Since January 2024, Portugal has introduced a new tax incentive known as the Incentivo Fiscal à Investigação Científica e Inovação (IFICI), replacing the well-known Non-Habitual Resident (NHR) program. This new regime—often referred to as NHR 2.0—was created under Article 58-A of the Estatuto dos Benefícios Fiscais (EBF) and aims to attract international talent in research,…
Selling a property in Portugal can be a significant financial event, often resulting in a substantial capital gain, or “mais-valia.” However, the Portuguese Tax Code (Código do IRS – CIRS) provides a powerful relief mechanism for homeowners: the exemption of capital gains tax through reinvestment into a new primary residence. Understanding the conditions and timelines…
What is IFICI (Art. 58-A EBF)? The Scientific Research and Innovation Tax Incentive (IFICI) grants a 20% flat tax rate on net income from employment (Category A) and self-employment (Category B) in eligible activities, for 10 consecutive years starting in the year the taxpayer becomes a Portuguese resident. As a general rule, foreign-source income (Categories…
One of the most common questions from clients pursuing the Golden Visa via cultural donation is whether the €250,000 gift to an institution like Fundação de Serralves also provides tax relief in Portugal. The short answer: yes, such donations can generate an IRS (personal income tax) deduction — but the benefit is limited, strictly regulated,…
Publication Date: September 5, 2025Effective Date: 1 January 2026 Portugal has officially removed Hong Kong, Liechtenstein, and Uruguay from its list of jurisdictions with “clearly more favourable tax regimes,” more commonly known as the tax haven list. This change, announced through Ordinal 292/2025/1 and published in the Diário da República, reflects Portugal’s commitment to maintaining…
How Are Cryptoassets Taxed in Portugal? A Complete Guide (2025) Portugal has emerged as one of Europe’s most interesting jurisdictions for crypto investors and miners. However, the tax treatment of cryptoassets is not uniform — it depends on the nature of the activity and the type of income involved. 1. Buying and Selling Crypto (Capital…
Quick overview (2025 figures) National minimum wage (RMMG) 2025: €870/month in mainland Portugal (higher in islands). This matters because several residency thresholds are multiples or references to the minimum wage. D8 (Digital Nomad) income floor: 4× minimum wage = €3,480/month in 2025. Most consulates look for consistent income over recent months and evidence of remote…
1. What is IFICI (NHR 2.0)? The Non-Habitual Resident 2.0 regime, officially called the Tax Incentive for Scientific Research and Innovation (IFICI), came into effect on January 1, 2024, replacing the former NHR regime. It was introduced in the 2024 State Budget Law and codified in Article 58-A of the Portuguese Tax Benefits Code (EBF).…
When living and working in Portugal, it is not uncommon for taxpayers—whether residents, expatriates, or freelancers—to face unexpected tax assessments. Sometimes these assessments may be incorrect, based on mistakes in reporting, misinterpretations of law, or administrative errors. Fortunately, Portuguese law provides several mechanisms for taxpayers to defend their rights. The two main avenues are reclamação…
Setting up as a freelancer or self-employed professional in Portugal is an exciting step, but it also comes with specific tax and compliance obligations. Whether you are a consultant, creative professional, engineer, or entrepreneur, understanding how to register your activity and manage both IRS (personal income tax) and IVA (VAT) is essential. In this guide,…