How to obtain IFICI (NHR 2.0) status in Portugal

Preparation for obtaining IFICI status

Before applying for IFICI, you need to confirm your status as a tax resident of Portugal. The first step is to obtain the right to reside in Portugal. This can be done by registering your place of residence with the municipality or obtaining a residence permit through the immigration service (AIMA, formerly SEF) or the Portuguese embassy. The procedure may vary depending on the type of visa or status.

Next, you need to obtain a Portuguese tax number (NIF). It is issued by the tax authority Autoridade Tributária e Aduaneira (AT) or through a tax representative. Without a NIF, it is impossible to open a bank account, rent accommodation, or sign an employment contract.

After that, you should register as a tax resident through Portal das Finanças, providing your address and contact details. After activating your account, AT will send you an access code to your personal account, which is used to apply for IFICI and further tax procedures.

Submitting an application

The next step is to submit an application to IFICI. This can be done online via Portal das Finanças. The application must be submitted by January 15 of the year following the acquisition of tax resident status. After logging into your personal account, select the form where you enter your personal data, type of activity, and brief information about the company or institution within which the qualified activity is carried out, and upload additional documents (in certain cases). After submission, the system generates a confirmation of acceptance of the application, which is stored in your electronic account.

If the IFICI application is submitted after January 15 of the year following the acquisition of tax residency, the regime may still be applied, but it will only take effect from the year of actual submission. In this case, the ten-year preferential period is not extended, but is counted from the year when the person became a resident and is reduced by the number of years missed.

After registration, the application is forwarded for verification to the competent authorities and the tax service, which confirm compliance with the criteria of the regime. If the applicant carries out several types of activities and the verification of their compliance falls within the competence of different authorities, a separate application is submitted for each type of activity.

After submitting the application, all documents confirming the activity, qualifications, and income must be kept for the entire period of use of the regime. The tax service may request them for verification at any time.

Required documents

To confirm their right to IFICI, applicants must submit a package of documents certifying their activities and qualifications. Depending on the type of employment, these may include:

• an employment contract, if the activity is carried out on a salaried basis;
  a current extract from the commercial register – for members of the company’s management bodies;
• a grant or research project agreement – for scientists and researchers;
• a copy of a diploma or document confirming an academic degree (if applicable);
• a certificate or declaration from the employer confirming that the company meets the conditions of the IFICI regime – submitted only in cases where the type of activity requires it (e.g., innovative companies or research projects, etc.);
• other documents, if required by the relevant competent authorities.

A separate procedure is provided for highly qualified professions (these include, in particular, IT specialists, engineers, directors, and other management positions, etc.). In this case, the AT independently contacts the company where the applicant works with an electronic request to confirm compliance with IFICI requirements; the applicant does not submit any additional documents.

The company is required to confirm by March 15 of the current year:

• that it meets IFICI requirements (in particular regarding AICEP, IAPMEI, Startup Portugal status or an export indicator of ≥ 50%);
• that the applicant actually holds a highly qualified position.

Application review

The application is then forwarded to the competent authorities for consideration, depending on the type of activity:

After verifying the qualification and organizational criteria, these authorities submit their conclusions to the AT, which assesses other conditions, in particular residency, the validity of documents, and the absence of other preferential regimes (NHR, Programa Regressar, IRS Jovem, etc.). If all conditions are met, the AT enters the applicant in the IFICI beneficiary register.

Confirmation of status and its maintenance

After approval, the tax authority notifies the result via the personal account on the Finanças portal. The employer receives confirmation that it can apply a 20% rate to the income of the employee or manager.

Every year, by February 15, the competent authorities send updated data to the tax authorities, and by March 31, the AT confirms or extends the status for the current year. It is not necessary to reapply if the activity has not changed.

If there is a change in company, position, or type of activity, the AT must be notified by January 15 of the following year. If the changes involve a transfer to another company or activity that is verified by another competent authority, a new application must be submitted to IFICI.

If professional activity is temporarily suspended but a new job or project begins no later than six months later, the status is retained. In the event of a longer break, the status is not lost but is suspended until the qualified activity is resumed.

Conclusion

NHR 2.0 differs significantly from the classic NHR regime. While the previous system provided benefits mainly based on tax residency, the new IFICI regime is based on the principle of participation in activities that create added value for the Portuguese economy.

IFICI status must not only be obtained, but also maintained throughout the entire period of validity by complying with certain requirements. Only if these requirements are continuously met can the beneficiary enjoy the tax advantages of the regime.