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Portugal Salary Calculator 2023/24
Calculate your take home pay in Portugal (that's your salary after tax), with the Portugal Salary Calculator. A quick and efficient way to compare salaries in Portugal, review income tax deductions for income in Portugal and estimate your tax returns for your Salary in Portugal. The Portugal Tax Calculator is a diverse tool and we may refer to it as the Portugal wage calculator, salary calculator or Portugal salary after tax calculator, it is however the same calculator, there are simply so many features and uses of the tool (Portugal income tax calculator, there is another!) that we refer to the calculator functionally rather than by a specific name, we mention this here to avoid any confusion.
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How to calculate your salary after tax in Portugal
Follow these simple steps to calculate your salary after tax in Portugal using the Portugal Salary Calculator 2023 which is updated with the 2023/24 tax tables.
- Enter Your Salary and the Portugal Salary Calculator will automatically produce a salary after tax illustration for you, simple.
- Optional: Select Advanced and enter your age to alter age related tax allowances and deductions for your earning in Portugal
- Optional: Change the number of days you work per week, per year and the number of hours you work per week to allow various rates and allowances to be split for viewing in line ith your employment contract in Portugal
That's it! Just a few simple steps to calculate your salary after tax in Portugal with detailed income tax calculations. Need more from the Portugal Tax Calculator? More detailed salary calculator or a wage calculator? Simply select 'advanced' to access more features of the tax calculator. If there are specific income related allowances or deductions in Portugal that are not featured on the Portugal tax calculator that you would like us to add, simply contact us and explain your requirement. New features for the Portugal are added on request at no cost to you. We build tax calculators to support our community in Portugal, whether resident or expats in Portugal and expand the tool to suit our communities needs as required.
Taxation in Portugal
Portugal, officially known as Portuguese Republic, is a country located on the Iberian Peninsula in southwestern Europe. Being part of the Eurozone since its inception, the Euro is the official currency of Portugal. Portugal has a steadily expanding economy with an annual GDP growth of 1.5%. Let's have a look at the taxation in Portugal.
Tax Administration of Portugal
The Portuguese Tax and Customs Authority (PTA) are responsible for tax administration and collection of tax and customs. PTA is a full member of Intra-European Organization of Tax Administration (IOTA) which is a nonprofit organization that provides a forum to assist members of European countries to improve their fiscal capability.
Online portal for the Portuguese Tax and Customs Authority (PTA)
Online portal for the Intra-European Organization of Tax Administration (IOTA)
Income tax - Individuals
Compliance for individuals
The Tax year for Individuals is the same as the calendar year. Personal tax returns must be filed between 1st April and 30th June following the year end and payable tax amount should be cleared by 31st August. Penalties apply for failure to comply with filing obligations and tax payments.
Filing joint tax returns for married couples is allowed unless one of the spouses is a non-resident.
Basis
Residents individuals are taxed on worldwide income and non-residents are taxed on Portugal source based income.
Taxable Income
Taxable personal income is divided into six categories:
- Employment income
- Investment income
- Business and Professional income
- Rental income
- Capital gains
- Pension
Rates
Individual tax is charged on the basis of following chart in Mainland Portugal, and two autonomous regions of Madeira and Azores. View the latest tax rates for Mainland Portugal, Madeira and Azores (2023/24).
Capital gains
Tax on capital gains derived by an individual from selling their main residence is exempt, given the earned income is used to purchase another permanent home within the territory of Portugal or in another EU/EEA member state. Capital gains of this type may be subject to exemption if the seller is over 65 years of age and the proceeds are invested in a pension plan that meets defined criteria.
Capital gains realized by non-resident individuals on the sale of shares or similar rights in a non-resident company may be subjected to capital gains tax as they are regarded a Portuguese source income.
Only half of the gains from the sale of immovable assets are taxed if the capital gains are re-invested. You can caluclate Capital Gains Tax due in Portugal in 2023 using the Portugal Capital Gains Tax Calculator.
Other taxes
Several environmental taxes are levied on individuals such as a tax on plastic bags. Tax incentives are offered on the purchase of hybrid and electric cars.
Deduction and allowances
Deductions on personal income tax are available for Forest Savings Plans (Planos de Poupança Floresta) up to € 450.00, Environmental Deductions up to € 800.00 health and educational expenses, up to a specific limit only. Also, personal tax credits are available, depending on the number of family members (€ 600.00 per dependent with an additional € 126.00 for dependents under 3 years of age). You can find a comprehensive list of tax credits and allowances in 2023 for Portugal used in the Portugal tax calculators here.
Portugal Income Tax Calculators
- Portugal 2023 Income Tax Calculator
- Portugal 2022 Income Tax Calculator
- Portugal 2021 Income Tax Calculator
- Portugal 2020 Income Tax Calculator
- Portugal 2019 Income Tax Calculator
Income tax - Corporate
Compliance for corporations
Corporate taxes are subject to self-assessment in Portugal. Electronic filing is mandatory within 5 months of the end of the tax year. Advanced corporate tax and the national surtax are payable in installments.
The tax year is considered as the calendar year, although a different tax year can be requested if it coincides with the accounting period. Once selected, the tax accounting period should be maintained for at least 5 years.
Consolidated returns are permissible upon meeting the defined criteria. Penalties and interest are payable for late filing and failure to comply with the tax law.
Basis of Tax
Similar to PIT, Resident entities are taxed on worldwide income and non-resident companies are subject to tax only on Portuguese-source revenue. Profits generated by residents on foreign source are taxed as per corporate tax regime.
Capital Gains and Corporation Tax
Capital gains derived from the indirect disposal of certain immovable property located in Portugal are subject to corporate income tax. You can calculate corporate Capital Gains using the Portugal Capital Gains Tax Calculator
Corporation tax is levied at different rates for resident and non-resident companies with reduced rates for Subject Matter Experts. You can calculate your Corporation Tax commitments using the Portugal Corporation Tax Calculator or check the latest Corporation Tax Rates for 2023.
Surtaxes
The state surtax is applicable on net profits at the following rates:
| Income bracket (on profit) | Surtaf Rate |
|---|---|
| EUR 1.5 million and up to 7.5 million | 3% |
| Over EUR 7.5 million and up to 35 million | 5% |
| Profits exceeding EUR 35 million | 9% |
| Municipal surcharge decided by the municipality | Max combined tax 3.5% |
Participation exemptions
Under the participation exemption regime in Portugal, received capital gains and dividends by a resident company from a domestic or foreign shareholding tax exempt, given it meets the defined criteria. The exemption is not applicable if the payment is deductible for the payer.
Tax Incentives
A corporate tax credit of 32.5% of qualifying R & D (Research and Development) expenses is available in the relevant year and may be carried forward for 8 years. A tax credit of 10% and 25% of the amount of the relevant investment may be granted for the purchase of new fixed assets (with limits and exceptions).
Profits from activities of licensed industrial, shipping and international service companies established in autonomous regions of Madeira island free trade zones are subject to a reduced tax rate of 5% if certain conditions are satisfied. Withholding tax is not levied on dividends, interest, royalties (subject to certain conditions) and other related fees paid to nonresidents.
Up to 50% of income derived from designs and industrial models, and from licensing of patents is exempt from tax.
Losses - Operating losses may be carried forward for five years, and for 12 years for SMEs. The losses should not exceed the cap of 70% of the taxable profits. Capital losses (that are not eligible for the exemptions) are deductible subject to certain restrictions.
Withholding Tax
- Dividends: Dividends paid to a non-resident company are subject to a 25% withholding tax (35% if paid to a resident of a tax haven). This may be exempted if the recipient is a resident in the European economic area (EEA) or in a tax treaty jurisdiction and meets the conditions for the domestic participation exemption criteria.
- Royalties & Interest: Royalties and interest gained by a nonresident company are subject to a 25% withholding tax (35% if paid to a resident of a tax haven) unless reduced under a tax treaty. Payments to EU recipients are exempt under the EU interest and royalties directive.
- Technical service fee: Technical service fee paid to a non-resident company are subject to a 25% withholding tax unless reduced under a tax treaty.
Other taxes on corporations
- Real property tax: Real property tax range from 0.3% to 0.8% of taxable value of property is applicable. This is levied by the municipality for corporate tax purposes. The tax is charged at 7.5% for residents of the listed tax haven.
- Social security: An employer is subject to a contribution towards social security for its employees including the board members. This is collected corporate tax purposes as well, at 23.75% of the monthly gross salary. Employee contribution stands at 11%.
- Stamp duty: Stamp duties are subject to exemptions in Portugal. These are charged for various types of deeds, agreements and documents. Certain transactions that are not subject to VAT, such as loans, guarantees and insurance premiums are also subject to stamp duty.
Value added tax (VAT)
VAT is generally applied on imports, and supply of goods and services in Portugal. Additional information and computations are available with the Portugal VAT Calculator