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Expats

IFICI: the tax regime that replaces NHR

What has changed for people moving to Portugal, who can benefit and how to apply.

Updated October 2026

The non-habitual resident regime (NHR) no longer accepts new applications. For people who became resident in Portugal from 2024 onwards, there is IFICI, the Incentivo Fiscal à Investigação Científica e Inovação, often called “NHR 2.0”.

What it offers

Employment and self-employment income from eligible activities is taxed at a special 20% rate for 10 consecutive years. Most foreign-source income is exempt in Portugal, although it counts towards the rate applied to your other income.

Who can benefit

People who have not been tax resident in Portugal in the previous five years and work in a covered activity, such as higher education and scientific research, or highly qualified roles in certified start-ups or companies in certain sectors. The criteria are much stricter than under the old NHR, so each case needs to be checked.

How and when to apply

You apply on the Portal das Finanças, with documents proving your activity, by 15 January of the year after the one in which you became tax resident. Missing the deadline can mean losing the regime for that year.

This article is for information only and is not a substitute for advice on your specific case.