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Income Types
How each kind of income is taxed
The return is organized by income category, and so are the rules. Find yours below. Rates shown are the common default for residents; the linked guides cover the exceptions.
Employment
Salary from a Portuguese or foreign employer. Taxed at progressive rates through the annual return, usually with withholding during the year.
Freelance & business
Recibos verdes income. Most expats start under the simplified regime, where a coefficient of your turnover is deemed taxable instead of tracking every expense.
Interest & dividends
Bank interest and dividends, Portuguese or foreign. Taxed at a flat rate by default, with the option to aggregate at progressive rates when that works out lower.
Capital gains
Gains on shares, funds, and crypto held under a year are generally taxable; property gains have their own rules, with only part of the gain taxed for residents.
Rental income
Income from letting property, in Portugal or abroad. Portuguese long-term residential leases can qualify for reduced rates; foreign rentals are declared with credit for foreign tax.
Pensions
Foreign pensions are usually taxable in Portugal once you are resident, at progressive rates. Treaty rules and the pension type change the details, so this one rewards care.