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Portugal tax guide 2026
Portugal taxes residents on what they earn worldwide, using nine progressive bands topped by a solidarity charge on high incomes. Most investment income is settled at flat rates instead, and a set of newcomer regimes — led by the 20% IFICI incentive — is why so many mobile professionals shortlist the country.
- Rate range
- 12.5% – 48% (+ up to 5% solidarity charge)
- Key allowance
- Employment deduction: the higher of your mandatory contributions or 8.54× the social support index (IAS, €537.13/month in 2026)
- Tax year
- Calendar year
- Filing deadline
- 1 April – 30 June, online
Taxes covered
- Income tax48%
Top band 48% above €86,634; a solidarity charge adds 2.5% over €80,000 and 5% over €250,000.
- Dividend tax28%
28% flat, taken at source; you can instead have half of qualifying dividends taxed with your other income.
- Capital gains tax28%
28% flat on shares; property gains are half-included at progressive rates; long-held listed securities get taper relief.
- Crypto tax28% / 0%
28% flat on gains from crypto held 365 days or less; hold longer than a year and the gain is exempt.
- Social security11%
Employees pay a flat 11% of gross salary with no upper cap; the self-employed pay 21.4%.
- Inheritance tax0% / 10%
No inheritance or gift tax; a flat 10% stamp duty applies instead, and spouses, children and parents pay nothing.
- Withholding tax25% / 28%
Non-residents: 25% final on salaries, pensions, fees and royalties; 28% on investment income; 35% for tax-haven recipients.
Special regimes
- IFICI — the tax incentive for scientific research and innovation
A 20% flat rate on qualifying Portuguese salary or self-employment income, plus a broad exemption on foreign income (pensions excluded), for 10 years. Open to qualifying new residents from 2024.
- NHR (Non-Habitual Resident) — closed
The famous older regime shut to new entrants in 2024; people already in it keep their 10-year run.
- Returning residents
Come back to Portugal after 5+ years away (arrivals through 2026) and half your salary or business income escapes tax, capped at €250,000 for 2024+ arrivals.
- Under-35 relief
Young workers can shelter salary or business income on a 10-year ladder: 100% in year 1, then 75%, 50% and 25% in later stages, capped each year at 55× the social support index.
- No wealth tax
Portugal charges no tax on what you own — only on what you earn or gain.
Recent changes
- 2026-01Tax bands rose about 3.5% with inflation and the rates on the 2nd–5th bands each fell 0.3 points.
- 2026-01The social support index (IAS) increased from €522.50 to €537.13 a month.
- 2025-07No withholding is taken where the amount would be under €25.