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Withholding tax in Portugal 2026
If you don't live in Portugal, Portuguese income reaches you net of a final withholding: 25% on salaries, pensions and fees, 28% on investment income, and a punitive 35% where a listed tax haven is involved.
At a glance
- top rate
- 35% (tax-haven recipients; undisclosed accounts)
- entry band
- 25% standard final rate
- tax year basis
- Taken when the payment is made
- filing deadline
- Event-based
- residency basis
- Portuguese income of non-residents
- regime flag
- European Union / European Economic Area residents earning 90%+ of income in Portugal can opt into resident treatment
Rates
Final withholding on non-residents (2026)
| Rate | Base | Applies to |
|---|---|---|
| 25% | Gross | Salaries — work done in Portugal or paid from Portugal |
| 25% | Gross | Portuguese pensions |
| 25% | Gross | Business and service fees; royalties |
| 28% | Gross | Dividends and interest |
| 35% | Gross | Recipients in listed tax havens; undisclosed nominee accounts |
Thresholds & allowances
- Small-amount ruleNothing is withheld under €25
For business, investment and rental payments, from July 2025
Residency
Residency trigger
These rates apply to people who are not Portuguese tax residents, on income arising in Portugal.
Non-resident treatment
Tax treaties can cut the rates. Residents of the European Union (EU) or European Economic Area (EEA) earning at least 90% of their income from Portugal can choose to be taxed like residents, with the deductions that brings; EEA service providers can reclaim withholding above what a resident would owe.
Notes
- Gains on Portuguese listed shares are generally exempt for non-residents rather than withheld — see the capital gains page.
- Portuguese income of a non-resident cannot be moved abroad until the tax on it is paid or secured.
- A common European Union (EU) framework for faster withholding refunds arrives from 2030; Portugal has not yet written it into law.
FAQ
What withholding do non-residents pay on Portuguese income?
Typically 25% final on salaries, pensions, fees and royalties, 28% on dividends and interest — and 35% where a listed tax haven is the recipient.
Can EU residents avoid the non-resident rates?
If at least 90% of your income comes from Portugal, you can elect resident treatment and use resident deductions; treaties can also lower specific rates.
Figures: tax year 2026, compiled from public sources. Not tax advice.