IFICI: Portugal's tax incentive for research and innovation

According to the Portuguese Tax Authority's official FAQ, IFICI is open to Portuguese or foreign citizens who:

• were not tax resident in Portugal in the previous five years, and become tax resident
• carry out qualifying professions or activities and earn income from them, under Article 58-A of the Tax Benefits Statute (EBF)
• have not benefited from the non-habitual resident (NHR) regime and haven't had IFICI before

Qualifying activities include teaching and scientific research in higher education and the national science system — checked by the Foundation for Science and Technology (FCT) — and jobs directly involved in research or innovation at companies certified as startups, checked by Startup Portugal.

Sources: Portal das Finanças — IRS, IFICI FAQs; Portaria n.º 352/2024/1, 23 December 2024; both read 8 October 2026.

The Tax Authority's FAQ sets out the treatment:

• Portuguese-source employment and self-employment income (categories A and B) from qualifying activities: a special rate of 20%; otherwise, the normal IRS rules
• Foreign-source income: as a general rule, exempt from IRS — except pension income (category H)
• income paid by entities in jurisdictions on Portugal's list of clearly more favourable tax regimes is excluded from the benefit

The benefit lasts 10 consecutive years. If you leave Portugal and later return, it can resume for the remaining years, provided you're tax resident again and working in a qualifying activity.

If you stop meeting the requirements, you must tell the Tax Authority by 15 January of the following year, and the benefit ends on the date the requirements stop being met. Changes such as a new employer must also be reported.

Tax depends on your circumstances, so take professional advice before you move. For the paperwork side of arriving, our guides to the NIF and NISS numbers come first.