DoubleTaxationTaxes on salary: Portugal preliminary data
How much income tax and social contributions are paid on a salary in Portugal, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | €60,001 |
|---|---|
| Income tax | €15,375 |
| Employee contributions | €6,600 |
| Take-home pay | €38,026 |
| Employer contributions and payroll taxes | €14,250 |
| Employer's labour cost | €74,251 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 | €60,000 | €120,000 |
|---|---|---|---|
| Sole proprietor | €9,349 34.6 % | €23,732 43.9 % | €57,332 53.1 % |
| Company | €10,476 38.8 % | €21,067 39.0 % | €43,575 40.3 % |
Special tax regimes
Incentivo fiscal à investigação científica e inovação (IFICI, 'NHR 2.0')
For people relocating · rate 20.0 %
Who: New residents not resident in Portugal in the previous 5 years working in qualifying research, innovation, tech/start-up and similar highly qualified roles.
Net employment and professional income (categories A and B) from qualifying activities taxed at a flat 20% for 10 years.
Legal basis: EBF art. 58-A; CIRS art. 72
IRS Jovem
For employees · rate 0.0 %
Who: Taxpayers up to age 35 who are not dependants, in their first 10 years of earning income; chosen in the annual return.
Partial exemption of employment and business income for 10 years: 100% in year 1, 75% in years 2-4, 50% in years 5-7, lower thereafter; exempt amount capped at 55 x IAS (EUR 29,542.15 in 2026).
Legal basis: CIRS art. 12-B (Lei 45-A/2024)
Residente não habitual (regime transitório)
For people relocating · rate 20.0 %
Who: Persons already registered as non-habitual residents (or covered by the LOE 2024 transitional rule).
Legacy regime: 20% on high-value employment/professional income and 10% on foreign pensions for remaining years of the 10-year period; closed to new entrants since 2024.
Legal basis: CIRS art. 72 n.10 and n.12 (revoked), transitional rule LOE 2024 art. 236
Tax residence
The tax residence check does not cover Portugal yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 1.000012 EUR (ECB euro reference rate, 2026-01-02) ↗
Sources
- Autoridade Tributária — Sistema fiscal português: taxas aplicáveis 2026 (IRS, IRC)
- Portal das Finanças — CIRS art. 25 (specific deduction, category A)
- Portal das Finanças — CIRS art. 12-B (IRS Jovem)
- Portal das Finanças — CIRS art. 28 and 31 (regime simplificado)
- Portal das Finanças — CIRS art. 71 (28% liberatory rate on capital income)
- Portaria 480-A/2025/1 — IAS 2026 = EUR 537.13 (copy published by AT Madeira)
- Segurança Social — Circular CC 1/2011 on the Código Contributivo (general rate 34.75% = 23.75% employer + 11% worker)
- Segurança Social (DGSS) — Folha informativa: regime dos trabalhadores independentes (DL 2/2018)
- OECD Tax Database (SDMX) — Social security contributions: employee / employer / self-employed rates (2025)
- OECD Tax Database (SDMX) — Corporate income tax statutory and small-business rates (2026)
- OECD Tax Database (SDMX) — Combined corporate and shareholder tax rates on dividend income (2026)
Data checked: 2026-11-08. An indicative calculation for a typical case. Not tax advice.