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    Portugal Income Tax Rates 2015

    Individuals

    Taxable Income 2015 (EUR)

    A- Normal Tax Rate (%) 

    B - Medium Tax Rate (%)

    Up to 7,000

    14.50

    14.50

    From 7,000 - 20,000 28.50 23.60

    From 20,000 - 40,000

    37.00

    30.30

    From 40,000 - 80,000

    45.00

    37.65

    Over 80,000

    48.00

    -

    *The amount of taxable income if higher than EUR 7,000 is divided into two parts: one equal to the limit of the highest bracket comprised therein, to which the rate of column B corresponding to such bracket applies; the other equal to the exceeding fraction to which the rate of the column A corresponding to the next highest bracket applies. The income of a married couple or people living together as a married couple for at least two years is divided by two for purposes of the tax table application.

    An additional tax rate of 2.5% will be applied on the share of the taxable income above EUR 80,000 and of 5% on the share of the taxable income above EUR 250,000. Additionally, a surtax of 3.5% is applicable on residents' taxable income share above the annual minimum guaranteed income (EUR 7,070).

    Companies

    Taxable Income (EUR)

    Tax Rate (%)

    All taxable income

    21 (16.8 for Açores)*

    *Small and medium companies are subject to a reduced tax rate of 17% (13.6% for Açores) regarding their taxable income up to EUR 15,000.

    A 1.5% rate (Derrama Municipal) is added to the federal rates resulting in a combined effective rate of 22.5% (or 18.3% for Açores). An additional 3% taxation (designated as Derrama Estadual) is levied on the share of the taxable income between EUR 1,500,000 and EUR 7,500,000 and an additional 5% levied on the share of taxable income between EUR 7,500,000 and EUR 35,000,000 and 7% levied on the share of taxable income above EUR 35,000,000.

    VALUE ADDED TAX (VAT (%) - Mainland / Madeira / Açores)

    The reduced rate (6/5/4) is applicable to the supplies of some basic foodstuffs, publications, books, pharmaceutical products, hotel accommodation, agricultural goods and passenger transport. The intermediate rate (13/12/9) is applicable to supplies of some foodstuffs and to admissions to entertainment and cultural shows. The standard rate (23/22/18) is aplicable to all remaining goods and services.»

    CAPITAL GAINS TAX (CGT)

    Individuals

    Capital gains arising from the disposal of shares/quotas are taxed at a special flat rate of 28% whether made by residents or non residents. (14% if the shares are in micro or small companies not listed on the stock exchange).

    Companies

    Capital gains arising from the disposal of shares/quotas are exempt if: i) a minimum 5% participation or voting rights is detained for at least 24 months; ii) the shares refer to a company subject to one of the taxes foreseen on the "Parent-subsidiary directive" or to a similar tax which statutory rate is no less than 60% of the Portuguese Corporate Income Tax; iii) the shares / quotas refer to a company not resident in a tax haven.

    LOSSES

    The deduction of tax losses is limited to 70% of the taxable profit. Both individual (carrying out a commercial or industrial activity as self-employment) and company tax losses can be carried forward against the income obtained in the following twelve years.

    TREATY NETWORK

    A total of 71 countries (64 treaties in force and 7 signed).

    WITHHOLDING TAX

    Nature of income

    Individuals (%)

    Companies (%)

    Dividends

    28

    25

    Interest

    28

    25 / 0 (EU2)

    Royalties

    25 for non-residents / 16,5 for residents1

    25 / 0 (EU2)

    1 Character of an advanced payment.
    2 Council Directive 2003/49/CE, of 3 June 2003 0% from 1 July 2013


    Doing Business Abroad - Tax Rates 2015 /2016

     
    Albania | Angola | Austria | Azerbaijan | Bahrain | Belgium | Bulgaria | Cameroon | Croatia | Cyprus
    Czech Republic | Denmark | Egypt | Estonia | Finland | France | Georgia| Germany | Greece
    Hungary | Ireland | Isle of Man | Israel | Italy | Jordan | Kazakhstan | Kenya | Kuwait | Latvia | Lebanon
    Liechtenstein | Lithuania | Luxembourg | Malta | Mauritius | Morocco | Netherlands | Nigeria
    Norway | Oman | Palestine | Poland | Portugal | Qatar | Romania | Saudi Arabia | Serbia | Slovakia
    Slovenia | South Africa | Spain | Sweden | Switzerland | Tanzania | Tunisia | Turkey | Uganda
    Ukraine | United Arab Emirates | United Kingdom | Yemen

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