Non-residents: registrations in the new tax regime extended until March

Those interested in the new Tax Incentive for Scientific Research and Innovation (IFICI) will have two more weeks to submit their applications, said Jornal de Negócios. The deadline, initially scheduled for March 15, was exceptionally extended until the end of the month (31st), due to the recent regulation and availability of registration forms.

The IFICI regulation took a long time to be disclosed by the current Government, since this new tax regime for new residents was created in the State Budget for 2024 (OE2024).

This incentive, which replaced the regime of non-habitual residents, applies to Portuguese and foreigners who have not been tax residents in the last five years.

The benefit is valid for a period of ten years, during which beneficiaries are subject to an IRS rate of 20%, except if the income is paid by entities based in tax havens, in which case the rate rises to 35%.

From 2025, registrations must be made by January 15 of each year. If a taxpayer registers outside this deadline, the benefit will only begin in the year of registration, reducing the total validity period. Companies and beneficiaries must maintain and file supporting documents for ten years and notify the Tax Authority (TA) if there are changes that impact access requirements.

Foreign income is exempt from taxation, except pensions, while income from national sources follows the general IRS regime.

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Source: Idealista / Jornal de Negócios