A survey of income tax, social security tax rates and tax legislation impacting expatriate employees working in Portugal. The primary concerns for a foreign company that needs to comply with tax laws in Portugal are: Individual income tax for employees in Portugal, social security costs, VAT, withholding tax and corporate taxes. Les valeurs actuelles, des données historiques, des prévisions, des statistiques, des tableaux et le calendrier économique - Portugal - Taux d'impôts sur le revenu personnel. Still opportunities and benefits despite uplift of pension tax to 10% from zero . It is a tax system that grants a 20% tax rate or a total exemption on the taxation of income of expatriates who choose to live in Portugal, for a period of 10 years. By election, profits of foreign permanent establishments may be exempt. Share with your friends. Depending on the tax rate into which the taxpayer falls, capital gains taxes will be 28% or possibly lower, if added to general income and the tax bracket is still under 28% for the total amount. The purpose of this new status is to attract foreigners with high value-added potential, such as retirees or skilled employees. Insights Industries Services Client Stories Careers About us Please note that your account has not been verified - unverified … And, of course, NHR still offers the opportunity to receive other forms of foreign income tax-free for your first 10 years in Portugal. By International Adviser, 5 Feb 20. It is possible to move to Portugal and pay a low tax rate on your pension, whether you decide to take it as one lump sum or as a regular income. The minimum and maximum income tax rates remain the same as last year (and have actually been static since 2013). If the taxpayer makes such election, the income shall be taxed at the progressive tax rates, with a credit given for the tax withheld. Taxes in Portugal are levied by both the national and regional governments of Portugal.Tax revenue in Portugal stood at 34.9% of GDP in 2018. Credit for underlying tax may be Investment income paid by non-resident entities without a permanent establishment in Portugal, domiciled in jurisdictions with more favorable tax regimes, is liable to an autonomous tax rate … If employed in Portugal, non-habitual residents can benefit from a flat 20% income tax rate instead of the usual scale rates reaching up to 48%. Portugal individual income tax rates are progressive up to 48%. The two new income tax bands that were introduced in 2018 are also unchanged. $18,201 – $45,000. The most important revenue sources include the income tax, social security contributions, corporate tax and the value added tax, which are all applied at the national level. Rental income is subject to a 28% flat tax rate, but the taxpayer may opt to add the rents obtained to the respective taxable income in the tax return. If they are non-residents, this is, if they have spent less than 183 days in the country over the space of 12 months, then they are only taxed on the income generated in the country. Workers and managers. These should be subject to VAT at the reduced rate. $45,001 – $120,000 Expat pensioners moving to Portugal will no longer be exempt of income tax. Corporate Tax Rate in Portugal averaged 34.67 percent from 1981 until 2020, reaching an all time high of 55.10 percent in 1983 and a record low of 21 percent in 2015. Residents and non-residents. This special Income Tax Regime lasts at most for 10 consecutive years. However, in some cases a person … Anyone who has not been resident in Portugal for the previous five tax years is entitled to obtain residence under the Non- Habitual Resident law, which entitles most people to receive pensions and foreign income tax-free for 10 years. In order to get the famous tax scheme, it is necessary to prepare well. Foreign companies operating in Portugal may find it challenging to deal with the complexities of the country’s tax system. Portugal Individual income tax rate table and Portugal Corporate Income Tax TDS VAT Table provides a view of individual income tax rates and Corporate Income Tax Rates in Portugal. Taxes in Portugal. Employment income Foreign source income is tax-exempt under the NHR regime or taxed at a flat rate of 20% if it falls under the list of eligible professions. A survey of income tax, social security tax rates and tax legislation impacting expatri... close. 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