IFICI Portugal: Registration Rules and Eligible Professions

Ordinance No. 352/2024/1, of 23 December

Diário da República, 1st Series, No. 248, of 23 December 2024

Ministries of Finance; Education, Science and Innovation; and Economy

On 23 December 2024, the Portuguese government published Ordinance No. 352/2024/1, issued jointly by the Ministries of Finance, Education, Science and Innovation, and Economy. It regulates the Tax Incentive Regime for Scientific Research and Innovation (IFICI), provided for in Article 58-A of the Tax Benefits Statute, the regime often referred to as the successor to the old Non-Habitual Resident (NHR) status. 

1. What the ordinance states:

Article 1 sets out its purpose directly:  "This ordinance regulates the tax incentive regime for scientific research and innovation (IFICI), provided for in Article 58-A of the Tax Benefits Statute (EBF)... establishing: a) The procedures for registration under this regime applicable to taxable persons resident in Portuguese territory who carry out activities falling within subparagraphs a) to f) of paragraph 1 of Article 58-A of the EBF; b) The highly qualified professions and the industrial and service activities, for the purposes of subparagraph c) of paragraph 1 of Article 58-A of the EBF."

2. Two things it does:

The Ordinance lays out how eligible taxable persons register for the regime, and it approves the official lists of highly qualified professions (Annex I) and industrial/service activities (Annex II) that qualify under the law.

3. When it applies:

The ordinance entered into force the day after publication and applies to taxable persons who became tax residents in Portugal from 1 January 2024 onward.

Read the full IFICI’s Ordinance:

Summary: Regulates the tax incentive regime for scientific research and innovation, provided for in Article 58-A of the Tax Benefits Statute.

Portugal's high tax burden has penalised work and constituted a disincentive to effort, merit and innovation, while also representing a significant obstacle to the competitiveness of Portuguese companies and to the attraction of international talent.

For this reason, the Programme of the XXIV Constitutional Government identified as one of its main objectives “establishing Portugal at the forefront of innovation, digital transformation and the development of solutions that enable it to serve the country and open new markets for our companies”, promoting investment in innovation, entrepreneurship and digitalisation, and creating the conditions for a more innovative economy that drives wealth creation and the creation of higher value-added, better-paid jobs. To achieve these objectives, it is crucial to strengthen qualifications, innovation and productivity, as well as to encourage scientific research and innovation.

In its Article 263, Law No. 82/2023, of 29 December, which approved the State Budget for 2024, created a tax incentive regime for scientific research and innovation (IFICI), provided for in Article 58-A of the Tax Benefits Statute (EBF), approved as an annex to Decree-Law No. 215/89, of 1 July, which aims to boost the growth of Portuguese companies and the attraction of talent to the national economy, through taxation, for personal income tax (IRS) purposes, at a special rate of 20%, on category A and B income arising from scientific research and innovation activities and from qualified jobs.

In this context, it is necessary to regulate the registration of beneficiaries under the said regime, as well as to approve the lists of highly qualified professions and of industrial and service activities provided for in subparagraph c) of paragraph 1 of Article 58-A of the EBF.

Thus, the Government orders, through the Minister of State and Finance, the Minister of Education, Science and Innovation, and the Minister of Economy, under subparagraph c) of paragraph 1 and paragraph 6 of Article 58-A of the EBF, as follows:

Article 1

Subject matter and scope

This ordinance regulates the tax incentive regime for scientific research and innovation (IFICI), provided for in Article 58-A of the Tax Benefits Statute (EBF), approved as an annex to Decree-Law No. 215/89, of 1 July, as currently worded, establishing:

• a) The procedures for registration under this regime applicable to taxable persons resident in Portuguese territory who carry out activities falling within subparagraphs a) to f) of paragraph 1 of Article 58-A of the EBF;
• b) The highly qualified professions and the industrial and service activities, for the purposes of subparagraph c) of paragraph 1 of Article 58-A of the EBF.

Article 2

Registration requests

1 - Taxable persons registered as resident in Portuguese territory must submit their registration requests for the purposes of applying this regime by 15 January of the year following that in which they become resident in that territory.

2 - Registration requests must be submitted to the following entities:

a) Foundation for Science and Technology, I.P. (FCT), in the case of teaching activities in higher education and scientific research, including scientific employment in entities, structures and networks dedicated to the production, dissemination and transmission of knowledge, integrated into the national science and technology system, as well as for jobs and members of governing bodies in entities recognised as technology and innovation centres, under Decree-Law No. 126-B/2021, of 31 December;

b) Agency for Investment and Foreign Trade of Portugal, E.P.E. (AICEP, E.P.E.), in the case of qualified jobs and members of governing bodies within the scope of contractual benefits for productive investment, under Chapter II of the Investment Tax Code, approved as an annex to Decree-Law No. 162/2014, of 31 October, as currently worded;

c) Tax and Customs Authority (AT), in the case of highly qualified professions, listed in Annex I to this ordinance, of which it forms an integral part, that are:

• i) Carried out in companies with relevant investments, in the exercise of duties begun within, or in the five financial years preceding, that benefit or have benefited from the tax investment support regime, under Chapter III of the Investment Tax Code; or
• ii) Carried out in industrial and service companies whose main activity corresponds to one of the codes of the Portuguese Classification of Economic Activities (CAE) listed in Annex II to this ordinance, of which it forms an integral part, and that export at least 50% of their turnover, in the financial year duties began or in either of the two preceding financial years;

d) AICEP, E.P.E., or IAPMEI - Agency for Competitiveness and Innovation, I.P. (IAPMEI, I.P.), in the case of qualified jobs and members of governing bodies, in entities carrying out economic activities recognised by AICEP, E.P.E., or by IAPMEI, I.P., as relevant to the national economy, namely for attracting productive investment and reducing regional disparities;

e) National Innovation Agency, S.A., in the case of research and development activities where personnel costs are eligible for the purposes of the business research and development tax incentive system, under subparagraph b) of paragraph 1 of Article 37 of the Investment Tax Code;

f) Startup Portugal - Portuguese Association for the Promotion of Entrepreneurship, in the case of jobs and members of governing bodies in entities certified as startups, under Law No. 21/2023, of 25 May, as currently worded.

3 - The taxable person must submit a new registration request whenever there is a change to the entity with which the registration request must be filed, or to the company that must evidence the requirements, under paragraph 2 of Article 4.

Article 3

Verification of requirements

1 - The application of IFICI depends on verification of compliance with:

• a) The requirements relating to the activity performed by the taxable persons, which is the responsibility of the entities with which the registration requests are filed.
• b) The other legal requirements, which is the responsibility of AT.

2 - The requirements relating to the activity performed by taxable persons are those arising from subparagraphs a) to f) of paragraph 1 of Article 58-A of the EBF, from the legislation referred to therein, and from this ordinance, including its annexes.

Article 4

Documentation of registration requests and communication of changes

1 - For the purposes of the registration request and the communication of changes, taxable persons must submit to the entities referred to in paragraph 2 of Article 2, except in the cases provided for in the following paragraph, the following elements:

• a) Copy of the individual employment contract, when the activity performed is a job;
• b) Up-to-date permanent commercial certificate, when the activity performed is that of a member of a governing body;
• c) Copy of the scholarship contract, when the activity performed is scientific research;
• d) Proof of applicable academic qualifications;
• e) The document referred to in paragraph 2 of Article 10, for the situations provided for therein;
• f) Other documents that may be requested.

2 - It is the responsibility of the company in which the activity is performed to evidence the requirements relating to the activities provided for in subparagraph c) of paragraph 1 of Article 58-A of the EBF, by confirming, by 15 March, in its restricted area of the Finance Portal (www.portaldasfinancas.gov.pt), that the taxable person meets the requirements set out in sub-subparagraph i) or ii) of that subparagraph, as well as that the highly qualified profession is performed by that same taxable person.

3 - For the purposes of the preceding paragraph, AT makes available the elements to be confirmed by the end of February.

Article 5

Communication of changes by taxable persons

Whenever the requirements for benefiting from this regime cease to be met, or there is a change to the elements contained in the registration, the taxable person must inform the respective entity referred to in paragraph 2 of Article 2 by 15 January of the year following that in which those events occur, indicating, where applicable, the date on which the previously performed activity ended.

Article 6

Submission of and access to information

1 - The other entities referred to in paragraph 2 of Article 2 must notify AT, by 15 February of each year of:

• a) The registration requests of taxable persons, submitted under Article 2, as well as the changes communicated under Article 5;
• b) Compliance with the requirements relating to the activity performed by the taxable persons.

2 - The notifications referred to in the preceding paragraph are made by electronic data transmission.

3 - AT makes available to taxable persons, by 31 March of each year, information on the status of their registration, and they may obtain proof of that status through their restricted area on the Finance Portal.

Article 7

Highly qualified professions

1 - The list of highly qualified professions for the purposes of subparagraph c) of paragraph 1 of Article 58-A of the EBF is approved in Annex I to this ordinance, of which it forms an integral part.

2 - Workers falling within the professional activities mentioned in the preceding paragraph must hold, at minimum:

• a) Level 8 of the European Qualifications Framework, or level 8 of the International Standard Classification of Education (ISCED); or
• b) Level 6 of the European Qualifications Framework, or level 6 of the International Standard Classification of Education (ISCED), and hold three years of duly evidenced professional experience.

3 - Also considered highly qualified professions, for the purposes of sub-subparagraph i) of subparagraph c) of paragraph 1 of Article 58-A of the EBF, are the positions of administrators, managers and general directors of companies with relevant investments, in the exercise of duties begun within, or in the five financial years preceding, that benefit or have benefited from the tax investment support regime, under Chapter III of the Investment Tax Code.

4 - In the case of regulated professions, the taxable person must also evidence compliance with the requirements of the other applicable legislation.

5 - In case of doubt as to the scope and extent of the activities listed, reference should be made to the codes of the Portuguese Classification of Professions annexed to Resolution No. 967/2010 of the Higher Council for Statistics, of 5 May 2010, published in the Official Gazette, 2nd series, No. 106, of 1 June 2010, as well as to the corresponding explanatory notes.

Article 8

Industrial and service companies

1 - The list of CAE codes of industrial and service companies, for the purposes of sub-subparagraph ii) of subparagraph c) of paragraph 1 of Article 58-A of the EBF, is approved in Annex II to this ordinance, of which it forms an integral part.

2 - In case of doubt as to the scope and extent of the activities listed under the CAE codes, reference should be made to the CAE, Revision 3, approved as an annex to Decree-Law No. 381/2007, of 14 November, as currently worded, as well as to the corresponding explanatory notes.

Article 9

Official form

The registration requests of taxable persons under Article 2, as well as the communication of changes under Article 5, are made using the official form approved by order of the Government member responsible for finance.

Article 10

Record-keeping and evidencing obligations

1 - The rules provided for in Chapters V and VI of Decree-Law No. 28/2019, of 15 February, apply, with the necessary adaptations, to the entities referred to in paragraph 6 of Article 58-A of the EBF to which the documents provided for under this ordinance are submitted, as well as to the companies and other entities referred to in the following paragraph.

2 - Companies and other entities in which an activity provided for in subparagraphs b), c), d) and e) of paragraph 1 of Article 58-A of the EBF is performed must provide the taxable person with a declaration certifying compliance with the requirements relating to the activity performed that are applicable to them.

3 - Taxable persons must be in possession of the evidence of the performance of the activity and the corresponding earning of income, as well as of the other legal requirements for the right they invoke in any of the years of application of the regime, and must produce it whenever requested by AT's services, under the terms provided for in Article 128 of the IRS Code.

Article 11

Entry into force and effects

This ordinance enters into force on the day following its publication and applies to taxable persons who become tax resident in Portuguese territory as from 1 January 2024.

Article 12

Transitional regime

1 - For the purposes of applying this regime to income earned in 2024:

• a) Taxable persons who become resident in Portuguese territory in that year may submit the registration request and communicate changes, provided for in Articles 2 and 5, respectively, by 31 March 2025;
• b) The entities referred to in paragraph 2 of Article 2 may make the notification provided for in paragraph 1 of Article 6 by 15 April 2025;
• c) AT makes available to taxable persons the information on the status of their registration, provided for in paragraph 3 of Article 6, by 30 April 2025.

2 - The granting of the registration requests provided for in Article 2 puts an end to ongoing registration procedures under:

• a) The non-habitual resident regime, if submitted under paragraphs 3 to 5 of Article 236 of Law No. 82/2023, of 29 December, as currently worded;
• b) The IFICI regime, if submitted under the terms provided for in paragraph 9 of Article 58-A of the EBF, without prejudice to the application of paragraph 8 of the same article.

Annex I

(referred to in paragraph 1 of Article 7)

The highly qualified professions for the purposes of the tax incentive for scientific research and innovation are those falling within the following codes of the Portuguese Classification of Professions, annexed to Resolution No. 967/2010 of the Higher Council for Statistics, of 5 May 2010, published in the Official Gazette, 2nd series, No. 106, of 1 June 2010:

• 112 - General director and executive manager, of companies;
• 12 - Directors of administrative and commercial services;
• 13 - Directors of production and specialised services (except 1349);
• 21 - Specialists in physical sciences, mathematics, engineering and related technical fields (except 216);
• 2163.1 - Industrial or equipment product designer;
• 221 - Doctors;
• 231 - University and higher education teachers;
• 25 - Information and communication technology (ICT) specialists.

Annex II

(referred to in paragraph 1 of Article 8)

• Mining and quarrying - divisions 05 to 09;
• Manufacturing - divisions 10 to 33;
• Information and communication activities - divisions 58 to 63;
• Research and development on natural sciences - group 721;
• Higher education - subclass 85420;
• Human health activities - subclasses 86100 to 86904.