How Portuguese Income Tax Works — IRS
Portugal's IRS (Imposto sobre o Rendimento de Pessoas Singulares) has nine progressive brackets from 13.25% to 48%. A specific deduction of €4,194 applies to employee income. The NHR (Non-Habitual Resident) regime historically attracted many digital nomads with a 20% flat rate — replaced by the IFICI regime for new applicants from 2024.
| Rate | Taxable income |
|---|---|
| 13.25% | €0 – €7,703 |
| 18–32.75% | €7,703 – €27,146 |
| 37% | €27,146 – €39,791 |
| 43.5% | €39,791 – €51,997 |
| 45% | €51,997 – €81,199 |
| 48% | Above €81,199 |
- →Social Security (Segurança Social): 11% employee, 23.75% employer, 21.4% self-employed
- →Specific deduction (deducao especifica): €4,194 for employees reduces taxable base
- →Solidarity surcharge: 2.5% on income €80,000–€250,000; 5% above €250,000
- →NHR regime (closed to new applicants after 2024): 20% flat on Portuguese-source income for 10 years
- →IFICI regime (successor to NHR): available for specific professions moving to Portugal from 2024
- →Recibos verdes (self-employed): submit e-invoices; pay quarterly withholding or advance payments