Portugal - Tax Guide for Freelance Contractors
Welcome to our guide to Portugal Taxation. You will find a wealth of information which will be useful if you plan to work in, or place consultants in, Portugal.
Our tax guides give a general overview of the actual taxation rates and rules at the time of writing. There are of course many ways to legally reduce tax or social security burdens in Portugal. Please contact us for more information or an actual breakdown of your situation, and to find out more about our range of payroll and contact management services in Portugal.
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Portugese Income Tax
Portugese Social Security
Portugese Visas and Work Permits
Umbrella and Contract Management Services in Portugal
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Tax residents in Portugal: are liable to pay Portuguese tax on their worldwide income,
Non tax residents in Portugal: are liable to pay tax on Portuguese-source income only.
Individuals will be regarded as tax residents:
- If they remain in Portugal for more than 183 days in a calendar year,
- If they visit the country for a shorter period, but have a dwelling in the country which can be deemed to be used as their habitual residence,
- Married individuals who stay in the Portuguese territory for less than 183 days will not be deemed to be tax residents of Portugal due to their spouse being deemed to be tax resident, provided that they can prove that the major part of their economic relationships is not located on Portuguese territory.
- they have not been tax residents in the last five years in Portugal
- their job consists of a high-value-added activity of a scientific, technological or artistic nature
- employment income,
- business income,
- investment income,
- real estate income,
- capital gains income,
- substantiated and unreimbursed expenses relating to compulsory pension payments,
- certain payment made to qualifying cooperatives.
- 10% unreimbursed health-related expenses, including interest on health-related loans, incurred by the taxpayer and his household (limited),
- 30% of his own and his dependants’ education expenses (limited),
- 15% of expenses incurred in paying a mortgage or rent on a permanent dwelling in Portugal (certain restrictions apply),
- 25% of expenses incurred for the care, in nursing homes or special homes, of the taxpayer himself or his disabled dependants (limited),
- 20% of alimony payments (certain conditions apply),
- 20% of the annual contributions to private pension plans.
- 11.50% for the first EUR 4’898,
- 14.00% from EUR 4’898.01 to EUR 7’410,
- 24.50% from EUR 7’410.01 to EUR 18’375,
- 35.50% from EUR 18’375.01 to EUR 42’259,
- 38.00% from EUR 42’259.01 to EUR 61’244,
- 41.50% from EUR 61’244.01 to EUR 66’045,
- 43.50% from EUR 66’045.01 to EUR 153’300,
- 46.50% over EUR 153’300.01.
Internet: between April and May depending on type of income received.