Portugal

Individual - Taxes on personal income

Last reviewed - 20 February 2025

Residents in Portugal for tax purposes are taxed on their worldwide income at progressive rates varying from 13% to 48% for 2025.

Non-residents are liable to income tax only on Portuguese-source income, which includes not only that portion of remuneration that can be allocated to the activity carried out in Portugal but also remuneration that is paid/borne by a Portuguese company or permanent establishment (PE).

Non-residents are taxed at a flat rate of 25% on their taxable remuneration (e.g. employment, self-employment, and pension income) in 2025.

Resident income tax rates for 2025

Taxable income (EUR)		Tax rate (%)	Deductible amount (EUR)
Over	Not over	Tax rate (%)	Deductible amount (EUR)
0	8,059	13.00	0
8,059	12,160	16.50	282.07
12,160	17,233	22.00	950.91
17,233	22,306	25.00	1,467.91
22,306	28,400	32.00	3,029.38
28,400	41,629	35.50	4,023.14
41,629	44,987	43.50	7,353.76
44,987	83,696	45.00	8,028.38
83,696		48.00	10,539.00

For the purpose of applying the tax rate, the taxable income is divided by two if the taxpayers are married and not judicially separated, as well as in the case of de facto marriages, whatever the circumstances, should they opt for joint taxation.

Special rates apply to capital gains and investment income.

Additional solidarity rate

In 2025, an additional solidarity rate, which varies between 2.5% and 5%, applies to taxpayers with a taxable income exceeding EUR 80,000 and EUR 250,000, respectively.

Subsistence level

Portuguese tax legislation includes a specific rule that ensures individuals who primarily receive employment income, business and professional income, and/or pension income are guaranteed a minimum level of net income (subsistence level).