Do I have to pay tax in Portugal?

Portuguese residents must pay income tax on their earnings. Most of the time tax is deducted automatically from payslips, but it is still mandatory to complete an annual tax return. The income tax is progressive, starting at 14.5% for income up to €7,112, with the highest rate applying to incomes over €80,883.

How much tax do you pay in Portugal?

Income tax rates in Portugal

Annual taxable income Portugal income tax rate
up to €7,112 14.5%
€7,113–€10,732 23%
€10,733–€20,322 28.5%
€20,323–€25,075 35%

Can you live in Portugal tax-free?

Portugal’s ‘non-habitual residents’ (NHR) scheme gives special tax benefits to new residents for their first ten years in the country. It also offers a lower income tax rate of 20% if you’re employed in Portugal in a ‘high value’ activity and allows you to receive some foreign income tax-free.

Do you pay income tax in Portugal?

Residents in Portugal for tax purposes are taxed on their worldwide income at progressive rates varying from 14.5% to 48% for 2021. … Non-residents are taxed at a flat rate of 25% on their taxable remuneration in 2021.

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Is Portugal a tax-free haven?

Portugal is one of the best countries to live or retire and there are several reasons for this: best EU residency program for investors (minimal stay requirements and the possibility of obtaining an EU passport after 6 years), it’s the best EU tax haven for pensioners and high net worth individuals (10-year exemption …

Is healthcare free in Portugal?

State healthcare in Portugal is not completely free. Healthcare costs are covered by the state, and patients pay standard user fees, known as ‘taxas moderadoras’.

Are taxes high in Portugal?

Portugal Tax Rates

For non-residents, you’ll pay a flat tax rate of 20% while residents are taxed on a progressive scale from 5% to 35%. Like the US, the Portugal tax year is the calendar year.

How much money do I need to retire in Portugal?

How much money do you need to retire in Portugal? Portugal offers arguably the lowest cost of living in Western Europe. a couple can live comfortably in Portugal’s interior from about $1,700 a month. The budget for larger cities such as Lisbon is about $2,100 or $2,200 a month.

Should I retire in Portugal?

Portugal is also one of best places to retire abroad, with the Algarve region listed by CNN and Forbes as one of the best places to retire in the world. Portugal has an affordable cost of living at around USD 1,500–1,700 per month in smaller towns, or around USD 2,200 for larger cities.

How much tax will I pay on my pension in Portugal?

In its annual 2020 budget, Portugal introduced a 10% tax on the foreign-source pension income for ”non-habitual residents.” This in response to concerns raised by some EU countries over discriminatory tax regimes resulting in zero-taxed income.

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How much tax do you pay when selling a house in Portugal?

There is a Capital Gains tax in place in Portugal on the sale of a property at a rate of 28% for individuals and 25% for companies (non-residents). If the money from a sale is re-invested then only 50% of the net taxable income will be subject to capital gains tax.

Do you pay road tax in Portugal?

If you own a vehicle registered in Portugal you must pay every year the Unique Tax on Traffic (Imposto Único Circulação) IUC. … It is a mandatory tax for everyone who own a vehicle in Portugal.

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