Individual - Taxes on personal income

Last reviewed - 08 April 2022

Residents in Portugal for tax purposes are taxed on their worldwide income at progressive rates varying from 14.5% to 48% for 2021.

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 2021.

Resident income tax rates for 2021

Taxable income (EUR*) Tax rate (%) Deductible amount (EUR)
Over Not over
0 7,112 14.5 0
7,112 10,732 23.0 604.54
10,732 20,322 28.5 1,194.80
20,322 25,075 35.0 2,515.63
25,075 36,967 37.0 3,017.27
36,967 80,882 45.0 5,974.54
80,882   48.0 8,401.21

* 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 2021, an additional solidarity rate, which varies between 2.5% and 5%, applies to taxpayers with a taxable income exceeding EUR 80,000.