Portuguese Tax Information

Moving to Portugal? We can guide you through the tax system and help you benefit from its incentives, whether you're an individual or a business.

Types of Taxes in Portugal

In Portugal, general compliance requirements for paying taxes include residency criteria and registration with tax authorities. A person is considered a resident if they spend more than 183 days in Portugal within any 12-month period starting or ending in the tax year, or if they own or rent a house to use it as a permanent residence. Registration with tax authorities is necessary upon starting to live in Portugal, typically requiring evidence of housing. A tax number is often needed for various activities, even for non-tax residents, and in some cases, a local tax representative may be necessary.

Personal Income Tax (IRS)
Non-Habitual Resident Tax Regime (NHR)
Corporate Income Tax (IRC)
Value Added Tax (IVA)
Property Transfer Tax (IMT)
Property Tax (IMI)
Other tax duties
Tax Benefits & Other Incentives

Personal Income Tax (IRS) in Portugal:

- Applies to Portuguese-sourced income for non-tax residents and worldwide income for tax residents and non-habitual residents, potentially leading to international double taxation.

- For non-residents, the standard rate is 28% on most income sources (with a 25% rate for certain items). Progressive rates for residents range up to 48% for income exceeding €80k.

- Residents, including non-habitual residents (NHR), must file annual tax returns, declare all income sources and provide IBANs for foreign bank accounts worldwide.

- Non-residents are generally exempt from filing tax returns except for specific types of income such as capital gains and rents earned in Portugal.

Portuguese Tax Information

Moving to Portugal? We can guide you through the tax system and help you benefit from its incentives, whether you're an individual or a business.

Types of Taxes in Portugal

INLIS