Country topic
Tax in Portugal
Portugal treats you as tax resident if you stay more than 183 days, in one stretch or not, in any 12-month period that begins or ends in the tax year. With fewer days you are still resident if, on any day of that period, you have a home in conditions that suggest you intend to keep and occupy it as your habitual residence. Residence is assessed for each person in a household. [T1] Residents are taxed on all their income, including income earned outside Portugal. Non-residents are taxed only on income earned in Portugal. [T2]
What we found
The research, with its sources.
Research information, not advice. Rules change, so check the source before you act on one.
- Portugal treats you as tax resident if you stay more than 183 days, in one stretch or not, in any 12-month period that begins or ends in the tax year. With fewer days you are still resident if, on any day of that period, you have a home in conditions that suggest you intend to keep and occupy it as your habitual residence. Residence is assessed for each person in a household. [T1]
- Residents are taxed on all their income, including income earned outside Portugal. Non-residents are taxed only on income earned in Portugal. [T2]
- Income from services to clients abroad is taxable in Portugal as business income, goes in the annual return and counts toward social security. A freelancer who works only independently contributes on 70% of average quarterly income, with a minimum of €20 a month and an optional exemption for the first 12 months of activity. We do not state a contribution rate; confirm it with Segurança Social. VAT exemption applies below €15,000 turnover a year (2026 limit), with conditions. [T3]
- IFICI (the tax incentive for scientific research and innovation) is open to people who were not Portuguese tax residents in the previous five years, who work in an activity listed in the tax code (for example jobs at higher education and research bodies, qualified jobs at listed entities, certain highly qualified professions, startups), and who have not used the older NHR regime or IFICI before. For several listed categories the authority says a 'job position' implies an employment contract. Qualifying Portuguese-source employment and business income is taxed at 20%; the page lists a general exemption for foreign-source income, except pensions and income from listed low-tax places. It does not list remote work for a foreign employer, so no saving is assumed. [T4]
- Law 82/2023 changed the older non-habitual resident (NHR) regime. Its old rules still apply, until the original period ends, to people already registered as NHR when the law took effect, to people who met the residence conditions on 31 December 2023, and to people who became resident by 31 December 2024 and hold a listed item dated before the 2023 cut-offs (such as a work promise or contract, a lease, a purchase contract, a school enrolment or a residence visa procedure), plus their household members. The IFICI conditions exclude anyone who has benefited from NHR. [T1] [T4]
- The US–Portugal income tax convention (signed 1994, effective 1 January 1996) says pensions for past employment are taxable only in the state where the recipient lives, while social security benefits and other public pensions may be taxed by the paying state. A saving clause lets the United States tax its citizens as if the convention had not come into effect, and US citizens abroad generally file as they would at home. [T5] [T6]
- Canada and Portugal have a convention signed on 14 June 1999, listed as in force by the Department of Finance. Australia and Portugal signed a treaty on 30 November 2023 and a parliamentary committee report was tabled on 27 March 2025, but Treasury's list of treaties in force (last updated 24 March 2026) does not include Portugal. New Zealand's Inland Revenue lists Portugal as a new treaty under negotiation. [T7] [T8] [T9] [T10] [T11]
- The US and Portugal have a social security (totalization) agreement; Canada's agreement has applied since 1 May 1981 and covers CPP and OAS only, with form CPT55 to request a certificate of coverage. Work and Income's list of New Zealand agreements does not include Portugal. A 2022 SBS report describes an Australia–Portugal social security agreement on pensions and benefits. [T12] [T13] [T14] [T15] [T16]
The country
More on Portugal.
Topics
More about Portugal.
Questions about Tax in Portugal.
When do I become a Portuguese tax resident?
You are resident if you stay more than 183 days, in one stretch or not, in any 12-month period that begins or ends in the tax year. With fewer days you are still resident if, on any day of that period, you have a home in conditions that suggest you intend to keep it as your habitual residence.
What does Portugal tax once I am resident?
Residents are taxed on all their income, including income earned outside Portugal; non-residents only on Portuguese income. A freelancer's income from foreign clients is taxable as business income, goes in the annual return and counts for social security. Your home country may tax you too.
What is IFICI, and can a remote worker use it?
IFICI is a tax regime for research and innovation talent. It needs no Portuguese tax residence in the previous five years, an activity on the tax authority's list, and no past use of NHR or IFICI. Qualifying Portuguese pay is taxed at 20%. The list does not name remote work for a foreign employer.
Does Portugal have a tax treaty with my country?
US: a convention in effect since 1 January 1996. Canada: signed 14 June 1999, listed as in force. Australia: signed 30 November 2023, but Treasury's list (updated 24 March 2026) does not include Portugal. New Zealand: listed as under negotiation. A treaty sets conditions; it does not remove filing duties.
Do social security agreements stop me paying contributions twice?
It depends on your passport. The US and Portugal have a totalization agreement; Canada's (since 1981) covers CPP and OAS, with a certificate on form CPT55. New Zealand has none listed, and Australia has one on pensions and benefits. Your case may differ, so ask both agencies.
Sources
Where each figure comes from.
Every figure on this page links to the page we read, with the date we checked it.
- [T1] Portuguese tax residence (article 16), Portuguese Tax and Customs Authority. Checked 15 October 2026. Includes the transitional note on the non-habitual resident regime (Law 82/2023, article 236).
- [T2] Worldwide income for residents (article 15), Portuguese Tax and Customs Authority. Checked 15 October 2026.
- [T3] Freelancer tax and contributions, Portuguese Government (gov.pt). Checked 15 October 2026. Guide covering receipts, VAT and social security for freelancers; the 2026 VAT exemption limit is €15,000.
- [T4] IFICI regime: frequently asked questions, Portuguese Tax and Customs Authority. Checked 15 October 2026.
- [T5] US–Portugal income tax convention, Internal Revenue Service. Checked 15 October 2026. 1994 convention with protocol; general effective date 1 January 1996.
- [T6] US citizens abroad: filing requirements, Internal Revenue Service. Checked 3 October 2026. US citizens living abroad.
- [T7] Tax treaties in force, Department of Finance Canada. Checked 4 October 2026. Canada–Portugal convention signed 14 June 1999.
- [T8] Treaty signed, Australian Treasury. Checked 4 October 2026. Signed 30 November 2023.
- [T9] Ratification report, Parliament of Australia, Joint Standing Committee on Treaties. Checked 16 October 2026. Report tabled 27 March 2025. Read from an archive copy dated 13 November 2025.
- [T10] Treaties in force, Australian Treasury. Checked 15 October 2026. Table last updated 24 March 2026; Portugal not listed.
- [T11] Tax treaty status, Inland Revenue (New Zealand), Tax Policy. Checked 15 October 2026. Portugal listed as under negotiation, not in force.
- [T12] US–Portugal totalization agreement, US Social Security Administration. Checked 3 October 2026.
- [T13] Social security agreement, Government of Canada. Checked 4 October 2026. Agreement in force since 1 May 1981; CPP and OAS only.
- [T14] Certificate of coverage, Canada Revenue Agency. Checked 4 October 2026. Form CPT55, employed and self-employed people.
- [T15] Social security agreements, Work and Income (Ministry of Social Development, New Zealand). Checked 4 October 2026. Portugal not listed.
- [T16] Social security agreement, SBS (Australian public broadcaster). Checked 4 October 2026. Published August 2022; Australia–Portugal agreement on pensions and benefits.