Portugal Income Tax Rates and Personal Allowances in 2019

The Income tax rates and personal allowances in Portugal are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Portugal Tax Calculator 2019, Portugal Capital Gains Tax Calculator.

Personal Income Tax Rates in Portugal for 2019

Personal Income Tax (PIT) is charged in Portugal using progressive tax tables with seperate tax rates being applied aginst income earned within each bracket. Portugal has three seperate PIT tax tables, one for each of the following three regions: Mainland Portugal, Madeira and Azores, the PIT tax tables for each are shown below.

Mainland Portugal Personal Income Tax Rates and Thresholds

Portugal Residents Income Tax Tables in 2019: Mainland Portugal Income Tax Rates and Thresholds (Annual)
Tax RateTaxable Income Threshold
14.5%Income from € to €7,091.00
23%Income from €7,091.01 to €10,700.00
28.5%Income from €10,700.01 to €20,261.00
35%Income from €20,261.01 to €25,000.00
37%Income from €25,000.01 to €36,856.00
45%Income from €36,856.01 to €80,640.00
48%Income from €80,640.01 and above
Portugal Non-Residents Income Tax Tables in 2019: Mainland Portugal Income Tax Rates and Thresholds (Annual)
Tax RateTaxable Income Threshold
25%Income from € to

Madeira Personal Income Tax Rates and Thresholds

Portugal Residents Income Tax Tables in 2019: Madeira Income Tax Rates and Thresholds (Annual)
Tax RateTaxable Income Threshold
11.6%Income from € to €7,091.00
20.7%Income from €7,091.01 to €10,700.00
26.5%Income from €10,700.01 to €20,261.00
33.75%Income from €20,261.01 to €25,000.00
35.87%Income from €25,000.01 to €36,856.00
44.95%Income from €36,856.01 to €80,640.00
48%Income from €80,640.01 and above
Portugal Non-Residents Income Tax Tables in 2019: Madeira Income Tax Rates and Thresholds (Annual)
Tax RateTaxable Income Threshold
25%Income from € to

Azores Personal Income Tax Rates and Thresholds

Portugal Residents Income Tax Tables in 2019: Azores Income Tax Rates and Thresholds (Annual)
Tax RateTaxable Income Threshold
10.5%Income from € to €7,091.00
17.25%Income from €7,091.01 to €10,700.00
21.38%Income from €10,700.01 to €20,261.00
28%Income from €20,261.01 to €25,000.00
29.6%Income from €25,000.01 to €36,856.00
36%Income from €36,856.01 to €80,640.00
38%Income from €80,640.01 and above
Portugal Non-Residents Income Tax Tables in 2019: Azores Income Tax Rates and Thresholds (Annual)
Tax RateTaxable Income Threshold
25%Income from € to

Personal Income Tax Allowances and tax Credits in 2019

Portugal provides a number of personal allowances, tax credits and tax allowances for individual tax payers, married tax payers and their dependetns. The following list includes the tax credits and allowances integrated into the 2019 Portugal Tax and Salary Calculators

Portugal Resident Personal Income Tax Allowances and tax Credits in 2019
RateCapDescription
-€600.00Resident Dependents Allowance
-€126.00Resident additional Dependents Allowance for children under 3 years of age
-€450.00Resident Forest Saving Plans (Planos de Poupança Florestal)
-€1,000.00Resident Environmental Deductions
15%€1,000.00Resident Health Expenses
30%€800.00Resident Education Expenses
20%n/aResident Alimony

Income Tax in Portugal in 2019

Taxes, including personal income tax, expenses and limitations are reviewed by the Government in Portugal periodically and typically updated each year. Not that not all tax rates and thresholds in Portugal change annually, alterations to tax policy to support strategic economic growth in Portugal mean that the certain areas may be focused on to provide specific tax relief in Portugal or support growth in certain areas (overseas invstment in Portugal for example may mean reduced non-resident income tax rates in Portugal for a period).

When tax policy in Portugal changes, the resultant tax tables also change. Tax tables in Portugal are simply a list of the relevent tax rates, fixed amounts and / or threholds used in the computation of tax in Portugal, the Portugal tax tables also include specific notes and guidance on the validity of scenarios (for example, qualifying criterea for specific tax relief / allowances) and notes of the calculation of phaseout of specific tax elements within each taxation group (dividends and corporation tax thresholds in Portugal for example).

Capital Gains Tax in Portugal in 2019

Note that if the capital gains income will be reinvested then the amount of capital gains income subject to taxation in Portugal is reduced by 50% for individuals and 50% for corporations.

Portugal Capital Gains Tax Tables in 2020: Capital Gains Tax Rates and Thresholds (Annual)
Capital Gains Tax RateApplies to:
28%Resident Individuals
28%Non-resident Individuals
25%Resident Corporations
25%Non-resident Corporations

Corporation Tax in Portugal in 2019

Resident Companies in Portugal pay corporation tax at different rates on their global income and income generated in Portugal with rates differing by location.

Non-resident Companies in Portugal only pay corporation tax rates income generated in Portugal with rates differing by location.

Subject Matter Experts (SME's) are entitled to reduced corporation tax payments upto a specific cap.

Portugal Corporation Tax Tables in 2020: CorporationTax Rates and Thresholds (Annual)
Rate / ThresholdApplies to:
21%Global Income Resident Corporations
20%Portugal Income Resident Corporations in Mainland Portugal
16.8%Portugal Income Resident Corporations in Madeira
16.8%Portugal Income Resident Corporations in Azores
0%Global Income Non-resident Corporations
20%Portugal Income Non-resident Corporations in Mainland Portugal
16.8%Portugal Income Non-resident Corporations in Madeira
16.8%Portugal Income Non-resident Corporations in Azores
12.5%Portugal Income SME in Mainland Portugal
13%Portugal Income SME in Madeira
17%Portugal Income SME in Azores
€15,000.00SME reduced rate threshold in Mainland Portugal
€15,000.00SME reduced rate threshold in Madeira
€15,000.00SME reduced rate threshold in Azores
21%Non-commercial entities that are not industrial, or agricultural in nature

VAT Rates in Portugal in 2019

Portugal VAT Rates
VAT RateVAT Description
23%Standard - Mainland Portugal
22%Standard - Madeira
18%Standard - Azores
13%Intermediate - Mainland Portugal
12%Intermediate - Madeira
9%Intermediate - Azores
6%Reduced - Mainland Portugal
5%Reduced - Madeira
4%Reduced - Azores

About the Portugal 2019 Tax Tables

Portugal Tax Tables may also be referred to as Portugal Tax Slabs, Portugal personal allowances and tax thresholds or Portugal business tax rates. They all refer to the tax tables, whether in whole or as specific sections/categories of the tax tables therein. In the section, we publish all 2019 tax rates and thresholds used within the 2019 Portugal Salary Calculator. This means that if you are aware of a 2019 tax exemption or 2019 tax allowance in Portugal that you are entitled too BUT it isn't listed here, that we don't allow for it in this version of the Portugal Salary Calculator. This is simply because we updated our tax calculators based on user feedback, we tailor the Portugal Salary Calculator to suit our users needs. Our aim is to keep tax calculations in Portugal simple, we achieve this my making the Portugal tax calculators relevent to our community's needs, this includes you. So, if you would like a new 2019 tax rates, allowance or threshold adding (or perhaps updating), or if you notice an error in our 2019 tax calculations, simply contact us and we will adjust the tool.

Choose a specific income tax year to see the Portugal income tax rates and personal allowances used in the associated income tax calculator for the same tax year.