The Incentive for Scientific Research and Innovation – attracting global talent to Portugal with tax incentives
Unlocking innovation. Maximising tax benefits
The Portuguese government has implemented various measures to attract international talent and promote research and innovation. These initiatives aim to boost Portugal’s economic growth and strengthen its position as a leading destination for foreign investment.
Previously dubbed the NHR 2.0, the new regime is now commonly known as the Incentive for Scientific Research and Innovation – or the IFICI.
So, what is the IFICI?
The Incentive for Scientific Research and Innovation (IFICI) is a newly introduced tax framework designed to build upon the legacy of the Non-Habitual Residency (NHR) regime.
The IFICI – also referred to as “NHR 2.0” or “TISRI” – offers tailored tax benefits for individuals and businesses engaged in scientific innovation, carry out highly qualified activities, or who have formed start up’s within the scientific research & innovation sectors within Portugal.
Designed to encourage innovation and excellence, the IFICI programme aims to position Portugal as a global hub for research and development while continuing to offer attractive tax benefits to incoming talent.
Benefits of IFICI
Reduced Tax Rates
A 20% flat tax rate on employed or self-employed income generated within Portugal – for eligible professions.
Foreign Income Exemption
Foreign-sourced income is completely tax-exempt creating opportunities for those with global revenue streams
Designed for Innovation Leaders
Specifically targets professionals engaged in scientific innovation, academic research & highly qualified professions to foster a culture of innovation in Portugal
Building on the NHR Legacy
Just like the NHR regime, IFICI promotes Portugal as the ideal location for skilled professionals, with an added focus on driving sustainable economic growth through innovation
Who can apply?
The IFICI programme is tailored for professionals who fall into one of the following criteria:
- Individuals pursuing scientific research or hold a highly-qualified activity
- Skilled professionals across industries such as technology, healthcare, academia and R&D
- Companies with relevant start up applications, at the beginning of their functions
- Those aiming to relocate to Portugal, contributing to its goal of becoming a leader in innovation
If you’re unsure whether you meet the criteria, RHJ Accountants can assist you in determining your eligibility.
How to apply for the Incentive for Scientific Research & Innovation
Applying for IFICI takes careful planning and attention to detail. Here are a few key points to get you started:
Secure the IFICI status with RHJ Accountants
Navigating a new tax regime can be complex – but you don’t have to do it alone. At RHJ Accountants, we’re here to help individuals and businesses unlock the full potential of IFICI. Our team of experts can assist you in determining your eligibility, preparing your application, and ensuring compliance with all necessary regulations. With our support, you can rest assured that your IFICI application is handled efficiently and effectively.
In addition to our expertise in IFICI, we also offer a range of other tax and accounting services to help you thrive in Portugal. From individual tax planning to business incorporation, we have the knowledge and experience to assist you every step of the way.
So if you’re ready to take advantage of Portugal’s attractive tax incentives, let RHJ Accountants be your trusted partner. Contact us today for more information on how we can help you secure an IFICI and unlock your full potential in Portugal.
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