The Portuguese Court of Auditors (Tribunal de Contas) published a report on 22 October 2026 highlighting significant risks in the expanded Non-Habitual Resident (NHR) regime successor, dubbed the “Tax Incentive for Scientific Research and Innovation” (IFICI). The regime, effective since January 2024, offers a flat 20% IRS rate for ten years to qualifying high-skilled professionals. The audit found weak eligibility verification, potential for abuse via misclassification of roles, and insufficient coordination with social security authorities. The Court estimates the fiscal cost could exceed €500 million annually by 2028 if controls are not tightened.
Key Takeaways
- Eligibility Gaps: Current rules allow self-certification of “highly qualified” status without mandatory validation by the Science and Technology Foundation (FCT).
- Deadweight Loss: Preliminary data suggests 40% of beneficiaries would have relocated to Portugal regardless of the tax break.
- Recommendations: Court urges mandatory FCT certification, annual recertification, and a clawback clause for early departure.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement