Visa Permits

Portugal's NHR 2.0 The IFICI Tax Regime in 2025

 

The Tax Incentive for Scientific Research and Innovation (IFICI) — commonly referred to as NHR 2.0 — is a Portuguese tax regime designed to attract highly skilled professionals to the country.

– Designed to foster innovation, digital transformation, and global competitiveness, this regime offers significant tax benefits to individuals working in qualifying professions or industries, reinforcing Portugal’s position as a hub for knowledge-driven economic growth.

– Under the IFICI regime, eligible professionals benefit from a 20% flat tax rate on income derived from qualifying employment and self-employment activities for up to 10 years.

– Additionally, income earned abroad—excluding pensions—are tax-exempt in Portugal, provided it is declared for tax progression purposes. This includes passive income such as, dividends, interest,
royalties, capital gains and rental income from
property or other employment income, all of which are derived outside Portugal.

– However, this regime is not available to individuals who have previously benefited from other special tax regimes, such as the Non-Habitual Residency (NHR) regime or the Return Program. Moreover, it can only be accessed once per taxpayer.

– This tax incentive is a key part of Portugal’s strategy to attract international talent and strengthen its position in the global economy.

Golden Visa Program

The Golden Visa program continues to offer residency to investors, with the following qualifying options:

Investment Funds: A minimum investment of €500,000 in qualifying Portuguese investment funds.
Job Creation: Creation of at least ten jobs in Portugal.
Research Activities: A capital transfer of €500,000 or more for research activities conducted by public or private scientific research institutions.
Commercial Company Formation: Formation of a commercial company in Portugal with a capital transfer of €500,000 or more, combined with the creation of five permanent jobs.

It is important to note that as of October 2023, real
estate investments no longer qualify for the Golden Visa program.

D2 Visa – Entrepreneurial Visa

The D2 Visa is designed for entrepreneurs who wish to start or purchase a business in Portugal. Key requirements include:

Business Establishment: Evidence of setting up or acquiring a company operating in Portugal.
Financial Means: Proof of sufficient funds to support both the business and personal living expenses.
Accommodation: Proof of accommodation in Portugal, such as a rental agreement or property deed.
Health Insurance: Valid health insurance covering the duration of stay.
Clean Criminal Record: No criminal record in Portugal or the country of origin.

D7 Visa – Retirement or Passive Income Visa

The D7 Visa caters to individuals with stable passive
income. Requirements include:

Minimum Income: At least €870 per month from passive income sources.
Additional Income for Dependents: An additional 50% for a spouse and 30% per dependent child.
Savings: Maintaining a minimum balance of €10,440 in a Portuguese bank account.
Accommodation: Proof of long-term accommodation in Portugal.
Health Insurance: Valid health insurance.
Clean Criminal Record: No criminal record.

D8 Visa – Digital Nomad Visa

Introduced in 2022, the D8 Visa is aimed at remote
workers and freelancers. Requirements include:

Minimum Income: A stable income of at least €3,480 per month from remote work.
Proof of Remote Work: Evidence of remote work or self-employment, such as contracts or client agreements.
Accommodation: Proof of accommodation in Portugal.
Health Insurance: Valid health insurance.
Clean Criminal Record: No criminal record.

HQA (Highly Qualified Activity) Visa

The HQA Visa targets highly skilled professionals and entrepreneurs. Requirements include:

Higher Education: A diploma from a recognised
educational institution.
Employment Contract: A work contract or a written promise of employment for at least one year, with a salary 1.5 times higher than the average gross annual salary in Portugal.
Clean Criminal Record: No criminal record.
Health Insurance: Valid health insurance.