Individual Income Tax (“IRS”)
The Basics
Who is liable to pay individual income tax “IRS”?
All individuals, residents or non-residents, who have obtained any income from Portugal are liable to pay individual income tax (“IRS”). In addition, all individuals resident in Portugal, regardless of their nationality, are also liable to pay IRS for their worldwide income. By rule, all individuals are considered resident if they are physically present in Portugal for more than 183 days in a calendar year.
As you can see, in the table below, the income liable to IRS is divided into six different categories:
| Categories |
Type of Income |
Examples of income |
| A |
From Employment |
Salary, bonus, allowances |
| B |
From Self - Employment |
All income related to the business activity |
| E |
From Capital |
Interests, dividends, gains from life insurance. |
| F |
Rental Income |
Rents, sub-letting or rents of housing an aerial for mobile telephones. |
| G |
Capital Gains |
Income from sale of a property, shares |
| H |
Pension Income |
Pensions |
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