Portugal imposes personal income tax (IRS) under the Personal Income Tax Code (CIRS) and corporate income tax (IRC) under the Corporate Income Tax Code (CIRC). Tax outcomes depend on the tax year, income category, residence status, deductions and any applicable treaty.
Portugal personal income tax rates in 2026
Resident individuals generally pay progressive IRS on taxable income, with marginal rates ranging from 12.5% to 48% for mainland Portugal in 2026. Bracket thresholds, tax deductions and regional adjustments must be checked against the official annual schedule in Article 68 of the CIRS. A marginal rate applies only to the corresponding slice of income, not the entire taxable amount.
Income from employment (Category A), business and professional activity (Category B), investment (Category E), property (Category F), capital gains (Category G) and pensions (Category H) can be subject to different rules. The calculation may also involve personal deductions, withholding credits and specific tax benefits.
Residents and non-residents: how Portuguese income tax applies
Under Article 16 CIRS, tax residence generally depends on physical presence in Portugal for more than 183 days in a relevant 12-month period, or maintaining a dwelling in circumstances indicating an intention to use it as a habitual residence. Other statutory residence rules may also apply.
Residents are generally taxable on worldwide income, subject to treaty relief and domestic exemptions. Non-residents are generally taxable only on Portuguese-source income. Under Article 71 CIRS, certain non-resident employment and professional income is commonly subject to a 25% final withholding rate, but other income types and exceptions may carry different rates. Check the source-of-income provisions in Article 18 CIRS and the applicable double-taxation agreement.
Additional solidarity tax
Under Article 68-A CIRS, an additional solidarity charge generally applies at 2.5% to the portion of taxable income above EUR 80,000 up to EUR 250,000 and 5% above EUR 250,000, subject to the statutory calculation.
Capital gains tax in Portugal
Investment income and gains on securities often attract a 28% autonomous IRS rate, subject to exemptions, aggregation elections or mandatory aggregation rules and special anti-abuse provisions. See Article 72 CIRS. Certain income connected with listed low-tax jurisdictions may face a higher 35% rate where statutory conditions are met.
Gains on Portuguese real estate are not necessarily taxed at a flat 28%. Under Article 10 CIRS, taxable real-estate gains and reinvestment relief depend on the property, taxpayer circumstances and legal conditions. For many individual disposals, only 50% of the qualifying net gain enters the progressive tax base, subject to exceptions and applicable rules for non-residents.
Corporate income tax in Portugal for 2026
For tax periods beginning in 2026, the standard mainland IRC rate is 19%, under Article 87 CIRC. Qualifying small and medium-sized enterprises and small mid-cap companies may benefit from a reduced rate on an initial portion of taxable profit, subject to current legislation and eligibility. Autonomous regions such as Madeira and the Azores have their own applicable regional rules and rates.
Municipal, state and regional surtaxes
A municipal surtax (derrama municipal) of up to 1.5% may apply, depending on the municipality and available relief. The state surtax (derrama estadual) generally uses progressive rates of 3%, 5% and 9% on taxable-profit bands above EUR 1.5 million, EUR 7.5 million and EUR 35 million respectively, under Article 87-A CIRC. Regional surtaxes may differ.
Corporate tax liabilities may also depend on permanent-establishment rules, loss relief, withholding taxes, transfer pricing and international minimum-tax legislation where applicable.
Historical Portugal income tax rates for 2017-2018
The following tables are retained for historical reference only. They must not be used to calculate current-year tax.
Personal income tax brackets reported for 2017
| Taxable income (EUR) | Marginal rate |
|---|---|
| Up to 7,091 | 14.5% |
| 7,091 to 20,261 | 28.5% |
| 20,261 to 40,522 | 37% |
| 40,522 to 80,640 | 45% |
| Above 80,640 | 48% |
Historical non-resident employment taxation was generally reported at 25%. Earlier legislation also provided an extraordinary surtax, which is not presented here as a current levy. The original historical article referenced additional solidarity tax and 28% taxation of many share gains, with higher taxation in certain listed-jurisdiction cases.
Corporate rates reported for 2017
| Company or tax treatment | Historical rate |
|---|---|
| Standard mainland corporate income tax | 21% |
| Qualifying SMEs: first EUR 15,000 of taxable profits | 17% |
| Qualifying SMEs in designated inland regions: first EUR 15,000 | 12.5% |
| Azores regional standard rate (historical) | 16.8% |
Historical municipal surtax could reach 1.5%. State surtax bands were generally 3% above EUR 1.5 million, 5% above EUR 7.5 million and 7% above EUR 35 million. A regional surtax could also apply in Madeira. These are historical figures, not a statement of the current regional regime.
Official Portuguese tax legislation and guidance
For the current consolidated texts, official notices, annual schedules and forms, consult the Portuguese Tax and Customs Authority (Autoridade Tributaria e Aduaneira), the Diario da Republica official gazette and the tax codes collection. Tax treaty and special-regime eligibility should be reviewed separately.
Last reviewed: 23 October 2026. This article provides general information and is not individual tax advice.