In Portugal, the tax regime is a set of rules and institutions that govern the tax situation of an individual or legal entity. It is, therefore, the set of rights and obligations arising from the development of a particular economic activity.As soon as you start your professional activity in Portugal you should pay attention to the taxes that fall on your income and double taxation.If you live in Portugal you will have to pay the Personal Income Tax (IRS) – a tax that is rated on the income of taxpayers. It focuses on income that is directly attributed to citizens, whether they are residents in Portugal or the so-called non-residents who earn income in the national territory.The amount associated with this tax will be calculated based on the income of each person, and the employee/person must deliver an annual income statement (previously submitted by the employer), through the Finance Portal or in person.Regarding double taxation at the professional level, this happens from the moment you work in one country, but you are a resident of another, that is, if both countries are entitled to tax your income you may be subject to both tax regimes.
Tax regime for non-habitual residents: aimed at non-resident professionals qualified in activities with high added value or intellectual or industrial property , or know-how, as well as beneficiaries of pensions obtained abroad. For this purpose you will have to:
- Register as a resident in Portugal (through the “Portal das Finanças” or “Loja do Cidadão”);• Application for registration as a non-habitual resident (through the “Portal das Finanças” or paper application)• Have professional or academic experience of the identified added value activities• To apply for double taxation exemption, you may need to prove your country of residence and that you have already paid taxes on your income. Inquire with the tax authority about the documents and evidence you must present.
In addition to the mentioned tax obligations, it is important to be aware of other taxes you may have:. Corporate Income Tax (IRC): levies on the income of companies operating in Portugal.
- Value added tax (VAT): on consumption that applies to almost all goods and services purchased and sold for use or consumption in the EU.
- Municipal Property Tax (IMI): it is a fee that is charged every year to property owners.
You must request a Tax Identification Number (NIF) from a Finance Service or Loja do Cidadão, which will identify you before the Tax and Customs Administration (AT).
For more info:www.portaldasfinancas.gov.pthttps://www.portaldascomunidades.mne.pt/images/GADG/IRS__Regime_Fiscal_Residente_N%C3%A3o_Habitual.pdfhttps://info.portaldasfinancas.gov.pt/pt/apoio_contribuinte/Folhetos_informativos/Documents/SFP_Taxas_2019_16ago2019.pdfPersonal Income Tax (IRS)
https://europa.eu/youreurope/citizens/work/taxes/income-taxes-abroad/portugal/index_pt.htm ).double taxation.https://europa.eu/youreurope/citizens/work/taxes/double-taxation/index_pt.htm ).
