Taxes in Portugal today

In Portugal, taxes are an important part of the country's revenue system. Here are some key points about taxes in Portugal:

Personal Income Tax (IRS):

Personal income tax is levied on the income earned by individuals. The tax rates are progressive, with higher income levels being subject to higher tax rates. In Portugal, the income tax rates range from 14.5% to 48%, depending on the income bracket. There are also tax deductions and exemptions available for certain expenses, such as health and education.

Corporate Income Tax (IRC):

Corporate income tax is levied on the profits of companies and other legal entities. The standard corporate tax rate in Portugal is 21%, but there are reduced rates available for certain activities and regions.

Value Added Tax (VAT):

Value Added Tax, known as IVA (Imposto sobre o Valor Acrescentado) in Portugal, is a consumption tax imposed on the sale of goods and services. The standard VAT rate in Portugal is 23%, but there are reduced rates of 13% and 6% for certain goods and services, such as food, accommodation, and cultural events.

Property Taxes:

Property owners in Portugal are subject to several property taxes. The main one is the Municipal Property Tax (IMI), which is an annual tax based on the value of the property. Additionally, there is a Stamp Duty tax on the acquisition of properties and a Property Transfer Tax (IMT) when buying or selling real estate.

Social Security Contributions:

Employees and employers in Portugal are required to make contributions to the social security system. These contributions fund social security benefits, including healthcare, pensions, and unemployment benefits. The rates vary depending on income and are shared between the employer and employee.

It's important to note that tax laws and rates may change over time, so it's recommended to consult with a tax professional or refer to official government sources for the most up-to-date information regarding taxes in Portugal. You could also attend a tax seminar to take advantage of speaking to an expert. Click the link below to connect with our partner ExpaCity and attend their up-and-coming Tax event.

PT Accounting & Tax Summit for Working Foreign Residents

Live 2-day educational seminar on Portuguese business accounting and taxes for working (or will work) foreign residents in Portugal: freelancers, contractors, and business owners. 

July 11-12, 10 AM-6 PM 

Lisbon/Rato area

Ticketed event

Seating is limited

EVENT DETAILS

DAY 1: Learn the Portuguese business accounting requirements and taxes: IVA/VAT, Social Security, PT IRS requirements, how to work with a Portuguese accountant, tips to identify the right accountant for you and more. Taught by PT accounting/tax professionals.

DAY 2: For US citizen/Green-card holders, learn the challenge of US tax requirements for working ex-pats, strategies and tips for income & tax advantages. Taught by US ex-pat tax professionals.

PLUS: Financial tips for working ex-pats while living in PT.

DAY 1 and DAY 2 include:

Lots of live Q&A time for the professionals.

Optional free 30-minute consults.

Click here for further details