If you come to live or want to invest, Taxes in Portugal ?

Taxes

If you are coming to live in Portugal or want to invest here, you will need to register with the Tax Authority to acquire the Tax Identification Number.

The NIF is an essential reference, without which you cannot open a bank account, buy a house or a car, or even subscribe to an internet service.

Citizens and businesses in Portugal pay direct taxes, and indirect taxes.

Direct taxes are calculated based on income, where those with a higher income end up paying a higher rate.

Indirect taxes are more significant in number and are paid indirectly for the acquisition of products or services.

IRS
The IRS, i.e. the personal income tax.

IRC
Corporate income tax, corporate income tax.

TSU
The TSU, that is, the single social rate, which, although it is called a rate, is a tax that directly affects the income of workers.

TSU is a rate deducted from the salary to contribute to the financial sustainability of social security, ensuring that the taxpayer subsequently has access to the enjoyment of his retirement;

IMI
The IMI, or municipal property tax. It is determined and applied by each municipality in Portugal; The amount charged directly affects the value of the property. IMI payments occur annually.

VAT
VAT – Value Added Tax.

VAT is the indirect tax, best known by most Portuguese families. It is present in practically all products, goods and services, varying only in the rate applied depending on its function and degree of importance. There are three VAT rates.

In mainland Portugal, reduced (6%), intermediate (13%) and ordinary and applied in general (23%).

In the Azores, reduced (4%), intermediate (9%) and ordinary and applied in general (18%).

In Madeira, reduced (5%), intermediate (12%) and ordinary and generally applied (22%).

ISV and IUC

The ISV – Vehicle Tax and IUC, the Single Circulation Tax.

The ISV is charged on the acquisition of a motor vehicle and is taxed on the first registration. The IUC – Single Circulation Tax, which replaced the "car stamp", is paid annually.