Portugal
Top Income Tax
48%
Marginal rate
Corporate Tax
21%
Standard rate
VAT / Sales Tax
23%
Standard rate
Capital Gains
28%
Standard rate
Overview
Portugal offers a warm climate and affordable European lifestyle with moderate tax rates. The country replaced its popular NHR program with a more targeted regime in 2024. It remains attractive for digital nomads with its D8 visa and growing tech ecosystem in Lisbon and Porto.
Income Tax Brackets
| Income Range (EUR) | Tax Rate |
|---|---|
| 0 - 7,479 | 14.5% |
| 7,479 - 11,284 | 23% |
| 11,284 - 15,992 | 26.5% |
| 15,992 - 20,700 | 28.5% |
| 20,700 - 26,355 | 35% |
| 26,355 - 38,632 | 37% |
| 38,632 - 50,483 | 43.5% |
| 50,483 - 78,834 | 45% |
| 78,834+ | 48% |
Plus solidarity surcharge of 2.5% on income over 80k and 5% over 250k.
Corporate Tax
Standard Rate
21%
Small Business Rate
17%
17% on first 25k of taxable income for SMEs. Municipal surcharge up to 1.5%.
VAT / Sales Tax
Standard Rate
23%
Reduced Rates
6%, 13%
6% on essential food and books. 13% on restaurant meals.
Capital Gains Tax
Standard Rate
28%
Long-Term Rate
28%
Flat 28% on investment gains. Can opt for aggregation with income tax.
Social Security Contributions
Employee
11%
Employer
23.75%
Self-Employed
21.4%
Self-employed pay 21.4% on 70% of declared income.
Special Tax Regimes
NHR 2.0 (Scientific Research Incentive)
Replaced original NHR in 2024. 20% flat tax on eligible employment/self-employment income for qualified professionals in scientific research and innovation.
Eligibility: Must not have been a Portuguese tax resident in the previous 5 years. Must work in qualifying scientific or innovation roles.
Golden Visa
Residency-by-investment program offering path to EU residency and citizenship.
Eligibility: Minimum investment of 500k EUR in qualifying funds or 250k+ in cultural heritage projects.
Digital Nomad Visa
D8 Digital Nomad Visa: minimum income of 3,510 EUR/month. Valid for 1 year, renewable.
Pros & Cons
Pros
- Digital nomad visa available
- Affordable cost of living for Western Europe
- Strong expat community
- Path to EU citizenship
Cons
- High top marginal income tax rate (48%)
- NHR program replaced with stricter version
- Social security contributions are significant
Living Indicators
Cost of Living Index
Moderate
Quality of Life Index
Good
Best For
Data Sources
Tax rate data for Portugal is compiled from the following authoritative sources:
- OECD Tax Database
- Tax Foundation International Tax Competitiveness Index
- World Bank Business Enabling Environment
- Portugal government tax authority publications
- PwC Worldwide Tax Summaries
Last verified: 2024-01
Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.