Portugal has long been a sought-after destination for its sunny climate, rich cultural heritage, and welcoming lifestyle. Now, with the introduction of the “Incentivo Fiscal à Investigação Científica e Inovação” (IFICI+), the country reaffirms its commitment to attracting highly qualified professionals and boosting innovation. This new fiscal regime, which replaces the Non-Habitual Resident (NHR) program, comes at a time when demand for real estate in Portugal remains strong across various regions.

What You Need to Know about the New Fiscal Regime in Portugal?

The IFICI+ regime offers a streamlined set of benefits designed to attract skilled professionals in high-demand fields. Here are the key details:

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• Flat Tax Rate: Beneficiaries enjoy a 20% IRS rate on employment and independent work income for up to 10 years.
• Targeted Professions: The regime focuses on professionals in eight categories, including executives, engineers, ICT specialists, and healthcare professionals.
• Application Deadline: New residents must register for the program by March 15, 2025, for the current fiscal year. In future years, the deadline will be January 15.

This new framework is part of Portugal’s broader strategy to remain competitive while fostering economic growth and addressing key skills shortages.

Real Estate Demand Remains Strong

The introduction of the IFICI+ regime aligns with ongoing trends in Portugal’s real estate market. Despite global economic challenges, demand for property remains high, driven by both local and international buyers. Key regions such as Lisbon, Setúbal, Porto, Ericeira, and Funchal continue to attract interest from a diverse pool of investors and homeowners.

If you are interested in real estate in Portugal, contact DRP Advisers team or visit https://properties.drpadvisers.com

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What This Means for Portugal's Growth?

The introduction of the IFICI+ fiscal regime, alongside sustained demand in the real estate sector, underscores Portugal's ongoing attractiveness to both professionals and investors. By offering incentives for skilled individuals and fostering a strong property market, Portugal enhances its position as a dynamic and competitive hub within Europe.

While the NHR program previously brought considerable attention to the country, the new IFICI+ framework takes a more targeted approach, aligning fiscal benefits with Portugal’s strategic goals in innovation and economic development.

A Promising Future

Portugal continues to offer valuable opportunities for professionals, investors, and families, whether through its thriving real estate market or its innovative fiscal policies. The IFICI+ regime represents a significant step forward, reinforcing the country’s status as a top destination for those looking to build their careers and lives in a progressive, vibrant environment.