The position in 2026
Portugal's general Non-Habitual Resident regime was repealed from 1 January 2024. Existing beneficiaries keep their original period, and limited transitional rules remain for people who had taken qualifying steps before the change.
The current replacement is IFICI, the Tax Incentive for Scientific Research and Innovation. It is aimed at specific qualifying work and is not a general benefit for everyone moving to Portugal.
Who may qualify
IFICI can apply to a person who becomes Portuguese tax resident, was not resident in Portugal during the previous five years and carries out an eligible activity with a qualifying organisation or business.
- Eligible areas include certain research, higher education, innovation, highly qualified roles and recognised investment activities.
- The job, qualifications, employer and activity may all need to meet specific tests.
- A person cannot combine IFICI with NHR or certain other return incentives.
Buying a property, receiving a visa or simply moving to Portugal does not make someone eligible for IFICI.
What IFICI can change
Eligible Portuguese employment or self-employment income can benefit from a special 20% rate. The treatment of foreign income also changes, but exceptions apply, including special rules for pensions and income linked to low-tax jurisdictions.
Income outside the qualifying activity may remain under the normal Portuguese rules. A personal calculation is essential before relying on the regime.
Applying in the right order
First confirm Portuguese tax residence, the eligible activity and the competent body that must validate the conditions. Then gather the employment, qualification and employer evidence and submit the registration through the required channel.
- The normal IFICI deadline is 15 January of the year after becoming resident.
- A late application may only give access for the remaining years of the original ten-year period.
- Keep the documents supporting eligibility and each later change.
During the benefit period
IFICI can run for ten consecutive years, subject to continued tax residence and qualifying income. If eligibility stops, the change must be reported. A move to a different role or employer may require a fresh validation without restarting the ten-year clock.
- File Portuguese tax returns correctly each year.
- Check that the work and employer continue to meet the relevant conditions.
- Report relevant changes by the statutory deadline.
Before changing tax residence
Tax residence affects worldwide income, reporting, social security, estate planning and the interaction with another country's rules. IFICI should be one part of the decision, not the reason to move without a wider plan.
Obtain Portuguese advice and advice in the country you are leaving before the residence date is triggered.
Questions we hear
Can a new arrival still apply for the old NHR regime?
Generally no. The general regime was repealed from 2024, although existing beneficiaries and some people covered by transitional rules may still qualify.
Does buying a home qualify me for IFICI?
No. IFICI is based on tax residence and eligible work or activity, not property ownership.
Is the 20% rate applied to all income?
No. It applies to qualifying Portuguese employment or self-employment income. Other income follows its own rules.
Is IFICI automatic when I become resident?
No. The activity and other conditions must be confirmed and the required registration must be completed.
General guidance, independent advice.
This guide summarises official information available on the update date. Rules, rates and procedures can change, and personal circumstances matter. Aurea Properties does not provide legal, tax or immigration advice.
Check your position with Allawyers or another suitably qualified adviser before acting.