New Tax Incentives for Foreign Professionals
The Ministry of Finance has officially released the list of highly qualified professions that will be eligible for the new tax incentive for scientific research and innovation (IFICI), which replaces the previous non-habitual resident regime.
Eligible Professions
The list includes:
- Executive Directors and Company Managers
- Administrative and Commercial Services Directors (excluding those in security command roles)
- Production and Specialized Services Directors
- Doctors
- University Professors
- Specialists in Physical Sciences, Mathematics, or Engineering
- Product and Equipment Designers
- Information and Communication Technology Specialists
Registration Deadlines
Professionals must register by January 15 of the year following their residency establishment in Portugal. This year, however, there will be an extension until March 15 for those who earned income in Portugal in 2024.
Awaiting Additional Lists
An additional list of economically relevant activities for the national economy is yet to be compiled by the Agency for Investment and Foreign Trade of Portugal (AICEP) and IAPMEI.
A Year to Finalize the Regime
The 2024 State Budget has phased out the Non-Habitual Resident Regime that lasted over a decade, introducing the IFICI aimed at attracting and retaining specialized workers in scientific research, investment, and business development.
Application Process
Soon, an electronic form will be available for applications, which must be submitted to:
- Foundation for Science and Technology (FCT) for higher education and research roles
- AICEP for qualified jobs in investment benefits
- Tax Authority (AT) for highly qualified professions in companies benefiting from investment support
Tax Benefits Under IFICI
The IFICI offers a 20% special tax rate on net income from categories A and B earned in Portugal for a 10-year period from the year of residency registration. Foreign income is exempt from taxation in Portugal, but must be included for determining applicable tax rates.
Notably, beneficiaries with income from non-resident entities in tax havens will face an increased rate of 35%.
Updated with additional information.
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