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Taxes

Updated : 26/03/2014

Income taxes abroad

What's your situation?

I'm an employee

Which income will be taxed in Portugal?

  • Live in Portugal? You must pay tax on your worldwide income there.

  • Live in Portugal but for less than 183 days? You are not considered tax resident and pay tax only on the income earned in Portugal.

    (You're considered tax resident in Portugal if:

    • you lived there for at least 183 days (consecutive or not) during a tax year or
    • you lived there for less than 183 days but on 31 December of the year in question you had a house/flat in a condition that suggests you intend to maintain and occupy it as your usual residence.)
  • Income from other EU countries? Check you never pay tax twice on the same income.

How much will you pay?

Income tax is progressive: the more you earn, the higher your rate.

Applicable rates in 2010 and 2011:

Applicable rates in 2010: 10.5 % to 42 %

Applicable rates in 2011: 11.5% to 46.5%

Applicable rates in 2012 (2013 annual return):

Grade

Annual taxable income

Standard rate

1

up to €4 898

11,5%

2

€4 898 to €7 410

14%

3

€7 410 to €18 375

24,5%

4

€18 375 to €42 259

35.5%

5

€42 259 to €61 244

38%

6

€61 244 to €66 045

41.5%

7

€66 045 to €153 300

43.5%

8

more than €153 300

46.5%

Take into account any:

  • tax allowances
  • deductions you are entitled to for certain types of expenditure.

Tax calculator - Portugal português (program for downloading, Portuguese only)

Information on the filing of the annual return, deductions and tax allowances: IRS 2012 português

When and how do you pay?

Your employer deducts income tax and social-security contributions from your salary.

You must also file an annual return português:

  • in March if you do it on paper or
  • in April if you do it through the tax administration Website "Portal das Finanças" (password needed).

Before engaging in any professional activity in Portugal, you must register as a taxpayer by submitting a registration form (ficha de inscrição) português to your local tax office português.

Portugal – tax calendar 2013 português (Portuguese only)

How to appeal / complain

If you disagree with your tax assessment, you can appeal to the tax administration. Read your tax assessment letter carefully to find out exactly which department you should send your appeal to and which procedures you need to follow.

If your appeal is rejected, you may take your case to the tax courts.

Links

Portuguese tax authority

Brochure in English on the Portuguese tax system [689 KB]

Check also what your EU rights are.


Contact points

Portuguese tax office português

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