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Pillar guide · Taxation

IFICI 2026 (ex-NHR): who actually qualifiesand why retirees no longer do

The old Non-Habitual Resident (NHR) regime no longer exists for new arrivals. Since 1 January 2024, it has been replaced by a much narrower scheme: the IFICI. Much of the content online still promises benefits that have disappeared, especially for retirees. This page sets out what is true in 2026, backed by official sources.

Updated on 9 June 20262026 edition · to be revised with each Budget Act
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The 30-second takeaway

IFICI in brief

01IFICI (Incentivo Fiscal à Investigação Científica e Inovação) is reserved for highly qualified active profiles: researchers, qualified roles in exporting companies, jobs in certified startups, R&D.
02It grants a 20% IRS rate on income from the eligible activity (categories A and B), for 10 non-renewable years.
03It replaced the old NHR on 1 January 2024. Retirees are excluded: there is no longer any tax benefit on foreign pensions.
04The application must be filed before 15 January of the year following your tax move to Portugal.

Legal basis: art. 58-A of the Código dos Benefícios Fiscais (CBF) · Portaria no. 352/2024/1 of 23/12/2024. 2026 data.

What is the IFICI, and how does it differ from the old NHR?

IFICI is a Portuguese tax regime that grants a flat 20% IRS rate on income from an eligible professional activity (category A, salaries; category B, self-employed), together with an exemption for most active foreign-source income, for 10 non-renewable years. It was created by article 58-A of the Código dos Benefícios Fiscais, introduced by the 2024 Budget Act (Lei no. 82/2023 of 29/12/2023) and specified by Portaria no. 352/2024/1 of 23/12/2024.

The difference from the old NHR is radical. The NHR broadly targeted people transferring their residence to Portugal, including retirees (foreign pension taxed at 10%, or even exempt before 2020). The IFICI is focused on innovation and high-value activity: it only covers specific profiles carrying out an eligible professional activity. Its scope is far narrower, and passive income such as pensions is left out.

“NHR 2.0”: why that name is misleading

“NHR 2.0” is a marketing nickname, not the legal name of the regime. The official name is IFICI, defined in article 58-A of the CBF.

This nickname fuels a dangerous confusion: it suggests the IFICI is a simple update of the NHR with the same beneficiaries. That is false. The scope has changed profoundly, and some profiles that were at the heart of the NHR, retirees first and foremost, no longer have any benefit under the IFICI. When a website presents “NHR 2.0” as open to retirees, it relies on outdated information.

Eligible profiles

Who actually qualifies for the IFICI in 2026?

The baseline condition, common to all profiles

Whatever your profile, two core conditions apply: not having been a Portuguese tax resident in the previous 5 years, and becoming a Portuguese tax resident in the year of the application. These are the same prior non-residence conditions as under the old NHR. If you have already benefited from the NHR or the IFICI in the past, you cannot benefit again.

The seven eligible profile categories

01

Higher-education teachers and scientific researchers

Including roles within entities of the national scientific and technological system.

02

Qualified roles and members of corporate bodies

In entities benefiting from contractual incentives for productive investment (RFAI / Código Fiscal do Investimento).

03

Highly qualified professions (Anexo I)

Directors, engineers and related professions, ICT and computing specialists, doctors… carried out in a company with an eligible CAE that derives at least 50% of its turnover from exports in the year of taking up the role or one of the two preceding years.

04

Qualified roles in activities of national interest

In companies carrying out activities recognised as of national interest by AICEP or IAPMEI (notably attracting investment).

05

Research and development (SIFIDE II)

R&D activities whose costs are eligible under SIFIDE II.

06

Certified startups

Jobs and members of corporate bodies of startups certified under the Lei das Startups (no. 21/2023).

07

Azores and Madeira

Tax residents of the Autonomous Regions of the Azores and Madeira, under the specific regional regime.

A frequent stumbling block to know about: in most cases, the employing entity or the project must have been recognised and listed on the annual list published by the competent authority (AT, FCT, AICEP, IAPMEI, Startup Portugal depending on the case). Without this prior recognition, eligibility falls away, hence the importance of planning ahead.

The concrete tax benefit (and its limits)

For an eligible profile, the IFICI applies a 20% IRS rate on category A and B income from the eligible activity only, not on all of your income. To this is added an exemption for most active foreign-source income. The benefit runs over 10 consecutive years, non-renewable and non-extendable, provided you remain a Portuguese tax resident throughout. The classic trap is to advertise “20% on all your income”: that is inaccurate. Income outside the eligible activity follows ordinary rules.

Excluded profiles

Who is excluded from the IFICI?

Excluded from the regime are notably:

  • Retirees and pensioners, on their foreign retirement pensions, full exclusion. This is the major change from the old NHR.
  • Passive investors and rentiers, whose income is purely from assets, with no eligible professional activity.
  • Most digital nomads, freelancers and classic e-commerce sellers, where their profession is not listed in Anexo I, or their company/client does not have an eligible CAE and does not achieve 50% exports.
  • Employees and self-employed people in unlisted professions or in non-eligible sectors.
  • Anyone who has already benefited from the NHR or the IFICI, or who has been a Portuguese tax resident in the last 5 years.
  • Profiles whose employing entity or project has not been recognised on the competent authority's annual list.

The case of retirees

No, the IFICI does not concern you

This is the question that comes up most often, and the honest answer is disappointing: if you are retired and move to Portugal in 2026, the IFICI brings you no benefit on your pension. Better to know it before making your decision than to discover it on your first tax return.

What changed: the 10% benefit on pensions has disappeared

Under the old NHR, a foreign private-sector retirement pension was taxed in Portugal at a flat 10% rate (and even exempt before 2020). That benefit no longer exists. The IFICI only covers income from an eligible professional activity (categories A and B): it never applies to pensions, which fall under category H. A retiree moving to Portugal today therefore has their pension taxed under ordinary rules, with no preferential regime.

How your private pension is taxed in Portugal in 2026

Under the France-Portugal tax treaty of 14 January 1971, a private-sector pension is taxable only in Portugal, your country of residence. It is then subject to the progressive IRS scale, category H, whose 2026 brackets run from about 13% to 48%, with a solidarity surcharge of up to 5% on very high income. A specific “pension” deduction applies (in the order of €4,100 to €4,500 per year and per holder, capped according to the IAS). These ranges depend on the annual Budget Act and are given as an indication for 2026, to be confirmed for your situation.

A consequence worth stating plainly: for a private-sector retiree, Portugal has lost its distinguishing tax advantage. Depending on the amount of your pension, Portuguese taxation may even be higher than French taxation. The only way to decide is a figures-based comparison, case by case, before you move.

Public civil-service pension: it remains taxed in France

If your pension comes from public employment, civil servants, military, magistrates, tenured hospital or local-authority staff, the rule is different. Under article 19 of the 1971 treaty, these pensions remain taxable in France, not in Portugal. This is a decisive distinction: confusing a private pension with a public one entirely distorts the calculation of your future taxation.

What to do instead when you are retired

The absence of an IFICI benefit does not mean the Portuguese project no longer makes sense, but it must rest on a real analysis, not an obsolete promise. Before deciding: have your Portuguese taxation simulated (category H scale, pension deduction) and compare it with your current French situation, net amount in hand; distinguish your pension sources (private vs public), as they are not taxed in the same country; factor in the other dimensions of the project (cost of living, healthcare, real estate, inheritance).

Business Portugal does not carry out this simulation itself: we connect you with the competent partner tax adviser, who produces the figures-based comparison before you make your decision.

Digital nomads and freelancers: why you are often not eligible

This is another source of misunderstanding. Being qualified, self-employed and settled in Portugal is not enough to qualify for the IFICI. The regime requires a strict combination: a profession listed in Anexo I, carried out in a company with an eligible CAE that derives at least 50% of its turnover from exports, and most often a prior recognition of the entity or the project.

In practice, a marketing freelancer, a coach, a generalist consultant or a classic e-commerce seller is generally not eligible: either their profession is not on the list, or their company or client does not meet the eligible-CAE and export conditions. Developers, engineers and ICT specialists can qualify, but only if the company framework is also compliant. Eligibility therefore hinges as much on the structure as on the occupation, which makes the choice of company and its CAE decisive.

The 15 January deadline: a window not to miss

The IFICI application must be filed no later than 15 January of the year following the one in which you became a Portuguese tax resident. If you become a resident in 2026, you have until 15 January 2027; resident in 2025, it was 15 January 2026. The application is made via the Portal das Finanças, under the procedure set by Portaria 352/2024.

This deadline is strict and hard: a late application only takes effect from the year of filing, which makes you lose one or more of the 10 benefit years. Add to this an often overlooked point: the recognition of the employing entity or the project by the competent authority must be anticipated well ahead of 15 January, as the entity must appear on the annual list published by the AT. An IFICI application is not prepared the day before the deadline.

Were you already under the NHR before 2024? You keep your regime

If you were already registered under the NHR before 31 December 2023, you keep the old regime and its benefits, including the 10% on foreign pensions, until the end of your 10 years (at the latest around 2033 depending on your registration date). These are the direitos adquiridos (acquired rights, or grandfathering).

In other words, “the NHR is over” is true for new arrivals, but false for beneficiaries already in place. If this is your case, your situation is not affected by the IFICI.

How Business Portugal helps you

The right expert, never a benefit you won't have

Business Portugal is your single French-speaking point of contact to set up and establish your company in Portugal. Audrey Marques is a company-formation and establishment consultant, neither a tax adviser, an accountant, nor a lawyer. On a subject as sensitive as the IFICI, this translates into a simple rule: we never do your tax structuring ourselves, and we do not sell you a benefit you will not have.

01

You are a potentially eligible profile

Tech entrepreneur, qualified profession, startup project: we set up and structure your company (Unipessoal Lda or Lda) taking the IFICI constraints into account, choice of CAE, export logic, a timeline compatible with the 15 January deadline, and we connect you with the partner tax adviser who validates eligibility, handles the recognition of the entity and files the application on the Portal das Finanças.

02

You are retired

We tell you plainly that the IFICI does not concern you, and we direct you to the right tax adviser for a figures-based simulation and a France-Portugal comparison before any decision.

Our value is not to replace the expert, but to spare you juggling alone, in a foreign language, with ten contacts, and to connect you with the right ones.

Frequently asked

IFICI 2026 FAQ

Is the IFICI the same thing as the NHR?

No. The IFICI (art. 58-A of the CBF) replaced the NHR on 1 January 2024 for new arrivals. “NHR 2.0” is only a nickname: the regime's scope is much narrower and targets qualified active profiles, not all new residents.

Can a retiree benefit from the IFICI in 2026?

No. The IFICI only covers income from an eligible professional activity (categories A and B). Retirement pensions (category H) are fully excluded. The old 10% rate on foreign pensions has disappeared.

How is my retirement pension taxed in Portugal?

A private-sector pension is taxable in Portugal, on the progressive IRS scale category H (about 13% to 48% in 2026, plus a possible surcharge), after a specific pension deduction. A public civil-service pension, however, remains taxable in France (art. 19 of the 1971 treaty).

What is the IFICI tax benefit?

A 20% IRS rate on income from the eligible activity (salaried or self-employed), plus an exemption for most active foreign-source income, for 10 non-renewable years. The 20% applies only to the eligible activity, not to all of your income.

Am I eligible as a freelancer or digital nomad?

Most often no. You need a profession listed in Anexo I, carried out in a company with an eligible CAE achieving at least 50% exports, and generally a prior recognition of the entity. A generalist freelancer or a classic e-commerce seller is usually not entitled to it.

What is the deadline to apply for the IFICI?

15 January of the year following the one in which you become a Portuguese tax resident. Resident in 2026 → application before 15 January 2027. The deadline is strict: filing late costs you benefit years.

I was already under the NHR before 2024, do I lose my rights?

No. Beneficiaries registered under the NHR before 31 December 2023 keep the old regime (including the 10% on pensions) until the end of their 10 years. You are not affected by the move to the IFICI.

Does Business Portugal handle my IFICI application?

We structure your company for an eligible profile and connect you with the partner tax adviser who handles eligibility, the recognition of the entity and the filing of the application. We do not carry out the tax structuring ourselves.

Verifiability

Official sources

Legal basis cited: article 58-A of the Código dos Benefícios Fiscais (CBF), created by Lei no. 82/2023 of 29/12/2023; Portaria no. 352/2024/1 of 23/12/2024; France-Portugal tax treaty of 14/01/1971.

Disclaimer

This article is for information only and does not constitute personalised legal, accounting or tax advice. Taxation depends on your individual situation and on the France-Portugal tax treaty of 14 January 1971. Audrey Marques is a company-formation and establishment consultant in Portugal, not a tax adviser: for an analysis of your case, we direct you to a competent professional. Information up to date as of 9 June 2026, subject to change with each Budget Act (Orçamento do Estado). Page edition 2026, to be revised with each Budget Act.

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