Head of practice
Head of Corporate Law and Fintech Practice. Expert in the creation and reorganization of companies, support of M&A transactions, as well as legal support for opening and running a business in the EU, Asia, and North America.
TAX IN PORTUGAL
Portugal attracts investors and entrepreneurs with its flexible tax system.
However, to fully take advantage of the opportunities this country offers, you need to have a deep understanding of local tax laws and regulations.
The law firm “Prikhodko & Partners” offers professional tax advice in Portugal that will help you optimize costs, avoid risks and successfully conduct business in this jurisdiction.

Why is tax advice important in Portugal?
The Portuguese tax system is relatively complex, as it combines European standards and national characteristics.
It includes personal income tax (IRS), corporate tax (IRC), value added tax (IVA), as well as numerous municipal and special taxes.
In addition, Portugal has a number of preferential programs, such as the Non-Habitual Resident (NHR) regime and investment incentives, which can significantly reduce the tax burden.
However, without proper legal support, it is difficult to understand all the nuances and avoid mistakes that can lead to fines or loss of opportunities.
Professional tax advice allows you to:
- Optimize taxation for individuals and companies.
- Ensure compliance with local legal requirements.
- Take advantage of the benefits and discounts provided by law.
- Avoid double taxation thanks to agreements signed by Portugal with other countries.
The law firm “Prikhodko & Partners” has many years of experience in providing international taxation advice, which allows us to offer clients comprehensive solutions tailored to their needs.
Key aspects of the Portuguese tax system
- Personal Income Tax (IRS)
Personal income tax in Portugal is progressive, with rates ranging from 14.5% to 48% depending on income level.
Residents are taxed on income earned both in Portugal and abroad, while non-residents only pay tax on income earned in the country.
The NHR program allows new residents to pay a reduced rate (20%) for 10 years on certain types of income, including professional or business income earned abroad.
- Corporate tax (IRC)
The standard corporate tax rate is 21% for companies registered in mainland Portugal and 14.7% in Madeira and the Azores.
In addition, a municipal tax (Derrama) of up to 1.5% may apply. Small and medium-sized enterprises can qualify for a reduced rate of 17% for the first €25,000 of profits.
- Value Added Tax (IVA)
Portugal applies three VAT rates:
- standard (23%);
- reduced (13%);
- preferential (6%).
Some goods and services, such as food or medical services, may be exempt from VAT. It is important to classify goods or services correctly to avoid overpayments or penalties.
- Non-Habitual Resident (NHR) Program
This program is one of the most attractive for foreigners planning to move to Portugal. It allows new residents to benefit from preferential taxation for 10 years.
For example, pensions received from abroad can be completely tax-free, while income from certain professions is taxed at a rate of 20%. To benefit from this program, you must meet clear criteria, and the application requires careful preparation.
- Real estate taxes
Property owners in Portugal pay a municipal property tax (IMI) at a rate of 0.3% to 0.8% depending on the type and location of the property.
When buying a property, there is also a property transfer tax (IMT) and stamp duty.
Why should you contact Prikhodko & Partners?
Our law firm specializes in providing comprehensive advisory services covering all aspects of taxation in Portugal.
We offer:
- Individual approach
We analyze your situation, business goals, and financial capabilities to develop the optimal tax strategy.
This may include choosing the appropriate tax regime, structuring your income, or utilizing benefits.
- Support in the NHR program
We help clients apply for NHR status, prepare the necessary documents and ensure compliance with all requirements.
This significantly reduces the tax burden for new residents.
- Business consulting
For companies, we offer corporate tax analysis, business structure optimization, and double taxation avoidance consultations.
We also assist with company registration and licensing.
- Tax planning for real estate
Buying or selling property in Portugal comes with a number of taxes. We help clients minimize costs and properly formalize transactions.
- Representation in disputes
In the event of tax disputes with local authorities, we represent clients’ interests, ensuring the protection of their rights and legitimate interests.
Advantages of working with “Prikhodko & Partners”
- Experience and professionalism
Our lawyers have in-depth knowledge of Portuguese and international tax law, as well as practical experience working with clients from different countries.
- International expertise
We work with clients from Ukraine, EU countries, CIS countries and other regions, which allows us to take into account the specifics of different jurisdictions.
- Comprehensive approach
In addition to tax consulting, we provide legal support in immigration, corporate law, real estate, and other areas.
- Privacy
We guarantee complete confidentiality of our clients’ data and strictly adhere to ethical standards.
Conclusion
Portugal offers numerous opportunities for investors, entrepreneurs and those planning to relocate. However, the complexity of the tax system and frequent changes in legislation require a professional approach.
The law firm “Prikhodko & Partners” is ready to become your reliable partner in matters of taxation in Portugal.
We will help you not only understand local laws, but also make the most of all available benefits and opportunities.
Contact us for a consultation and we will make your journey through the world of Portuguese taxation simple and clear!
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