Information on Taxes
Whether you are a private individual or a legal person, moving to Portugal to start a business or just moving to look for a new job and start a new life, we’re here to help you understand the Portuguese tax system and support you in finding a tax plan that suits your needs. Portugal offers several tax incentives that you and your business may benefit from.
#7
Portugal has the seventh-highest personal income tax rates in Europe (2022)
#34
On the 2021 International Tax Competitiveness Index, Portugal is ranked #34 among European OECD countries
21%
Standard Corporate Income Tax Rate (IRC)
28%
Capital Gains Tax Rate
23%
Standard VAT Rate
25%
Flat rate tax for non-residents on Portuguese-sourced income
78
Number of Tax Treaties in Portugal (International Taxes in Portugal)
2009
The year that the Non-Habitual Residence (NHR) tax regime was implemented
Main Types of Taxes
Below, we outline the various tax categories; however, what are the general compliance requirements for paying taxes in Portugal? A person is deemed to be a resident if he/she spends more than 183 days in Portugal in any 12-month period starting or ending in the tax year (from January 1st to December 31st) or if he/she owns or rents a house with the intention of using it as a permanent residence. Registration with the tax authorities should be made from the moment the person starts living in Portugal (evidence of housing is generally required, but not in all cases). For most acts, a tax number is required even for non-tax residents (a local tax representative may be required).
Personal Income Tax (IRS)
- Levied on Portuguese-sourced income for non-tax residents and on worldwide income for tax residents and non-habitual residents (may lead to international double taxation).
- Standard rate for non-residents is 28% on most sources of income (a 25% rate applies to some items of income) / Standard progressive rate for residents goes up to 48% for income above € 80k.
- Residents (including NHR) have to submit a yearly tax return covering all sources of income and indication of IBAN for foreign bank accounts wherever in the world / Non-residents are exempted from submitting tax returns except for some items of income such as capital gains and rents earned in Portugal.
