Portugal

Individual - Taxes on personal income

Last reviewed - 06 July 2023

Residents in Portugal for tax purposes are taxed on their worldwide income at progressive rates varying from 14.5% to 48% for 2023.

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 2023.

Resident income tax rates for 2023

Taxable income (EUR*)		Tax rate (%)	Deductible amount (EUR)
Over	Not over	Tax rate (%)	Deductible amount (EUR)
0	7,479	14.5	0
7,479	11,284	21.0	486.14
11,284	15,992	26.5	1,106.73
15,992	20,700	28.5	1,426.65
20,700	26,355	35.0	2,772.14
26,355	38,632	37.0	3,299.12
38,632	50,483	43.5	5,810.25
50,483	78,834	45.0	6,567.33
78,834		48.0	8,932.68

* 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.