Key Points on Portugal's IFICI Tax Incentive for Scientific Research and Innovation Activities
Portugal -
Since 2024, Portugal's IFICI tax incentive has provided a preferential tax regime for individuals engaged in scientific research and innovation. However, its implementation is highly complex due to scattered regulations, multiple eligibility categories, and intricate registration and verification procedures. This guide breaks down the key aspects of the regime, including eligibility criteria, tax benefits, registration requirements, and important deadlines for beneficiaries.
The newly implemented IFICI regime (Incentive for Scientific Investigation and Innovation), in effect since 2024, is highly complex due to several factors:
- The applicable rules are scattered across more than 8 different documents – with more on the way.
- IFICI foresees 8 different eligible categories, each with its own nuances.
- In most cases, a double-step registration process is required.
- A complex cross-checking system is in place between the Portuguese Tax Authority and various public entities.
- The regime imposes shared responsibility between beneficiaries and the public and private entities involved in its application.
In this document, we explore the key challenges of this new tax incentive.
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