The original Non-Habitual Resident (NHR) programme, which offered tax advantages to individuals who had not previously been tax residents in Portugal in the preceding 5 years, is no longer available. However, a new program for expats has been introduced, bringing tax reductions to a list of professionals who might find great career and savings opportunities in the country. Keep reading to see if your occupation is eligible under the new rules.
NHR vs IFICI: Are They the Same Thing?
The NHR (Non-Habitual Resident) program was introduced in 2009 by the Portuguese government, with the goal of boosting the economy by offering preferential tax treatment for 10 years to individuals who became tax residents in Portugal. One of the most attractive features of this regime was a flat 20% rate, instead of the regular progressive rates that can get up to 53%. After a few alterations, that took place in 2019, the programme eventually came to an end in 2023.
In 2024, Portugal introduced a new tax regime aiming at attracting new tax residents for specific qualified professionals. Even though the official name of the initiative is IFICI (Incentivo Fiscal à Investigação Científica e Inovação, or Tax Incentive for Scientific Research and Innovation), it’s commonly referred to as the NHR 2.0, as it offers similar benefits to the preview regime, such as the fixed 20% tax rate on locally generated income.
However, the original name of the programme can be deceiving since you don’t have to be an academic researcher or an innovation scientist to be eligible for the tax incentive. The list of professions that can benefit from this initiative is actually quite extensive and you might make the cut.
Jobs and Activities That Eligible to the NHR 2.0
Here's the good news: it’s not just certain activities that are eligible to apply for the IFICI, but also different job roles. Will you be working in Portugal as a director or executive manager? Then, you may apply for the new regime and save on taxes for 10 years. Here's a list of eligible job roles:
- Corporate Leadership: CEOs, directors, executive managers, and directors of administrative, commercial, or production services.
- STEM Specialists: Experts in physical sciences, mathematics, engineering (excluding architects, urban planners, and designers), and industrial designers.
- Healthcare Professionals: Medical doctors.
- Academia: University and higher education professors.
- ICT Professionals: Specialists in information and communication technologies.
These roles must be in companies with relevant applications in the tax year they commenced operations or in any of the preceding five financial years, and that benefit from the Tax Incentive Scheme for Investment (RFAI - Regime Fiscal de Apoio ao Investimento); or in industrial and services companies exporting at least 50% of their turnover in the fiscal year they started functioning – or in any of the two preceding ones, and whose main activity is related to:
- Extractive industries
- Transformative industries
- Information and communication activities
- Research and development of physical and natural sciences
- Higher education
- Human health activities
As we said, the list is long. Besides that, many roles could apply if they also comply with other criteria. For example, if you’re coming to work in a startup there are great chances you can apply for the tax benefit. But you’ll have to check if the company you’ll be working for has less than 10 years of activity, less than 250 employees, a turnover equal to or below EUR 50 million, and complies with at least 4 other requirements.
If you are a hotel, restaurant or retail manager, a finance and accounting specialist, a film, theatre, television and radio director, a producer or a stage manager, you have a chance as well. Also keep in mind that, depending on your occupation, it will be necessary to prove you have certain years of experience.
At the end of the day, the important thing is to not get turned away by words like “innovation”, “research” and “scientific”. As you can see, the IFICI has a much broader reach than these terms may imply. Simply check with a specialised accountant if the job role you’ll perform in Portugal could allow you to secure some important savings on your income, so you don’t let this opportunity pass.
Be Aware of Cumulative Criteria
Yes, there is a bit more criteria on the way. But remember the 10 years of savings and let’s keep going. Did you check and discover that your job role and company or industry will allow you to benefit from the NHR 2.0? Great. Now here’s what you’ll also need to comply with:
- You have to become a fiscal resident of Portugal from 2024 onwards.
- You must not have been a tax resident in Portugal in any of the previous five years of your application.
- You can’t have benefited from the original NHR regime.
Also, keep in mind that you’ll have to submit a series of documents proving your eligibility and that you can only get the NHR 2.0’s benefits once. Keep in mind that these eligibility checks and paperwork will be worth it, and you your relocation to Portugal will be even more advantageous.
Secure All the Benefits of Moving to Portugal with Portugal Homes
The benefits of moving to Portugal go way beyond the country’s tax incentives. But you’ll only unlock the country’s full potential with the right local partner. And this is where Portugal Homes makes a huge difference. We’re not only real estate experts who will offer you curated property listings, but we’ll also be at your side along the whole journey, with 360º solutions that will help you make the most out of your relocation.
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