Complete guide to Portuguese income tax (IRS), IVA, social security, NHR scheme, best tax software, and top Portuguese accountants
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Understanding Portugal's progressive income tax (IRS), IVA, and social security for 2025
Portugal uses a progressive tax system (Imposto sobre o Rendimento das Pessoas Singulares) administered by Autoridade Tributária e Aduaneira:
Additional municipal surcharges may apply depending on location
Portuguese social security contributions fund healthcare, unemployment, and pensions:
Contributions cover healthcare through the SNS (national health service), unemployment insurance, and state pensions. Self-employed rates vary based on declared income.
Portugal's consumption tax system with multiple rates:
IVA registration required when turnover exceeds specific thresholds. Lower rates apply in Madeira and Azores (22%, 12%, 5% respectively).
Special 10-year tax regime for new residents in Portugal:
Available to those not tax resident in Portugal in the previous 5 years. Ideal for retirees, remote workers, and professionals.
Important deadlines for Portuguese taxpayers:
Annual tax return (Declaração de IRS) must be filed between April and June for the previous year through Portal das Finanças.
Popular tax deductions for Portuguese taxpayers:
Portugal offers various deductions to reduce taxable income. Most require invoices registered with your NIF (tax number).
Best tax preparation software for Portuguese individuals and businesses
Price: Free
Best for: Individual tax returns (Declaração de IRS)
Official Portuguese tax administration online portal. Mandatory for all taxpayers. Provides pre-filled returns with data from employers and banks.
Key Features: Pre-filled returns, automatic calculations, direct submission to Autoridade Tributária, tax payment processing, invoice registration.
Price: €25 - €80
Best for: Self-employed and small businesses
Popular Portuguese accounting and tax software with cloud-based platform. Handles IRS, IVA, and social security obligations.
Key Features: Full accounting, IVA declarations, IRS calculations, invoicing, expense tracking, bank integration.
Price: €30 - €100
Best for: Small businesses and accountants
Professional accounting software adapted for Portuguese market. Comprehensive tax and accounting features for businesses.
Key Features: Accounting suite, tax declarations, payroll processing, multi-company support, compliance automation.
Price: €40 - €120
Best for: Freelancers and digital nomads
Modern Portuguese accounting platform designed for freelancers and remote workers. English language support available.
Key Features: English interface, NHR support, foreign income handling, quarterly IVA, invoicing, expense management.
Price: €50 - €150/month
Best for: Growing businesses and SMEs
Leading Portuguese business management software with comprehensive accounting and tax features for larger operations.
Key Features: Enterprise accounting, tax automation, reporting suite, inventory management, CRM integration, multi-currency.
Leading tax professionals for Portuguese tax compliance and planning
Specialization: Individual tax returns and family planning
Services: Declaração de IRS, IVA filing, social security registration, tax optimization
Local Portuguese accountants (contabilistas) serving middle-class families throughout Portugal. Typical fees €100-€350 for personal returns, with knowledge of local tax variations.
Specialization: Working professionals and small business owners
Services: Personal tax planning, self-employed support, quarterly IVA, social security management
Community accounting offices across Portuguese cities serving residents and small businesses. Competitive pricing €120-€400, with personalized service and year-round support.
Specialization: Digital tax services for busy professionals
Services: Online tax returns, video consultations, document upload, mobile support
Modern online Portuguese tax advisory services with qualified accountants. Fixed pricing from €90-€300 for individual returns, with digital platforms and remote access.
Specialization: Expatriates and NHR scheme applicants
Services: NHR applications, expat tax returns, non-resident tax, foreign income, English-language support
Bilingual tax consultants specializing in expat taxation, NHR scheme, and non-resident obligations. Fees €180-€600 for expat returns, with expertise in international taxation and NHR optimization.
Specialization: Middle-income families and individual taxpayers
Services: Family tax planning, deduction optimization, property transactions, year-round support
Family-focused Portuguese accountants serving middle-class households. Transparent pricing €110-€380 depending on complexity, with ongoing tax planning and advice throughout the year.
The accountants and firms listed above are provided for informational purposes only. CountryTaxCalc does not endorse any specific service provider and is not affiliated with these firms.
Professional fees, services, and expertise may vary. We recommend consulting multiple providers and verifying their credentials before making any decisions.
Always ensure your chosen tax professional is appropriately registered with Portuguese regulatory bodies and the Autoridade Tributária e Aduaneira.
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