As 2025 kicks in, the old NHR scheme finally ends and is being replaced by TISRI (the Tax Incentive for Science, Research and Innovation scheme), also called by many NHR 2.0 (or IFICI in Portuguese).
There are 3 notable difference between TISRI and NHR:
(1) TISRI doesn't offer any benefits to pensioners.
(2) Foreign sourced capital gains from securities are included (as opposed to NHR, where they was out for anyone apart from Americans).
(3) The access is not automatic and requires a qualification process.
Inconveniently, the qualification process has multiple different categories for different type of professions, but the common denominator is that TISRI is designed for people who work in Portugal for a Portuguese company.
Solution
There is, however, one major opening - board members of certified startup companies. Such board members of startup companies will also be offered tax benefits.
At FRESH, we designed a package in cooperation with leading VC funds in Portugal, wherebyinterested expats will be able to invest in a VC fund in Portugal and the fund will ensure that the expat will receive a board position in a certified startup.
The package is based on success and the investment is only transferred to the fund after the application for tax benefits has been approved by the tax authorities. In the absence of approval by the authorities, the expat will be removed from the board of the startup.
The investment amount depends on the expat's background and the added value that the expat is able to provide to the company, but generally starts at 50,000 Euro. Note that the startup scene in Portugal is booking and VC funds generally offer phenomenal returns to their investors.
Costs:
Nearly the entire cost of FRESH Portugal's services is also dependent on success.
- Facilitation of relationship with a fund and introductions to relevant startups, TISRI application -1,000 Euro up front and 4,000 Euro once TISRI has been approved.
- Annual fee advising on compliance as a director and filing the individual annual tax return - 2,000 Euro
