🇮🇪 COUNTRY A Ireland VS 🇵🇹 COUNTRY B Portugal

IFICI (Incentivo Fiscal à Capitalização Internacional) replaced the Non-Habitual Resident (NHR) programme from 1 January 2024. Like NHR, it offers a flat 20% income tax rate on Portuguese-sourced employment and self-employment income for qualifying workers. Key differences: IFICI targets specific high-value activities (technology, scientific research, qualified industrial work, arts and culture), has stricter qualifying criteria, and applications must be made through an employer. The benefit applies for up to 10 years. Unlike NHR, passive foreign income (dividends, interest) is no longer automatically exempt under IFICI.

Without IFICI, Portugal’s income tax system applies progressive rates from 14.5% to 48%, plus 11% employee social security contributions. At €80,000 income, a standard Portuguese taxpayer pays roughly €26,000–30,000 in combined tax — comparable to Ireland’s burden at that level. IFICI at 20% flat changes the picture entirely. At €100,000, a qualifying IFICI worker pays approximately €18,000–20,000 in total tax vs Ireland’s ~€31,000–34,000. The comparison in this table uses the IFICI scenario; non-qualifying workers should expect Portugal and Ireland to be broadly similar.

Ireland is significantly stronger for employed tech workers. Dublin houses the European headquarters of Google, Meta, Apple, Microsoft, LinkedIn, Salesforce, and dozens of other US tech firms. Senior engineering salaries of €100,000–€150,000 are common. Lisbon’s tech scene is growing fast — companies like Farfetch, Feedzai, and Outsystems are headquartered there — but salary levels are considerably lower, typically 30–50% below equivalent Dublin roles. Remote workers who earn their income outside Portugal can, however, enjoy Lisbon’s cost and lifestyle advantage while maintaining foreign income levels.