What is IFICI?
The Tax Incentive Regime for Scientific Research and Innovation (IFICI) was created by the Portuguese Government with the aim of attracting qualified professionals to the country, encouraging research, development and innovation activities in strategic sectors of the national economy.
This regime was approved by the State Budget Law for 2024 and regulated by Ordinance No. 352/2024/1, of December 23, with subsequent updates. It establishes a set of tax incentives aimed at researchers, scientists and highly qualified professionals who wish to reside and work in Portugal.
Who can benefit from IFICI?
This incentive is intended for: Individuals who become residents in Portugal.
Individuals who have not been residents in Portugal in the previous five years.
Professionals who carry out activities falling within the categories defined by article 58-A of the Tax Benefits Statute (EBF), including: Teaching in higher education and scientific research.
Qualified jobs and members of corporate bodies in recognized companies.
Activities in certified startups.
Tax benefits
Beneficiaries of this scheme benefit from a special IRS rate of 20% on income from categories A (dependent employment) and B (independent employment) obtained in Portugal. Furthermore, income obtained abroad may benefit from tax exemption, as provided for in the legislation.
Duration of Benefit
The scheme is granted for a period of 10 consecutive years starting from the year in which the individual becomes a tax resident in Portugal.
How to apply for registration with IFICI?
Registration must be done through the Tax Portal by January 15 of the year following the year in which the individual became a tax resident in Portugal. The process requires the submission of documents such as: Employment contract or research grant contract.
Permanent commercial certificate (for members of corporate bodies).
Proof of academic qualifications.
Declaration of compliance with the requirements of the regime.
The competent authorities assess the admissibility of the application and communicate the decision to the taxpayer by 31 March of each year.
Who cannot benefit from this scheme?
IFICI is not applicable to individuals who: Have benefited from Non-Habitual Resident (NHR) status.
Have opted for the Return Program (former residents).
Do not carry out eligible activities as defined in the legislation.
Relationship between IFICI and IRS Jovem
Individuals who benefit from IFICI cannot simultaneously benefit from the IRS Jovem regime.
Conclusion
The Scientific Research and Innovation Tax Incentive Regime is an excellent opportunity for qualified professionals who wish to reside and work in Portugal, benefiting from significant tax advantages. However, it is essential to ensure the correct framework and comply with all the requirements of the scheme to maximize the benefits.
At FA Accounting & Management, Ltd, we can assist you throughout the application and tax follow-up process to ensure you make the most of the incentives offered by IFICI. Contact us for personalized advice!
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