How much tax would I save with IFICI (NHR 2.0) in Portugal?
| Taxable income | €53,400 |
| IRS at normal rates | €15,125 |
| IRS with IFICI (20%) | €10,680 |
| Saving per year | €4,445 |
| Over 10 years (same income) | €44,447 |
| Average rate, normal | 25.2% |
| Average rate, IFICI | 17.8% |
Figures checked in October 2026 · See assumptions ↓
How it was calculated
IFICI (the incentive that replaced NHR in 2024) taxes income from an eligible activity at a flat 20% for 10 years, instead of the normal IRS rates of up to 48%. This compares both for one year, for a single person, with 2026 rates and the standard deductions.
Highly qualified roles usually need a degree plus 3 years of experience, or a doctorate. Foreign employment, self-employment, investment and rental income is generally exempt, but foreign pensions are not covered. You apply on the Portal das Finanças (the tax portal) by 15 January of the year after you become resident.
Estimate: the 20% figure leaves out the solidarity surcharge on income above €80,000, and it cannot be combined with IRS Jovem. Not tax advice.
Example: you earn €45,000 gross a year as an employee in an eligible activity. After deducting the 11% Segurança Social, taxable income is €40,050. At normal rates you would pay €9,518 of IRS, 21.2% on average. With IFICI you pay 20%, which is €8,010, and you save €1,508 a year. Over 10 years, on the same income, that is about €15,076.
If you register later, the regime applies from that year, for whatever is left of the 10 years.
The 2026 IRS rates may still be cut with effect from January (decree-law approved by the Government, awaiting publication). This page uses the rates currently in force.
Figures checked in October 2026 · Sources: AT: folheto IFICI, Portal das Finanças
Estimate: An approximate result that depends on assumptions. Confirm important figures with the relevant authority.
Frequently asked questions
What replaced NHR in Portugal?
IFICI, often called NHR 2.0. It taxes income from eligible, highly qualified jobs at 20% for 10 years, for people who were not tax resident in Portugal in the previous 5 years.
Do pensions qualify for IFICI?
No. Foreign pensions are not covered by IFICI and are taxed at normal IRS rates.
Can lecturers and researchers get IFICI?
Yes. Higher education teaching and scientific research, including research employment contracts, are among the eligible activities. In these cases, FCT (the science and technology foundation) confirms eligibility.
Can startup workers get IFICI?
Yes, if the startup is certified and the role is in research or innovation, or if you sit on its governing bodies. These cases are assessed by Startup Portugal.
Who decides whether my activity qualifies for IFICI?
It depends on the activity. FCT assesses teaching and research, AICEP and IAPMEI assess jobs at companies with investment contracts or of economic relevance, ANI assesses R&D staff, and the tax authority assesses highly qualified professions.