During the free online meeting on February 19th, Paula Franco, president of the Portuguese Institute of Chartered Accountants (OCC), highlighted the importance of clarifying for clients the tax regimes that incentivize returning to and settling in Portugal. These incentives are aimed at both Portuguese citizens who have emigrated and are considering returning, and foreign citizens interested in establishing themselves in the country.
Main Incentive Schemes
The president emphasized three specific schemes that can be decisive for talent retention and the attraction of qualified labor:
- Young People’s IRS (Personal Income Tax)
- Aimed at young workers between 18 and 26 years old (or up to 30 years old for graduates with a master’s or doctoral degree).
- Allows for reduced taxation on employment income during the first five years of activity.
- Represents a significant incentive for young people to settle in the Portuguese labor market.
- “Regressar” (Return) Program
- Created to support Portuguese emigrants and their descendants who wish to return to Portugal.
- Offers a partial exemption from IRS on income earned in Portugal during the first few years after returning.
- Also includes financial support and facilitation of access to employment.
- Tax Incentive for Scientific Research and Innovation (IFICI)
- Aims to foster investments in scientific research and technological innovation.
- Recently improved by the Ministry of Economy, making it more comprehensive and accessible.
- A valuable incentive for companies and research institutions.
Application Process
Applications for these schemes can be submitted until April 15th through the online platforms of IAPMEI and AICEP.
Conclusion
The presented tax incentives are fundamental tools for stimulating the return of Portuguese citizens to the country and for attracting new talent. The improvement of the schemes, especially IFICI, reinforces Portugal’s attractiveness as a professional and academic destination. Chartered accountants play an essential role in disseminating and clarifying these benefits to their clients, contributing to a more dynamic and competitive labor market.
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