Portugal — Taxes
- Residence and tax residence are distinct: a golden visa does not by itself make you a Portuguese tax resident
- Portuguese tax residence generally begins at 183 days of presence in a year, or a habitual home in Portugal
- The former non-habitual resident regime has been largely replaced; verify the current incentive rules before relying on any tax benefit
Personal income tax (IRS)
Portugal is a full-tax European country, not a low-tax haven. Tax residents are taxed on their worldwide income at progressive IRS rates running from about 12.5% to 48% in 2026, plus a solidarity surcharge on high incomes. This is the standard position — the tax appeal of Portugal has always come from a special regime layered on top, not from low headline rates.
The NHR regime is closed — IFICI is its narrower successor
The famous Non-Habitual Resident (NHR) regime — a 20% flat rate on qualifying Portuguese income and a broad exemption on most foreign income for ten years — was closed to new applicants under the 2024 State Budget. Existing NHR holders keep it until their ten-year term ends. Its successor, the IFICI regime (widely called “NHR 2.0”), keeps a 20% flat IRS on qualifying Portuguese employment income and foreign-income exemptions, but only for specific qualifying activities — scientific research, innovation and certain highly qualified professions. It is a far narrower door: do not assume you will qualify. Check IFICI eligibility for your profession before planning around it.
Corporate tax (IRC)
Companies pay corporate tax (IRC) at a base rate of 21% on the mainland, plus municipal and state surtaxes that lift the effective rate for larger profits — among the higher corporate rates in the EU.
Indirect tax (VAT/IVA)
The standard VAT (IVA) rate is 23% on the mainland, with reduced rates for essentials and lower rates in Madeira and the Azores. Everyday consumption is taxed at a normal European level.
Golden visa is residence, not tax residency
The Portugal golden visa requires very little presence and does not by itself make you tax-resident; tax residency generally follows 183 days or a habitual home in Portugal. And since the 2026 nationality law lengthened naturalisation to ten years, the road to a passport is longer too. If a genuinely low-tax European base is the goal rather than EU residence, weigh Andorra’s tax residency against Portugal on our golden visa comparison. Understand the residency-versus-tax distinction in our guide to second citizenship and taxes, and see our methodology for how each figure is verified.
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