IFECI / NHR 2.0

The Tax Incentive for Scientific Research and Innovation (IFECI) — commonly known as NHR 2.0 — is the new tax framework created by the Portuguese Government to succeed the former Non-Habitual Resident (NHR) regime.

It is designed to attract highly qualified professionals, university professors, researchers, executives, startup founders, and key personnel in innovative companies relocating their tax residence to Portugal.

Qualifying for IFECI provides a highly competitive tax environment in Portugal for 10 consecutive years:

• Flat 20% Income Tax Rate: A reduced 20% Personal Income Tax (IRS) rate applied to employment (Category A) and self-employment (Category B) income earned in Portugal from eligible activities.

• Exemptions on Foreign Sourced Income: Potential tax exemptions on certain foreign income streams (such as dividends, interest, capital gains, or rental income) under applicable Double Taxation Treaties (DTT).

To qualify for the IFECI regime, applicants must satisfy specific conditions:

• New Tax Residency: Become a tax resident in Portugal, having not been considered a tax resident in the country for any of the preceding 5 years.

• Qualifying Activities: Exercise a qualified professional activity falling under scientific research, innovation, higher education, or tech/startup ecosystems.

• Tax Status Maintenance: Maintain tax residency in Portugal for each year the benefit is claimed.

The preferential tax status is granted for a maximum period of 10 consecutive years, starting from the year of registration as a Portuguese tax resident, and cannot be renewed once expired.

Enrolling in the tax scheme takes place after establishing residency:

1. Tax Residence Setup: Obtaining a resident Tax ID (NIF) and updating your official tax address with the Portuguese Tax Authority (AT).

2. Application Submission: Registering for the scheme online with supporting proof of eligible activity and non-residence declarations for the prior 5 years.

3. Validation: Formal approval issued by the Tax Authority or designated governing body.

Relocating your tax residence requires proper structural planning and property backing. De Brito Properties provides complete integration:

• Housing Support: Finding and securing qualifying residential real estate to establish official residency.

• Vetted Tax Advisory Network: Direct access to experienced tax attorneys and wealth advisors for pre-relocation analysis.

• Local Setup Assistance: Full support with NIF updates and bank setup.