The IFICI or RNH 2.0, the new Non-Habitual Resident status in Portugal

Why did Portugal create the Non-Habitual Resident status?

Until recently, one of the advantages of becoming a property owner in Portugal was the possibility of obtaining Non-Habitual Resident status, allowing significant tax benefits such as income tax exemption.

Introduced by Decree-Law No. 249-2009 and supplemented by Circular 9-2012, this status aimed to attract professionals working in strategic sectors for the Portuguese economy, individuals with substantial wealth, and foreign retirees to settle in Portugal.
 

What are the tax benefits of RNH 2.0 or IFICI?

Revised in 2025, RNH 2.0 or IFICI (Incentive for Scientific Research and Innovation) focuses more on qualified professions and activities related to scientific research and innovation.

This new regime offers a reduced 20% income tax rate for professionals in qualified sectors such as digital technology (artificial intelligence, cybersecurity…), healthcare, education, green technologies, scientific research, and more.

However, retirees are excluded from IFICI, whereas the previous regime allowed them to be fully exempt from income tax for ten years. Indeed, IFICI or RNH 2.0 no longer applies to pension income and income from tax havens.

The duration of the regime remains unchanged. A new resident can benefit from this status for ten years.
 

How to obtain Non-Habitual Resident status in Portugal?

To obtain RNH 2.0 status, one must:

• Possess a Tax Identification Number (NIF).
• Establish residency in Portugal and provide proof of staying in the country for more than 183 days per year.
• Provide a copy of the employment contract or scientific scholarship agreement.
• Provide an up-to-date company registration certificate.
• Present proof of academic qualifications.
• Submit a statement from the employer confirming compliance with eligibility criteria.

The application must be submitted to the relevant authority before January 15 of the year following the acquisition of tax residency in Portugal.

The request must be registered with the Tax Authority for highly qualified professions in eligible companies or export industries; Startup Portugal for board members and employees of certified startups; AICEP or IAPMEI for positions in companies benefiting from tax advantages or contributing to productive investment; ANI or FCT for research, development, and higher education professions.

It is advisable to seek assistance from a specialized lawyer to ensure your application is complete.