About taxes in Portugal
Portugal applies a progressive personal income tax ("IRS") with nine brackets in 2025, ranging from 13.25% on income up to €7,703 to 48% above €81,199. The mainland follows these national brackets, while the autonomous regions of Madeira and the Azores apply discounts of around 20% and 30% respectively to the IRS due. Employee social security contributions are 11% of gross salary, with no upper cap — these fund pensions, unemployment, and the public health system (SNS), so no separate health-insurance deduction appears on your payslip. The Non-Habitual Resident (NHR) regime, in its updated form, can offer a flat 20% rate on qualifying employment and self-employment income for up to 10 years for new tax residents working in eligible high-value-added activities (engineering, IT, science, medicine, etc.). The original NHR closed to new applicants in 2024; a successor "IFICI" / "NHR 2.0" regime applies for moves from 2024 onward, with stricter eligibility. Portugal's tax year matches the calendar year and returns are filed between April and June through the Portal das Finanças.