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Portugal Personal Income Tax Rate  for 2017-2018. Individual tax, Capital Gain Tax and Corporate / Companies tax Rates for Residents and Non Residents



Portugal Personal Income Tax Rate for 2017

Taxable Income (EUR) Tax Rate
0 to 7,091 14.50%
7,071 to 20,261 28.50%
20,261 to 40522 37%
40,522 to 80,640 45%
Over 80,640 48%


Income Tax Rate for Non Residents

- 25% Flat rate on taxable remuneration

Only Portuguese-source income of Non-Residents are chargeable to tax. This includes not only that portion of remuneration that can be allocated to the activity carried out in Portugal but also remuneration that is borne by a Portuguese company or permanent establishment (PE)


Extra Ordinary Rate

Taxable Income (EUR) Tax Rate
20,261 to 40,522 0.88
40,522 to 80,640 2.75
80,640 3.21


Additional Solidarity Tax

- 2.5% to 5% for tax payers with taxable income exceeding EUR 80,000


Capital Gain Tax in Portugal

- 28% flat Rate on Gains of shares

- 35% tax on shares in a black listed jurisdiction.

Corporate / Company Income Tax Rate in Portugal for 2017

Taxable Income and Description Tax Rate
Standard income tax rate on corporations 21%
SMEs on the first EUR of 15,000 (Amount exceeding EUR 15,000 tax is 21%) 17%
SMEs located in Portuguese inland region on the first EUR 15,000 (Over EUR 15000 21%) 12.5%
Companies that are tax resident in the Autonomous Region of Azores, including PEs of foreign entities registered therein. 16.8%


Surtax in Portugal

The following surtaxes may also apply:

A local surtax (Derrama) of up to 1.5% of taxable income, prior to the deduction of any available carry forward tax losses, is levied in certain municipalities. The local surtax is assessed and paid when filing the CIT return.

A state surtax (Derrama Estadual) applies (prior to the deduction of any available carry forward tax losses) at the following rates:

- 3% applicable to the taxable profit exceeding EUR 1.5 million and up to EUR 7.5 million.
- 5% applicable to the taxable profit exceeding EUR 7.5 million and up to EUR 35 million.
- 7% applicable to the taxable profit exceeding EUR 35 million.

The state surtax is levied on resident taxpayers carrying on commercial, industrial, or agricultural activity and by non-residents with a PE in Portugal. The state surtax is paid in three installments.

A regional surtax (Derrama Regional) applies in the Autonomous Region of Madeira on the same terms as the state surtax.


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