Portugal

Individual - Taxes on personal income

Last reviewed - 08 August 2022

Residents in Portugal for tax purposes are taxed on their worldwide income at progressive rates varying from 14.5% to 48% for 2022.

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 borne by a Portuguese company or permanent establishment (PE).

Non-residents are taxed at a flat rate of 25% on their taxable remuneration in 2022.

Resident income tax rates for 2022

Taxable income (EUR*) Tax rate (%) Deductible amount (EUR)
Over Not over
0 7,116 14.5 0
7,116 10,736 23.0 604.86
10,736 15,216 26.5 980.63
15,216 19,696 28.5 1,284.99
19,696 25,076 35.0 2,565.21
25,076 36,757 37.0 3,066.79
36,757 48,033 43.5 5,455.84
48,033 75,009 45.0 6,176.56
75,009   48.0 8,426.51

* euros

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 2022, an additional solidarity rate, which varies between 2.5% and 5%, applies to taxpayers with a taxable income exceeding EUR 80,000.