IFICI: The Tax Regime That Replaced the NHR in Portugal — Who Can Use It

The NHR (Non-Habitual Resident regime) was repealed by the 2024 State Budget and now applies only to people who were already registered or who qualified under the transitional regime. In its place, the same law created the tax incentive for scientific research and innovation, known as IFICI or, informally, "NHR 2.0". The name is misleading: IFICI is not a general regime for people who move to Portugal. It benefits only people who become tax residents and work in clearly defined qualifying activities, and it requires registration within a set deadline.

In this article we explain who can use IFICI, which activities and professions qualify, how and by when to register, and how income earned outside Portugal, including in Brazil, is treated. For people who became tax residents of Portugal in 2026, the registration deadline is January 15, 2027.

What IFICI is

IFICI is set out in Art. 58-A of the Tax Benefits Statute (Estatuto dos Benefícios Fiscais, EBF), added by Law 82/2023, and is regulated by Ministerial Order 352/2024/1 (Portaria) of December 23, amended by Ministerial Order 52-A/2025/1. In short:

• a special rate of 20% of Portuguese personal income tax (IRS) on net income in categories A (employment) and B (self-employment) earned in the eligible activities (paragraph 2);
• for 10 consecutive years, starting from the year of registration as a resident in Portugal;
• with the option to aggregate the income with other income (englobamento), if that is more favorable;
• and, for foreign-source income, the exemption method applies to several categories (Art. 81(4) of the Personal Income Tax Code (Código do IRS)).

Who can use it: the general requirements

Under Art. 58-A and Circular Letter 20276/2025 (Ofício Circulado) of the Portuguese Tax Authority (Autoridade Tributária, AT), a person must, at the same time:

1. become a tax resident of Portugal in the year in which they intend to start the regime, under Art. 16(1) and (2) of the IRS Code;
2. not have been a tax resident of Portugal in any of the previous five years;
3. carry out one of the activities listed in Art. 58-A(1) and earn income from that activity each year;
4. not have benefited from the NHR, nor have opted for the former residents' regime under Art. 12-A of the IRS Code (Regressar program) (paragraph 10);
5. not have used IFICI before: the regime can only be used once (paragraph 12).

The AT also warns that anyone who benefits from IFICI from 2025 onward cannot use IRS Jovem (Art. 12-B of the IRS Code). Nationality does not matter: Portuguese, Brazilian and other nationals can register, as long as they meet the requirements.

What it means to be a tax resident

Under Art. 16 of the IRS Code, a resident is anyone who stays in Portugal for more than 183 days, consecutive or not, in any 12-month period starting or ending in the year, or who, having stayed for less time, has a home in conditions that suggest an intention to keep it as a habitual residence. Residence begins on the first day of the stay. Having a visa or a residence permit, including the Golden Visa, does not by itself make anyone a tax resident. See our page on tax residence between Brazil and Portugal.

The activities that give access to IFICI

Art. 58-A(1) lists seven groups of activities. The entity that checks the requirements changes depending on the group (Art. 2 of Ministerial Order 352/2024/1):

• a) Higher education teaching and scientific research, including scientific employment at entities of the national science and technology system, and jobs and members of governing bodies at technology and innovation centers. Entity: Foundation for Science and Technology (FCT).
• b) Qualified jobs and members of governing bodies at companies with contractual benefits for productive investment (Chapter II of the Investment Tax Code). Entity: AICEP.
• c) Highly qualified professions carried out at companies that benefit from the tax regime supporting investment or at industrial and service companies that export at least 50% of their turnover. Entity: AT.
• d) Qualified jobs and members of governing bodies at entities whose activities are recognized by AICEP or IAPMEI as relevant to the national economy. Entity: AICEP or IAPMEI.
• e) Research and development staff whose costs are eligible for the tax incentive system for business R&D (SIFIDE). Entity: National Innovation Agency (ANI).
• f) Jobs and members of governing bodies at certified startups (Law 21/2023). Entity: Startup Portugal.
• g) Activities in the Azores and Madeira, under a regional legislative decree.

Highly qualified professions (item c))

Annex I of Ministerial Order 352/2024/1 lists the groups of the Portuguese Classification of Occupations that count as highly qualified:

• 112: managing directors and chief executives;
• 12: administrative and commercial managers;
• 13: production and services managers (except 1349);
• 21: professionals in the physical sciences, mathematics, engineering and related fields (except 216);
• 2163.1: industrial product or equipment designer;
• 221: medical doctors;
• 231: university and higher education teachers;
• 25: information and communications technology (ICT) professionals.

In addition to the profession, the person must have at least a doctorate (level 8 of the European Qualifications Framework) or a bachelor's or master's degree with three years of proven professional experience (Art. 7 of the Ministerial Order). In regulated professions, such as medicine, the profession's own rules in Portugal must also be met.

The company, in turn, must have its main activity in one of the activity codes in Annex II (mining and manufacturing, information and communication, R&D in physical and natural sciences, higher education and human health) and export at least 50% of its turnover, or else benefit from the tax regime supporting investment. According to the AT, sales to customers in other European Union countries count as exports for this purpose.

Activities relevant to the economy (item d))

According to AT guidance, the list of qualified jobs under item d), set out in AICEP and IAPMEI notices published in 2025, is broader and includes, for example, hotel, restaurant and retail managers, finance and accounting professionals, and associate professionals in science and engineering. The list of sectors is also broader and includes energy, accommodation, certain financial activities, consulting and health. The minimum qualification is level 5 of the European Qualifications Framework. IAPMEI reviews applications from people who work at companies with annual turnover below €75 million; AICEP reviews the others and projects of potential national interest.

Employment contract, service provision and management

The AT clarifies that the expression "job" (posto de trabalho), used in items a), b), d), f) and g), assumes an employment contract. Someone who provides services as an independent contractor to a company recognized by AICEP, for example, does not fall under item d). On the other hand, a university professor with a service agreement can use item a). A mere shareholder of a company is not eligible in that capacity, but the managing partner of a single-member company can be, as a member of a governing body, if the other requirements are met.

How and when to register

Since Ministerial Order 52-A/2025/1, all applications are filed on the Tax Authority portal (Portal das Finanças), even when the check is carried out by FCT, AICEP, IAPMEI, ANI or Startup Portugal. The timetable is as follows (Arts. 2, 4 and 6 of the Ministerial Order):

• by January 15 of the year after the one in which the person became a resident: registration application;
• by February 15: the competent entities inform the AT of the applications and of the verification of the requirements;
• by March 15: for item c), the company confirms on the Portal das Finanças that it meets the requirements and that the worker carries out the qualified profession;
• by March 31: the AT makes the registration status available in the taxpayer's personal area.

The application must include the employment contract, the commercial registry certificate (for members of governing bodies), the grant agreement (for researchers), proof of qualifications and, for items b), d) and e), a statement from the company confirming the activity requirements (Art. 4 of the Ministerial Order). If a document is missing, the AT states that the applicant is notified to complete the application, with no automatic cancellation.

What if you miss the deadline?

A late registration is not lost, but the regime only takes effect from the year of registration and only for the time remaining of the 10 years (Art. 58-A(7)). In the AT's example, someone who became a resident in 2025 and only registered in January 2029 benefits from the regime from 2029 to 2034, and not for the full 10 years.

20% withholding tax

While the application is being reviewed, the worker can give the paying entity the receipt for the registration application so that tax is withheld at 20%. The AT points out that withholding is only an advance payment: if the registration is not approved, the income is taxed at the general rates in the IRS assessment.

Income from outside Portugal, including Brazil

This is one of the points of greatest interest to people who keep assets in Brazil. Under Art. 81(4) of the IRS Code, IFICI beneficiaries who earn income abroad in categories A, B, E, F and G (employment, self-employment, investment income, rental income and capital gains) have that income taxed under the exemption method in Portugal. However, it must be taken into account to determine the rate applicable to their other income.

There are two important caveats:

• Tax havens: income paid by entities domiciled in countries or territories on the Portuguese list of clearly more favorable tax regimes is taxed at 35% (Art. 81(5)).
• Pensions: category H is not on the list. IFICI does not cover pensions and, for this reason, it is generally not a route for retirees. See our page on INSS retirees in Portugal.

The exemption in Portugal does not remove taxation in Brazil. Rental income, dividends and gains from Brazilian sources remain subject to the Brazilian rules for non-residents, and the definitive departure from Brazil (for tax purposes), the tax treaty between the two countries and the reporting obligations must be coordinated. This planning should be done before the move.

Keeping the regime over the 10 years

• Residence each year: the right depends on the person being a tax resident at some point in each year and continuing to receive income from an eligible activity (paragraph 3).
• Changing jobs: the benefit continues if the new eligible activity begins within six months after the end of the previous one (paragraph 4). The change must be reported on the Portal das Finanças by January 15 of the following year, with a new registration application when the company or the competent entity changes. The 10 years do not restart.
• Interruption: anyone who loses residence or the activity in a given year can resume the regime in the remaining years (paragraph 5).
• Records: the beneficiary must keep proof of the activity and income and present it when the AT requests it (Art. 10 of the Ministerial Order).

Who generally does not qualify

• retirees who live on a pension;
• investors with only passive income, including Golden Visa holders who do not work in Portugal;
• anyone who was a tax resident of Portugal in any of the previous five years;
• anyone who was already registered under the NHR, even for a short time;
• anyone who works as an independent contractor for a company under the items that require a "job";
• anyone who works remotely for a foreign company, with no link to one of the Portuguese entities provided for in the law, a situation that needs case-by-case analysis.

Checklist before moving

• confirm whether the activity and the employer fall under one of the items of Art. 58-A;
• gather your diploma and proof of experience, with an apostille and translation when needed;
• check whether the company meets the activity and export requirements, or has the required recognition;
• plan the date on which tax residence begins and the registration of your address with the Tax Authority;
• arrange your tax departure from Brazil and the definitive departure return;
• note the January 15 deadline of the following year for registration;
• ask your employer to apply the 20% withholding as soon as the application is filed.

Common mistakes

• Thinking that IFICI is automatic or that it comes with the visa.
• Missing the January 15 deadline and shortening the benefit period.
• Forgetting that you were already a resident in the previous five years.
• Being hired as a service provider when the item requires an employment contract.
• Assuming that the exemption in Portugal removes the tax in Brazil.
• Changing jobs without reporting the change by the deadline.

How Sene & Araújo can help

Sene & Araújo has lawyers admitted in Brazil and Portugal, with offices in São Paulo and Albufeira. We review the legal classification of the activity under Art. 58-A, tax residence in both countries and the interaction with the Brazil–Portugal tax treaty, and we handle complaints and appeals when registration is refused. Tax filings are prepared by the client's accountant, with whom we coordinate on the legal issues. The decision on registration rests with the competent entities and the AT. To get started, see the page on tax residence between Brazil and Portugal or talk to our team.

• Tax Benefits Statute (Estatuto dos Benefícios Fiscais), Art. 58-A (IFICI)
• Ministerial Order 352/2024/1 (Portaria) of December 23 (Arts. 2 to 12 and Annexes I and II)
• Ministerial Order 52-A/2025/1 (Portaria) of February 25
• AT — Circular Letter 20276/2025 (guide and frequently asked questions on IFICI)
• IRS Code (Código do IRS), Art. 16 (residence)
• IRS Code, Art. 81(4) and (5) (foreign-source income of IFICI beneficiaries)

Sene & Araújo Sociedade de Advogados team. Content prepared and reviewed by the firm's lawyers, admitted to the Brazilian Bar Association (OAB) and the Portuguese Bar Association (Ordem dos Advogados), with offices in São Paulo and Albufeira. The provisions cited were checked against the official sources listed above. Meet the team.