IFICI — 20% flat tax for research & innovation (NHR successor)
activeSole proprietorWhat you pay
- Social security (self-employed, 21.4% × 70% of income) — 15% of revenue (min 0, max 16,552/year)
- Simplified-regime coefficient (25% presumed expenses) — 25% of revenue (a deduction that lowers the tax base, not a payment)
- IFICI flat IRS 20% — 20% of revenue
Eligibility
- Revenue cap 200,000 EUR/year
- Activities: it-services, research, highly-qualified, startups
- Requires tax residency
- Limited to first 10 years
- IFICI (art. 58.º-A EBF; Portaria 352/2024, amended 52-A/2025). New residents only: not tax-resident in Portugal in any of the 5 prior years and never benefited from NHR/RNH. 20% flat rate applies to net category A/B income from eligible activities — IT/ICT specialists, AI, data, cybersecurity, R&D staff, certified startups/scaleups. 10-year cap, not renewable; register with AT/FCT by 15 Jan of the year after becoming resident. maxRevenue 200,000 EUR reflects the category-B simplified-regime cap modelled here (IFICI itself has no revenue cap for employment income).
Net income examples
| Gross/year | Net/year | Burden |
|---|---|---|
| 30,000 EUR | 21,006 EUR | 30.0% |
| 60,000 EUR | 42,012 EUR | 30.0% |
| 120,000 EUR | 85,448 EUR | 28.8% |
Computed by our open tax engine — assumes no deductible expenses, full-year tax residency. Rules as of Jan 1, 2026.
IFICI is the successor to the NHR/RNH regime for new residents. The 20% flat rate applies to Portuguese-source eligible category A/B income; qualifying foreign-source income is generally exempt (not modelled here — we compute Portuguese-source self-employment). Modelled on top of the category-B simplified regime (0.75 coefficient) because that is the default self-employment base; a beneficiary using organized accounting would deduct actual costs instead. The 15% expense add-back (art. 31.13 CIRS) is immaterial for this profile — mandatory social contributions (14.98% of gross) alone nearly satisfy the 15% test — so the taxable base is modelled as exactly 0.75 × gross. Solidarity surtax (Art. 68.º-A) is not added because IFICI income is taxed at the special 20% rate, not the general scale. IRS municipal/other personal reliefs and the mínimo de existência are not modelled.