Portugal applies a progressive personal income tax system (IRS) for residents, with rates ranging from 13.25% to 48% depending on annual income. Additional solidarity surcharges may apply to high-income earners. Non-residents are typically taxed at a flat 25% rate on Portuguese-source income.

Portugal levies corporate income tax (IRC) at a standard rate of 21% on company profits. Small and medium-sized enterprises benefit from a reduced 17% rate on the first €50,000 of taxable income. Additional municipal and state surcharges may increase the effective rate to around 31.5%.

Portugal applies a value-added tax (VAT), known locally as IVA, on most goods and services. The standard VAT rate is 23%, with reduced rates of 13% and 6% applied to specific goods such as food, books, and medicines. Lower VAT rates apply in the autonomous regions of Madeira and the Azores.

The Municipal Property Tax (IMI) is an annual tax applied to property owners in Portugal. Rates generally range from 0.3% to 0.45% of the property’s taxable value for urban properties and around 0.8% for rural properties. Rates are determined by local municipalities.

Portugal requires mandatory social security contributions to fund pensions, healthcare, and social benefits. Employees typically contribute 11% of their gross salary, while employers contribute 23.75%. Self-employed individuals usually pay around 21.4% based on declared income.

The Additional Municipal Property Tax (AIMI) is a surcharge applied to high-value real estate holdings in Portugal. It applies to property values exceeding €600,000, with rates ranging from 0.7% to 1.5%. The tax targets high-value residential property assets rather than overall global wealth.