The tax regime for non-habitual residents (NHRs) is part of a strategy to develop the financial sector in Portugal by attracting specialised professionals from abroad, according to the president of Euronext Lisbon, Isabel Ucha.
At an event in London to promote the Tax Incentive for Scientific Research and Innovation (IFICI+), she stated that the new tax regime for non-habitual residents "is part of a strategy, because everything starts with people".
"We cannot develop companies, grow companies, bring innovation, if we do not bring people who are capable of doing so", said the president of Euronext Lisbon to Lusa Agency.
According to Ucha, "this type of player helps to bring capital to Portugal, invest in Portuguese companies, make Portuguese companies grow and this will also certainly bring more capital market operations and capital market financing, whether through bond issuances, possible IPOs and even other instruments".
The economist states that the talent attraction regime introduced in 2024 "is quite competitive in European terms" and that it may represent an opportunity in relation to the United Kingdom, where the Government has been increasing the tax burden on workers and non-residents.
"Therefore, there is an opportunity here to attract people and companies that are not satisfied and that may see Portugal as an opportunity to not only operate there, but to operate from Portugal to the rest of Europe", said Isabel Ucha.
The president of Euronext Lisbon was speaking on the sidelines of an information session held at the Portuguese Embassy in the United Kingdom, promoted by the law firm SRS Legal.
Another speaker, the director of the Securities and Exchange Commission (CVM), Carla Rodrigues Mãe, also highlighted the importance of participating in this type of initiative abroad that can help develop the capital market.
The official recalled that she had already participated in a similar event in 2019 in London, on the occasion of 'Brexit', in order to attract investment to Portugal, and highlighted the importance of a tax regime in attracting specialised and qualified professionals.
"What we feel is that there is an increasing demand from investors in Portugal and many of them want to reside in Portugal", she revealed to Lusa, mentioning factors such as geopolitical instability and the uncertainty created by the President of the United States, Donald Trump.
For Rodrigues Mãe, it is important that Portugal is seen as one of the most attractive options for companies to establish themselves in the European space.
"If we can be on the 'shortlist' of the three countries where they are thinking of setting up shop, that is already a victory for us. Of course, the ultimate victory is for them to set up shop and apply for authorization in Portugal," she stated.
The founder and senior partner of SRS Legal, Pedro Rebelo de Sousa, believes that Portugal, which for a long time was at a disadvantage compared to other more central European countries, is benefiting from the "search for geographically more neutral countries." "Clearly, in Europe, it is impossible to be more neutral".
The IFICI+ tax regime allows professionals covered to pay an income tax rate of 20% on income from dependent and independent work (categories A and B), including exemptions on other income, such as capital gains, for example.
To benefit from the scheme, in addition to needing to be part of the range of recognised professions, interested parties cannot have had tax residence in Portugal in the five years prior to registration, nor benefit from NHR or Regressar (for former residents who returned to Portugal).
Retaining talent is just as important as attracting it.
Our tax structure is brutal for the middle class, no wonder so many young professionals leave.
By Q. Ferreira from Lisbon on 02 Jul 2025, 14:18
Portugal's "New" Talent Incentive: A Familiar and Troubling Story
Reading about Portugal's latest tax incentives for attracting talent fills me with a profound sense of déjà vu – and frankly, skepticism. Eight years ago, I moved here under precisely the same assurances, only to find the reality far different from the promise.
What's being pitched today as a fresh initiative feels like a repackaging of a flawed strategy. In my own case, I never even received the promised tax regime, waiting over a year and a half while being forced to pay full taxes, ultimately settling for a less favorable setup. This is compounded by Portugal's concerning practice of retroactive law-making, meaning rules can change and apply to the past, pulling the rug out from under those who made life decisions based on current promises.
This isn't just about disappointment; it's about making significant life choices based on unstable grounds. My experience, and that of many others, serves as a crucial warning: attracting talent requires more than temporary, unreliable tax breaks. It demands consistency, transparency, and a steadfast commitment to promises made, free from the shadow of future retroactive legal changes. Without this, Portugal risks not just failing to attract new talent, but also alienating those of us who, in good faith, chose to make this country our home.
By Paul from Algarve on 02 Jul 2025, 17:24
I think it’s too late for this initiative - recent changes shown that Portugal can do a flip on you at any moment, businesses would not come to such “stable” ground.
Now it’s a time to try to keep local people inside Portugal, though those changes red flagged them too.
By Denys from Lisbon on 03 Jul 2025, 08:44
Forget about it! Nobody is coming and the ones already here will leave very soon to more appealing places who can keep up their promises. Expect a huge decline in the economy.
By Pierre from Alentejo on 06 Jul 2025, 20:43