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The 26-year-old, who made 31 league appearances last season for a relegated Burnley side, has signed a five-year contract at Portman Road.
Fellow Premier League newcomers Hull City were also interested in the player.
"It feels brilliant to be a part of this club," Florentino said.
"I like how the club sees the future and there are a lot of good players here. I can bring experience and balance to the team, between defence and attack, and I like to bring the connection."
Ipswich manager Gary O'Neil added: "He brings experience of playing in the Premier League as well as other major competitions in Europe, including the Champions League, and makes us stronger in central midfield."
Florentino's loan move to Burnley from Benfica was only made permanent in June because of an obligation to buy for a reported £20.8m.
He made his Clarets debut against Liverpool last September and quickly established himself as a key part of former manager Scott Parker's side, in their unsuccessful fight to avoid relegation from the top flight.
He helped Benfica win Portugal's Primeira Liga in 2019 and 2023, partnering Chelsea and Argentina star Enzo Fernandez, and the Portuguese League Cup in 2025.
He has been capped by Portugal at every level from Under-15 to Under-21.
Veteran striker Barnes extends Burnley contract
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