At a promotional event in London for the Incentive for Scientific Research and Innovation (IFICI+), it was emphasized that the new tax regime for non-habitual residents is integral to a broader strategy, starting with people.
“We cannot develop companies, grow them, or bring innovation without the right people,” she stated.
Ucha highlighted that “such actors bring capital to Portugal, investing in Portuguese companies, and helping them grow, which will lead to more capital market operations like bond issuances, potential capital openings, and other instruments.”
The economist noted that the talent attraction regime proposed for 2024 is highly competitive within Europe and that it represents an opportunity compared to the U.K., where the government has been increasing taxes on both workers and non-residents.
“There is an opportunity to attract dissatisfied people and businesses who may see Portugal as a base for their operations in Europe,” said Isabel Ucha.
The remarks were made during an informational session at the Portuguese Embassy in the U.K., organized by the law firm SRS Legal.
Another speaker, Carla Rodrigues Mãe, director of the Portuguese Securities Market Commission (CMVM), stressed the importance of participating in such international initiatives to develop the capital market.
Reflecting on a similar event she attended in 2019 in London, amid the ‘Brexit’ developments, she pointed out the significance of a favorable tax regime in attracting specialized professionals.
“We’ve observed increasing interest from investors in Portugal, many wishing to reside there,” she revealed, citing factors like geopolitical instability and uncertainty under U.S. President Donald Trump.
Rodrigues Mãe emphasized that it’s vital for Portugal to be seen as one of the most attractive options for companies seeking to establish operations in Europe.
“If we are on the shortlist of three countries they’re considering for establishment, it’s already a victory. The ultimate victory is for them to settle and seek authorization in Portugal,” she declared.
Pedro Rebelo de Sousa, founder and senior partner of SRS Legal, argued that Portugal, once at a disadvantage compared to more central European countries, is benefiting from the demand for geographically neutral nations.
“In Europe, it doesn’t get more neutral,” he emphasized.
Following the event in London, the law firm plans similar sessions in Brazil’s São Paulo, Belo Horizonte, and Rio de Janeiro, and potentially in the USA and Canada.
The IFICI+ tax regime allows covered professionals to pay a 20% IRS rate on dependent and independent work income (categories A and B), including exemptions on other earnings like capital gains.
To qualify for the regime, candidates must be part of recognized professions, not have had tax residency in Portugal in the five years preceding registration, and cannot benefit from the RNH or Regressar programs (for former residents returning to Portugal).
