Discover one of the tax incentives for those who want to return to or live in Portugal
Tax incentive for scientific research and innovation (NHR 2.0)
The main purpose of the Tax Incentive for Scientific Research and Innovation (IFICI) is to attract qualified employees and encourage the establishment of companies in specific sectors in Portugal, with the aim of developing innovation and scientific research activities within the country. Find out more.
Benefits of the Tax Incentive for Scientific Research and Innovation (IFICI)
In general terms, the regime offers the following benefits:
- Special rate of 20% applicable to employment and self-employment income arising from the exercise of one of the eligible activities.
- Exemption for foreign source income, with the exception of pensions and certain income from “tax havens”.
The regime is valid for a period of 10 consecutive years, starting from the first year of residence.
Individuals must fulfil the personal and professional eligibility requirements to benefit from the regime.
To qualify for the regime, individuals must:
- Become tax residents of Portugal in a certain tax year.
- Having not qualify as tax residents in Portugal in any of the 5 years prior to the one they became tax residents.
Access to the regime is subject to registration with the competent authorities.
To qualify for the regime, individuals must carry out an eligible activity, namely:
- Teaching in higher education and scientific research.
- Qualified professions in companies carrying out their activities in eligible business sectors.
- Employees and members of corporate bodies in start-ups.
- Activities carried out by tax residents in the Autonomous Regions of the Azores and Madeira.
Access to the regime is subject to registration with the competent authorities.
Learn in detail about some additional benefits of residing in Portugal, in terms of taxation, and other opportunities that the Portuguese tax system provides to individuals.
Other beneficial aspects of the Portuguese tax system for individuals
- Tax exemption on gifts or inheritances for spouses, descendants or ascendants.
- Exclusion of tax on free transfers of assets, by gift or inheritance, due to the application of territoriality rules, or liability to a flat 10% Stamp Tax rate.
- There are no wealth taxes or taxes on the repatriation of funds, whether to Portugal or abroad.
- Beneficial tax regime for individuals starting a self-employed activity in Portugal.
- Beneficial tax treatment for pension funds and other life insurance products (including unit-linked life insurance).
- Portugal takes advantage of the EU non-discrimination rules and has signed around 80 double tax treaties.
Why should Portugal be on your list of destination alternatives?
Portugal is part of the European Union, the Eurozone and the Schengen area. With a stable political and social environment, a safe society, a highly qualified workforce fluent in English and an excellent quality of life, it is no surprise that Portugal is becoming a top choice for anyone wishing to reside in the European Union.
If you want to add to this an extremely competitive tax regime, Portugal should not just be on your list of options, it should be at the top of it.
Why Portugal?
Geostrategic position
Between Europa, América and África
5 Years
Best city for a getaway in the world
7th Position
No Global Peace Index
15th Position
On quality of life for expats
10
Airports
7 Years
Best Golf Destination in the World
6th Position
No English Proficiency Index
3 Years
Best tourist destination in the world
How can we assist?
- Comprehensive analysis of the tax implications of moving to Portugal, particularly taking into account the Tax Incentive for Scientific Research and Innovation (IFICI), as well as other potentially applicable special tax regimes.
- Assistance with the tax registrations before the Portuguese tax authorities and with the application for the Tax Incentive for Scientific Research and Innovation (IFICI).
- Assistance with the compliance with tax obligations, including the preparation and submission of annual Portuguese income tax returns.
- Regular tax advisory services on tax and social security matters in Portugal.
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