Worked example - EUR 60,000 employment income
- Annual gross: EUR 60,000
- Bracket 1 (up to 8,059): EUR 8,059 × 13.0% = EUR 1,048
- Bracket 2 (8,059-12,160): EUR 4,101 × 16.5% = EUR 677
- Bracket 3 (12,160-17,233): EUR 5,073 × 22.0% = EUR 1,116
- Bracket 4 (17,233-22,306): EUR 5,073 × 25.0% = EUR 1,268
- Bracket 5 (22,306-28,400): EUR 6,094 × 32.0% = EUR 1,950
- Bracket 6 (28,400-41,629): EUR 13,229 × 35.5% = EUR 4,696
- Bracket 7 (41,629-44,987): EUR 3,358 × 43.5% = EUR 1,461
- Bracket 8 (44,987-60,000): EUR 15,013 × 45.0% = EUR 6,756
- Total IRS: ~EUR 18,972 (effective rate ~31.6%)
- Plus social security (11% employee): EUR 6,600
- Net: ~EUR 34,428 (~57% of gross)
Self-employed (recibos verdes) - the alternative
Portuguese self-employed taxpayers (working under the recibos verdes regime) have two regime options:
- Simplified regime: 75% of gross income is treated as taxable (the rest is presumed business expenses). Available for turnover under EUR 200K.
- Organised accounting regime: actual income minus actual expenses, mandatory above EUR 200K turnover, optional below.
Plus social security at typically 21.4% of a notional contribution base (often lower than gross income).
Capital gains and investment income
- Capital gains on listed shares - typically 28% flat (with optional inclusion in progressive IRS if more favourable)
- Capital gains on real estate - 50% of the gain is included in worldwide income at progressive rates (different rules apply for primary residence, NHR holders)
- Dividend income - 28% flat (or progressive if more favourable)
- Interest income - 28% flat
- Crypto disposals - 28% flat for short-term (held under 365 days), 0% for long-term (since 2023, with conditions)
Frequently asked questions
Does the calculator show NHR/IFICI rates?+
The calculator above shows standard IRS rates. NHR holders (with valid NHR status) and IFICI qualifying individuals have separate flat rates - typically 20% on professional income from high-value activities, 10% on most foreign pensions for legacy NHR, and similar reduced rates for IFICI categories. Speak to a specialist for your specific case.
What about US citizens in Portugal?+
US citizens face the additional complexity of being taxed by both Portugal (as residents) and the US (as citizens). The US-Portugal tax treaty and Foreign Earned Income Exclusion / Foreign Tax Credit help but don't eliminate the dual filing burden. A specialist familiar with both systems is essential.
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