Portugal's new IFICI regime sets 20% tax rate for specific workers

Portugal’s IFICI regime, also called NHR 2.0, applies to new tax residents who start on or after Jan. 1, 2024. It gives a 20% flat tax on qualifying Portuguese-sourced employment or self-employment income for up to 10 years.

The program replaced the old NHR system and is written into Article 58-A of Portugal’s tax benefits code. It covers approved work in areas such as scientific research, higher education, certified startups, tech and innovation centers and some export-heavy companies.

Who can use it

The rules are narrow. Retirees, passive investors and most remote workers for foreign clients don't qualify, even if they live in Portugal. US expats still owe US tax on worldwide income, so the regime doesn’t remove that filing duty.

Digital nomads and Golden Visa holders can qualify only if they move into eligible local roles and meet Portugal’s residency and activity rules. Applicants also need to have lived outside Portugal for the previous 5 years.

What applicants need to do

Eligible residents must file through the Portal das Finanças or the relevant agency, such as FCT, AICEP, IAPMEI or Startup Portugal. The deadline is Jan. 15 of the year after tax residency begins, with a transitional deadline of March 15, 2025 for 2024 residents.

First approvals were issued in March 2026, showing the system is active. Read our full Portugal guide for the complete picture and check our visa updates page for related changes.