If you are planning a move to Portugal with a Golden Visa, D2 Entrepreneur Visa, D7 Visa, or D8 Digital Nomad Visa, you should also know about IFICI Portugal — the Tax Incentive for Scientific Research and Innovation.
This regime is one of the most attractive Portugal tax benefits for expats, helping professionals reduce their expat taxes in Portugal while protecting most of their foreign income.
What is IFICI?
IFICI is a special Portuguese tax regime for international professionals working in qualified activities. Key advantages include:
- Flat 20% income tax on eligible Portuguese employment or self-employment income
- Exemption on most foreign-source income (except pensions and tax-haven income)
- 10 years of preferential tax treatment for long-term planning
Who Qualifies for IFICI Portugal?
You may qualify if you:
- Become a tax resident in Portugal (without residency in the previous 5 years)
- Work in eligible sectors such as science, research, technology, medicine, higher education, or management in innovative companies (approved by AICEP or IAPMEI)
- Have not previously used IFICI
- Submit your application by 15 January of the year after becoming resident
Why IFICI is Important for Golden Visa, D2, D7 & D8 Holders
- Golden Visa Portugal: Secure residency through investment, then optimize your taxes with IFICI if you live and work in Portugal.
- D2 Entrepreneur Visa: Ideal for entrepreneurs starting a business in Portugal. IFICI can reduce taxes on your Portuguese business income and exempt foreign income.
- D7 Visa Portugal: Perfect for passive income holders; IFICI adds value if you also work in a qualified field.
- D8 Digital Nomad Visa: Remote professionals in technology and innovation may benefit from IFICI’s 20% flat tax.
Next Steps
Every case is different. The right tax planning depends on your profession, your income structure, and your residency path.
– Contact us for a personalised tax strategy that combines your Golden Visa, D2, D7, or D8 residency with the IFICI Portugal regime — and make the most of Portugal’s tax benefits.
Written by Dirk Cluckers, an international tax specialist with more than 25 years of experience. As Director at Wess Ltd and Managing Director at De Hoon & Cluckers Ltd, he focuses on cross-border taxation, residency and relocation services for expats worldwide.
