Taxes in Portugal
Portugal has an attractive tax system: tax rates are generally lower than in other European countries and there is a so-called “exceptional tax regime” for certain tax residents that considerably reduces expenses associated with business and other activities.
Individuals that spend more than 183 days a year in Portugal are considered tax residents.
Transaction, registration and ownership taxes
Stamp duty (Imposto do Selo or IS) is 0.8% and the title deed transfer tax (Imposto Municipal sobre Transmissões or IMT)
Annual real estate tax (Imposto Municipal sobre os Imóveis or IMI) for owners
Capital gains and inheritance taxes
Capital gains tax is 28%,
There is no such thing as inheritance tax in Portugal, but instead, a stamp duty (Imposto do Selo) of 10% must be paid.
Income and corporate taxes
According to Henley & Partners, non-tax residents affiliated with countries that have a double taxation treaty with Portugal pay reduced tax on dividends (15%), royalties (10%) and capital gains (10%). They can also be exempt from tax on income from professional activity or employment in Portugal.
For tax residents, there are progressive tax rates from 14.5 to 48%, depending on the revenue band.
Income, € | Rates, % |
---|---|
Under 7,112 | 14.5 |
7,113–10,732 | 23 |
10,733–20,322 | 28.5 |
20,323–25,075 | 35 |
25,076–39,967 | 37 |
39,968–80,882 | 45 |
Over 80,883 | 48 |
In addition to income tax, there is an additional charge of 3.5%.
Incomes exceeding €80,000 are charged 2.5% solidarity tax and 5% for incomes exceeding €250,000.
Corporate tax is 21%.
Exceptional tax regime
There is an exceptional tax regime
According to Henley & Partners, income received under the NHR tax regime on the territory of Portugal is taxed at 20%. Income from employment, entrepreneurial activity abroad and pensions are exempt. NHR status is granted for 10 years.
Participants of the investor residence programme “Golden Residence Permit” can claim NHR as well.
Disclaimer: the information in the above article is for reference and may be subject to change over time. Persons interested in exact calculations should contact a certified tax specialist in this country before purchasing property in Portugal.
We will send you a content digest not more than once a week
Cost of property in Marbella, Spain
Property for sale in Madeira, Portugal
Portuguese government changes citizenship requirements for descendants of Sephardic Jews
How to buy and sell a business in Cyprus for non-residents?
Dubai's Property Market Report: Strong Growth and Sustained Positive Trend in February 2024
Cyprus Property Market in February: Positive Outlook for the Year 2024