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IFICI Calculator: Portugal’s NHR 2.0 Regime

The IFICI is the tax regime that replaced Portugal’s Non-Habitual Resident (NHR) status for newcomers: it taxes employment income from eligible activities at 20% for 10 years. Enter your gross annual income and compare the IRS at the 20% rate with what you would pay under the general regime.

Use your gross annual employment income from the eligible activity (holiday and Christmas bonuses included). The comparison deducts Social Security (11%) and the standard employment deduction before applying the rates.

Annual saving with the IFICI
€2,536.23
€8,900.00 of IRS at the 20% rate, instead of €11,436.23 under the general regime
ItemAmount (year)
Social Security (11%)€5,500.00
Standard deduction (category A)€5,500.00
Taxable income€44,500.00
IRS under the IFICI (20%)€8,900.00
IRS under the general regime (43.1% marginal rate)€11,436.23
Saving with the IFICI€2,536.23
Net annual income with the IFICI
€35,600.00
After Social Security and IRS · effective rate of 17.8% on gross
Net annual income, general regime
€33,063.77
After Social Security and IRS · effective rate of 22.9% on gross

Compares employment income (category A) from the eligible activity only, with individual taxation and the 2026 mainland tables, before tax credits. Category B, the foreign-income exemption and the eligibility conditions are explained below.

Educational estimate, not tax advice. The 20% rate for 10 years comes from article 58.º-A of the EBF; the brackets and the standard deduction are the official 2026 values. Always confirm your situation with the tax authority or a professional.

A 20% rate for 10 years

The IFICI (tax incentive for scientific research and innovation, article 58.º-A of the Portuguese tax-benefits statute) applies a special 20% rate to net employment (category A) and self-employment (category B) income earned in the eligible activity, for 10 consecutive years from the year you become a Portuguese resident. For employment income, the net amount is the gross minus the standard deduction: in 2026, the greater of €4,587.09 and your Social Security contributions. The 20% applies to that amount, and the comparison applies the general progressive brackets to the same base.

Who qualifies

You qualify if you become a Portuguese tax resident without having been resident in any of the previous 5 years and work in an eligible activity: higher-education teaching and scientific research, qualified posts tied to productive-investment incentives, highly qualified professions in industrial or strongly exporting companies, roles recognised by AICEP or IAPMEI, R&D work with SIFIDE-eligible costs, or employment in certified startups. Anyone who ever held the NHR status or used the returning-resident regime (article 12.º-A) is excluded. Registration is due by 15 January of the following year; filing late shortens the benefit.

What the calculator compares (and what it leaves out)

The calculator computes IRS twice on the same taxable income: at the IFICI 20% special rate and under the article 68.º progressive brackets (general regime, individual taxation, mainland tables). The difference is your annual saving. Below roughly €33,000 gross per year the progressive rates fall under 20%: there the IFICI does not pay off on Portuguese income and the general rules simply apply. Category B income (its own net-income rules), foreign-source income (exempt, except pensions) and tax credits are out of scope and explained in the article.

Worked example

Take an engineer hired by an exporting company on a €50,000 gross annual salary. Social Security is €5,500 (11%) and, since it exceeds the €4,587.09 standard deduction, it is what gets deducted: taxable income is €44,500. Under the IFICI, IRS is 20%: €8,900. Under the general regime, the 2026 brackets would charge €11,436.23. The saving is €2,536.23 per year, and net annual income (after Social Security and IRS) rises from €33,063.77 to €35,600. On a €100,000 salary, the saving reaches €13,532.83 per year.

Frequently asked questions

What is the IFICI?
It is the tax incentive for scientific research and innovation, created by Portugal’s 2024 State Budget in article 58.º-A of the tax-benefits statute (EBF) and widely known as “NHR 2.0”. It taxes work income (categories A and B) from eligible activities of new residents at 20% for 10 years, and exempts most foreign-source income, with the notable exception of pensions.
Does the Non-Habitual Resident (NHR) regime still exist?
It closed to new registrations in 2024, apart from transitional rules for people who already met the conditions in 2023. Anyone who already holds NHR status keeps it until their 10 years run out. For newcomers, the available regime is the IFICI, and anyone who ever benefited from the NHR cannot join the IFICI.
Who can benefit from the IFICI?
Anyone who becomes a Portuguese tax resident without having been resident in the previous 5 years and works in an eligible activity: higher-education teaching, scientific research, highly qualified professions in industrial or strongly exporting companies, posts recognised by AICEP or IAPMEI, R&D within SIFIDE, or jobs in certified startups. The exact professions and codes are listed in Portaria n.º 352/2024/1.
How is foreign income taxed under the IFICI?
The general rule is an IRS exemption in Portugal for foreign-source income of categories A, B, E, F and G. The big exception is foreign pensions, which are taxed under the general rules (unlike the old NHR, which taxed them at 10%). Income from blacklisted tax havens is taxed at 35%.
How and when do I register for the IFICI?
You must apply by 15 January of the year after the one in which you became a Portuguese tax resident, with the body responsible for your activity (for example FCT, AICEP, IAPMEI or the tax authority, depending on the case). A late application only takes effect from the year it is filed, shortening the 10-year benefit.
Are the figures exact?
The 20% rate and the 10-year duration come from article 58.º-A of the EBF; the brackets and the standard deduction are the official 2026 values (mainland). The result is an educational estimate assuming individual taxation, with no tax credits, tax benefits or income from other categories. It does not replace your IRS return or professional advice.

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Author: Thorben Rasmus Idel · Reviewed by: Nahar Geva · Last reviewed: 2026-08-03