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Personal income tax IRS applies to the income of citizens resident in Portuguese territory and non-residents who earn income in Portugal. The tax is determined with reference to the income earned, the corresponding rate being applied according to the relevant band and taking the deductions laid down by law into account e. IRS is calculated individually, but couples and civil partnerships can opt to file jointly. In this case, tax is charged on the total revenue of the persons in the household.
This applies in particular to reporting your tax address, the address considered to be your official residence. Keeping your tax address up-to-date is not only a statutory requirement but is also very important: to obtain tax advantages e. Changing your tax address is a statutory requirement that can be completed online on the AT portal. If you are thinking of living or working in Portugal you must fulfil one of the following conditions to obtain a tax address in Portuguese territory:.
There is a special income tax scheme for foreign citizens who intend to come to live in Portugal or for nationals who are living outside the country and wish to return: non-habitual resident status. This special status applies to non-residents in Portugal who have not been taxed as tax residents in the 5 years prior to the application for the status, and it includes certain tax advantages, such as a lower rate of IRS, if the activity is considered to be high value added list of activities in these circumstances.
To apply for this status, citizens must register as resident in Portugal. See the Tax and Customs Authority portal for further information on the conditions required to obtain this status and the registration procedures for paying taxes. The AT site also provides a tax guide for Portuguese communities resident abroad , which also includes relevant information on the international taxation of income. People who receive income from employment, business, professional work, capital, property, assets and pensions in Portugal are required to declare such income.