This is in relation to the new tax regime that replaced the non-habitual resident (RNH) regime, with registration being able to be done this year, exceptionally, until March 15 for eligible people who obtained residence in Portugal during 2024.

Both regimes contemplate the application of an IRS rate of 20% on income from work, and the RNH was closed to new registrations to restrict access to the benefit to high value-added workers in companies that operate in economic activities considered relevant to the national economy.

The list of eligible professionals and economic activities is already known, and the process was concluded with the publication of notices from IAPMEI - Agency for Competitiveness and Innovation and AICEP - Agency for Investment and Foreign Trade of Portugal.

Even though they consider that the listed professions and activities have expanded the universe of potential beneficiaries, tax experts continue to consider the IFICI restrictive.

Restrictive

João Magalhães Ramalho, from the Tax Department of Antas da Cunha Ecija, immediately points out the fact that registration with IFICI depends on several requirements, such as the profile and nature of the employers' activity, the taxpayer's academic and professional history, and the nature of the profession to be exercised.

"Furthermore, the right to be taxed by the IFICI depends, each year, on the taxpayer continuing to earn income resulting from the exercise of the relevant activities (the interruption cannot be longer than six months)", he stresses, arguing that Portugal exchanged a "competitive and tested tool" for a regime that is "very complex and which compares poorly with other special European regimes".

Luís Leon, from the consultancy Ilya, also points out the fact that IFICI requires a "double criterion - eligible employer and eligible profession -, making it "much more restrictive", in addition to excluding all retirees.

Anticipating several problems, Luís Leon considers that nothing was learned, pointing out the three years (between 2009 and 2012) needed for the RNH to function. As examples of details that are not explained and that, he believes, will complicate applications to the scheme, he says individual companies, considering that it is not clear whether they are eligible.

No way to sign up

At the same time, he says, there is less than a month left for people to be able to sign up, but the platform for this does not yet exist.

Patrick Dewerbe, from Pena & Arnaut Advogados, also has reservations: "15 years after the approval of the RNH, we have gone from a simple and easy-to-apply regime to a regime that is complex and difficult to explain to potential candidates."

Noting that it seems to be designed only from the perspective of companies looking to hire talent, Patrick Dewerbe points out that sometimes "talent comes first" and that the door should not be closed to it.

Nuno de Oliveira Garcia also points out that with regard to the tax aspect, the new regime presents the same rates, but, without changing them, "it ended up exempting a series of realities that were taxed under the RNH regime".

In this context, he says, the IFICI "does not take into account Portuguese international treaties, having the potential to lead to their denunciation by other States, as has already happened with Sweden" and "increases inequalities in treatment in terms of IRS", favouring "the exemption of capital income, placing more burdens on income from work".

It should be noted that it is necessary not to have been a tax resident in Portugal in the five years prior to registering with the IFICI in order to benefit from this regime, therefore, as was the case with the RNH, emigrants who left Portugal (and changed their tax residence) more than five years ago are eligible.