Portugal's TISRI/IFICI Tax Regime: Your Complete Guide to NHR 2.0
If you've been following Portuguese tax policy, you'll know that the old Non-Habitual Resident (NHR) regime ended for new applicants in December 2023. But Portugal hasn't given up on attracting international talent. Instead, they've introduced something more targeted: the Tax Incentive for Scientific Research and Innovation, known as TISRI or IFICI.
This isn't just a rebrand of the old system. It's a completely different approach that's much more selective about who qualifies, but potentially offers even better benefits for those who do. Think of it as "NHR 2.0" designed specifically for highly qualified professionals in innovation-driven sectors.
The regime officially launched on January 1, 2024, though the detailed regulations weren't published until December 23, 2024, creating nearly a year of uncertainty for potential applicants. But now that the rules are clear, let's break down exactly how this works and whether it might be relevant for your situation.
What Exactly Is TISRI/IFICI?
TISRI (Tax Incentive for Scientific Research and Innovation) and IFICI (Incentivo Fiscal à Investigação Científica e Inovação) refer to the same tax regime. It's established in Article 58-A of Portugal's Tax Benefits Code and regulated by Ministerial Ordinance 352/2024/1.
The regime offers significant tax benefits for up to 10 consecutive years, but only for highly qualified professionals working in specific sectors that Portugal considers strategically important for its economic development.
Unlike the old NHR, which was available to pretty much anyone who hadn't lived in Portugal recently, TISRI is laser-focused on attracting talent in science, technology, research, and innovation. Portugal's trying to position itself as a European hub for these industries, and this tax regime is one of their main tools for making that happen.
Who Actually Qualifies?
This is where TISRI gets quite specific. You need to meet several baseline requirements, then fit into one of the eligible professional categories.
Baseline Requirements:
First, you must become a Portuguese tax resident from 2024 onwards and not have been a Portuguese tax resident in the previous five years. You also can't have previously benefited from the old NHR regime or Portugal's Return Programme for emigrants.
Professional Requirements:
You need to work in Portugal in one of these qualifying sectors:
Scientific research and higher education teaching
ICT, engineering, and life sciences
Health professionals and university professors
Audiovisual and media production
Renewable energy and environmental sectors
Certified startups and innovation centers
Manufacturing and extractive industries (if the company exports at least 50% of turnover)
Education Requirements:
TISRI targets highly educated professionals. You need either:
A Level 6 European Qualifications Framework degree (Bachelor's) plus three years of relevant professional experience, or
A Level 8 EQF degree (PhD/Doctorate), which removes the work experience requirement
The detailed list of eligible professions includes directors and senior managers, physical sciences specialists, engineers, ICT professionals, industrial designers, and university professors, among others.
The Tax Benefits: What You Actually Get
Here's where TISRI really shines for qualifying professionals.
Portuguese Income: You'll pay a flat 20% tax rate on employment and self-employment income from eligible activities in Portugal. This replaces the progressive tax rates that can go up to 53% when you include surcharges.
Foreign Income: Most foreign-sourced income is completely exempt from Portuguese tax. This includes:
Employment income from abroad
Dividends, interest, and royalties
Rental income and capital gains
Business income
The major exception is pension income, which is fully taxed at progressive rates in Portugal.
Blacklisted Jurisdictions: There's an important caveat: income from Portugal's blacklisted tax havens doesn't qualify for exemption. Portugal recently updated this list, removing Hong Kong, Liechtenstein, and Uruguay effective January 1, 2026. But places like Panama, some Caribbean islands, and other traditional tax havens remain on the list.
How the Application Process Works
TISRI registration is more complex than the old NHR system because multiple government agencies are involved, depending on your profession.
Where to Apply:
Your application goes to different entities based on your work:
Foundation for Science and Technology (FCT) for research and higher education
AICEP for qualified jobs in exporting companies
IAPMEI for SME-related activities
ANI for innovation activities
Startup Portugal for certified startup positions
Required Documentation:
You'll need to provide:
Employment contract or business registration documents
Proof of academic qualifications
Declaration from your employer confirming eligibility requirements
Updated commercial certificates (for company members)
Scholarship contracts (for research positions)
Application Deadlines:
The standard deadline is January 15 of the year following your tax residency. However, those who became tax residents in 2024 have until March 15, 2025, to apply due to the delayed publication of regulations.
How It Compares to the Old NHR
The differences between old NHR and TISRI are quite significant:
Eligibility: Old NHR was available to almost anyone who hadn't lived in Portugal recently. TISRI is restricted to specific qualified professions.
Foreign Income: Both offer exemptions, but TISRI's approach is simpler. Instead of relying on double taxation treaties, it provides blanket exemptions (except for pensions and income from blacklisted jurisdictions).
Portuguese Income: Both offer a 20% flat rate, but TISRI limits this to eligible professional activities only.
Pension Income: Old NHR offered a 10% flat rate on foreign pensions. TISRI taxes pensions at full progressive rates, which can be much higher.
Duration: Both last 10 years, but TISRI requires annual confirmation that you're still working in qualifying activities.
Three Paths to Eligibility
If your current profession doesn't fit the eligible categories, there are still potential routes to qualification:
1. Direct Employment: Get hired by a qualifying Portuguese company in an eligible role. This requires finding an employer who meets the criteria and can demonstrate compliance with the regime's requirements.
2. Company Formation: Create a Portuguese company that exports at least 50% of its turnover and operates under eligible CAE codes (Portugal's classification system for economic activities). This path works for entrepreneurs and consultants.
3. Employer of Record Services: Work through compliant structures that can demonstrate you're engaged in qualifying activities while maintaining flexibility in how you operate.
What to Watch For
TISRI is still very new, and there are some aspects to keep in mind:
Annual Compliance: Unlike old NHR, TISRI requires yearly confirmation that you're still meeting the requirements. You need to maintain employment in qualifying activities for at least 183 days per year.
Employer Requirements: Your Portuguese employer must also meet specific criteria and provide annual confirmations to tax authorities. This creates additional administrative obligations compared to the old system.
Economic Substance: Portugal is serious about requiring genuine economic substance. You can't just be a freelancer working remotely for foreign clients and expect to qualify.
Future Changes: The Portuguese government has mentioned plans for an "IFICI+" regime that would be broader than current TISRI, but details remain unclear.
Is TISRI Worth Pursuing?
For qualifying professionals, TISRI can offer substantial tax savings. The combination of a 20% flat rate on Portuguese income and exemptions on most foreign income creates significant opportunities for tax optimization.
However, the qualification requirements mean it's not suitable for everyone. Retirees, passive investors, and professionals in non-qualifying sectors won't be eligible under current rules.
The application process is also more complex than old NHR, requiring coordination between multiple government agencies and ongoing compliance obligations.
If you're considering Portugal and think you might qualify for TISRI, the key is understanding whether your profession and situation genuinely fit the regime's requirements. The Portuguese authorities are clearly prioritizing substance over form with this new system.
For those already living in Portugal under old NHR, nothing changes. Your existing benefits continue for the full 10-year period. But if you're just starting to consider Portugal, TISRI represents a new chapter in the country's approach to attracting international talent.
What's your take on Portugal's shift toward targeting specific professional categories rather than offering broad-based tax incentives? Are you in a sector that might qualify for TISRI, or does this make Portugal less attractive for your particular situation?
Getting TISRI Right From the Start
The TISRI application process involves multiple government agencies, strict deadlines, and ongoing compliance requirements that didn't exist with old NHR. Getting it wrong can mean missing out on years of tax benefits or facing complications down the line.
If you're thinking about pursuing TISRI, the key is getting proper guidance from the start. We help professionals navigate everything from determining eligibility and preparing applications to establishing Portuguese tax residency and setting up the bank accounts and NIF numbers you'll need for the process.
Our relocation consultation calls walk you through the specific requirements for your profession and situation. We'll help you understand whether TISRI makes sense for your plans, what documentation you'll need, and how the application timeline fits with your move to Portugal.
Because TISRI is so much more complex than old NHR, having experienced support makes the difference between a smooth process and months of bureaucratic headaches. Whether you're a researcher, tech professional, entrepreneur, or working in another qualifying sector, we've helped people just like you successfully navigate Portugal's new tax regime.
Ready to explore whether TISRI could work for your move to Portugal? Let's have a conversation about your specific situation and how we can help make it happen.
