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Taxes in portugal

If you’re settling in Portugal, you should consult an Independent Financial Advisor to ensure you take full advantage of your current tax status and don't make any mistakes you may later regret.

The most important taxes are listed below:

• Residents Income Tax. Payable on worldwide income.
• Company Tax. Paid at a percentage of profits by partnerships and registered companies.
• Municipal Property Tax. Paid by all property owners.
• Wealth Tax. There is no wealth tax in Portugal.
• Capital Gains Tax. There is tax payable on capital gains made on the sale of property bought after 1989.  This tax is subject to several variables, including; cost of purchase, price of sale and any improvements made to the property.
  If you are a tax resident then 50% of this gain is taxable (the gain is considered to be part of your income and is taxed according to a scale).  You are tax exempt if it is your principal residence and the gains are reinvested in another property which will be used as your main residence (within a time period). 
  If you are considered not to be a tax resident then 100% of the gain is taxed at a flat 15%.
• Donations companies. Gifts to a spouse, antecedent or descendant are tax-free. 
• Offshore Company Tax. Gains on property sold by offshore companies are taxed at 15%.
• Heritage Property Tax. Properties transferred to or from descendants do not incur any tax. 
• Social Security. Isn't strictly a tax but will have to be paid if you decide to work.
• Motor Vehicle Tax. Paid annually by all vehicle owners.
• Value Added Tax. Paid on goods and services at varying rates.

More information about Portugal|The Pension Service
The Resident|Taxes in Portugal