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Updated : 04/09/2017

Income taxes abroad – Portugal

I'm an employee

Which income will be taxed in Portugal?

  • Living in Portugal? You must pay tax on your worldwide income there.
  • Living in Portugal 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? Make sure 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.

Income tax rates for 2016 (2017 return)

Grade

Annual taxable income

Rate

1

up to €7 091

14,5%

2

€7 091 - €20 261

28,5%

3

€20 261 - €40 522

37%

4

€40 522 - €80 640

45%

5

more than €80 640

48%

Take into account any:

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

Tax calculator - Portugal 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 returnportuguês:

  • 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 (declaração de inscrição) português to your local tax officeportuguês.

Portugal – tax calendarportuguês

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

I'm self-employed

Which income will be taxed in Portugal?

  • Living in Portugal? You must pay tax on your worldwide income there.
  • Living in Portugal 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? Make sure 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.

Income tax rates for 2016 (2017 return)

Grade

Annual taxable income

Rate

1

up to €7 091

14,5%

2

€7 091 - €20 261

28,5%

3

€20 261 - €40 522

37%

4

€40 522 - €80 640

45%

5

more than €80 640

48%

Take into account any:

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

Tax calculator – Portugal português

When and how do you pay?

Before carrying out any professional activity in Portugal, you must register as a taxpayer by submitting a registration form (declaração de inscrição) português to your local tax officeportuguês .

You must make 3 advance payments — in July, September and December — based on the tax you paid the previous year.

You must also file an annual returnportuguês :

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

Portugal – tax calendarportuguês

After filing an annual return, you will receive a notification from the tax administration indicating if you need to make an additional payment or if you are getting some money back. The notification also lists the procedures to follow.

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

Portuguese tax system [689 KB]

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