What is the TISRI Regime?
The TISRI tax incentive (Tax Incentive for Scientific Research and Innovation, also known as NHR 2.0 or IFICI+) is Portugal’s revamped tax incentive program designed to attract highly skilled professionals in research, innovation, and high-value industries.
It offers a competitive flat income tax rate of 20% on qualifying income, a significant reduction compared to Portugal’s usual progressive rates of 14% to 48%.
The program aims to position Portugal as a global hub for innovation by encouraging scientific and entrepreneurial talent to live and work in the country under favorable tax conditions.
Top Reasons to Move to Portugal with the TISRI Regime:
Tax Exemptions on most foreign income (except pensions)
70+ Double Tax Treaties to avoid double taxation
No Wealth, Gift, or Inheritance Taxes
10-Year Tax Benefits encouraging long-term residence
Crypto-Friendly Policies with tax-exempt long-term gains
Flat 20% tax rate on your Portuguese-sourced income
How Does the TISRI Regime Work?
You must:
Become a Portuguese tax resident (>183 days/year and have the NIF registered to a Portuguese address)
Work in approved high-value sectors like IT, R&D, startups, audiovisual, manufacturing
Not have used the previous NHR program or been a resident in the last 5 years
Hold at least a bachelor’s degree and have a minimum of 3 years of professional experience.
Key Benefits of TISRI
Pay only 20% tax on your Portuguese income (salary or self-employed)
Enjoy full tax exemption on foreign income like salary, dividends, and capital gains
Qualify for TISRI: Common Routes
Work for an existing company that exports 50%+ of its turnover: under this route, the company must operate in specific sectors, and the applicant must have at least a bachelor’s degree and 3 years of proven experience. Our EOR solution, Unbound Jump, enables you to join these companies seamlessly, providing full support for cross-border employment.
Create your own company, exporting 50 %+ of the turnover: the same criteria as the previous route will apply, and the company will be incorporated by the applicant who will invoice their foreign clients or company.
1. Teaching in Portuguese higher education institutions. Scientific Research and Innovation roles in entities recognized by the Portuguese Government.
2. The startup route: work for a certified startup company, regardless of your position or experience. This can be obtained by either joining a startup that already exists and is already certified or setting up your own startup.
3. Work for a company that is relevant to the Portuguese Economy and certified as such by the Portuguese Government Agencies (IAPMEI or AICEP): this is possible the most complex route.
Introducing Employer of Record (EOR) Services for TISRI
What is an EOR?
An Employer of Record (EOR) is a company that legally employs individuals on behalf of clients, handling all payroll, tax compliance, social security contributions, and employment logistics. This allows professionals to benefit from the TISRI regime without setting up their own company in Portugal.
Why Use Our EOR Services?
Our Unbound Jump EOR company is fully qualified to support TISRI regime applicants. We meet all government criteria, including:
The appropriate CAE classification for activities eligible under TISRI.
Issuing at least 50% of invoices to foreign entities, a key requirement for companies under the TISRI rules.
Explore our Unbound Jump EOR solution in detail
Advantages of EOR Employment Under TISRI
Simplified Process: Access TISRI benefits without the complexities of company formation.
Compliance Guaranteed: We ensure full compliance with Portuguese tax and employment laws.
Flexible & Convenient: You focus on your work while we handle HR, payroll, and legal obligations.
Access to High-Value Sectors: We support roles recognized under TISRI’s approved industries.
Tax Benefits Maintained: You enjoy the preferential 20% flat tax rate and other regime incentives.
Local Expertise:
Ensure a streamlined TISRI application using our Portuguese labour, tax, relocation expertise.
Real-World Scenarios:
How Our EOR Supports Your TISRI Application
Imagine you are an IT consultant from abroad who wants to relocate to Portugal and benefit from the TISRI tax advantages but prefer not to create your own company. By being employed through our EOR company:
- You legally become a Portuguese tax resident.
- Your salary is paid and managed by our EOR, meeting all TISRI regime conditions.
- We invoice your employment costs to your foreign entity, maintaining the required export ratio.
- You receive all TISRI benefits including the favorable 20% flat tax rate.
- You avoid the administrative and financial burden of company setup and compliance.
- You receive the dividends on your foreign entity tax free in Portugal and possibly tax free in the foreign country where your company is located.
Opening a Subsidiary of My Holding Company in Portugal for the TISRI Qualification
An investor may choose to manage their holdings through a primary company based in Malta, which owns several online businesses in jurisdictions like Singapore. They may then consider opening a subsidiary in Portugal and employing themselves in an eligible profession to qualify for the TISRI regime.
In this scenario, establishing a subsidiary in Portugal and holding a role classified as a “high-value activity” would allow both the subsidiary and the individual to qualify for TISRI benefits.
Regarding dividends from the Malta-based company, under the TISRI regime, foreign-sourced dividends could be exempt from Portuguese taxation if certain conditions are met. As Malta is part of the EU, dividends from a Maltese company would likely qualify for this exemption, meaning they would not be subject to Portuguese tax.
This structure provides access to a 20% flat tax rate on income earned through the Portuguese subsidiary while potentially exempting foreign-sourced income, such as dividends, from Portuguese taxation.
It’s important to note that the Portuguese subsidiary must meet the 50% export revenue requirement, meaning at least 50% of its revenue must come from its parent company or other foreign entities.
Using an Employer of Record (EOR) for the TISRI Qualification prior to sell my foreign business and retire in Portugal
An individual can choose to be employed through an Employer of Record (EOR) company, which handles payroll and employment logistics on their behalf, in order to qualify for the TISRI. This would enable to sell their private business without any CGT on both jurisidictions. Following this, the applicant would retire in Portugal and as a retiree, the pension income is taxed at the progressive tax rates, without any special treatment. However, if the retiree restructures his pensions in capital investment vehicles it is possible to mitigate the tax exposure. This is because, capital income from foreign source, such as dividends, capital gains or interest, will be tax exempt under the TISRI.
Also, the Portuguese personal income tax code (CIRS) allows for some tax breaks if a pension was a self-invested product.
When the income falls under the category of a Pension and there were contributions made by the employee which are not possible to quantify, there is a 85% write off in the amount received. In these circumstances the progressive tax rates applied to 15% of the pension income, would lead to an effective tax rate between 2% and 7.2%.
Leveraging Employer of Record (EOR)
An individual can choose to be employed through an Employer of Record (EOR) company, which handles payroll and employment logistics on their behalf.
For this to qualify under the TISRI regime, the EOR company must have the appropriate CAE classification, and at least 50% of its invoices must be issued to foreign entities. Eligibility under TISRI also depends on whether the individual’s role falls within an approved “high-value industry” and if their income is structured correctly for tax purposes.
EOR employment offers a flexible alternative for accessing TISRI benefits without the need to establish a company. By using this method, there is no need to incorporate a company in Portugal, and the taxpayer can maintain the operation in another country (in Europe). The company will continue to be liable for corporate tax in the country of source, but the dividends may be exempt under the TISRI status in both jurisdictions.
We have an EOR company that is fully compliant with the TISRI. For more details on how our team can help you to use this option, feel free to reach out.
Incorporating a Management Service Company
An entrepreneur who owns a foreign holding company may consider establishing a local company in Portugal to provide management services. If structured correctly, this setup could qualify for the TISRI regime, offering significant tax advantages.
There are several possible approaches:
✓ Local Service Company: Creating a Portuguese entity that provides management or consulting services to the foreign holding company. If the income aligns with TISRI’s eligibility criteria, this could grant access to the regime’s benefits.
✓ Management through an Employer of Record (EOR): Using an EOR structure can simplify compliance while still allowing the individual to benefit from the TISRI program.
This structure allows for a 20% tax rate on local income while potentially exempting foreign-sourced income from Portuguese taxation. However, to meet TISRI requirements, the Portuguese company must generate at least 50% of its revenue from foreign clients, including the holding company or other international entities.
Submit your TISRI application by January 15th after becoming a resident
Confirm eligibility annually by January 15th
Download the Complete
TISRI / NHR 2.0 Guide here
Ready to explore the details?
Download our full TISRI Regime Guide (PDF)] – including eligibility criteria, documentation checklist, and practical examples.
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