Portugal NHR 2.0 (IFICI)
A Complete Relocation, Company Formation & Tax Residency Solution
Delivered by YourFinance.co.uk with our panel of Portuguese accountants and solicitors.
Why Portugal? Why Now?
Portugal's updated NHR 2.0 regime (IFICI) offers a 10-year favourable tax framework where most foreign income — including dividends, royalties, and capital gains — is taxed at 0%.
At the same time, the UK has moved to a residence-based inheritance tax system with a 10-year tail. For many high-net-worth individuals, Portugal offers both tax efficiency and long-term certainty.
The Portugal Lifestyle Advantage
Portugal attracts entrepreneurs, investors, and internationally mobile professionals seeking a better quality of life.
Climate & Safety
Over 300 days of sunshine annually in a safe, family-friendly environment where English is widely spoken
Cost of Living
Lower cost of living than the UK whilst maintaining exceptional healthcare and international schools
Active Lifestyle
World-class golf, paddle, surfing, sailing, tennis, and cycling throughout the year
Business Hub
Thriving tech and startup scene with global connectivity and balanced pace of life
Portugal offers not just relocation — but a superior lifestyle for the next decade and beyond.
The UK IHT Reform: The 10-Year Tail
From April 2025, the UK will tax worldwide estates for up to 10 years after you leave, if you have been UK resident for 10 of the previous 20 tax years. You only fall completely outside UK Inheritance Tax once you have been non-resident for 10 full tax years. Until that 10-year period ends, HMRC can still charge 40% IHT on your worldwide estate, wherever you live.
16.5K
Millionaires Leaving UK
Expected to depart in 2025, many beginning the 10-year countdown immediately
10 / 20
Rule – Resident 10 of last 20 years
If you've been UK resident for 10 of the last 20 years, your worldwide estate stays within UK IHT for 10 years after you leave.
10
Years of Exposure
The length of the tail after leaving the UK for qualifying individuals
What NHR 2.0 (IFICI) Gives You Personally
Under the 10-year IFICI regime, the following foreign income is taxed at 0%:
Foreign rental income
Property income from UK or international properties is completely tax-exempt
Dividends from UK or international companies
All dividend distributions from foreign companies receive 0% taxation
Capital gains on shares, crypto, businesses
Complete exemption on gains from the sale of international assets
Royalties and licensing income
Intellectual property income from foreign sources is tax-free
Interest and most investment income
Foreign-source interest and investment returns are untaxed

Important: Only Portuguese-source employment income is taxed, and most clients choose the minimum salary (€870/month), which usually carries no income tax.
How We Structure It
The Correct Sequence
01
Form the Portuguese company
Establishes economic activity and legal presence
02
Obtain your NIF
Your personal tax identification number
03
Register the company for tax & social security
Complete all corporate compliance requirements
04
Secure a Portuguese lease or home
Establish proof of residence address
05
Apply for residency (AIMA)
Submit formal residency application
06
Submit IFICI before 15 January
File for NHR 2.0 status by the deadline
YourFinance coordinates this entire process with Portuguese accountants and solicitors to ensure seamless execution.
Why Company Formation Comes First
The updated regime requires clear economic substance. Forming the company first enables:
  • Corporate tax registration
  • Social security employer accounts
  • Director appointment
  • Residency documentation
  • IFICI eligibility preparation

Critical: Without the company, neither residency nor IFICI can be approved. The sequence matters.
The Hard Deadline: 15 January
Although the law allows IFICI applications until 15 January of the following year, the real timeline is shorter due to required prerequisites.
Residency must be approved first
AIMA processing can take several months
Company must be fully registered
All corporate filings and compliance must be complete
Accountant must verify compliance
Professional sign-off required before submission
Missing the deadline results in losing one full year of benefits — reducing your 10-year window to just 9 years.
The Cost of Delay
For many clients, foreign dividends, royalties, and investment income can be substantial. Losing a year of IFICI may mean significant financial exposure.
£50K
Lower Range
Minimum additional tax for modest income clients
£150K
Mid Range
Average additional tax for typical high-net-worth clients
£300K+
Upper Range
Additional tax for clients with substantial foreign income
Beyond immediate tax costs, delay also means a delayed start to the 10-year UK IHT tail, reduced long-term planning efficiency, and increased UK tax exposure. Starting early ensures certainty, compliance, and full value.
Begin Now and Secure the Full 10-Year Window
Why YourFinance.co.uk
YourFinance is based in Portugal and provides a complete, fully managed service covering every aspect of your relocation.
  • Company formation and registration
  • NIF application
  • Residency preparation and AIMA support
  • IFICI application and submission
  • Full Year 1 accountancy services
  • Ongoing compliance management
  • Coordination with accountants & solicitors
  • Complete end-to-end support
We ensure your structure qualifies under NHR 2.0 — especially for SaaS, AI, technology, consulting, and digital service companies.
Year 1 All-In Package: £3,995
Fixed-price onboarding with no hidden costs. One team. One process. One outcome.
Forming the company early ensures a simple, structured relocation with correct tax setup, no risk of missing the 15 January deadline, and an immediate start of your UK IHT 10-year tail.
YourFinance handles everything — allowing you to relocate with complete confidence.