Non-residents pay 25% flat rate on Portuguese income source

Portugal taxes non-residents at a flat 25% on Portuguese-source employment, self-employment and pension income. Residents, by contrast, pay progressive rates from 12.5% to 48% on worldwide income, plus a solidarity surcharge of 2.5% to 5% on income above €80,000 ($86,440).

Other income is taxed at fixed rates too. Rental income can fall at 25% to 28%, while dividends, interest and capital gains are generally taxed at 28%.

Who gets caught by the rules

Tax residency starts at 183 days in Portugal during a calendar year or when someone keeps a permanent home there. Short-stay visitors under that line usually stay outside Portuguese income tax unless they earn Portuguese-source income.

That matters for digital nomads and remote workers. Those who remain non-residents may avoid Portuguese tax on foreign wages, but staying long enough to become residents can trigger worldwide taxation unless they qualify for a preferential regime.

What to file and when

Non-residents with Portuguese-source income must file an annual IRS return through the Portuguese Tax Authority’s portal. The filing window for 2025 income runs from April 1 to June 30, 2026.

Non-EU and non-EEA non-residents who owe tax in Portugal must also appoint a fiscal representative. Non-residents have limited deductions, though some property-related expenses can offset rental income. Read our full Portugal guide for the complete picture and check our visa updates for more country changes.