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Our Tax services
Tax
Number
Obtaining a Portugal taxpayer number (“NIF”) is essential for individuals engaging in transactions subject to registration in Portugal, ranging from acquiring insurance to buying or renting real estate or opening a Portuguese bank account.
Tax
Representation
For non-EU residents, obtaining a taxpayer number in Portugal requires the appointment of a resident tax representative. We serve as the tax representative for non-resident individuals and businesses.
Tax
Compliance
If you are a resident or a non-resident with Portugal-source income not subject to autonomous tax withholding, it is mandatory to file an annual income tax return. Our services encompass accountancy and tax compliance.
Bank
Account
When relocating to Portugal, opening a local bank account is often essential. We can streamline this process for you, setting up your account before you arrive in Portugal, so you can easily manage your online account from your home country.
Navigating Portugal’s Tax Landscape With Expertise And Care
Backed by a professional team and a network of trusted partners, we offer comprehensive tax services to our international clients in Portugal.
Portugal Taxation
Personal Income Tax
Corporate Income Tax
Property Tax
All-In-One Solution
For Your Safe Haven In Portugal
Your Questions Answered
Do expats pay taxes in Portugal?
Yes, if you are a tax resident in Portugal, you are required to pay taxes on your income. You become a tax resident if you spend more than 183 days in the country or if you have a permanent residence in Portugal. Non-residents are taxed only on income earned within Portugal.
Who is considered a tax resident in Portugal?
An individual is considered a tax resident in Portugal if they spend more than 183 days in the country during a 12-month period or if they have a permanent residence in Portugal at any time during the tax year. Tax residents are taxed on their worldwide income.
When should I file my income tax declaration?
Income tax declarations in Portugal should be filed between April 1 and June 30 for the previous tax year.
What is the deadline for paying Personal Tax in Portugal?
The deadline for paying Personal Income Tax (IRS) in Portugal is typically by August 31 of the following year, after filing the tax return between April and June.
Does Portugal tax worldwide income?
Residents in Portugal are taxed on their worldwide income at progressive rates, while non-residents are only taxed on income earned within Portugal, usually at a flat rate. It’s advisable to explore Portugal’s double taxation treaties to avoid being taxed on the same income in multiple countries.
Is Portugal's income tax considered high?
Portugal’s income tax rates can be considered high compared to other countries, with progressive rates ranging from 14.5% to 48%, depending on your income level. However, the NHR regime offers lower tax rates for expats in certain professions.
What is Portugal's tax rate?
Portugal has a progressive income tax rate system, with rates ranging from 14.5% to 48% depending on the individual’s income bracket. There are also additional social security contributions and other taxes depending on the specific circumstances.
What are the Portuguese taxes for expats?
Non-resident expats in Portugal are taxed at a rate of 25% on Portuguese-sourced income. For income earned from interest or dividends, a flat rate of 28% applies to foreign nationals.
What are the progressive tax rates for residents in Portugal?
Portugal’s progressive tax rates for residents range from 14.5% to 48%, depending on income levels. Higher income earners fall into the higher tax brackets.
Are non-residents taxed differently in Portugal?
Yes, non-residents are taxed only on Portuguese-sourced income. They generally face a flat tax rate of 25% on most income, while interest and dividend income is taxed at a flat rate of 28%.
Do US citizens need to pay taxes in Portugal?
Yes, US citizens who are tax residents in Portugal must pay taxes on their worldwide income in Portugal. However, the US and Portugal have a double taxation treaty, which helps prevent double taxation. US citizens are still required to file taxes with the IRS in the United States, even if they live abroad.
Can married couples file joint tax returns in Portugal?
Yes, married couples in Portugal can file joint tax returns. This can sometimes result in tax benefits, depending on their combined income.
How is capital gains tax treated in Portugal?
Capital gains tax in Portugal varies depending on the asset type and residency status. For residents, capital gains on the sale of property or investments are taxed at 50% of the gain, and the rates are added to their overall income. Non-residents are taxed at a flat rate of 28% on capital gains.
What are the available tax deductions in Portugal?
Portugal offers various tax deductions, including for health expenses, education, housing, donations, and contributions to pension schemes. Expats under the NHR regime may also benefit from tax exemptions or reduced tax rates on foreign income.
What is the corporate tax rate in Portugal?
The standard corporate tax rate in Portugal is 21% on taxable profits. This rate is slightly below the EU average.
Who is required to pay corporate tax in Portugal?
Corporate tax generally applies to incorporated companies. Self-employed individuals and partnerships pay personal income tax instead.
What is the threshold for VAT registration in Portugal?
If your business turnover exceeds €14,500 per year, you must register for VAT. This threshold will increase to €15,000 in 2025.
Is there a simplified tax regime for small businesses?
Yes, small businesses with annual turnover under €200,000 can opt for a simplified tax regime, paying tax based on turnover rather than profit.
What taxes do you pay when owning property in Portugal?
When owning property in Portugal, the primary tax you pay is IMI, an annual municipal property tax based on the value of the property. The tax rate varies between 0.3% and 0.8%, depending on the location and type of property.
What is IMT (Property Transfer Tax), and when does it need to be paid?
IMT (Imposto Municipal sobre Transmissões Onerosas de Imóveis) is a tax that must be paid when purchasing property in Portugal. The tax is calculated based on the property’s purchase price or its taxable value (VPT), whichever is higher. IMT must be paid before the property transfer can be finalized.
The IMT rate varies depending on the type and value of the property:
- Primary residence: Rates range from 0% to 6%, with the first €97,064 exempt for primary residences.
- Secondary residence: Rates range from 1% to 8%.
- Rural property: Flat rate of 5%.
- Other properties (such as commercial): Flat rate of 6.5%.
For properties over €1,000,000, the IMT rate is 7.5% for primary residences and 8% for secondary or investment properties.
How much tax do I need to pay when selling property in Portugal?
For residents, capital gains on property sales are taxed at 50% of the gain and added to their overall income. Non-residents are subject to a flat rate of 28% on the total capital gain from the sale of property.
What is IMI (Municipal Property Tax) in Portugal?
IMI (Imposto Municipal sobre Imóveis) is an annual property tax in Portugal, levied on property owners based on the taxable value (VPT) of their property. The IMI tax is paid to the local municipality where the property is located.
The IMI rate depends on the type and location of the property:
- Urban properties: IMI rates generally range from 0.3% to 0.45%
- Rural properties: These have higher rates, typically around 0.8%.
The taxable value (VPT) is determined by several factors, including the property’s size, location, age, and condition. Municipalities in Portugal can set their own rates within the allowable range, so the specific IMI rate can vary depending on the region.
In addition to regular IMI, owners of high-value properties (those exceeding €600,000) may also be subject to AIMI (additional to IMI), which is an additional tax for luxury real estate.
IMI is typically paid in installments during the year, with deadlines depending on the total amount owed.
Does owning property in Portugal automatically make you a tax resident?
No, owning property in Portugal does not automatically make you a tax resident. You become a tax resident if you spend more than 183 days in Portugal during a year or if you have a permanent residence in the country and demonstrate the intent to stay long-term.
What is AIMI (Additional to Municipal Property Tax)?
AIMI (Adicional ao IMI) is an additional tax levied on high-value real estate in Portugal. It applies to properties with a total taxable value (VPT) above €600,000 for individuals and €1,000,000 for companies. AIMI is an extra layer on top of the regular IMI and is aimed primarily at luxury or high-value properties.