IFICI+: The New Tax Benefit for Foreigners Now Regulated

 Diogo Pedro | Lawyer

The IFICI+ tax benefit, designed for foreign taxpayers in Portugal, was officially regulated on 23rd of December 2024 through Regulation No. 352/2024/1.

This regulation plays a crucial role, as Article 58.º- A only introduced the tax benefit and lacked the necessary framework for implementation. Although the IFICI+ tax benefit was established in principle, its practical application and utilisation were not feasible until now. With this regulation, the IFICI+ has become fully operational.

Below, the key aspects of this regulation are outlined, including eligibility criteria, application procedures, and how the benefit works, to provide a clear understanding of its framework.

To be eligible for the IFICI+ tax benefit, applicants must meet specific eligibility requirements, including:

• Being a taxpayer with residency in Portuguese territory.
• Engage in professional activity that falls within the scope of paragraphs a) to f) of number 1 of Article 58 - A of the Estatuto dos Benefícios Fiscais (EBF) – Tax Benefits Statute.
• Cannot benefit or have previously benefited from the Non-Habitual Resident (NHR) Tax Regime or Regressar tax benefit.
• Cannot have been a tax resident in Portugal in the last 5 years.
  

Timelines are a critical aspect of this process. To benefit from this tax regime, the enrolment request must be submitted by the 15th of January of the year following the first year of residency in Portugal.

Subsequently, enrolment requests must be presented to the appropriate regulatory bodies, which vary depending on the applicant’s professional activity.

Foreign citizens who become Portuguese taxpayers from 1st of January 2024 onward are eligible to apply for the IFICI+ tax benefit. However, those who become tax residents in 2024 have until 15th of March 2025 to complete the application. 

The entities responsible for validating the eligibility of candidates for the IFICI+ tax benefit are as follows:

• Tax Authority – responsible for ensuring compliance with all legal requirements of the application.
• Activity-Specific Regulatory Bodies – Validate professional activity eligibility based on the framework outlined in Article 58-A, number 1, paragraphs a) to f) of the EBF. The regulatory bodies are outlined in Regulation No. 352/2024/1, Article 2, number 2, paragraphs a) to f).
  

To meet the requirements for the IFICI+ application, the following documentation must be provided:

• A copy of the employment contract, applicable exclusively to dependent workers.
• An updated, permanent commercial certificate is required when the activity involves being a member of a corporate body.
• A copy of the scholarship contract, applicable when the activity performed relates to scientific research.
• Proof of the relevant academic qualifications.
• Any additional documents that may be requested.

If a taxpayer benefiting from the IFICI+ tax regime undergoes a change in their professional situation, this change must be reported to the relevant entity responsible for regulating the respective activity.

Such a professional change may render the beneficiary ineligible to continue receiving the IFICI+ tax benefit. Any changes must be reported by January 15 of the year following the occurrence, clearly stating, when applicable, the date on which the previous activity was terminated.

Key features of the IFICI+ tax benefit include:

• Taxpayers meeting the eligibility requirements can benefit from a special Personal Income Tax rate of 20% on net income from categories A (employment) and B (self-employment) derived from eligible activities.
• This reduced rate applies for a period of 10 consecutive years starting from the year of residency registration in Portugal.