Taxes in Portugal
Portugal has an attractive tax system. Taxes are generally lower than in other European countries and there is an exceptional tax regime for certain tax residents that considerably reduces expenses associated with business and other activities.
Individuals that spend more than 183 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%,
Inheritance and gift tax is 10% but property transfers to spouses, children, parents and grandparents are exempt.
Income and corporate taxes
According to Henley & Partners, specialised in “golden visas”,
For tax residents, there are progressive tax rates from 14.5 to 48.0%, depending on the revenue band.
|Income, EUR||Rates, %|
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%. In 2016, it expected to be reduced
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.
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