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General Aspects

Portugal is a full member of the EU and the OECD and deemed a high-tax country. However, due to its special “non-habitual tax regime” for newly resident individuals it is currently one of the best tax choices for individuals to relocate to Portugal.

To get a free sample of our Portuguese non-habitual tax regime guide please contact us!!!

VAT and Other Indirect Taxes

Value Added Tax (VAT)

VAT rules follow those of the EU and the applicable rates in Continental Portugal are as follows: 6% reduced rate, 13% intermediate rate and 23% standard rate. Businesses that make taxable supplies are required to register and account for VAT if their annual turnover exceeds €10,000. VAT returns must be filed on a monthly basis, except that VAT-registered businesses having a turnover not exceeding €650,000 may opt for quarterly returns.

Other Indirect Taxes

Other indirect taxes include excise duties in line with the applicable EU directives, and taxes on alcohol, oil, tobacco and vehicles. Stamp duty is payable on acts, contracts, documents, titles, books, papers and other listed items which are not generally subject to VAT. ​Other significant taxes include real property transfer tax (“IMT”) and municipal annual property tax (“IMI”).

Portugal tax residents (NHR’s included) are liable to Portugal income tax on their worldwide income from the date on which they become residents. We can prepare and file your annual tax return. The filing season opens in April and ends in June.
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