Tax Law

Practising tax law allows us to provide comprehensive assistance on legal matters in Portugal.

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You must pay taxes. But there is no law that says you must leave a tip.
– Morgan Stanley

Individuals deemed as residents for tax purposes in Portugal are subject to taxation on their worldwide income. It is important that they fully comply with all Portuguese tax rules and the applicable international rules, so as to avoid a situation of double taxation, as well as to explore the applicability of potential exemptions under the NHR (Non-Habitual Resident) tax regime.

Consultancy and professional advice regarding the new challenges and tax rules applicable to situations of mobility within a context of globalisation.

TAX CONSULTANCY

Tax consultancy takes on a crucial role in all processes of change. Identifying risks and opportunities will be decisive for success.

TAX SYSTEM

The Portuguese tax system lays down that residents for tax purposes in Portugal shall be taxed on their worldwide income, i.e., regardless of whether the income sources are Portuguese or foreign, unless an exception applies.

RESIDENCE FOR TAX PURPOSES

Portugal has a tax system based on residence for tax purposes. Residents in Portugal for tax purposes are taxed at progressive rates ranging from 14.5% to 48%, to which an additional solidarity levy of between 2.5% and 5% is added in the case of taxpayers whose taxable income exceeds 80,000 euros. Special tax rates may apply to specific types of income, such as income from equity investments, annuities and capital gains.

Portugal has no wealth tax or inheritance tax and recognises tax exemption on donations to close family members.

Benefits of NHR 2.0 / IFICI status

Portugal has introduced a new tax incentive designed to attract highly qualified professionals, entrepreneurs and investors: the Incentive for Scientific Research and Innovation (IFICI). This regime applies from 2024 onwards and reflects Portugal’s strategic focus on innovation, productivity and economic development. Unlike broader incentive frameworks used in the past, IFICI is activity-driven and highly targeted.

Tax regime

IFICI is a Portuguese tax regime available to new tax residents who perform eligible professional activities for eligible entities in Portugal.

It offers:

A flat 20% tax rate on Portuguese employment or self-employment income linked to eligible activities
A broad exemption on foreign-sourced income, subject to specific exceptions
A 10-year duration, provided the eligibility conditions continue to be met

IFICI is designed to attract talent that actively contributes to Portugal’s economic and technological development.

Find out more: here.

TAXES IN PORTUGAL

Like any tax resident in Portugal, non-habitual residents must submit annual tax returns. Within a single income category, the country of origin of the income and the specific conditions of the beneficiary, or his or her income structure, may determine different taxation rules.

RESIDENCE PERMITS

There are different types of residence permit, namely:

Golden Visa;
Family reunification;
“D7 Visa”
“D2 Visa”
Long-term residence permit issued by another EU member state;
Residence permit for study, unpaid internship and voluntary work;
EU Blue Card;
Residence permit for work;
Residence permit for activities in higher education and research and highly qualified;
“Startup” Visa.

Find out more

INSIGHTS

Insights ABOUT TAX LAW

Non-Habitual Resident – NHR Questions & Answers

Initial questions about the NHR (Non-Habitual Resident) regime are extremely important to clarify what should you investigate further.

2023 Crypto Taxation in Portugal

After years of uncertainty regarding the taxation of Crypto in Portugal, Portuguese Parliament approved a specific tax regime to come into force on January 1st, 2023.

Corporate Income Tax

Portuguese corporate income tax applies in general to companies but may also be applied to non-legal entities whose effective headquarters or place of direction is in Portugal, as well to other entities that simply obtain income in Portuguese territory.

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