The IFICI regime (Law 41/2024) replaced NHR in January 2024. It applies a flat 20% rate on Portuguese-source income for 10 consecutive years for eligible new tax residents. This simulator compares normal IRS (progressive brackets up to 48%) vs IFICI 20% to show annual and 10-year tax savings.

By Hugo Velez Ribeiro, Certified Accountant (OCC nº 64356) · 25+ years experience · HVR Business Consulting · May 2026

How IFICI works

IFICI applies a 20% flat rate on Portuguese-source employment and self-employment income for 10 years. Compared to the normal IRS scale (13% to 48%), tech/R&D/senior management professionals with salaries above €60K/year typically save €5,000-€15,000/year.

Who is eligible

• Was not a Portuguese tax resident in the previous 5 years
• Works in a qualified activity (tech, R&D, highly qualified professions, arts, investment)
• Establishes Portuguese tax residence (>183 days/year OR habitual residence)

Learn more about HVR's IFICI service →