
