Tax
Progressive IRS, corporate IRC and reduced rates in the autonomous regions
Residents pay progressive personal income tax (IRS) on worldwide income, while companies pay IRC with municipal and state surcharges. Madeira and the Azores apply reduced rates, and the former non-habitual resident regime has been replaced by a narrower incentive.
Key rules
- Tax residence arises after more than 183 days in Portugal in any twelve-month period, among other tests.
- IRC is charged at the standard rate plus a municipal surcharge and a progressive state surcharge.
- The autonomous regions of Madeira and the Azores apply reduced IRS and IRC rates.
Governing law
- Personal Income Tax Code (Código do IRS)
- Corporate Income Tax Code (Código do IRC)
In practice
The old non-habitual resident scheme closed to new entrants; check whether a client qualifies under transitional rules or the replacement research-and-innovation incentive.