IFICI: The Tax Incentive for Scientific Research and Innovation in Portugal

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Tax

Portugal has been strengthening its position as an attractive destination for international talent, innovative companies and highly qualified professionals. To reinforce this strategy, the government created IFICI – Fiscal Incentive for Scientific Research and Innovation, a tax regime designed for individuals engaged in scientific, technological, innovative or high-value activities, including qualified entrepreneurs.

If your company hires professionals in these fields, or if you are considering relocating to Portugal to work in innovation-driven sectors, understanding the IFICI regime can provide a significant competitive advantage.

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What is IFICI?

IFICI is a tax regime included in the Statute of Tax Benefits, offering favourable personal income tax (IRS) conditions for individuals working in:
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• Scientific research
• Technological development
• Innovation and digital transformation
• Advanced industrial sectors
• Qualified entrepreneurship linked to innovation or research and development

The goal is to attract talent and stimulate strategic sectors that drive economic growth, competitiveness, and technological progress in Portugal.

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Who Can Benefit?

Individuals may benefit from IFICI if they:

• Have not been tax residents in Portugal in the previous five years
• Become tax residents in Portugal after 1 January 2024
• Perform activities recognised as eligible under the regime
• Are employed or contracted by entities operating in innovation, science or research sectors

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Eligible professionals and profiles include:

• Researchers, scientists and higher education lecturers
• Engineers, IT specialists, data analysts and other highly qualified technical professionals
• Managers and senior executives in innovation-driven sectors
• Professionals listed in the official categories of qualified activities
• Qualified entrepreneurs leading innovative companies or technology-based projects

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What Are the Tax Benefits?

Key advantages of the IFICI regime include:
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• A special IRS rate of 20% on employment or self-employment income derived from eligible activities
• Benefit applicable for up to 10 consecutive years
• Favourable tax treatment for certain foreign-sourced income, subject to specific conditions and double taxation agreements

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Which Sectors and Activities Are Covered?

According to current regulations, the following areas may fall under the IFICI regime:
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• Information and communication technologies
• Scientific research and experimental development
• Higher education and advanced training
• Innovative industries and advanced engineering
• Specialised technical consultancy
• Health and life sciences
• Innovative entrepreneurship with technological or scientific relevance

This means that the regime is not limited to academic roles. Several technical and managerial professions linked to innovation may qualify, provided their work contributes to research, development or technological advancement.

How to Apply for the Regime

To apply for IFICI, the taxpayer must:

• Become a tax resident in Portugal
• Confirm that their professional activity fits the eligible criteria
• Prepare documentation proving qualifications, responsibilities and employment or contractual links
• Submit the request through the Portuguese Tax Portal by 15 January of the year following the change of tax residency

The Tax Authority may request additional documentation depending on the activity and nature of the professional role.

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IFICI vs. Non-Habitual Resident Regime (NHR)

Although both regimes offer tax benefits, they differ significantly:

• IFICI focuses exclusively on activities related to science, research, innovation and technological sectors
• NHR, now restricted and being phased out, covered a broader list of professions and income types

For new residents, IFICI will generally be the applicable regime.

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Why This Incentive Matters

In a globalised economy, attracting highly qualified talent is essential for accelerating technological development and strengthening business competitiveness. IFICI:

• Facilitates the attraction of skilled professionals
• Strengthens Portugal’s innovation ecosystem
• Encourages companies to develop research and development projects
• Supports international entrepreneurs building innovative businesses in Portugal

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How E-Golden Can Help

Applying for IFICI requires accuracy, technical knowledge and careful preparation. E-Golden supports companies and professionals with:

• Eligibility assessment
• Tax planning
• Documentation preparation and submission
• Communication with the Tax Authority
• Ongoing advisory and compliance support

If you are hiring qualified professionals or wish to benefit from the regime as a professional or entrepreneur, our team is ready to guide you through every step.

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