Taxes in Portugal

Taxes in Portugal

Introduction:
Nobody likes to hear the word 'taxes', even if it's only about Belgium. No wonder some people move to countries that have much simpler tax requests than we have here. Is Portugal easier? To discover, you'll have to know how taxes work in this country in detail.


What do I have to do regarding my taxes?
It is very important that Portugal you're registered as a tax payer in Portugal before you pay anything. You register by filling out a form called "fiche de inscricao" and by sending that to the local tax authorities. If you need help with these forms, you can always contact one of our partners!

Everyone, including expats, had to pay their income taxes in springtime. The deadline depends on where you work. Do you work for the government? Then your deadline is march 15. Do you work on your own? Then your deadline is april 30.


When am I a permanent residence according to the Portugese law?
The tax conditions in Portugal differ for residents and for second home owners. It depends on how many days you spend in the country. If you spend less than 183 days a year in Portugal, then you're not treated as a resident of the country.

If you spend more than 183 days in Portugal, you'll be seen as a resident and you'll have to pay taxes on your local and international income. When you're not seen as a resident (less than 183 days in Portugal) you'll only pay taxes on your local income.


Tax rates
The tax rates in the years 2017-2018 in Portugal were as followed:

Income per year

Portuguese tax rate

Up to €7,091

14.5%

€7,091 - 20,261

28.5%

€20,261–40,522

37%

€40,522–80,640

45%

€80,640+

48%

In 2017 an additional solidarity tax was added that only has to be paid by people having a large income above €80.000.


Calculating taxes
There are a lot of online tools that can help you discover the exact amount of your taxes. The Portugese government also offers some tools, but these are only provided in Portugese.