Portugal

Individual - Taxes on personal income

Last reviewed - 31 December 2019

Residents in Portugal for tax purposes are taxed on their worldwide income at progressive rates varying from 14.5% to 48% for 2019.

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 2019.

Resident income tax rates for 2019

Taxable income (EUR*) Tax rate (%) Deductible amount (EUR)
Over Not over
0 7,091 14.5 0
7,091 10,700 23.0 602.74
10,700 20,261 28.5 1,191.23
20,261 25,000 35.0 2,508.11
25,000 36,856 37.0 3,008.25
36,856 80,640 45.0 5,956.67
80,640   48.0 8,376.08

* 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 2019, an additional solidarity rate, which varies between 2.5% and 5%, applies to taxpayers with a taxable income exceeding EUR 80,000.