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Portugal Tax Guide

Europe
Updated February 2025
Sources + last updated

This page includes citations to the sources used for this entry. Always verify with official sources before making decisions.

PwC Portugal Tax SummariesPortugal Tax AuthorityOutbound Investment Group
Special Regime
Personal Tax Score
58/100
Mixed
Business Tax Score
68/100
Moderate

Personal Income Tax

Tax Residency

Day Threshold
183 days
Note
183 days in Portugal or having a residence available on December 31

Income Tax Rates

Top Marginal Rate
48%%
Structure
Progressive rates 14.5% to 48%, plus solidarity surcharge of 2.5-5% on high incomes

Foreign Income Treatment

System
Worldwide
Details
Residents taxed on worldwide income; NHR 2.0 (IFICI) regime available for qualifying scientific research and innovation activities with favorable treatment

Investment Income

Capital Gains
28%%
Dividends
28%%
Interest
28%%

28% flat rate on most capital gains; 50% exemption available on certain long-term holdings; real estate gains can be included in general income with partial exemption if reinvested

Wealth & Inheritance

Wealth Tax
No - No wealth tax
Inheritance Tax
No - No inheritance tax, but 10% stamp duty applies to inherited assets

Special Regimes

NHR 2.0 (IFICI)
Tax Incentives for Scientific Research and Innovation - replaced original NHR, offers favorable rates for qualifying activities
Digital Nomad Visa
Special visa for remote workers with income requirements

Practical Notes

Original NHR regime ended March 31, 2025. New IFICI regime much more restrictive, focused on scientific research and innovation. Portugal offers excellent quality of life, EU access, and is English-friendly.

Business & Corporate Tax

Corporate Income Tax

Headline Rate
19%%
Effective Rate Note
19% standard rate in mainland Portugal; 13% in Azores and Madeira; 15% reduced rate on first €50,000 for SMEs (10.5% in autonomous regions)
Free Zone / Incentives
Madeira Free Trade Zone offers significant tax benefits for qualifying companies

Withholding Taxes

Dividends
25%%
Interest
25%%
Royalties
25%%

VAT / GST

Rate
23%
Note
23% standard VAT; reduced rates of 13% and 6% apply to certain goods and services

Compliance & Substance

Substance Requirements
Medium - substance requirements for special regimes; standard for regular companies
Compliance Friction
Medium - bureaucratic but improving; EU standards apply

Notable Regimes

  • Madeira Free Trade Zone (5% CIT)
  • Patent Box regime
  • R&D tax credits
  • IFICI for innovation

Data Sources

PwC Portugal Tax SummariesPortugal Tax AuthorityOutbound Investment Group

Last updated: February 2025. Always verify with official sources before making decisions.

FAQ

What is the personal income tax rate in Portugal?

Portugal has a top personal income tax rate of 48%. The tax structure is: Progressive rates 14.5% to 48%, plus solidarity surcharge of 2.5-5% on high incomes. See the detailed breakdown above and verify with official sources.

Do I need to pay tax on foreign income in Portugal?

Portugal uses a worldwide system for foreign income. Residents taxed on worldwide income; NHR 2.0 (IFICI) regime available for qualifying scientific research and innovation activities with favorable treatment

What are the residency requirements for Portugal?

Tax residency in Portugal generally requires 183 days of physical presence. 183 days in Portugal or having a residence available on December 31. Always verify current rules with official sources.

Is there a wealth tax in Portugal?

No, Portugal does not have a wealth tax. No wealth tax

What is the corporate tax rate in Portugal?

The corporate tax rate in Portugal is 19%. 19% standard rate in mainland Portugal; 13% in Azores and Madeira; 15% reduced rate on first €50,000 for SMEs (10.5% in autonomous regions)