by Teresa Nicolau
Portugal’s new 10-year tax incentive for talent, innovation, and investment
Portugal has long been known for its welcoming lifestyle, vibrant startup scene, and openness to international talent. In 2024, the government launched the IFICI regime (Incentivo Fiscal à Investigação Científica e Inovação), popularly called NHR 2.0, as the successor to the well-known Non-Habitual Resident (NHR) programme.
IFICI is a special tax regime designed to attract highly qualified professionals, entrepreneurs, investors, and returning Portuguese citizens who want to live, work, and build in Portugal. Unlike its predecessor, which became famous among retirees, the new framework is sharply focused on people who can actively contribute to Portugal’s innovation economy.
Key benefits
– Flat 20% tax rate on eligible Portuguese employment or self-employment income, instead of progressive rates up to 53%.
– Exemption from Portuguese taxation on most foreign-sourced passive income, including dividends, interest, royalties, rental income, and capital gains, provided it does not come from blacklisted jurisdictions.
– Full exemption on foreign capital gains, making the regime particularly attractive for investors and founders expecting a liquidity event abroad.
– Standard progressive taxation of pensions, with no special treatment for retirement income.
– Flat 35% tax rate on income derived from blacklisted jurisdictions.
Who qualifies
The regime is open to individuals who become tax residents in Portugal from 2024 onwards and who have not been resident in the country in the previous five years. It is not available to those who benefited from the old NHR or other special expat regimes.
Eligibility is tied to professional activity and the type of company or institution. Main routes include:
– Certified startups: employees and board members of startups accredited by Startup Portugal.
– Export-oriented companies: professionals in firms that export at least 50% of turnover in sectors such as manufacturing, ICT, or R&D.
– Strategic companies: qualified roles in businesses recognised by IAPMEI or AICEP as relevant to national economic development.
– Academic and research positions: professors, researchers, and innovation leaders within the national science and technology system, validated by FCT or ANI.
– Regional pathways: rules for Madeira and the Azores are expected, likely offering additional opportunities.
– Once granted, the status lasts for 10 consecutive years and cannot be renewed.
Why it matters
Portugal is doubling down on its ambition to become a European hub for innovation, entrepreneurship, and R&D.
For founders and investors, the advantages are significant: a tax-efficient environment for startup exits and global investment portfolios, clear routes to qualify through startups, export-driven companies, or research institutions, and strong alignment with Portugal’s broader innovation-led growth strategy.
In practice, IFICI / NHR 2.0 keeps Portugal on the global map as one of Europe’s most attractive destinations for international talent and capital. By combining lifestyle with a forward-looking tax framework, it gives entrepreneurs, investors, and skilled professionals a powerful reason to choose Portugal as their base, and to scale their ambitions from here to the world.
At Ventures.eu we have a team of experts who have helped startups apply for this programme successfully! Get in touch with them if you want to learn more.
