January 15, 2025
Framework
With the entry into force of the State Budget Law for 2024, the Tax Incentive Regime for Scientific Research and Innovation (IFICI) was created, as provided for in Article 58-A of the Tax Benefits Statute (EBF).
More recently, it was further regulated by Ministerial Order No. 352/2024/1, of December 23.
Scope
The IFICI was introduced to address the ongoing challenge of Portugal’s high tax burden, in recognition of the difficulties faced by domestic companies in improving their competitiveness and attracting international talent.
More recently, this regime was further regulated by the aforementioned Order, which clarifying, among others:
- The key benefits of the regime
- Its requirements (e.g., eligibility, maintenance, restrictions and exclusions, verification and assessment of requirements), and
- Procedures for taxpayers to enroll in the regime (e.g., necessary documents, entities for approval).
Entry into force
This Order will enter into force on the day following its publication and will apply to taxpayers who establish their tax residence in Portuguese territory as from January 1 2024.
Next Steps
We are available to provide comprehensive support, including personalized advice and detailed clarification of the benefits and requirements of the IFICI scheme.
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The above information is not intended to be an exhaustive analysis of all the changes to the current legal regime, but a selection of those that we believe to be the most relevant, and does not dispense with the consultation of our Company and/or diplomas to which they refer.
For more information contact: Catarina Breia (+351 91 7575 832 or cbreia@pt-nexia.com) from our Tax Department.
