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Portugal
Individuals Taxation

Overview

Portugal applies a progressive personal income tax (IRS) system with rates up to 48%, plus municipal and solidarity surtaxes. While the popular Non-Habitual Resident (NHR) regime has ended for new applicants, a new regime—IFICI—launched in 2024 offers targeted benefits for qualified professionals.

Portugal remains an attractive jurisdiction for residents and digital nomads.

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.

How Charfort can help you?

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.

Frequently asked questions

Everything you need to know about the process.

Is the NHR regime still available in Portugal?

No. The NHR regime was closed to new applicants as of March 31, 2025. Existing beneficiaries retain their rights for up to 10 years.

What has replaced the NHR regime?

Portugal introduced the IFICI regime in 2024, which offers tax benefits for qualifying professionals and researchers.

What are the current personal income tax rates in Portugal?

They range from 14.5% to 48%, depending on income levels, plus additional surtaxes.

How is foreign income treated under IFICI?

Foreign-sourced income may be exempt depending on the specific terms of the IFICI regime and applicable treaties.

Do non-residents pay tax in Portugal?

Yes, at a flat rate of 25% on Portuguese-source income.

Can Charfort assist IFICI applicants?

Absolutely. We handle the full registration, filing, and strategic planning process.

Are there tax planning options for remote workers?

Yes. Charfort provides tax structuring for remote and hybrid international professionals.

Contact us today

Charfort assists international clients in obtaining residence and citizenship under the respective programs. Contact us to arrange an initial private consultation.

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