Dividend tax in Portugal 2026

Dividends are normally settled with a flat 28% taken at source — but you can elect to have only half of qualifying dividends taxed with your other income, which often wins at lower incomes.

At a glance

top rate: 28% flat, final
entry band: Optional: half the dividend taxed at your progressive rates
tax year basis: Calendar year
filing deadline: 1 April – 30 June
residency basis: Covers Portuguese and foreign dividends of residents
regime flag: 35% where the payer sits in a listed tax haven

Rates

How dividends are taxed (2026)

Rate	Base	Applies to
28%	Gross dividend	Default — final tax taken at source on Portuguese and foreign dividends
Your band rates on 50%	Half of qualifying dividends	Optional election, including dividends from qualifying European Union (EU) companies
35%	Gross dividend	Payers located in listed tax havens

Residency

Residency trigger

Residents owe the tax on dividends from anywhere in the world.

Non-resident treatment

Non-residents have the flat rate taken at source on Portuguese dividends; tax treaties can lower it.

Notes

Choose the 50% election and the tax already taken at source becomes a credit against your final bill.
Foreign dividends paid through a Portuguese bank or broker have the 28% withheld by that intermediary.
The 28% here is the same flat rate Portugal applies to most interest income.

FAQ

What is Portugal's dividend tax rate?

28%, taken at source as a final tax — with an option to have just 50% of qualifying dividends taxed at your normal progressive rates instead.

Can I pay less than 28% on dividends in Portugal?

Often, yes: electing the 50% inclusion means only half the dividend is taxed at your band rates, which beats 28% for most low and middle incomes.

Figures: tax year 2026, compiled from public sources. Not tax advice.

See dividend tax in other countries

Full ranking →