Last updated · English · free calculator
Portugal’s famous NHR (Non-Habitual Resident) regime closed to new applicants in 2024. Its successor is the IFICI — named after the scientific-research and innovation incentives list, which everyone calls NHR 2.0. It keeps the most attractive piece of the old regime, a flat 20% rate on eligible employment income, but tightens who can enter and drops the old exemption for foreign income.
What IFICI gives you
- A flat 20% rate on eligible employment and self-employment income for ten years.
- Eligibility tied to your profession and employer: higher-education and scientific-research roles, highly qualified professions (the government publishes the lists), key roles in certified innovative startups, and certain other categories.
- You must become a Portuguese tax resident and must not have been resident in the previous five years.
The real difference from the old NHR
The legacy NHR exempted most foreign-source income (pensions, dividends, rent). IFICI does not — foreign income falls under the ordinary rules. IFICI is a rate benefit on your Portuguese professional income, not a blanket shield for your worldwide income. Plan accordingly: for someone living off foreign passive income, IFICI is far weaker than the old NHR.
What €80,000 looks like with and without IFICI
| Scenario (€80,000) | Income tax + social contributions | Net take-home | Effective rate |
|---|---|---|---|
| Standard progressive schedule | €27,238 | €52,761 | 34.1% |
| IFICI 20% flat | €16,000 | €64,000 | 20.0% |
The €11,238 difference is the single largest regime swing across the five countries Taxmora covers — Portugal’s ordinary schedule is heavy at this income level, so a flat 20% changes the answer more than any other regime here.
What IFICI does not fix
- Social contributions (Segurança Social) are unchanged — the 20% applies to income tax, not to the employee share.
- Foreign income is fully in scope of Portuguese taxation under ordinary rules.
- The ten-year clock is fixed; there is no extension.
- Professional eligibility is verified at application — a job title change mid-regime does not retroactively break it, but your initial category must be documented.
Frequently asked questions
- I already have NHR. Am I affected?
- No. Existing NHR holders keep their regime for its original duration. IFICI is only for new applicants from 2024 onward.
- Does IFICI cover dividends and rent?
- No — the flat 20% applies to eligible employment and self-employment income. Foreign dividends, interest and rent follow the ordinary Portuguese rules.
- Is the 20% rate certain for all ten years?
- The regime sets it for the ten-year window, but Portuguese parliaments have changed regime details before. The engine cites Art. 58.º-A of the EBF and we track amendments.
- Why is the 2026 table marked provisional?
- Portugal’s 2026 bracket parameters were not yet finally published when this rule set was verified, so the engine labels the year provisional rather than guessing. The IFICI 20% itself is statutory, not provisional.
Run the numbers yourself
One salary, five countries, ten seconds - the same engine this article describes, free and without signup.