Carlos Gonçalves is a Chartered Accountant and University Professor in Tax Law explains NHR 2.0.
The traditional Non-Habitual Resident status has been formally revoked and replaced by a new framework, known as the Tax Incentive for Scientific Research and Innovation (IFICI) – often dubbed “NHR 2.0”. This regime, provided for in article 58-A of the Tax Benefits Statute, is no longer a generalist benefit for retirees and passive income holders and now focuses on attracting qualified talent linked to research, innovation and knowledge-intensive activities.
To access NHR 2.0, the first step is to become a tax resident in Portugal, under the terms of article 16 of the IRS Code: stay of more than 183 days or existence of housing in conditions that suggest intention of habitual residence. It is also required not to have been a resident in Portugal in the previous five years, nor to have benefited from the old NHR regime or the former resident regime.
“The true strategic relevance of NHR 2.0 arises when the personal framework of qualified staff is articulated with the tax benefits available.”
A second block of requirements is of a professional nature: the scheme is aimed at those who carry out activities considered eligible, i.e. functions that require high academic qualification or specialised experience. This includes, for example, university teaching, scientific research, technical professions in areas such as technology, finance, health or engineering, and also top management functions in companies – such as executive directors, administrators, financial directors, chief operating officers and other strategic leadership positions. Also included are activities carried out in sectors considered to be priorities for the Portuguese economy and in high value-added projects, as well as functions carried out in the Autonomous Regions. In simple terms, the regime is aimed at highly qualified professionals and management staff with real responsibility for conducting and developing the activity.
The new regime grants, as a rule, a special rate of 20% in IRS to income from dependent work (Category A) and self-employment (Category B) obtained in the exercise of eligible activities, for a maximum period of 10 consecutive years. In certain cases, some foreign-sourced income may benefit from exemption in Portugal, provided that the rules for the elimination of international double taxation and the specific conditions provided for by law are respected.
The basic logic is clear: reward qualified and productive work, aligning personal taxation with economic policy objectives – strengthening scientific, technological and innovation capacity, attracting investment and internationalization.
The true strategic relevance of NHR 2.0 arises when the personal framework of qualified staff is articulated with the tax benefits available to companies that develop research and development projects under the Investment Tax Code. In particular, SIFIDE II allows companies to deduct a significant percentage of qualified R&D expenses from the IRC collection, structurally reducing the corporate tax burden. In practice, this means that a company that consistently invests in innovation can, at the same time, take advantage of IRC incentives and fit its main decision-makers and experts into the NHR 2.0 regime. It is a complex and bureaucratically demanding strategy, but it can generate very relevant gains in tax efficiency, both in the business and personal spheres.
This article is purely for information purposes. It is not to be taken as investment advice, financial advice, legal advice or any type of advice.
