INCOME TAX

PERSONAL INCOME TAX (IRS)
 

Portuguese Personal Income Tax ('Imposto sobre o Rendimento das Pessoas Singulares' or IRS) is applicable to either the income obtained by resident or non-resident entities. Regarding non-resident entities it taxes only their income obtained in Portuguese territory, as to the resident entities it taxes their global income, either from internal or external source. The taxation period is the civil year. Regarding resident entities, some kind of income may be taxed through final withholding tax, or together with their overall income at a progressive IRS rate that can reach a maximum of 48%, through the delivery of the respective Income Tax Return ('Declaração Modelo 3'). Non-resident entities may be taxed either by definitive withholding tax or are obliged to the delivery of the 'Declaração Modelo 3' in some situations (namely in case of capital gains).


Residents Tax Rate Obs.
Overall Income up to 48%
Progressive tax rate applicable to the overall income on the delivery of the respective annual income tax Return. Amounts withheld may be credited against the IRS due.Additionalspecial solidarity rates may be apply to income over 80.000 Euro.
Dividends 28%
There is an option available to tax this income together with the respective overall income.
Capital Gains (Securities) 28%
There is an option available to tax this income together with the respective overall income.
Capital Gains (Real Estate) -
This type of income must be taxed together with the respective overall income, but only in 50% of its total amount.
Interests from bonds and bank deposits 28%
There is an option available to tax this income together with the respective overall income.

Non-Residents Tax Rate Obs.
Capital Gains (Securities) 28%
Capital Gains on Government and Corporate Bonds are exempt. There is also an exemption for securities negotiated in regulated stock-markets regarding securities issued by Portuguese entities. Anti-abuse regulations may apply. Annual Income Statement must be delivered.
Capital Gains (Real Estate) 28%
Annual Income Statement must be delivered.
Dividends 28%
This tax may be reduced or eliminated according to double tax treaties or Parents-Subsidiary Directive.
Interests 28%
This tax rate may be reduced up to 10% according to double tax treaties or Directive n.º 2003/49/CE.
Bonds Exempt
This tax exemption is applicable to either interests or capital gains on both, government and corporate bonds. Anti-abuse regulations may apply.
Royalties 25%
This tax rate may be reduced up to 5% according to double tax treaties or Directive n.º 2003/49/CE.
Other services 25%
Some exceptions may apply. This tax may be reduced or eliminated according to double tax treaties.






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08:15
BUSINESS BREAKFAST “State Budget 2018: The end of foreign owned properties in Portugal?” by: Filipe Abreu, Tax Department - Senior Associate Wednesday, 24 January, at 8.15am HILTON [...]
Date :  Wednesday, 24 January 2018
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