If you hold NHR (Non-Habitual Resident) or IFICI status in Portugal, your Category A (employment) and Category B (self-employment) income may be taxed at a flat 20% rate instead of the standard progressive rates (up to 48%).
However, not all activities qualify. This article explains how to check.
What determines eligibility?
The 20% flat rate under Art. 72 nº10 of the CIRS code applies only to income derived from high value-added activities as defined in Portuguese law.
For NHR status holders (registered before 2024), the eligible activities are listed in Portaria 12-A/2024 (which replaced the earlier Portaria 230/2019). These include professions in areas such as:
Architecture and engineering
Medical and dental practitioners
University professors and researchers
IT professionals and software developers
Auditors and tax consultants
Artists, actors, and musicians (specific codes)
Investors, directors, and managers of companies (with conditions)
For IFICI status holders (the new regime from 2024 onwards), eligibility criteria differ — they focus on scientific research, qualified employment, and specific sectors. Check with Autoridade Tributária for the latest qualifying criteria under the IFICI framework.
How to verify your activity qualifies
Check your CAE or CIRS activity code. You can find this in your Finanças portal under your taxpayer profile.
Compare it against the official list. The current reference is Portaria 12-A/2024, published in Diário da República. You can search for it at dre.pt.
If your activity isn't on the list, the 20% flat rate does not apply to your Category B income. Standard progressive rates will be used instead.
What if I have mixed income?
If you earn income from both qualifying and non-qualifying activities, only the qualifying portion is eligible for the 20% rate. The remainder is taxed at progressive rates.
What FIZ does
When you indicate RNH or IFICI status in the FIZ wizard, we apply the 20% flat rate to all your Category A and B income by default. If only part of your income qualifies, you should adjust this manually or consult a tax advisor.
Still unsure?
If you're not certain whether your activity qualifies, we recommend consulting a registered tax advisor (contabilista certificado) in Portugal. They can confirm your eligibility based on your specific activity code and contract type.
Related articles: - RNH Foreign Income: Exemption vs Credit Method
Legal references: - Art. 72 nº10 CIRS - Portaria 12-A/2024 (replaced Portaria 230/2019)