On December 23, 2024, the Portuguese Government published Ordinance No. 352/2024/1, regulating the tax incentive regime for scientific research and innovation (IFICI), provided for in article 58-A of the Tax Benefits Statute (EBF). This initiative aims to position Portugal as one of the main innovation hubs in Europe, promoting economic growth and attracting highly qualified professionals and investments in strategic sectors.
What is IFICI?
IFICI is a tax regime created by Law No. 82/2023, which established the State Budget for 2024. It applies a reduced income tax rate of 20% to income in categories A and B arising from scientific research activities, innovation and employment positions. skilled labor. This regime was designed to foster the competitiveness of national companies, encourage innovation and attract international talent.
Main Aspects of the Ordinance
Objective and Scope The ordinance establishes:
The procedures for registering beneficiaries in the IFICI regime.
Highly qualified professions and eligible industrial and service activities.
Registration and Responsible Entities Registration requests must be made to the following entities, depending on the activity:
Foundation for Science and Technology (FCT): Teaching in higher education and scientific research.
Agency for Investment and Foreign Trade of Portugal (AICEP): Qualified jobs in exporting companies.
Tax and Customs Authority (AT): Highly qualified professions.
Startup Portugal and other agencies: Activities linked to entrepreneurship and startups.
Eligibility Criteria
Professionals must have high qualifications (Level 6 or 8 of the European Qualifications Framework) and proven experience.
Companies must operate in strategic sectors and, in some cases, export at least 50% of revenue.
Deadlines and Obligations
Applications must be made by January 15th of the year following the start of tax residency.
Changes in status must also be reported annually.
Benefits and Expected Impact
This regime presents a double benefit for the country:
For Companies: Encourages investment in innovation and the hiring of qualified professionals, reducing tax costs and increasing competitiveness.
For Professionals: Provides attractive tax conditions, encouraging the retention and attraction of talent to the national market.
Transitional Regime
For income obtained in 2024, a transitional regime was established:
Registration requests can be made until March 15, 2025.
Responsible entities must notify AT by April 15, 2025.
The IRS will provide taxpayers with their registration status by April 30, 2025.
Conclusion
Ordinance No. 352/2024/1 is an ambitious measure that places innovation and professional qualifications at the center of Portugal’s economic strategy. By offering attractive tax conditions, the government seeks to transform the country into a preferred destination for talent and innovative companies. It is now up to the different actors in the national economy to take advantage of this opportunity to leverage their projects and contribute to the development of a robust and competitive innovation ecosystem.
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