Portuguese tax terms, in plain English.

Portugal's regulated short-term tourist rental scheme (Airbnb-equivalent). Activity code falls under hospitality (35% taxable coefficient in simplified regime, much friendlier than 75% for professional services). Registration required at municipal level; specific tax treatments apply.

The option to aggregate income from different categories (e.g., foreign dividends taxed at flat 28%) into your standard IRS bracket calculation, where it may be taxed lower if you're in a lower bracket. Filed on Modelo 3 as a checkbox per category.

See also: Foreign Income Anexo J · Employee And Freelancer

Annual property tax on real estate. Rate set per municipality, typically 0.3%-0.45% of the property's tax-assessed value (VPT - Valor Patrimonial Tributário). Paid in 1, 2, or 3 installments depending on total amount.

Property purchase tax paid once at closing. Progressive: 0% under ~€97k, 2-8% on higher bands. Plus 0.8% Imposto de Selo (stamp tax). For a €350k primary residence, total IMT + Selo is approximately €17,800 one-time.

Portugal's personal income tax. Note this is NOT the US Internal Revenue Service - the abbreviation is coincidental. Portuguese IRS uses 9 progressive brackets from 12.5% to 48% in 2026, applied to rendimento coletável (taxable income after specific deductions).

See also: Portugal Tax Brackets 2026

Annual vehicle circulation tax. Due in the owner's birth month (not a fixed calendar date). Amount depends on engine displacement, CO₂ emissions, fuel type, and vehicle age. Typically €30-€500/year for a passenger car.

Portugal's value-added tax (VAT). Three rates: 23% standard, 13% intermediate, 6% reduced. Freelancers below €15,000 annual revenue can opt for IVA exemption under Article 53 CIVA.

See also: Issue Recibo Verde · Vat Receipts

Annual income floor below which no IRS is owed regardless of bracket math. €12,880 in 2026 (=920 × 14, indexed to PT minimum wage). If your taxable income is below this, your IRS bill is zero.

See also: Portugal Tax Brackets 2026

Portuguese tax identification number, 9 digits. Required for almost everything: opening a bank account, signing a rental contract, buying property, filing tax. Both residents and non-residents can have one.

See also: Get Nif And Portal Access

Bracket-specific subtraction used in the official IRS formula. Lets you compute IRS as (income × top-bracket-rate) - parcela-a-abater instead of computing each bracket layer separately. Mathematical shortcut, same result.

See also: Portugal Tax Brackets 2026

The income amount that IRS brackets are actually applied to. NOT the same as gross income - it's gross minus specific deductions (€4,587 for Cat A employees in 2026; 25% expense presumption for simplified-regime freelancers). The 'rendimento coletável' is what determines which IRS bracket you fall into.

See also: Portugal Tax Brackets 2026

Portuguese tax incentive program for corporate R&D investment. Companies certified under SIFIDE can claim R&D tax credits. Relevant to IFICI eligibility: working for a SIFIDE-certified entity strengthens the IFICI claim under the R&D route.

See also: Check Ifici

Extra income tax on high earners: +2.5% on taxable income above €80,000, and +5% on the portion above €250,000. Applies on top of standard IRS brackets, calculated on rendimento coletável (not gross). 2026 thresholds unchanged from prior years.

See also: Portugal Tax Brackets 2026

Status that determines whether Portugal taxes your worldwide income or only PT-source. Triggered by 183+ days of physical presence in PT in any 12-month period, OR by having a permanent home in PT (e.g., long-term rental). Once tax-resident, you owe IRS on income from all countries (with foreign-tax credits via tax treaties).

See also: D7 Vs D8 Visa Tax · Foreign Income Anexo J

The tax-assessed value of a property, used as the base for IMI (annual property tax) and various deductions. NOT the market value - VPT is typically lower. Reviewable every 3 years by request.

Joint-filing mechanism for married couples (and registered união de facto) under CIRS art. 69. Household income is divided by 2, IRS is computed on each half, then multiplied by 2. Pushes income out of higher progressive brackets - saves €2,000-€11,000/year for sole-earner couples.

See also: Family Quotient

The 2024+ replacement for NHR. Same headline rate (20% flat on qualifying PT income for 10 years) but narrower eligible activities (scientific research, qualified innovation, certain ICT roles, IAPMEI-certified startups). Defined in Article 58.º-A of the Tax Benefits Code (EBF). Requires annual re-validation per Portaria 352/2024.

See also: Nhr Vs Ifici Vs Standard · Apply For Ifici

Legacy special tax regime granting 10 years of 20% flat IRS on PT-source qualifying activities and exemption for most foreign-source income. Closed to new applicants since 2024-01-01. Existing holders keep their 10-year window. Replaced by IFICI for new arrivals.

See also: Nhr Vs Ifici Vs Standard · Hvaa List

Default IRS treatment for residents without NHR or IFICI: 9 progressive brackets from 12.5% to 48%, plus solidarity surcharge above €80k. Allows full deductions à coleta and family quotient. What most new residents in 2026 actually use.

See also: Portugal Tax Brackets 2026 · Nhr Vs Ifici Vs Standard

Percentage of revenue that's presumed-taxable under simplified regime. 0.75 for professional services (the default for most freelancers), 0.35 for hospitality (restaurants, Alojamento Local), 0.15 for commerce/industry, 0.10 for operating subsidies. In year 1 of freelance activity, the coefficient is halved (so 0.75 becomes 0.375).

See also: Recibos Verdes First Year 2026 · Cae Finder

Closing your self-employment activity at Portal das Finanças when you stop freelancing. Must be done within 30 days of stopping. Closing stops SS contribution charges and avoids zero-income quarterly filings indefinitely. There's a 5-year reset clock if you later re-open.

See also: Close Activity

The alternative to simplified regime: full bookkeeping with a certified contabilista. Required above €200,000 annual revenue, optional below. Records actual expenses rather than the presumed 25%. Better for high-revenue freelancers with documented real expenses; more paperwork.

See also: Recibos Verdes First Year 2026

Registration as a self-employed worker at Portal das Finanças. Single online form triggers Cat B registration, automatic Segurança Social registration, and (for first-time freelancers) the 12-month SS exemption and 50% IRS reduction in year 1.

See also: Open Activity Financas · Recibos Verdes First Year 2026

Portugal's electronic-invoice system for self-employed workers. Originally green paper receipt books, now fully digital at Portal das Finanças. Every freelancer invoices clients via recibos verdes; the data automatically feeds Anexo B of Modelo 3 at IRS time.

See also: Issue Recibo Verde · Recibos Verdes First Year 2026

Tax withheld upfront by a client on freelance invoices. Standard rate: 25% for most professional services on the gross value. Acts as IRS prepayment - reconciled at annual settlement. Below €15,615/year freelance income, you can opt out of retention by marking the recibo verde appropriately.

See also: Issue Recibo Verde

Tax regime for freelancers earning under €200,000/year. Presumes a fixed percentage of revenue as expenses (75% for professional services, 35% for hospitality, 15% for commerce) without requiring expense tracking - but you must still invoice-justify 15% of revenue on Portal e-Fatura.

See also: Recibos Verdes First Year 2026 · Cat B Deductible Expenses

Income from salaried employment, including base salary, bonuses, in-kind benefits, and the holiday/Christmas extra months (subsídios). Declared on Anexo A of Modelo 3. Employees get an automatic €4,587 specific deduction in 2026 before brackets are applied.

See also: Portugal Net Salary 2026

Income from professional services, self-employment, sole-proprietorship - anything invoiced via recibos verdes. Declared on Anexo B of Modelo 3. Under simplified regime, only a percentage of revenue is taxable (the activity coefficient).

See also: Recibos Verdes First Year 2026 · Cat B Deductible Expenses

Income from capital: bank interest, dividends, royalties, gains from financial instruments. Default treatment: flat 28% withholding. Can opt for englobamento (aggregation into standard brackets) if your overall income is in a lower bracket.

See also: Foreign Income Anexo J

Income from renting out property. Default treatment: 28% flat (or 25% for long-term contracts of 2+ years; lower rates for 5+, 10+, 20+ year contracts). Can opt for englobamento at standard brackets if more favorable. Reported on Anexo F.

Gains from selling capital assets (shares, crypto, real estate). 28% flat on financial gains; real estate has special rules (50% of gain taxable for primary residences sold after 2+ years of ownership, full reinvestment exemption available).

Pension income (retirement, disability, survivor pensions). Standard rate: progressive brackets like Cat A. NHR holders pre-2024-01-01 had a special 10% flat rate on foreign pensions. New arrivals after 2024 don't have this option in PT (Greece's Article 5A at 7% flat is now the best EU alternative).

See also: Portugal Vs Greece Tax Expats · Foreign Income Anexo J

Annex of Modelo 3 used to declare Category A (employment) income. Usually auto-filled by AT from your employer's DMR filings - you just verify and submit.

Annex of Modelo 3 used to declare Category B (self-employment) income. Pre-filled with data from your recibos verdes and Portal e-Fatura expenses. You confirm income, expenses, activity coefficient, and any first-year-of-activity reductions.

See also: File Irs Modelo 3

Annex of Modelo 3 used to declare foreign-source income. Required for any PT tax resident with income from outside Portugal: foreign bank interest, dividends, rental income, foreign salary, US 401k distributions, etc. Includes the foreign-tax credit claim for already-taxed-abroad income.

See also: Foreign Income Anexo J

Annex of Modelo 3 used by NHR / IFICI holders to declare income that qualifies for the 20% flat rate. References the HVAA / CPP code for the activity.

See also: Apply For Ifici

Pre-filled IRS declaration AT generates automatically for taxpayers with simple income (single employer Cat A, no other income, standard deductions). You accept it as-is in one click. Not available if you have Cat B / foreign income / property / non-standard deductions - use the full Modelo 3 instead.

See also: File Irs Modelo 3

PDF proving you owe nothing to AT or Segurança Social. Required for visa renewals, signing rental contracts, public-sector tenders, and bank loans. Two separate documents (one from AT, one from SS), both free and instant via the respective portals. Valid 3 months from issue.

See also: Request Certidao Non Debt

The annual IRS declaration form. Filed by every PT tax resident between April 1 and June 30 of each year, declaring the previous year's income. Composed of a main form plus various Anexos (A for employment, B for self-employment, J for foreign income, etc.).

See also: File Irs Modelo 3

Deductions applied AFTER brackets - they reduce the IRS owed directly, not the taxable income. Categories: health, education, housing, general family expenses, VAT receipts, per-dependent. Subject to a global cap that decreases as income rises (€2,400 cap at €15k income, €1,000 cap at €86k+).

See also: Irs Deductions 2026

Asking for an invoice with your NIF on service receipts (restaurants, gyms, transport, vehicle repairs) makes a percentage of the VAT deductible from your IRS. Combined €250/year cap across categories. Different rates per category: 100% of VAT for public transport, 30% for gyms, 15% for restaurants.

See also: Vat Receipts

Portugal's free mobile-based digital signature. Once set up at any Loja de Cidadão (10 minutes, free), lets you authenticate to Portal das Finanças, SS Direta, AIMA, and most government portals via phone number + PIN. Replaces the slower NIF + senha flow.

See also: Setup Chave Movel Digital

The Portuguese tax authority's online portal. Where you file Modelo 3, issue recibos verdes, update fiscal address, request certidões, pay tax bills, and almost every other AT interaction. Accessed via NIF + senha or Chave Móvel Digital.

See also: Get Nif And Portal Access

Government portal where every fatura issued with a NIF gets automatically logged. Your IRS deductions are calculated from these receipts. You can reclassify mis-categorized receipts within 30 days of issue, with a final lock on February 25 each year for the prior tax year.

See also: Categorize E Fatura Receipts

Segurança Social's online portal. Where you file quarterly income declarations, adjust your contribution base, pay SS contributions, and request the certidão de situação contributiva. Same authentication options as Portal das Finanças.

See also: Quarterly Ss Declaration

The password for Portal das Finanças. Issued by AT physically by mail to your registered fiscal address (no email or SMS option). Takes ~5 working days to arrive. Required for full portal access unless you have CMD or a Cartão de Cidadão with chip reader.

Portuguese immigration agency, successor to SEF (closed 2023). Handles residency permits, visa renewals, family reunification, and citizenship applications. Tax-wise relevant because residency permit renewals require certidões de não dívida from both AT and SS.

Portugal's tax and customs authority. Runs Portal das Finanças, processes IRS declarations, collects all major taxes (IRS, IVA, IMI, IMT, IUC), handles audits and disputes. Headed by the Secretary of State for Tax Affairs.

Portuguese Social Security. Separate institution from AT. Handles employee and freelancer SS contributions, pensions, unemployment benefits, parental leave, sickness benefits. Employee contribution: 11% of gross. Freelancer: 21.4% on 70% of declared income.

See also: Quarterly Ss Declaration

The activity-code list that Portuguese freelancers actually pick from when registering as self-employed at AT. 4-digit codes (1000 for architects/engineers, 7000 for doctors/dentists, 1519 catch-all for other service providers, etc.). Determines the simplified-regime coefficient.

See also: Cae Finder · Open Activity Financas

Portugal's economic activity classification system, 5-digit codes. Used by companies (sociedades) to register their main business activity. NOT the same list freelancers pick from when opening activity - freelancers use Article 151 codes. CAE codes 58-63 (information & communication) are commonly accepted for IFICI eligibility.

See also: Cae Finder

The Portuguese Income Tax Code - the foundational law for IRS. Most-cited articles: art. 16 (tax residency), art. 31 (simplified regime + year-1 reduction), art. 53 (IVA exemption threshold), art. 69 (family quotient), art. 78 (deductions à coleta with global cap), art. 151 (freelancer activity codes).

Portuguese profession classification system. Used by Portaria 230/2019 to define which activities qualify for NHR / IFICI 20% flat rate (the HVAA list). CPP codes describe what you DO, regardless of employer - so a software engineer at a shipping company has the same CPP as one at a tech startup.

See also: Hvaa List · Check Ifici

Portugal's social security contribution code. Most-cited article: CRC art. 145, which grants the 12-month SS exemption for first-time freelancers.

See also: Recibos Verdes First Year 2026

Portugal's Tax Benefits Statute, where IFICI is defined (Article 58.º-A). Also contains NHR (Article 16 EBF, now closed) and various sector-specific benefits.

List of professions eligible for NHR / IFICI 20% flat rate, defined in Portaria 230/2019. ~17 broad categories (architects, engineers, doctors, ICT specialists, scientific research, etc.). IFICI uses a NARROWER subset of this list.

See also: Hvaa List · Check Ifici

Portuguese regulation defining the HVAA list (high value-added activities) eligible for NHR and IFICI 20% flat tax rate. Uses CPP codes (Classificação Portuguesa das Profissões) rather than CAE codes.

See also: Hvaa List

Portuguese regulation defining the IFICI inscription procedure: application deadline (15 January of the year after becoming PT tax resident), supporting documents, and annual re-validation. Important: IFICI is NOT a one-time registration like NHR was.

See also: Apply For Ifici