IFICI 2025: A Complete Guide to Portugal’s New Tax Regime

Introduction

Portugal has long attracted foreign professionals, investors, and entrepreneurs due to its pleasant climate, high quality of life, and tax benefits. Until 2024, the NHR (Non-Habitual Resident) regime was particularly popular among expats, allowing newcomers to pay lower taxes on certain types of income. However, starting in 2025, the NHR has been abolished and replaced with a new program—TISRI (Tax Incentive for Scientific Research and Innovation), also known as IFICI (Incentivo Fiscal Investigação Científica e Inovação).

This tax regime is not designed for all expats but primarily for highly qualified professionals working in science, research, and innovation. In this guide, we will cover all the details of IFICI, who qualifies for it, what tax benefits it provides, and how to apply correctly.

What is IFICI and why has it replaced NHR?

TISRI (Tax Incentive for Scientific Research and Innovation), also known as IFICI (Fiscal Incentive for Scientific Research and Innovation), is a new tax regime introduced in Portugal on January 1, 2025. It was created to attract talented scientists, engineers, IT specialists, and developers working in cutting-edge fields such as artificial intelligence, biotechnology, renewable energy, fintech, and other innovative industries.

Why was NHR replaced?

• The NHR regime was popular among wealthy retirees who benefited from tax incentives but did not contribute significantly to Portugal’s economy.
• Portuguese authorities decided that the country should attract not just wealthy individuals but also skilled professionals who would help drive economic growth.
• The new IFICI regime is designed for active professionals who contribute to innovation rather than passive residents.

Who qualifies for TISRI?

The new regime is intended for individuals working in scientific, technological, and innovative fields. If your profession is related to advanced technology, research, and development, you may be eligible for IFICI.

Who can receive tax benefits under TISRI?

1. Scientists, researchers, and educators
   • Example: You work at a research center developing vaccines. TISRI allows you to reduce your tax burden and advance your career in Portugal.
2. Engineers and IT specialists
   • Example: You are an artificial intelligence developer or a cybersecurity expert. Portugal is currently fostering startups in these fields.
3. Entrepreneurs and investors in innovative projects
   • Example: You have founded a startup focused on developing eco-friendly building materials and want to expand into the European market.
4. Experts in green technology and sustainable development
   • Example: You are working on next-generation solar panels and plan to launch production in Europe.
5. Financial analysts and fintech industry experts
   • Example: You work in blockchain technology, algorithmic trading, or digital currencies.

What tax benefits does TISRI provide?

If you qualify for TISRI, you will receive significant tax advantages that will help you save money and plan your long-term future in Portugal.

1. Flat income tax rate in Portugal – 20%
   • Instead of a progressive tax rate, your income is taxed at a fixed 20% rate.
   • Example:
     • Without TISRI: If your annual income is €80,000, you would pay approximately €28,000 in taxes (at standard rates of 35-40%).
     • With TISRI: Your tax liability would be €16,000—almost half!
2. Exemption from taxes on foreign income
   • If you earn income outside Portugal (e.g., dividends, rental income, interest on deposits), it is not taxed in Portugal as long as it comes from a country with a tax treaty.
   • Example:
     • You own an apartment in Berlin and rent it out for €2,000 per month.
     • Without TISRI, you would have to pay tax on this income.
     • With TISRI, the income remains tax-free in Portugal!
3. Benefits last for 10 years
   • You can enjoy these tax advantages for ten years after obtaining TISRI status.

How to apply for TISRI?

To obtain tax benefits under TISRI, you must complete several steps.

1. Obtain a tax identification number (NIF)

You need to apply through the Portuguese tax authority. Read our detailed guide on obtaining an NIF in Portugal for foreigners.

2. Become a tax resident of Portugal

You must spend at least 183 days per year in the country. Learn more about Portugal’s tax system in our residency guide.

3. Submit an application to the tax authorities

Applications for TISRI are submitted through the tax authority’s online portal or with the assistance of specialized companies like Move to Cascais.

Application deadline: January 15 of the year following the year you became a Portuguese resident.

If you became a resident in 2024, the deadline is March 15, 2025.

Required Documents

1. Proof of qualifications:
   • Diplomas and certificates confirming your expertise in the relevant field.
2. Proof of professional activity:
   • Employment contract with a Portuguese employer (if you are an employee).
   • Fellowship or grant agreement (if you are involved in research projects).
   • Business registration documents in Portugal (if you are self-employed or an entrepreneur).
3. Proof of work experience:
   • Recommendation letters from previous employers or business partners confirming your expertise in scientific research or innovation.
4. Proof of compliance with TISRI criteria:
   • A statement from your employer or client confirming that your work meets TISRI requirements.
5. Other required documents:
   • Criminal background check from your country of residence.
   • Proof of housing in Portugal (rental agreement or property ownership certificate).
   • Health insurance valid in Portugal.

4. Obtain accreditation from an approved organization

To participate in Portugal’s new tax regime, you must undergo an accreditation process confirming your work in scientific research or innovation.

Accreditation documents must be submitted to one of the authorized organizations:

• Foundation for Science and Technology (FCT)
• Agency for Investment and Foreign Trade (AICEP)
• Agency for Competitiveness and Innovation (IAPMEI)
• National Innovation Agency (ANI)
• Startup Portugal

After submission, these organizations forward the application to the tax authorities by February 15. A final decision on approval is issued by March 31.

How Move to Cascais can help you

Navigating Portugal’s tax laws can be challenging. Move to Cascais can help you:

• Assess your eligibility for TISRI.
• Obtain your NIF and register with the tax authorities.
• Collect and verify all necessary documents to ensure approval on the first attempt.
• Submit your application to the tax authorities and prepare all required accreditation documents.
• Provide guidance throughout the entire process to ensure a smooth and stress-free application.

Don’t waste time on bureaucracy—trust Move to Cascais with your TISRI application! Contact us today, and we’ll help you relocate to Portugal and take full advantage of the tax benefits.

Conclusion

The new TISRI / IFICI 2025 tax regime offers an excellent opportunity for professionals in science, technology, and innovation to reduce their tax burden and move to Portugal.

Want to learn more and apply for TISRI? Contact Move to Cascais, and we’ll guide you through the entire process stress-free!