Europe

Portugal tax rates 2026

This is a standard EU residence-based system that taxes worldwide income. But the new IFICI (NHR 2.0) regime offers a 20% flat rate to qualifying tech, science and innovation professionals.

Worldwide (residence-based) Last verified July 2026

The taxes

Portugal tax rates
Personal income (top)	48%Progressive, with 9 bands. The top rate starts around EUR 86.6k. On top of that, a solidarity surcharge adds 2.5% above EUR 80k and 5% above EUR 250k.
Corporate income	19%
Capital gains	A flat 28% for individuals, with the option to tax 50% of gains at progressive rates instead.
VAT / IVA	23%
Dividends (WHT)	28%
Interest (WHT)	28%
Royalties (WHT)	25%
Social security (employee)	11%
Social security (employer)	23.75%
Wealth tax	None, though the AIMI property surtax applies at 0.7–1.5% on holdings above EUR 600k.
Inheritance / estate	None for spouses or children. A 10% stamp duty applies otherwise.
Property tax	IMI, a municipal tax, runs 0.3–0.45% of rateable value.
Other	A solidarity surcharge of 2.5–5% on high incomes.

How the system works

Tax system: Worldwide (residence-based)
Foreign income: Taxed (worldwide)
Taxes by citizenship: No
Exit tax: Yes, leaving has a cost
CFC rules: Yes
CRS: Participating

A special regime for new arrivals

IFICI, known as NHR 2.0, taxes qualifying Portuguese employment and self-employment income at a flat 20%. Most foreign-source income is exempt, and the regime lasts for 10 years.

Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.