{"id":95684,"date":"2021-05-18T14:22:44","date_gmt":"2021-05-18T14:22:44","guid":{"rendered":"https:\/\/www.expatinfodesk.com\/?page_id=95684"},"modified":"2021-05-24T17:34:38","modified_gmt":"2021-05-24T17:34:38","slug":"tax","status":"publish","type":"page","link":"https:\/\/www.expatinfodesk.com\/destinations\/lisbon\/tax\/","title":{"rendered":"Tax"},"content":{"rendered":"

[vc_row type=”container” padding_top=”” padding_bottom=”” el_class=”three-top-tips” css=”.vc_custom_1599875304748{margin-left: 0px !important;border-right-width: 0px !important;padding-right: 0px !important;padding-left: 0px !important;border-right-color: #ffffff !important;}”][vc_column width=”2\/3″][vc_column_text]<\/p>\n

\n

Tax Considerations for Expats in Portugal and Lisbon<\/span><\/span><\/span><\/span><\/p>\n

Tax is a topic that we all prefer to ignore. However, as an ex-pat, it’s necessary to understand how the tax laws affect you. We recommend that you talk to an expat tax advisor, such as one of those mentioned in our expat tax directory<\/a>, but here’s some basic information that may assist you.<\/p>\n

What taxes apply to ex-pats?<\/span><\/h2>\n

State and local taxes are calculated on income, property ownership, and expenditures. If you are residing in Portugal for more than 183 days, you are a resident, and you must register as a taxpayer. As a taxpayer, you will receive a tax number. You can do that here<\/a>. You\u2019ll need to pay tax on your worldwide income.<\/p>\n

In Portugal, the tax year runs from 1 January to 31 December.<\/p>\n

The state taxes include income tax for employees and self-employed persons, capital gains tax, inheritance tax, and business taxes.<\/p>\n

Local taxes are community taxes and include council fees, garbage collection, recycling, etc.<\/p>\n

Goods and Services taxes in Portugal<\/span><\/h2>\n

VAT in Portugal is as follows:<\/p>\n

23% on taxable goods and services<\/p>\n

13% on food and drinks and services<\/p>\n

6% on certain essentials such as meat, fruit, vegetables, medicines, books, hotel bookings.<\/p>\n

Non-Habitual Residency Tax (NHR)<\/span><\/h2>\n

Under this ruling, some ex-pats are exempt from tax payments for ten years. It means that one will pay a flat 20% on earnings made in Portugal but not on one’s worldwide income. You can learn more about NHR status here<\/a>.<\/p>\n

Income tax rates<\/span><\/h2>\n

If you are a Portuguese resident, you must pay tax on your earnings as of 2021 – note that these figures change may not be updated.<\/p>\n\n\n\n\n\n\n\n\n\n\n
\n

Annual Taxable Income in Euro<\/span><\/span><\/p>\n<\/td>\n

\n

Portugal Income Tax rate<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Up to 7,112<\/span><\/span><\/p>\n<\/td>\n

\n

14.5%<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n

\n

7,113 -10, 732<\/span><\/span><\/p>\n<\/td>\n

\n

23%<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n

\n

10,733 \u2013 20,322<\/span><\/span><\/p>\n<\/td>\n

\n

28.5%<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n

\n

20,323 \u2013 25,075<\/span><\/span><\/p>\n<\/td>\n

\n

35%<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n

\n

25,076 \u2013 39,967<\/span><\/span><\/p>\n<\/td>\n

\n

37%<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n

\n

39,968 \u2013 80,882<\/span><\/span><\/p>\n<\/td>\n

\n

45%<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n

\n

80,883 and above<\/span><\/span><\/p>\n<\/td>\n

\n

48%<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

You can find more information about taxes in Portugal, how to lodge a claim, and the required forms here<\/a>.<\/p>\n

Capital gains tax<\/span><\/h2>\n

If you sell a property, you will be charged 28% capital gains tax. There are exemptions if you are selling your primary home to buy another property in Portugal or elsewhere in the EU. If you are selling a property that you purchased before 1989, you are also entitled to an exemption.<\/p>\n

Rental Income Tax<\/span><\/h2>\n

If you own a property that you rent, you will pay a flat rate of 15% tax on the income from this property.<\/p>\n

Tax Advice in Portugal<\/h2>\n

For advice and assistance in filing a tax return, some agents and accountants can help you. The Institute of Chartered Accountants in England and Wales<\/a> has a directory of English-speaking chartered accountants to help you.<\/p>\n

English Speaking Accountants in Lisbon<\/span><\/h2>\n

HK Consulting Portugal<\/a><\/p>\n

Essencial Portugal<\/a><\/p>\n

Ecovis Portugal<\/a><\/p>\n

Belion Partners<\/a><\/p>\n

<\/h2>\n<\/div>\n

[\/vc_column_text][\/vc_column][vc_column width=”1\/3″ el_class=”city-side-bar”][vc_row_inner el_class=”sidebar-section-one”][vc_column_inner][vc_custom_heading text=”Top Tips” font_container=”tag:h4|font_size:24|text_align:left|color:%23ffffff” google_fonts=”font_family:Open%20Sans%3A300%2C300italic%2Cregular%2Citalic%2C600%2C600italic%2C700%2C700italic%2C800%2C800italic|font_style:400%20regular%3A400%3Anormal”][vc_separator color=”#ffffff” type=”full_width” thickness=”1″ up=”” down=””][vc_column_text]<\/p>\n\n\n\n\n\n\n\n
01<\/td>\nWhen renting a flat, be sure to ask about heating. Portuguese homes are notoriously cold in winter as usually there is no heating. Houses aren’t insulated, and electricity costs are expensive. Therefore, people forgo heating. But be aware, winters are freezing as well as humid. Many ex-pats are surprised at just how severe a Portuguese winter can be.<\/td>\n<\/tr>\n
02<\/td>\nWhy not start your day like a local with a caf\u00e9 and pastel de nata (traditional custard tart) sitting on an outdoor terrace. What better plaza than Lisbon\u2019s main square Pra\u00e7a do Com\u00e9rcio.<\/td>\n<\/tr>\n
03<\/td>\n\u00a0Take the Ascensor da Gloria to the top arriving in Bairro Alto. Turn to your right, to find the famous viewpoint of San Pedro de Alcantara. This scenic lookout offers sensational views over the city.<\/td>\n<\/tr>\n
04<\/td>\nBe very vigilant while traveling on the funiculars. Pickpockets are rife, especially in the high season. They will sit close to you, engage in conversation while a partner will take your wallet.<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner el_class=”sidebar-section-two”][vc_column_inner][vc_custom_heading text=”Useful links” font_container=”tag:h4|font_size:24|text_align:left” google_fonts=”font_family:Open%20Sans%3A300%2C300italic%2Cregular%2Citalic%2C600%2C600italic%2C700%2C700italic%2C800%2C800italic|font_style:400%20regular%3A400%3Anormal” el_class=”useful-links”][vc_separator color=”#ffffff” type=”full_width” thickness=”1″ up=”” down=””][vc_column_text el_class=”useful-links”]https:\/\/www.visitlisboa.com\/en<\/a><\/p>\n

The official tourist information site for Lisbon. Find out everything you need to know to make the most of your trip.<\/p>\n

https:\/\/www.lisbon.net\/<\/a><\/p>\n

Here is another site with information about activities and day trips from Lisbon.<\/p>\n

https:\/\/imigrante.sef.pt\/en\/<\/a><\/p>\n

The official website for Portuguese immigration matters. Find out about visa requirements and how you can gain Portuguese citizenship.<\/p>\n

https:\/\/www.meetup.com\/cities\/pt\/lisbon\/<\/a>
\nFor information about residence and all immigration-related questions.<\/p>\n

https:\/\/www.hurriyetdailynews.com\/<\/a><\/p>\n

Lisbon has a large expatriate community. This a great resource to find like-minded people in Lisbon. Whatever your interest, there is probably a group that meets up.<\/p>\n

https:\/\/www.metrolisboa.pt\/en\/<\/a><\/p>\n

This is the Lisbon Metro website in English. You can plan your journey here.<\/p>\n

[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner el_class=”sidebar-section-three”][vc_column_inner][vc_custom_heading text=”Interesting Facts” font_container=”tag:h4|font_size:24|text_align:left|color:%23333333″ google_fonts=”font_family:Open%20Sans%3A300%2C300italic%2Cregular%2Citalic%2C600%2C600italic%2C700%2C700italic%2C800%2C800italic|font_style:400%20regular%3A400%3Anormal”][vc_separator color=”#eeeeee” type=”full_width” thickness=”1″ up=”” down=””][vc_column_text]<\/p>\n\n\n\n
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<\/div>\n<\/td>\n
1. Portugal produces 50% of the world\u2019s cork. Portuguese cork from the Algarve region is superior and used by Moet Chandon for bottling its famous champagne. Other famous companies like NASA, Rolls Royce, and Airbus prefer to use Portuguese cork.<\/p>\n

2. The book shop, Bertrand, is the oldest in the world and you can visit it in Lisbon. It has been doing business since 1732.<\/p>\n

3. Nazar\u00e9, a coastal town north of Lisbon is famous for its epic waves. It is well-known among surfers to have some of the best and biggest waves in the world. The waves are known to get as high as 30 meters or 100 feet.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][vc_row type=”container” padding_top=”” padding_bottom=””][vc_column][vc_column_text]<\/p>\n

[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

[vc_row type=”container” padding_top=”” padding_bottom=”” el_class=”three-top-tips” css=”.vc_custom_1599875304748{margin-left: 0px !important;border-right-width: 0px !important;padding-right: 0px !important;padding-left: 0px !important;border-right-color: #ffffff !important;}”][vc_column width=”2\/3″][vc_column_text] Tax Considerations for Expats in Portugal and Lisbon Tax is a topic that we all prefer to ignore. However, as an ex-pat, it’s necessary to understand how the tax laws affect you. We recommend that you talk to […]<\/p>\n","protected":false},"author":1,"featured_media":95451,"parent":95415,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"page-lisbon.php","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"footnotes":""},"class_list":["post-95684","page","type-page","status-publish","has-post-thumbnail","hentry"],"yoast_head":"\nKnow How Tax Laws Affect Expatriates in Portugal<\/title>\n<meta name=\"description\" content=\"Different types of taxes are charged in different countries and Portugal is no exception. 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