Portugal
Individuals Taxation

Overview

Portuguese Tax System for Individuals

IRS applies progressive tax rates ranging from 14.5% to 48%.
Municipal surtax (up to 1.5%) and solidarity surtax (up to 5%) may apply.
Foreign residents are taxed only on Portuguese-source income.
Flat 25% withholding on non-resident income from Portuguese sources.
Capital gains on property and investments generally taxed at 28%.
Social security contributions: 11% employee, 23.75% employer.
Tax deductions available for dependents, education, and health expenses.
Foreign tax credit available under treaties and unilateral relief.
Old NHR regime closed as of March 31, 2025—valid only for grandfathered cases.
New IFICI regime offers tax benefits for new arrivals in eligible professions.

Requirements and Procedures

  • Register as tax resident and obtain a Portuguese NIF (tax ID).
  • File IRS annually via Modelo 3, with applicable annexes (April 1 – June 30).
  • Declare income by category (Annexes A–H depending on income type).
  • Social security registration is required for employment/self-employment.
  • Pay IRS in two installments (July and November) unless withheld monthly.
  • Declare capital gains from Portuguese assets in Modelo G annex.
  • Report foreign income and assets in applicable annexes or Modelo 8.
  • Maintain supporting records for 10 years.
  • Apply for IFICI regime (if eligible) within the deadline set each year.
  • Declare UBO (ultimate beneficial owner) information if required.

Assess eligibility and assist with application under IFICI regime.
Tax residency registration and NIF support.
Preparation and filing of IRS tax returns (Modelo 3 and annexes).
Capital gains, real estate, and investment income tax reporting.
Social security setup and compliance support.
Tax planning for foreign income and treaty relief.
Advisory for digital nomads and remote workers relocating to Portugal.
Support for grandfathered NHR beneficiaries.
Foreign asset reporting compliance and planning.
Representation before Portuguese tax authorities.

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