Earlier this year, António Costa's Socialist Government decided to end the Non-Habitual Residents (NHR) status, created in 2009. Later, they opted for a transitional process that benefited those who had already begun making Portugal their home.
In early April 2024, the new government under Luís Montenegro took office and decided to reactivate the Non-Habitual Residents (NHR) program, albeit with new rules and a new name.
The "Acelerar a Economia" program includes 60 measures to boost the Portuguese economy. Among these measures is the new regime to attract foreign talent: IFICI+.
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The economic sector covers various aspects of daily life, all relevant. Therefore, the Minister of Economy and the Secretaries of State for Tourism, Economy, and Maritime Affairs met to identify gaps in Portugal. These meetings involved several public and private entities to define new measures. The Ministry of Finance also actively participated, especially in fiscal matters.
The new Government identified 20 main challenges, grouped into 5 distinct objectives:
1- Scale, Consolidation, and Capitalization;
2- Financing;
3- Entrepreneurship, Innovation, and Talent;
4- Sustainability;
5- Clustering.
In the first point, the focus is on fostering growth and scalability for company development, bridging the gap between SMEs and large enterprises.
The second point addresses facilitating access to financing for company growth.
The third point highlights investment in human capital and scientific and technological knowledge enhancement.
The fourth point deals with sustainability, emphasizing the importance of all companies adopting new measures with government incentives.
Lastly, the fifth point highlights the necessity of collaboration among companies, educational and research institutions, and governments to alleviate stagnation.
The "Acelerar a Economia" program includes a new regulation to attract foreign talent, similar to the Non-Habitual Residents (NHR) program from the previous government.
The objective is to attract qualified talent through a fiscal incentive for scientific research, innovation, and human capital development. This benefit applies to only 20% of income earned in Portugal under categories A and B (dependent and independent workers, respectively). The duration of this benefit is 10 years, with the possibility of renewal.
The new IFICI+ regime is intended for individuals who have been residing in Portugal for at least 183 days (about 6 months) and establish their tax residence in the country. This benefit applies exclusively to categories A and B, as mentioned earlier, and applicants cannot be benefiting from the old Non-Habitual Residents (NHR) regime. Another condition is that individuals must not have resided in Portugal in the last 5 years and must not have opted for the “Return” regime.
Unlike the former Non-Habitual Residents (NHR) programs, the current government excludes dividends, capital gains, and pensions from this benefit. In the past, this became an issue with Sweden and Finland. Since January 1, 2022, Sweden and Finland have been applying taxes on pensions paid by these countries to residents in Portugal, thus ending the tax agreement between the countries.
In April 2024, the new government led by Luís Montenegro reintroduced the program, now revamped as part of the ambitious Acelerar a Economia plan, aimed at revitalizing various sectors in Portugal. With 60 specific measures, including IFICI+ to attract qualified foreign talent, this program aims to promote business growth, technological innovation, sustainability, and cooperation between companies and institutions. This move demonstrates a renewed commitment to sustainable economic development and Portugal's global attractiveness.