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Portugal
The corporate tax rate in Portugal is 21%.
Employees in Portugal are taxed progressively on income. The rates for residents are as follows:
The income tax rate for non-residents is a flat rate of 25%.
There is also another category of residents with its own tax rate. This is known as the non-habitual resident regime and applies to those deemed as ‘high value-adding’ workers. The list of professions includes engineers, doctors, and so on, and the tax rate for this group is 20% (for a maximum of 10 years).
Employers in Portugal must contribute 23.75% of employee salaries toward the social security system.
Employees in Portugal must contribute 11% of gross income toward the social security system.
Your business can easily hire employees in Portugal without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.
The tax authority of Portugal is called the Tax and Customs Authority (Autoridade Tributária e Aduaneira, or AT).
There is no payroll tax contribution in Portugal (i.e., there is no separate tax on employee salaries). The corporate income tax rate is 21%.
Portugal has a progressive payroll tax system for employees. The rates for residents are:
The income tax rate for non-residents is a flat rate of 25%.
Foreigners may benefit from “non-habitual resident” tax status; if approved, the income tax rate is capped at a rate of 20% for a maximum of 10 years.
