What is TISRI? Understanding Portugal's NHR 2.0 Tax Regime

Portugal has introduced a new tax regime designed to attract highly qualified professionals, researchers, and innovators. Officially called the Tax Incentive for Scientific Research and Innovation (TISRI), or Incentivo Fiscal à Investigação Científica e Inovação (IFICI) in Portuguese, this regime is widely known as NHR 2.0 because it replaced the previous Non-Habitual Resident (NHR) tax regime.

If you’re a highly skilled professional considering Portugal, or you’ve recently moved here, understanding TISRI could save you a significant amount in taxes over the next decade.

What Happened to the Original NHR?

The original Non-Habitual Resident (NHR) tax regime officially ended for new applicants in 2024 (though transitional rules applied for some existing beneficiaries). It was replaced by TISRI, a much more targeted incentive focused on attracting specific types of talent rather than offering blanket benefits.

Key Difference from Old NHR

The most significant difference:

Old NHR: Broad eligibility; attracted professionals across many fields plus foreign pensioners
TISRI (NHR 2.0): Highly selective; focuses exclusively on scientific research, innovation, and high-value-added professions in specific sectors

The new regime is designed to be more strategic, targeting the exact types of professionals Portugal wants to attract for economic development.

What Are the TISRI Tax Benefits?

TISRI offers substantial tax advantages over a 10-year period. Here’s what you get:

1. Flat 20% Income Tax Rate

Portuguese-sourced income from qualifying activities is taxed at a flat rate of 20%, instead of Portugal’s standard progressive income tax rates (which can reach up to 53%).

This applies to:

Employment income from qualifying professions
Self-employment income from qualifying activities

Example: If you earn €60,000 as a qualifying professional in Portugal, your Portuguese income tax would be €12,000 (20%), instead of potentially €25,000+ under standard progressive rates.

2. Foreign-Sourced Income Exemption

Most foreign-sourced income is exempt from Portuguese taxation under TISRI:

Employment and self-employment income earned abroad
Dividends from foreign companies
Interest from foreign bank accounts
Rental income from foreign properties
Capital gains from foreign assets (real estate, securities, cryptocurrency)

Important: While exempt, foreign income must still be reported to Portuguese tax authorities for the purpose of calculating the tax rate on any remaining taxable income (known as “exemption with progression”).

3. Critical Exclusion: Pensions

Unlike the old NHR regime, foreign-sourced pensions are NOT exempt under TISRI. Foreign pensions will be taxed in Portugal at standard progressive rates.

This is a major policy shift—the Portuguese government explicitly excluded retirees from the new incentive to focus on attracting working professionals.

4. Duration: 10 Years

The tax benefits apply for 10 consecutive years from the date you become a Portuguese tax resident, as long as you continue to meet the qualifying criteria.

Eligibility Criteria: Who Qualifies?

TISRI has strict requirements. To qualify, you must meet all of the following conditions:

1. New Tax Resident (from 2024 onwards)

You must become a Portuguese tax resident starting in 2024 or later. Those who became residents before 2024 are not eligible for TISRI (though some may still qualify under old NHR transitional rules).

2. Non-Resident in Previous 5 Years

You must not have been a tax resident in Portugal in the five years immediately preceding the year you become a resident.

Example: If you become a Portuguese tax resident in 2025, you cannot have been a Portuguese tax resident at any point from 2020-2024.

3. No Previous Benefit from NHR or Similar Regime

You must not have previously benefited from:

The old NHR (Non-Habitual Resident) regime
The “ex-resident” tax incentive

This is a one-time opportunity. If you already used the old NHR, you cannot also claim TISRI.

4. Engage in a Qualifying Activity

This is the most critical requirement: you must earn income from one of the specifically defined highly qualified activities or professions in Portugal.

Qualifying Activities and Professions

TISRI is designed for specific high-value sectors. Here are the main qualifying categories:

1. Higher Education Teaching and Scientific Research

Activities related to:

University-level teaching positions
Academic research
Scientific investigation
Research and development (R&D) in universities or research institutions

Who this covers: University professors, research scientists, PhD researchers

2. Qualified Positions in Productive Investment Projects

Jobs in companies that have obtained contractual benefits for productive investment from government entities like AICEP (Portuguese Agency for Investment and Foreign Trade) or IAPMEI (Agency for Competitiveness and Innovation).

These are typically strategic investment projects that the Portuguese government has specifically approved and incentivized.

Who this covers: Executives, managers, and technical specialists in approved investment projects

3. Highly Qualified Professions in Export-Oriented Companies

Highly qualified jobs in:

Industrial companies that export at least 50% of their turnover
Service companies that export at least 50% of their turnover
Companies with eligible private investments certified by relevant authorities

Who this covers: Engineers, data scientists, product managers, software architects, business development specialists in qualifying export-focused companies

4. Certified Startup Employees

Positions in entities officially certified as Startups under Portuguese law.

Portugal has an official startup certification program. Companies certified under this program can hire foreign talent who qualify for TISRI benefits.

Who this covers: Developers, designers, technical leads, and other professionals working in certified Portuguese startups

What Does “Highly Qualified” Mean?

While not always explicitly defined, “highly qualified” typically means:

Advanced education: Bachelor’s degree or higher (Master’s, PhD often preferred)
Specialized expertise: Technical, scientific, or professional skills in high-demand areas
Strategic roles: Positions that contribute significantly to innovation, R&D, or export growth

Common qualifying fields include:

Software engineering and data science
Biotechnology and life sciences
Engineering (mechanical, electrical, aerospace, etc.)
Advanced manufacturing and industrial R&D
Financial technology (FinTech)
Artificial intelligence and machine learning
Clean energy and sustainability technology

How to Apply for TISRI

The application process is time-sensitive and requires coordination with multiple entities.

Step 1: Establish Tax Residency in Portugal

First, you must actually become a Portuguese tax resident. Generally, this means:

Spending more than 183 days in Portugal during a calendar year, OR
Having your primary residence in Portugal on December 31st of the tax year

Step 2: Confirm Your Activity Qualifies

Before applying, ensure:

Your employer or activity meets the qualifying criteria
You have documentation proving the activity is eligible (employer certificates, startup certification, university contract, etc.)

Step 3: Submit Your Application by January 15th

Critical Deadline: The application for TISRI status must be submitted by January 15th of the year following the one in which you became a tax resident.

Example:

You become a Portuguese tax resident in 2025
Application deadline: January 15, 2026

Do NOT miss this deadline. Late applications are generally not accepted.

Step 4: Obtain Required Certifications

Depending on your qualifying activity, you may need validation or certification from:

Foundation for Science and Technology (FCT): For research and scientific activities
AICEP (Agency for Investment and Foreign Trade): For productive investment projects
IAPMEI (Agency for Competitiveness and Innovation): For SME investment projects and startups
Startup Portugal: For certified startup status
Your employer: For employment-related applications

Your employer or institution will often help coordinate these certifications.

Step 5: Submit Through Portal das Finanças

File your application electronically through the Portal das Finanças (Portuguese Tax Authority website):

Log in with your NIF credentials
Navigate to TISRI application section
Upload all required documentation
Submit the application

You should receive confirmation of your application status within several weeks.

Important Limitations and Considerations

1. No Guaranteed Approval

Unlike the old NHR, which was relatively easy to obtain, TISRI applications are scrutinized. You must genuinely meet the strict qualifying criteria.

2. Ongoing Compliance

To maintain TISRI status, you must:

Continue to engage in qualifying activities
Remain a Portuguese tax resident
Report all income (including exempt foreign income) annually

If you change jobs to a non-qualifying activity, you may lose TISRI benefits for that year.

3. Exemption with Progression

Even though foreign income is exempt, it’s used to calculate your tax bracket for Portuguese-sourced income. This is called “exemption with progression.”

Example:

Portuguese income: €40,000 (taxed at 20% flat under TISRI)
Foreign dividend income: €20,000 (exempt, but reported)
The €20,000 may still affect your marginal rate for other income or social security calculations

4. Local vs. Foreign Income Classification

Determining whether income is “Portuguese-sourced” or “foreign-sourced” can be complex:

Portuguese employment: Always Portuguese-sourced
Remote work for foreign company while in Portugal: Potentially Portuguese-sourced
Freelance work performed in Portugal for foreign clients: May be Portuguese-sourced

Consult a tax advisor to properly classify your income streams.

5. Impact on Double Taxation Treaties

Portugal has tax treaties with many countries. TISRI’s exemptions may interact with these treaties in complex ways, especially regarding:

Pension taxation
Dividends and interest
Capital gains

Work with a cross-border tax specialist if you have income from multiple countries.

TISRI vs. Old NHR: Quick Comparison

Feature	Old NHR	TISRI (NHR 2.0)
Eligibility	Broad (many professions + retirees)	Narrow (research, innovation, high-value sectors)
Portuguese Income Tax	Varies by profession (often 20%)	Flat 20% for qualifying activities
Foreign Income	Generally exempt	Generally exempt (but not pensions)
Foreign Pensions	Taxed at 10% (or exempt if taxable elsewhere)	Taxed at standard progressive rates
Application Period	Until 2023 (closed for new in 2024)	2024 onwards
Target Audience	General expat appeal	Highly qualified professionals & researchers

Who Benefits Most from TISRI?

Ideal Candidates

TISRI offers the greatest benefits to:

Research scientists and academics moving to Portuguese universities or research institutions
Software engineers and tech professionals joining certified Portuguese startups or export-focused tech companies
Senior professionals in industrial or service companies with 50%+ export revenue
Highly skilled expats relocating for strategic investment projects

Who Should Look Elsewhere

TISRI is not suitable for:

Retirees: Foreign pensions are fully taxed; the old NHR was better for retirees
General remote workers: Unless your remote work clearly qualifies as a high-value activity in an eligible sector
Small-scale freelancers: Unless you’re conducting qualifying research or working with certified startups
Previous NHR beneficiaries: You cannot claim TISRI if you already used old NHR

Practical Tips for Freelancers and Consultants

If you’re a freelancer or consultant considering TISRI:

1. Structure Your Work Carefully

To maximize your chances:

Partner with certified startups or qualifying companies
Focus on innovation-heavy projects (R&D, product development)
Document the high-value nature of your work

2. Get Pre-Approval Guidance

Before relocating, consult with:

A Portuguese tax advisor familiar with TISRI
The relevant certification authority (IAPMEI, AICEP, etc.)

Confirm your activity will qualify before you commit to moving.

3. Maintain Detailed Records

Keep thorough documentation of:

Your qualifying activities
Client contracts showing high-value work
Export revenue if applicable (for company clients)
Any certifications or validations

4. Plan Your Residency Timing

Since the application deadline is January 15th of the year following your residency, strategic timing matters:

Become resident early in the year: Gives you more time to prepare the application
Avoid late-year residency: You’ll have limited time to gather documentation before the January 15th deadline

Common Questions

Can I apply for TISRI if I’m already in Portugal?

Only if you became a tax resident in 2024 or later and meet the 5-year non-residency requirement. If you were already a resident before 2024, you cannot qualify for TISRI.

What if I change jobs during the 10-year period?

You must continue to engage in qualifying activities. If you switch to a non-qualifying job, you may lose TISRI benefits for the years you’re not in a qualifying position.

Can I be self-employed under TISRI?

Yes, as long as your self-employment activity is one of the qualifying high-value activities (research, innovation, working with certified startups or export-oriented companies).

Is there a minimum income requirement?

There’s no explicit minimum income stated in the law, but the nature of “highly qualified” activities generally implies professional-level compensation.

Can my family benefit from TISRI?

TISRI is an individual benefit. Your spouse or dependents would need to qualify independently based on their own activities. However, they may benefit indirectly if you structure family income through your qualifying activity.

Resources and Next Steps

Official Resources

Portal das Finanças: https://www.portaldasfinancas.gov.pt – Apply for TISRI status
IAPMEI: https://www.iapmei.pt – Information on startup certification and SME investment projects
AICEP: https://www.aicep.pt – Productive investment project information
Startup Portugal: https://www.startupportugal.com – Startup certification details

Get Professional Advice

TISRI is complex and has significant financial implications. Before applying:

Hire a Portuguese tax advisor (contabilista or tax lawyer) with TISRI experience
Consult with cross-border tax specialists if you have foreign income
Coordinate with your employer to ensure proper documentation and certification

The cost of professional advice is minimal compared to the potential tax savings over 10 years.

Conclusion

TISRI (NHR 2.0) represents a major shift in Portugal’s strategy for attracting foreign talent. Instead of broad appeal, it targets highly skilled professionals in research, innovation, and export-oriented sectors.

Key takeaways:

20% flat tax on Portuguese-sourced income from qualifying activities
Foreign income generally exempt (except pensions)
Very strict eligibility: Must be in research, innovation, certified startups, or export-focused companies
Application deadline: January 15th of the year following residency
Not for retirees: Foreign pensions are fully taxed
10-year benefit period if you maintain qualifying status

If you’re a highly qualified professional in a strategic sector, TISRI can offer substantial tax savings. However, the regime’s narrow focus means many expats who would have qualified for old NHR will not qualify for TISRI.

The bottom line: TISRI is a powerful incentive for the right candidates, but it requires careful planning, proper documentation, and professional guidance to successfully obtain and maintain.

Considering freelancing or consulting in Portugal? Check out our guides on Trabalhador Independente vs ENI, understanding Faturas, and managing IRS payments.