BT MAGAZINE 2024 VF no marks 8 oct - Flipbook - Page 34
ISSUE 17
§
STAY AHEAD WITH
ALL FINANCE
MATTERS
Ricardo Chaves
CEO - All Finance Matters
AS WE GUIDE YOU THROUGH THE
TRANSITION FROM THE NHR TO THE
NEW IFICI REGIME IN PORTUGAL.
OVERVIEW OF THE NEW IFICI REGIME
•
R&D Personnel;
Starting in 2024, Portugal is replacing its Non-Habitual
Resident (NHR) regime with the "Tax Incentive for
Scientific Research and Innovation" (IFICI) regime. This
new program offers a 20% income tax rate for highly
skilled professionals in scientific research and innovation
for up to 10 years, aiming to attract global talent and
strengthen Portugal's knowledge-based economy.
•
Certified Startups;
•
Work in the Autonomous Regions.
Eligibility Requirements:
•
3. No Previous NHR Status:
•
4. Employer Restrictions:
1. Becoming a Portuguese Tax Resident from 2024:
•
The individual must establish tax residency in
Portugal by securing a residence permit and a
permanent address, or by residing there for over 183
days or having a habitual residence.
2. Engagement in Eligible Activities:
•
The expatriate must work in a highly qualified
scientific research or innovation activity, with no
breaks longer than six months:
•
Higher Education Teaching and Scientific Research;
•
Technology and Innovation Centers;
•
Entities Benefiting from Investment Incentives;
•
Qualified Professions in Specific Sectors;
•
Economic Activities Recognized by Public Entities;
Returning NHR beneficiaries are ineligible for IFICI.
The employee must confirm that their employer is
not deducting salary expenses under the RFAI regime
(tax incentive regime for investment).
Fiscal Benefits:
• Reduced Personal Income Tax Rate: A flat 20% rate on
employment income, in contrast to the typical progressive
rates of 14% to 53%.
• Exemption on Foreign Income: Most foreign-sourced
income, such as employment, self-employment, capital
gains, and real estate income, is exempt from Portuguese
taxation (except from offshore jurisdictions). Foreign
pensions are fully taxable under standard rates.
For any inquiries or support with the residency process
for businesses or individuals, our team can guide you
through the whole moving process. Feel free to reach out
to us at info@afm.tax or at +351 281 029 059.
To read the full article visit our page:
https://afm.tax/press/
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