The Portuguese Tax System – An Overview
The Portuguese tax system features a progressive income tax (IRS) ranging from 14.5% to 48%. Historically, the Non-Habitual Resident (NHR) regime offered significant benefits, including a 20% flat tax rate on qualifying Portuguese-sourced income and potential exemptions on foreign-sourced income for a duration of 10 years. Please note that the NHR regime was reformed in 2024. The new system, IFICI, is specifically designed for researchers and highly qualified tech professionals, offering comparable benefits such as a 20% flat rate for 10 years.
The corporate tax rate (IRC) is generally 21%, with reduced rates available for SMEs. While Portugal does not impose a general wealth tax, it applies an additional property tax (AIMI) on high-value real estate. Inheritance and gift tax takes the form of a 10% stamp duty; however, spouses and direct relatives are exempt. The standard VAT (IVA) rate is 23%. Social security contributions also apply. Additionally, Portugal’s extensive network of double tax treaties plays a key role in structuring international operations efficiently.
Our Services for Portugal
Tax Optimization
We provide comprehensive planning tailored to the NHR and IFICI regimes. This includes structuring foreign-sourced income, optimizing pension distributions, and creating efficient frameworks for real estate investments in Portugal.
Compliance
We manage all relevant local tax obligations to keep you fully compliant. Our services cover Portuguese tax filings (IRS Modelo 3), general reporting obligations, maintaining your NHR or IFICI status, and addressing the AIMI property tax.
Relocation
If you are relocating from Sweden to Portugal, we guide you through the process from start to finish. We advise on the ideal timing for your NHR/IFICI application, establishing your new tax residency, and the steps required to properly break tax ties with Sweden.
Exit
Selling a Swedish company after relocating to Portugal demands careful planning. We provide expert advisory on the treatment of capital gains under the Portuguese tax system and the NHR/IFICI regimes to secure the most tax-efficient outcome.
Tax Returns
We offer assistance with Swedish tax returns for individuals who maintain taxable income in Sweden despite living in Portugal, or who have Portuguese-sourced income to report.
Tax Advisory
Our advisory services include deep analysis of the double tax treaty between Sweden and Portugal. We address complex issues such as the double taxation of pensions and navigate the specific taxation rules for cryptocurrencies within Portugal.
Why Portugal?
Portugal remains an extremely attractive destination for professionals and investors thanks to the IFICI and NHR regimes. Beyond its tax advantages, the country boasts a pleasant climate, excellent quality of life, and the stability of EU membership. The tech and startup ecosystem is expanding rapidly, providing rich opportunities for entrepreneurs. Although the Golden Visa program has been reformed, the country still offers a competitive cost of living, robust infrastructure for expats, and a highly favorable double tax treaty with Sweden.