Portugal does not have one tax. It has a personal income tax with nine bands, a VAT system with three rates and two filing rhythms, a separate social-security contribution that most newcomers forget until it is late, and a set of property and vehicle taxes that arrive on their own schedule. This page puts the 2026 numbers in one place, with the source for each.
Who pays Portuguese tax at all
Tax residency, not nationality or visa type, decides what Portugal taxes. Broadly, you are resident for a year if you spend more than 183 days in Portugal in any 12-month period, or if you keep a home there in a way that implies you intend to hold it as your habitual residence.
- Resident: Portugal taxes your worldwide income, with double-tax relief for tax already paid abroad.
- Non-resident: Portugal taxes only Portuguese-source income — rent from a Portuguese flat, gains on a Portuguese property, work performed there.
IRS — personal income tax
IRS is progressive across nine bands. The rate on each band applies only to the income inside it, so a raise that moves you into a higher band never reduces your take-home pay.
| Band | Taxable income | Marginal rate |
|---|---|---|
| 1 | Up to €8,342 | 12.5% |
| 2 | €8,342 – €12,587 | 15.7% |
| 3 | €12,587 – €17,838 | 21.2% |
| 4 | €17,838 – €23,089 | 24.1% |
| 5 | €23,089 – €29,397 | 31.1% |
| 6 | €29,397 – €43,090 | 34.9% |
| 7 | €43,090 – €46,566 | 43.1% |
| 8 | €46,566 – €86,634 | 44.6% |
| 9 | Above €86,634 | 48% |
The band table is not the whole calculation: deductions, the family quotient and withholding already taken at source all move the final figure. The annual IRS calculator runs the full computation, and the salary calculator shows what actually lands each month.
When IRS is filed
The annual IRS return (Modelo 3) for the previous year is filed by 30 June. That is a single deadline for everyone — there is no separate paper and online date any more.
IVA — value added tax
If you invoice for your own work — as a freelancer on recibos verdes, or through a company — IVA is usually the obligation that costs the most in penalties, because it recurs and its deadlines are unforgiving.
| Rate | Applies to |
|---|---|
| 23% — standard | Everything not listed elsewhere |
| 13% — intermediate | List II supplies |
| 6% — reduced | List I supplies |
The small-business exemption (Article 53)
Below a turnover threshold you may be exempt from charging IVA at all. For 2026 the prior-year threshold is €15,000, and there are two ways out of it. Exceed €18,750 — €15,000 by more than 25% — and the exemption stops during the year. Exceed €15,000 but stay under €18,750 and you leave more gently, from 1 January following. Either way there is a declaração de alterações to file, within 15 working days.
Monthly or quarterly
Quarterly filing is the default; monthly is mandatory once prior-year turnover reaches €650,000. The general rule is that a period is filed by day 20 of the second month after it ends, and paid by day 25.
One 2026 date does not follow that rule, and it is the one most often missed — see the IVA deadline calendar.
Social Security
Social Security (Segurança Social) is separate from IRS, is administered by a different body, and has its own portal and its own deadlines. Self-employed workers file a quarterly declaration of activity by the last day of January, April, July and October.
Property and vehicles
- IMI — annual municipal property tax, rate set by each municipality. See the IMI calculator.
- IMT — paid on purchase, before the deed. The IMT calculator works it out for a given price and use.
- IUC — annual vehicle tax, due in the month of first registration. See the IUC calculator.
The 2026 calendar in one list
| Obligation | Due |
|---|---|
| Invoice data to e-fatura | Day 5 of the following month |
| IVA quarterly — file | 20 Feb · 20 May · 21 Sep · 20 Nov |
| IVA quarterly — pay | 25 Feb · 25 May · 25 Sep · 25 Nov |
| Social Security quarterly declaration | Last day of Jan · Apr · Jul · Oct |
| IRS annual return (Modelo 3) | 30 June |
Do I pay Portuguese tax on foreign income?
If you are tax resident in Portugal, yes — residents are taxed on worldwide income, with relief for tax already paid abroad under the relevant double-tax treaty. Non-residents are taxed only on Portuguese-source income.
What is the IRS deadline in Portugal?
The annual IRS return (Modelo 3) is filed by 30 June for the previous income year.
Do freelancers in Portugal have to charge IVA?
Not always. For 2026, if prior-year turnover was at or below €15,000 the Article 53 exemption can apply. It stops applying immediately if turnover exceeds that figure by more than 25% — €18,750 — during the year.
How much is VAT in Portugal?
On the mainland the standard rate is 23%, with an intermediate rate of 13% and a reduced rate of 6% for listed supplies. The Azores and Madeira apply their own, lower, rates.
Is Social Security separate from income tax in Portugal?
Yes. Segurança Social is a different body from the Autoridade Tributária, with its own portal and deadlines. Self-employed workers file a quarterly declaration by the last day of January, April, July and October.