Portugal has a developed and multi-level taxation system covering both individuals and legal entities. Let’s take a look at the main taxes in the country.
Taxes for legal entities include:
- Corporate income tax (IRC): The standard rate is 21%. A reduced rate of 17% may apply to small and medium-sized enterprises with taxable income of up to €25,000.
- Additionally, a municipal tax of up to 1.5% and a state surtax of 3% to 9% are levied on profits above certain thresholds
- Value added tax (IVA): The standard VAT rate is 23%. Reduced rates apply for certain goods and services: 13% і 6%.
- Dividend tax: Dividends paid to residents are taxed at a rate of 28%. For non-residents, the rate is also 28%, but may be reduced under double taxation treaties.
Taxes for individuals:
- Income tax (IRS): A progressive scale of rates from 14.5% to 48% is applied, depending on annual income
- Tax residents are taxed on worldwide income, while non-residents are taxed only on income derived from sources in Portugal at a flat rate of 25%
- Social contributions: Employees pay 11% of their salary, and employers pay 23.75%.
- Capital gains tax: Gains from the sale of real estate or other assets are taxed at a rate of 28% for residents and non-residents
Other taxes and duties:
- Real estate transfer tax (IMT): Applies to the purchase of real estate; the rate depends on the value and type of the property.
- Municipal real estate tax (IMI): An annual tax whose rate varies from 0.3% to 0.45% for urban properties and about 0.8% for rural properties.
- Stamp duty: Charged on certain transactions, such as gifts or inheritance of property, at a rate of 10% for recipients who are not direct relatives
Portugal also offers special tax regimes, such as the “Non-Regular Resident” (NHR) status, which provides benefits for new residents, including reduced tax rates on certain types of income. The Portuguese tax system is characterized by progressive and diverse taxes, which requires careful planning when doing business or moving to the country. It is recommended to consult with professional tax advisors to ensure compliance with current legal requirements and to optimize the tax burden.
Source: http://relocation.com.ua/analiz-osoblyvostej-systemy-opodatkuvannia-v-portuhalii/
PORTUGAL, TAXATION SYSTEM
