Which tax advantages are available for non-residents investing in Portugal?
Non-residents investing in Portugal can take full advantage of several tax advantages, primarily through the IFICI tax regime. This regime allows eligible foreign investors to access a reduced income tax rate of only 20% on income generated from dependent and independent work. Moreover, non-residents can benefit from exemptions on other income types, such as capital gains, providing a lucrative opportunity for wealth accumulation. This competitive tax environment is particularly attractive to expatriates involved in sectors like scientific research or innovation. Importantly, it’s crucial for applicants to have not been tax residents in Portugal for the previous five years to qualify. Such provisions are also beneficial for emigrants returning to Portugal, thereby creating a welcoming environment for talent reintegration. By leveraging these tax incentives, investors can significantly improve their overall return on investment. The application process on the Finance Portal has been designed to be user-friendly and efficient, offering guidance through the necessary documentation. With the impending registration deadline extended to March 15, 2025, now is the perfect time to explore these financial advantages. Ensure you're prepared to seize these opportunities before they close! Reach out to us to learn more about how you can benefit as a non-resident investor!
The order with the model and instructions for filling out the forms is included in an order from the Ministry of Finance, now published in the Official Gazette of the Union, and registrations may be made, exceptionally in 2025, until March 15.
“Taxpayers registered with the AT as residents in Portuguese territory must request their registration for the purposes of the IFICI by January 15 of the year following that in which they become tax residents in Portugal. Exceptionally, in 2025, this deadline is March 15th”, says the diploma.
Registration requests are made on the Finance Portal, and verification of compliance with the requirements is carried out by the AT, Foundation for Science and Technology (FCT), IAPMEI – Agency for Competitiveness and Innovation, AICEP – Agency for Investment and Foreign Trade of Portugal, National Innovation Agency or Startup Portugal, depending on the requirements relating to the applicant and their activity.
It is necessary not to have been a tax resident in Portugal in the five years prior to registering with IFICI to be able to benefit from this regime, therefore, as was the case with the NHR, emigrants who left Portugal (and changed their tax residence) more than five years ago are eligible.
The IFICI tax regime allows covered professionals to pay an IR rate of 20% on income from dependent and independent work (categories A and B), including exemptions on other income such as capital gains, for example.
