How much tax will I pay in Portugal?

Portugal gives you several numbers, and almost every later step asks for one of them. The tax number (NIF) comes first. Then understand how income tax (IRS) and social security come off your pay.

Five things, not one

Your NIF

Getting a NIF is free. The tax authority’s FAQ says a foreign non-resident can apply in person at a tax office (serviço de Finanças) with a passport and proof of their address abroad, or have a legal representative apply online through the e-balcão service with scans and a power of attorney (notarised unless it is given to a lawyer or solicitor). Third-country nationals applying in person need a Schengen entry stamp or visa; British citizens are visa-exempt for short stays.

You don’t need a fiscal representative (representante fiscal) just to get a NIF. The tax office’s English guidance says that a non-resident who keeps a tax link with Portugal, such as a car, a property, a job or self-employment, must within 15 days either appoint a tax representative in Portugal or sign up for one of its electronic notification channels on the Portal das Finanças. Non-EU citizens, including Britons, who are self-employed in Portugal must appoint a representative even if they use electronic notifications, and the representative must be registered for VAT. The gov.pt guide, updated September 2026, puts it more simply: a non-resident needs a representative with an address in Portugal. DECO, the consumer association, describes the same 15-day rule. Most people moving from the UK use a lawyer or service that applies for the NIF and acts as representative until they move. Once you live in Portugal, change your address to Portugal with the tax office: as a non-EU citizen you show your AIMA residence permit or proof of your AIMA appointment.

NISS, health number and AIMA card

Foreign citizens don’t get a NISS automatically. You apply with an online form on the social security portal, attaching your passport, your visa or residence permit, proof of work (for example a contract) and proof you have applied for residence; your employer can apply for you. You then get a registered letter telling you to collect it at a social security office, and gov.pt says it is free. People with an address in Portugal can request the NIF, NISS and health number together.

Your health user number is given the first time you go to a public health unit. For the SNS to cover your care, your record needs your ID, your Portuguese NIF, your full address in Portugal and a valid residence permit. See How does Portuguese healthcare work for Brits?

If you arrive on a residence visa, it lets you stay four months while you apply to AIMA for your residence permit and give your fingerprints. A first temporary permit lasts 2 years and renewals 3. Waits for AIMA appointments and cards have been long, so book early and keep every receipt. See Which Portuguese visa do I need?

Are you a Portuguese tax resident?

Under article 16 of the IRS code you are resident if you spend more than 183 days in Portugal in any 12-month period starting or ending in the tax year, or if you have a home there on any day of that period that suggests you mean to keep it as your usual home. Residents pay tax on worldwide income (see Moving money). The old NHR regime is closed to newcomers; its replacement, IFICI, and the split year are covered in Do I still pay UK tax?

How IRS works

Employees first pay 11% social security on gross pay; the employer adds 23.75%. For IRS, employment income gets a standard deduction of 8.54 times the social support index (IAS), which is €4,587.09 in 2026, or your social security if higher. The rest is taxed on this 2026 mainland scale (Lei 73-A/2025):

Example, our estimate for a single person on the mainland: on a salary of €30,000 (about £25,400), social security is €3,300 and IRS about €4,810 before personal deductions, leaving about €21,900. Estimate Try the pay calculator. In Lisbon, Porto, the Algarve, Coimbra and Braga the mainland scale applies. Madeira (Funchal) applies rates 30% lower in all nine brackets in 2026, and the Azores also has lower rates. In September 2026 the government proposed cutting the rates of the first six brackets by 0.3 to 0.5 points for 2026 income; check whether it has become law.

Withholding and IRS Jovem

Your employer withholds IRS from each payslip (retenção na fonte) using official tables published each year, as well as your 11% social security. Tell your employer about your family situation so the withholding is right.

IRS Jovem (article 12-B) partly exempts employment and self-employed income for people aged 35 or under who are not someone’s dependant: 100% in the first year of earnings, 75% in years 2 to 4, 50% in years 5 to 7 and 25% in years 8 to 10, capped at 55 times the IAS (€29,542.15 for 2026 income). Montepio says years worked while tax resident abroad don’t count towards the 10.

The annual return

Portugal’s tax year is the calendar year. The return (declaração Modelo 3) is filed online from 1 April to 30 June of the following year. If you have foreign income with a tax credit whose amount isn’t known by then, you can tell the AT within that window and file by 31 December. Many simple returns are prepared for you as IRS Automático. A certified accountant (contabilista certificado) can file for you.