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Portugal Tax Tables - Tax Rates and Thresholds in Portugal

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Welcome to the iCalculator™ PT Portugal Tax Tables page. Understanding the tax system is essential for individuals and businesses residing or operating in Portugal. On this page, you will find links to current and historical tax tables for Portugal, which provide detailed information on different tax rates and how they may affect you. Review the latest income tax rates, thresholds and personal allowances in Portugal which are used to calculate salary after tax when factoring in social security contributions, pension contributions and other salary taxes in Portugal

Choose a specific income tax year to see the Portugal income tax rates and personal allowances used in the associated income tax calculator for the same tax year.

Overview of Taxation in Portugal

Portugal offers a complex tax system that encompasses various types of taxes, each with its own set of compliance requirements. This overview provides a broad understanding of the key tax categories in Portugal.

Income Tax

Income tax in Portugal, known as Imposto sobre o Rendimento das Pessoas Singulares (IRS), applies to the income of individuals. It covers earnings from employment, business and professional activities, investment income, and real estate revenue. Tax residents in Portugal are taxed on their worldwide income, while non-residents are taxed only on income sourced within Portugal.

Corporate Tax

The Imposto sobre o Rendimento das Pessoas Colectivas (IRC) is levied on the profits of companies and other legal entities. This tax applies to both resident corporations, on their worldwide profits, and non-resident corporations, on profits derived from Portuguese sources.

Value Added Tax (VAT)

Value Added Tax, or Imposto sobre o Valor Acrescentado (IVA), is a consumption tax applied to most goods and services in Portugal. VAT is charged at various rates, including a standard rate and reduced rates for certain goods and services. Businesses are generally required to register for VAT and comply with periodic reporting and payment obligations.

Property Taxes

Portugal imposes several taxes related to property. The Imposto Municipal sobre Imóveis (IMI) is an annual tax on property ownership, while the Imposto Municipal sobre Transmissões Onerosas de Imóveis (IMT) is charged on real estate transfers. There's also a Stamp Duty (Imposto de Selo) applicable to various transactions, including real estate transfers.

Social Security Contributions

Both employers and employees in Portugal are required to make social security contributions, which fund various social welfare benefits. Self-employed individuals are also subject to social security contributions, with rates varying based on their activity and income.

Compliance and Reporting

Tax compliance in Portugal involves regular filings and payments. Income tax returns are typically due annually, with specific deadlines for residents and non-residents. Corporate entities must comply with various reporting requirements, including annual financial statements and corporate tax returns. VAT compliance includes regular filings, often on a monthly or quarterly basis, and prompt payment of VAT due.

Understanding the nuances of each tax type and staying compliant with reporting and payment obligations is crucial for individuals and businesses operating in Portugal. iCalculator™ PT provides tools and resources to support compliance and timely tax calculations.

Note: This overview does not include specific tax rates as these can vary and are subject to change each tax year. For current rates please review the tax tables for specific years linked at the top of this article. alternatively, you can see how these tax tables are used for specific income tax calculation in Portugal by selecting one of the calculators below.