INCOME TAX IN PORTUGAL
When you either live or work abroad the country in which you pay your tax depends on a number of factors. The main item to be considered is whether or not you are considered resident in the UK during a tax year which is defined as spending more than 183 days a year there or visiting the country for 91 days a year or more over a four year period.
Tax is payable on income earned in the UK for non-residents, with a double taxation agreement in existence with Portugal to prevent any money being taxed twice. Further information can be obtained from HM Revenue & Customs:
Revenue Policy International Division (Double Taxation)
100 Parliament Street
London
SW1A 2BQ
Tel: 0207 438 6622
Website: www.hmrc.gov.uk/international
The Department with responsibility for all Central Government taxes is the 'Direcçao-Geral das Contribuiçoes e Impostos' (GSCI) at:
DGCI
Rua da Prata 10 -2
1100 Lisbon
Portugal
Tel: 00 351 21 886 92 11
If you work in Portugal and pay income tax you will need a Carta de Contribuinte number which can be obtained by presenting your passport at the local tax office. They will give you a temporary number for the first few months.
An employee or self-employed person in Portugal is liable for income tax. If you become a permanent resident (live there for a minimum of 183 days a year or have your main residence there) your tax will be calculated on income earned in Portugal and abroad. A foreign resident employed in Portugal just pays tax on income earned in that country. Your employer will deduct this tax at source.
The current tax bands are as follows:
| Tax |
Tax Base (Euro) |
|
| 12% |
to 4182 |
| 14% |
4,183 - 6,325 |
| 24% |
6,326 - 15,682 |
| 34% |
15,683 - 36,070 |
| 38% |
36,071 - 52,276 |
| 40% |
52,277 and over |
|
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