What are the tax rates in Portugal for expats?

What are the tax rates in Portugal for expats?

In Portugal, expats are generally subject to the same tax rates as residents. The income tax rates range from 14.5% to 48%, depending on your income level.

Are there any special tax benefits for expats?

Yes, Portugal offers a Non-Habitual Resident (NHR) tax regime, which can provide significant tax benefits for new residents.

How does the NHR regime work?

The NHR regime allows qualifying individuals to benefit from a flat 20% tax rate on certain income types and tax exemptions on foreign income for up to 10 years.

What types of income are exempt under the NHR?

Under the NHR, foreign pension income, dividends, and interest may be exempt from taxation, depending on the tax treaty.

How do I apply for the NHR status?

To apply for NHR status, you need to register as a tax resident in Portugal and submit an application to the Portuguese tax authorities.