How much you pay in Portugal depends on how you earn, so here are all three pictures: an employment contract, self-employment and running your own company. Real headline rates, verified November 2026.
As an employee
Income tax: Progressive 12.5-48% (+ solidarity up to 5% at the top). Social contributions: 11% employee.
IFICI (the NHR successor): a 20% flat rate for 10 years for qualifying tech, research and startup roles. Rates as of November 2026. Tax rules change every budget cycle and depend on your personal situation: verify with a licensed tax advisor before acting.
As a freelancer or sole trader
Income tax: Simplified regime: 75% of services turnover is taxable (35% for some activities) up to €200k, more if expenses plus social contributions fall below 15% of turnover. Social contributions: 21.4% on a coefficient-reduced base.
Combine the simplified regime with IFICI eligibility and Portugal gets very competitive. Rates as of November 2026. Tax rules change every budget cycle and depend on your personal situation: verify with a licensed tax advisor before acting.
As a company owner
CIT 19% in 2026 (15% for SMEs on the first €50k), legislated to fall to 18% in 2027 and 17% in 2028. Dividends 28%.
The cuts to 2028 are already law; municipal and state surcharges come on top. Rates as of November 2026. Tax rules change every budget cycle and depend on your personal situation: verify with a licensed tax advisor before acting.
Two rules that apply everywhere
Tax residence usually follows your life, not your paperwork: spend 183+ days in Portugal (or keep your centre of vital interests there) and you generally owe taxes there regardless of visa or company setup.
Special regimes and treaty rules can change these numbers dramatically in both directions. This page is educational information, not tax advice: before you commit to a structure, have a licensed Portugal tax advisor confirm the current rules for your specific case.