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How can I register for the new tax regime for foreign workers in Portugal?

To register for the new IFICI+ tax regime for foreign workers in Portugal, you need to act by March 15, 2025. This registration is open to individuals who obtained residency in Portugal in 2024 and wish to take advantage of the 20% IRS rate specifically designed for qualified workers. The new regime is set to replace the previous Non-Habitual Resident (NHR) tax status, aiming to simplify and enhance incentives for skilled professionals, particularly in scientific research and innovation sectors. It will come into effect on January 1, 2025, offering a great chance to significantly reduce your tax liability. Be sure to review all eligibility requirements to ensure you qualify as a new applicant under this scheme. Currently, the ordinance regulating these changes is pending publication, and the government plans to enforce this regime actively. It's essential to prepare your documentation and gather necessary forms ahead of time. Establishing residency in Portugal requires specific steps, and along with this tax regime, you will also enjoy the benefits of a favourable lifestyle in a country known for its rich culture and beautiful landscapes. For assistance navigating the registration process and to ensure you meet all criteria, consider consulting with a tax advisor or legal expert in Portugal. Stay informed about this excellent opportunity that could change your financial outlook as an expat. For personalised help, reach out today and start your journey towards a rewarding experience in Portugal.

Monday, 23 December 2024 - News
How can I register for the new tax regime for foreign workers in Portugal?

People who obtained residence in Portugal in 2024 will be able to register for the tax regime that replaced that of non-habitual residents, IFICI+, and will be able to do so until March 15, 2025, according to the Government.

The Minister of Economy, Pedro Reis, was speaking at the parliamentary committee on Economy, Public Works and Housing, as part of a regulatory hearing, and said that the ordinance regulating the tax incentive for scientific research, innovation and human capital (IFICI+) is about to be published.

The objective, stated the minister in response to questions posed by CDS-PP deputy Paulo Núncio, is for this new instrument to be operational from January 1, 2025, with the ordinance providing for a retroactive effect in order to cover those who became resident in Portugal in 2024.

In this first year of IFICI+ operation, interested parties will be able to register until March 15th, but in the future the deadline for registration will be January 15th (for those who became residents in the immediately previous year).

At issue is a new tax regime for attracting qualified workers, particularly in the areas of scientific research, to whom an IRS rate of 20% will be applied to income from dependent and independent work (categories A and B).

People who benefit or have benefited from the status of non-habitual resident or Return (aimed at former residents) are left out of IFICI+.

IFICI+ is also not accessible to people who have resided in Portugal in the last five years, a rule the same as that already existed for the Non-Habitual Resident Status (NHR).

 

Source: https://www.theportugalnews.com/news/2024-12-20/registration-for-new-tax-incentive-for-foreign-residents-in-portugal/94374#:~:text=At%20issue%20is%20a%20new,of%2020%25%20will%20be%20applied.

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