Approved by the State Budget Law for 2024 and in force since January 1 of this year, the IFICI Scheme - Tax Incentive for Scientific Research and Innovation remained unregulated until December 23, 2024.
Almost a year after the scheme came into force, Ministerial Order 352/2024/1 of December 23 was published, which regulates the scheme provided for in the Tax Benefits Statute, thus taking the first steps towards its effective implementation.
Nicknamed RNH 2.0, the IFICI is a reformulation of the revoked regime for Non-Habitual Residents (RNH).
Prior access requirements
This incentive is aimed at individuals who become resident in Portuguese territory as of January 1, 2024 and who have not been resident in the country in any of the previous five years, are not or have not benefited from the status of Non-Habitual Residents or have opted for the tax regime for former residents.
Applications for IFICI registration
Taxpayers resident in Portugal must submit their applications for IFICI registration by January 15 of the year following the year in which they become tax residents in Portugal. However, a transitional regime has been established for the year 2024, so anyone who has already earned income in Portugal in 2024 will have an extended deadline of March 15.
The application for registration must be submitted to the competent authority, as specified in
Ordinance no. 352/2024/1, along with the necessary documentation.
Activities for access to the IFICI
The IFICI stipulates that for those interested to benefit from the scheme, they must carry out one of the activities covered by the legislation. Focused on attracting and retaining highly qualified professionals, the IFICI scheme is aimed at a very specific audience, such as highly qualified staff in the fields of scientific research, investment and business development.
Among the activities eligible for the scheme are higher education and scientific research teachers and highly qualified professions, such as doctors or specialists in information and communication technologies.
Benefits
As for the tax benefits under the IFICI scheme from 2024 onwards, the following should be mentioned:
- Special flat rate of 20%, applicable to income derived from carrying out the activities covered in Portugal (employed or self-employed);
- Exemption of all income obtained abroad, provided it does not originate in a tax haven according to the Portuguese list of tax havens, or is in the form of pensions.
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