Tax in Portugal

Are you considering moving to Portugal and buying a property in 2025? Whether you’re looking for a permanent home, a holiday retreat, or an investment opportunity, it’s essential to understand the full cost of buying property in Portugal — beyond just the asking price.

To help manage the impact of high visitor numbers, many popular destinations levy a tourist tax. This supplementary fee is charged to visitors staying in a city or region, typically on a per-person, per-night basis, and is collected directly by accommodation providers.

With the growing interest in luxury properties, the tax complexity associated with these types of homes has become a significant concern for owners and potential buyers.

The submission of the IRS personal income tax return for income earned in 2024 begins on 1 April and runs until 30 June. During this period, taxpayers in Portugal must submit their IRS return via the Portal das Finanças, either using Automatic IRS or manually entering their income and expenses.

Portugal has introduced the Tax Incentive for Scientific Research and Innovation (IFICI), commonly referred to as NHR 2.0, to replace the previous Non-Habitual Resident (NHR) tax regime.

Portugal has long been a desirable destination for expats, and with the introduction of the updated Non-Habitual Resident (NHR) tax programme—now known as NHR 2.0—the country is reinforcing its appeal to highly skilled professionals and their families.

Understanding Stamp Duty in Portugal, known locally as "Imposto do Selo," is essential for anyone involved in property transactions or legal acts within Portugal.

What is IMI tax in Portugal? IMI stands for "Imposto Municipal sobre Imóveis", which translates to Municipal Property Tax in English. It is a property tax levied on real estate properties in Portugal.

The tax exemptions granted to foreign citizens who come to live, invest or work in Portugal have made many people choose the country to live in.

When settling accounts in the division of assets in divorce and inheritance proceedings, "tornas" or returns are paid by a party to compensate another.  Returns follow legal procedures that are crucial to understand when it comes to sharing assets.

The Portuguese Government has approved a draft law to reduce VAT on food products, which will now be submitted to Parliament for consideration.

Is Portugal's golden visa ending?

If you're planning on buying property in Portugal in 2022, it's important to know all of the costs that will be involved on top of the property price.

If you live in Portugal, then it's time to start thinking about submitting your 2022 IRS Income Tax return.

A rise in interest rates on mortgages is a scenario that is on the table, and the European Central Bank (ECB) has already admitted the possibility of increasing the key interest rate in 2022.

Buying property to put on the rental market is a viable investment option, but does it pay off in Portugal?

If you are selling your property in Portugal as a non-resident taxpayer, you are subject to Portuguese income tax ("IRS") and have to report the transaction in your income statement for the year in which you sold your property.

First things first, what is IMI property tax in Portugal? IMI is a Municipal Property Tax which is updated and must be paid annually by the owners of properties or land in Portugal. In technical terms, IMI is levied on the Taxable Asset Value (VPT), i.e.

84 municipalities in Portugal have decided to reduce Municipal Property Tax (IMI) rates for homeowners in 2021, in respect of the properties they owned on 31st December 2020.

What happens to the family home when a relationship comes to an end? Portugal has seen an increase in marital break-ups that end in divorce due to the COVID-19 pandemic.

The COVID-19 pandemic has been awakening a new interest in areas of Portugal that are less densely populated. And there is now good news for those who are thinking of changing their lives and replacing life in the city with less urban areas.

If you rent out a property in Portugal then be aware that there are some changes in the amount of income tax (IRS) that you will have to pay on your rental income when it is declared.

Besides plans to end golden visas in Lisbon and Porto, the ruling Socialist Party in Portugal has introduced an amendment to this year's state budget which will levy a 10% income tax (known in Portuguese as IRS) on the foreign revenue of foreign pensioners who move to Portugal.

Launched in 2009, the regime for non-habitual residents in Portugal adds up to more than 27,000 beneficiaries and has been a strong driver of property investment in Portugal, especially in recent years.

Every year, municipalities have to determine and communicate to the Finance Department by December 31st, the amount of Municipal Property Tax (IMI) for real estate they intend to charge owners in their respective municipalities.