| Net Taxable Income EURO |
Income Tax Rates |
| up to 7 000 |
14% |
| 7 000 to 20 000 |
28.5% |
| 20 000 to 40 000 |
37% |
| 40 000 to 80 000 |
45% |
| more than 80 000 |
48% |
Lowest Individual Tax Rate in Portugal is 14.5% and Highest Rate is 48%
Tax Rate for Non-residents in Portgul for 2015
| Income (Portuguese source) |
Tax rate (percent) |
| Employment income Business and professional income Interest Dividend Capital gains on sale of shares Tax exempt or Capital gains on sale of real estate Rental income Pension income |
25 25 28 28 28* 28* 28* 25 |
Tax Rate for Non habitual residents in Portugal for 2015
| Income (Portuguese source) |
Tax rate (percent) |
| Employment income** Business and professional income** Interest Tax exempt or Dividend Tax exempt or Capital gains on sale of shares Tax exempt or Capital gains on sale of real estate Tax exempt or at marginal rates Rental income Tax exempt or Pension income Tax exempt or at the marginal rates up to |
20 20 28 28 28 48 28 48 |
Income Tax Rate for Individual Tax Payers in 2014
| Net Taxable Income EURO |
Income Tax Rates |
| up to 7 000 |
14% |
| 7 000 to 20 000 |
980+28.5% |
| 20 000 to 40 000 |
2630+37% |
| 40 000 to 80 000 |
5880+45% |
| more than 80 000 |
8280+48% |
Tax Exempt Income
Meal allowance
Meal allowance up to EUR4.27 per day if paid in cash, or EUR6.83
if paid by lunch tickets.
Daily allowance for business travel
Daily allowance for business travel in Portugal up to EUR 50.20
[EUR 69.19 for Members of the Board] or up to EUR 89.35 [EUR
100.24 for Members of the Board] for business travel abroad.
Travel expenses
Documented travel expenses or allowance for business travel when
reimbursed by the company (range between EUR0.11/kilometer up to
EUR0.36/kilometer, depending on the mean of transportation
(public or particular) and on the number of employees, if it is
a rented vehicle).
Tax Rate for Non-residents in Portgul
| Income (Portuguese source) |
Tax rate (percent) |
| Employment income Business and professional income Interest Dividend Capital gains on sale of shares Tax exempt or Capital gains on sale of real estate Rental income Pension income |
25 25 28 28 28* 28* 28* 25 |
Tax Rate for Non habitual residents in Portugal
| Income (Portuguese source) |
Tax rate (percent) |
| Employment income** Business and professional income** Interest Tax exempt or Dividend Tax exempt or Capital gains on sale of shares Tax exempt or Capital gains on sale of real estate Tax exempt or at marginal rates Rental income Tax exempt or Pension income Tax exempt or at the marginal rates up to |
20 20 28 28 28 48 28 48 |
* Taxpayer is required to file a tax return.
** If derived from a high-value-added activity plus an
additional 3,5% surcharge levied on the annual taxable income
that exceeds the amount of the annual national minimum salary
(EUR6,790).
An additional 2.5 percent surcharge will be levied on taxable income between EUR80,000 and EUR250,000 and 5 percent on the taxable income exceeding EUR250,000.
A 3.5 percent additional surcharge will be levied on the annual taxable income that exceeds the amount of the annual national minimum salary (EUR6,790).
For married taxpayers, the surcharges will be levied on the difference between taxable income divided by two (taxable income / 2) and EUR153.300,00. The resulting amount will then be multiplied
The above rates apply to individuals who derive income from business (including capital gains from the sale transfer or exchange of shares in a foreign corporation) or from the practice of a profession.
Individuals holding managerial and highly technical positions employed by RHQs, ROHQs, multinational companies and offshore business units are taxed at 15% on their gross income.
Income in Portugal is divided into the following three
categories which are taxed separately, as summarized below.
1. Compensation employment income: This income is taxed at
progressive rates on gross income after deduction of personal
and additional exemptions but without deductions for
expenses.
2. Passive income: This income, including dividends and
interest, is subject to tax at 7.5%.
3. Business income and professional income: This income is taxed
at progressive rates on net business income after deduction of
certain specified expenses.
Statutory withholding tax rates are the following: Dividends 19%; Interest 20%; Royalties 20%.
The tax year ends on 31 December in Portugal.
The Portuguese fiscal year for individuals
is the calendar year and Portuguese residents are required to
file an annual tax return between March and May each year, as
per information provided previously.
Married taxpayers are required to file a joint tax return as
long as one of the spouses is considered Portuguese resident for
tax purposes.
If one spouse does not spend more than 183 days in relevant year
in Portugal and proves that there is no connection between
his/her economical activity and Portugal (as mentioned above),
the resident spouse may file a tax return (only including
his/her personal income received) as a separated individual.
Withholding tax levied on most income is deemed as payment on
account of year-ends tax liability and taken into consideration
in the annual assessment. The final tax assessment has to be
issued on the following deadlines:
up to 31 July, if the tax return is submitted:
from 1 March to 31 March, if the tax return is filed in paper
and if only employment and/or pension was received or
from 1 April to 30 April, if the tax return is submitted through
the Internet and if only employment and/or pension income was
received.
up to 31 July, if the tax return is submitted:
from 1 April to 30 April, if the tax return is filed in paper
and if other type of income was received or
from 1 May to 31 May of the following year, if the tax return is
submitted through the Internet and if other type of income was
received.
Non-resident taxpayers are only required to file tax returns when earning Portuguese-sourced income not subject to withholding tax at the applicable flat rates.