Tax in Portugal: VAT, income tax, company tax, capital gains
23%
A 23% VAT (IVA) on most goods and services, with two reduced rates: 13% (intermediate — food service, some foodstuffs) and 6% (super-reduced — essentials, books, medicines). The rate is verified against Autoridade Tributaria e Aduaneira (Portuguese Tax Authority) / EU TEDB on 19 August 2026; the top personal income-tax rate is 48% (2026 tax year, Autoridade Tributária e Aduaneira (CIRS art. 68.º)), and the headline company tax rate is 19% (OECD Corporate Tax Statistics).
IVA in Portugal
Value-added across three rates (23% standard, 13% intermediate, 6% super-reduced): IVA is charged on sales and reclaimed on purchases, so only the added value is taxed.
- Standard rate
- 23%
- Local name
- IVA — Value Added Tax
- Type
- VAT
- Reduced rates
- 6%, 13%
- Filing
- Quarterly / Monthly / Annual
- Authority
- Autoridade Tributaria e Aduaneira (Portuguese Tax Authority) / EU TEDB
- Current rate since
- 1 January 2000
Income tax in Portugal
The top personal income-tax band is 48% for the 2026 tax year. Mainland Portugal — Azores and Madeira apply reduced regional rates, not modelled
Company tax in Portugal
The headline corporate income tax rate is 19%. In effect since 1 January 2026.
Indicative only: confirm with Portugal's national tax authority. OECD 2026: central statutory CIT 28%, combined (central+sub-central) 29.5%; sub-central CIT 1.5%; central rate excluding surtax 19%
Capital gains tax in Portugal
- Shares
- Special autonomous rate of 28% on the net positive balance of gains and losses from sale of shares and other securities (art. 72(1)(c) CIRS), or optional aggregation (englobamento) with other income at progressive rates (art. 72(13)).
- Property
- Taxed as ordinary income: for residents only 50% of the net real-estate gain is included and taxed at progressive IRS rates together with other income (art. 43(2)(b) CIRS); 100% included where the property benefited from public non-repayable support >30% of its IMI tax value and is sold within 10 years (art. 43(2)(a)).
- Holding period
- Securities held < 365 days: net gain must be aggregated (taxed at progressive rates) when the taxpayer's taxable income is at or above the top bracket threshold (art. 72(14), from Lei 24-D/2022). Listed securities and open-ended fund units (art. 43(5) CIRS, wording of Lei 31/2024 of 28 June): 10% of the gain excluded if held >2 and <5 years, 20% if 5-8 years, 30% if 8+ years. Unlisted micro/small company shares: only 50% of positive balance considered (art. 43(3)).
Did you know? Portugal tax facts
Portugal pays you to ask for a receipt: quote your tax number at the till and every €10 of invoices earns a coupon in the state-run 'Fatura da Sorte' draw, with weekly prizes of €35,000 in Treasury Certificates.
Any individual with a Portuguese tax number is entered automatically — no form to fill in — and two extraordinary draws in June and December each hand out three prizes of €50,000. Winners have 90 days to claim at their local tax office.
Source: Autoridade Tributária e Aduaneira (Portal das Finanças) — Fatura da Sorte FAQ ↗Portugal's Non-Habitual Resident regime, created on 23 September 2009, taxed high-value professions at a flat 20% and foreign pensions at 10%; it closed to newcomers on 31 December 2023, but holders keep it ten years.
Wikipedia: NHR was created under the Investment Tax Code approved on 23 September 2009, when 'a new type of residency, for tax purposes was created'; certain high-added-value jobs are taxed at a flat 20% and foreign-source pensions at 10%; the programme 'officially ended for new applicants on December 31, 2023', while those registered before then 'retain benefits for their full 10-year period'. Mainland IRS rates run from 12.5% on the first €8,342 to 48% above €86,634.
Source: Wikipedia — Taxation in Portugal · checked 10 October 2026 ↗
More stories, for every country that has one, on the tax facts page.
Ask your AI assistant about tax in Portugal
The figures on this page are callable by any MCP-compatible assistant through the free Tax MCP. Add https://taxmcp.ai2fin.com as a custom connector in Claude, ChatGPT, Cursor or your own agent — no login, no API key — then ask:
- “What is the IVA rate in Portugal, and what is the source?”
- “Estimate income tax in Portugal on EUR 60,000 for 2026.”
- “What is the company tax rate in Portugal and how is it sourced?”
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Portugal, answered
Questions about tax in Portugal
- What is the IVA rate in Portugal?
- The standard IVA (Value Added Tax) rate in Portugal is 23%, verified against Autoridade Tributaria e Aduaneira (Portuguese Tax Authority) / EU TEDB on 19 August 2026. Reduced rates of 6% and 13% apply to some categories. Value-added across three rates (23% standard, 13% intermediate, 6% super-reduced): IVA is charged on sales and reclaimed on purchases, so only the added value is taxed.
- What is the top income tax rate in Portugal?
- The top personal income-tax band in Portugal is 48% for the 2026 tax year, verified against Autoridade Tributária e Aduaneira (CIRS art. 68.º) on 6 October 2026. The free income-tax calculator on this site works through the bands below it, and shows the rate table it used.
- What is the company tax rate in Portugal?
- The headline corporate income tax rate in Portugal is 19%, as published by OECD Corporate Tax Statistics (checked 6 October 2026, verification pending). Indicative only: confirm with Portugal's national tax authority. OECD 2026: central statutory CIT 28%, combined (central+sub-central) 29.5%; sub-central CIT 1.5%; central rate excluding surtax 19%
- How is capital gains tax charged in Portugal?
- In Portugal, the regime is mixed, verified against Autoridade Tributária e Aduaneira - Portal das Finanças (CIRS) on 6 October 2026. On shares: Special autonomous rate of 28% on the net positive balance of gains and losses from sale of shares and other securities (art. 72(1)(c) CIRS), or optional aggregation (englobamento) with other income at progressive rates (art. 72(13)). Holding period: Securities held < 365 days: net gain must be aggregated (taxed at progressive rates) when the taxpayer's taxable income is at or above the top bracket threshold (art. 72(14), from Lei 24-D/2022). Listed securities and open-ended fund units (art. 43(5) CIRS, wording of Lei 31/2024 of 28 June): 10% of the gain excluded if held >2 and <5 years, 20% if 5-8 years, 30% if 8+ years. Unlisted micro/small company shares: only 50% of positive balance considered (art. 43(3)).
- Can an AI assistant look up tax rates for Portugal?
- Yes. The free Tax MCP at https://taxmcp.ai2fin.com gives Claude, ChatGPT, Cursor or any MCP-compatible agent the same sourced figures as this page: the IVA rate, an income-tax estimate, the company tax rate, the capital gains rule and a side-by-side comparison with other countries, each answer citing the authority and the date it was checked. Add the endpoint as a custom connector; there is no login or API key.
Sources
- Autoridade Tributaria e Aduaneira (Portuguese Tax Authority) / EU TEDB
- Autoridade Tributária e Aduaneira (CIRS art. 68.º)
- OECD Corporate Tax Statistics
- Autoridade Tributária e Aduaneira - Portal das Finanças (CIRS)
- Autoridade Tributária e Aduaneira (Portal das Finanças) — Fatura da Sorte FAQ
- Wikipedia — Taxation in Portugal
Last checked 10 October 2026. General information computed from published government rates, not tax advice. Check the linked authority or a registered adviser before relying on a figure.
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