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💡 New Tax Regime: IFICI Launched Today – The "NHR 2.0" for Innovation Talent
The Scientific Research and Innovation Tax Incentive (IFICI), dubbed "NHR 2.0," comes into force today, offering a flat 20% tax rate for highly qualified professionals in scientific and innovation sectors.
On the same day that the NHR regime ceases to accept new applications, the Scientific Research and Innovation Tax Incentive (IFICI), dubbed by some as “NHR 2.0,” comes into force today, January 1, 2024.
This new regime is the government’s effort to continue attracting foreign talent, but with a much narrower and focused scope.
- Focus and Benefits:
- IFICI is aimed at highly qualified professionals in the scientific, technical, academic, and innovation sectors (excluding pensioners and broad categories of professionals).
- Those eligible will benefit from a flat income tax rate of 20% on Portuguese employment or self-employment income and an exemption for most foreign-sourced income, for a period of up to 10 years.
- Key Requirements: Applicants cannot have been tax residents in Portugal in the previous five years and must possess a PhD or equivalent advanced qualifications, or be employed by certified innovative companies or research institutions.
This new regime is an important alternative for professionals in specialized fields moving to Portugal, but requires careful analysis to ensure the activity falls within the official list of eligible professions.