Portugal
Portugal remains a top destination for international expats thanks to its exceptional quality of life and attractive tax regime. The new IFICI scheme, successor to the NHR, continues to offer significant benefits to qualifying professionals. With a lower cost of living than the UK or Germany and a mild climate year-round, Lisbon and Porto attract freelancers, retirees and entrepreneurs.
Taxation
Income tax brackets
| Bracket | Rate |
|---|---|
| 0 € → 8 342 € | 12.5 % |
| 8 342 € → 12 587 € | 15.7 % |
| 12 587 € → 17 838 € | 21.2 % |
| 17 838 € → 23 089 € | 24.1 % |
| 23 089 € → 29 397 € | 31.1 % |
| 29 397 € → 43 090 € | 34.9 % |
| 43 090 € → 46 566 € | 43.1 % |
| 46 566 € → 86 634 € | 44.6 % |
| 86 634 € → unlimited | 48 % |
Corporate tax
19 %
Capital gains
0 %
VAT
23 %
Special regime : Incentivo Fiscal à Investigação Científica e Inovação (IFICI)
Successeur du NHR depuis 2024. Taux forfaitaire de 20 % sur les revenus portugais pour les nouveaux résidents fiscaux exerçant des activités à haute valeur ajoutée ou dans la recherche scientifique.
10 ans
Ne pas avoir été résident fiscal au Portugal au cours des 5 dernières années. Exercer une activité éligible (recherche, enseignement, tech, cadres qualifiés).
- Taux forfaitaire de 20 % sur les revenus de source portugaise
- Exonération des revenus de source étrangère (hors pensions)
- Pas de double imposition sur certains revenus étrangers
- Applicable aux professions scientifiques, tech et haute valeur ajoutée
Visa options
Visa Digital Nomad (D8)
digital-nomadDuration: 1 an renouvelable
Cost: 75 EUR (demande) + 72 EUR (permis)
Requirements: Revenu minimum de 3 510 EUR/mois (4x le SMIC portugais). Travail à distance pour une entreprise hors Portugal.
Visa D2 - Entrepreneur
entrepreneurDuration: 1 an renouvelable, résidence permanente après 5 ans
Cost: 90 EUR (demande) + 72 EUR (permis)
Requirements: Projet entrepreneurial viable, investissement initial ou création d'emplois au Portugal.
Visa D7 - Revenu passif
passive-incomeDuration: 2 ans renouvelable, résidence permanente après 5 ans
Cost: 90 EUR (demande) + 72 EUR (permis)
Requirements: Revenu passif stable (retraite, loyers, dividendes) d'au moins 820 EUR/mois.
Living in Portugal
Popular locations among expatriates
Cost of living
Comparison with the French average (vertical line)
Single person
Couple
City center rent
Outside city center rent
The cost of living in Portugal is roughly 30% lower than in the UK or Germany. A single person can live comfortably in Lisbon on €1,200/month excluding rent. Rents have risen sharply in major cities but remain competitive compared to London or Paris.
Settling in Portugal
Practical indicators to prepare your relocation
Safety & stability
Procedures
Start a business
Portugal offers an accessible Digital Nomad visa (D8) and a vibrant startup ecosystem in Lisbon. The bureaucracy can be slow (SEF, finanças) but is gradually digitising. The English-speaking expat community is well established, especially in Lisbon, the Algarve and Porto, making integration smoother.
The Portuguese public health system (SNS) is free for residents but waiting times can be long. Private clinics (CUF, Luz Saúde) offer excellent care at much lower rates than in the UK or Germany. Private health insurance costs €50-100/month and is recommended for fast specialist access.
Quality of life
Portugal offers a pleasant Mediterranean climate with over 300 days of sunshine per year. The country ranks among the safest in Europe and has excellent internet connectivity. The international expat community is well established, particularly in the Algarve and Lisbon.
Pros and cons
Advantages
- IFICI regime: 20% flat rate for 10 years
- Cost of living 30% lower than the UK or Germany
- Exceptional climate and high quality of life
- Large international expat community, easy integration
Disadvantages
- High top marginal rate of 48% outside the special regime
- Rising rents in Lisbon and Porto
- Slow administrative bureaucracy
- Low local salaries if working on-site
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Verified on January 15, 2025All data on this page comes from public and institutional sources.
FAQ
What is the tax rate in Portugal?
The top marginal income tax rate in Portugal is 48%. The corporate tax rate is 19%. A special regime exists: Incentivo Fiscal à Investigação Científica e Inovação (IFICI).
What is the cost of living in Portugal?
The monthly cost of living for a single person in Portugal is approximately 1200 EUR (excluding rent). City center rent costs around 950 EUR per month.
Is there a tax treaty between the United Kingdom and Portugal?
Check HMRC for the current status of the tax treaty between the United Kingdom and Portugal.
These results are estimates.
The data presented are estimates and do not constitute tax advice. Consult a professional for your personal situation.