Since 1937, our principled research, insightful analysis, and engaged experts have informed smarter tax policy at the federal, state, and global levels. (2) Taxed autonomously at a rate of 28% if paid by non-resident entities and not subject to withholding tax. There has been one change to this tax in 2019 in the form of an additional rate of 1.5% for properties valued in excess of €2 million. The regime will apply to individuals who become Portuguese tax residents under Portuguese domestic law in a certain year and have not qualified as tax residents in Portugal in any of the previous five years. The rate has gradually come down in the last decade, leaving it slightly below the EU average of 21.51%. Get all the latest global tax news and analysis sent directly to your inbox. Direct government funding of business R&D and tax incentives for R&D, Portugal, 2000-17 As a percentage of GDP, 2010 prices (right-hand scale) 0.00 0.10 0.20 0.30 0.40 0.50 0.60 % Direct government funding Tax incentive support Subnational tax incentive support Total 2006 (excl. A future map will show how European countries rank on measures of their corporate tax base. Corporate tax in Portugal Corporate tax rarely applies to self-employed workers and freelancers in Portugal. 75%. Taxation of company car in Category A Whilst Portugal is required to implement the VAT rules of the European Union, it still sets the level of its own VAT rate. Under the regime’s rules, employment and self-employment income from a Portuguese source, derived from “high value-added activities of a scientific, artistic or technical nature” (included in a list of activities published by the Portuguese Government) earned by non-habitual residents in Portugal will be taxed at a flat rate of 20%. Albania 15% 15% 15% 15% 15% Algeria 23% 26% 26% 26% 19%/26% Andorra 10% 10% 10% 10% 10% The Tax Foundation is the nation’s leading independent tax policy nonprofit. € 4,104 or, when higher, the total amount of mandatory social security contributions (in the part not exceeding 10% of the gross income received); personnel expenses, wages or salaries communicated to the Portuguese tax authorities; property rentals communicated through the issue of an electronic receipt or a specific statement, whose invoices and other documents are communicated to the Portuguese tax authorities (if only partially assigned to the professional activity, it is considered only 25% of the total amount); 1.5% of the tax registration value of the properties assigned to the business or professional activity or 4% of the tax registration value assigned to hotel activities or local accommodation (if only partially assigned to the professional activity, it is considered only 25% of the total amount); other expenses with the acquisition of goods and services related to the activity, dully communicated to Portuguese tax authorities, namely expenses with current consumption materials, electricity, water, transports and communications, rents, litigation, insurance, leasing rents, mandatory fees paid to professional associations and other organizations representing professional activities to which the taxpayer belongs, travels and stays of the taxpayer and his employees (if only partially assigned to the activity, it is considered only 25% of the total amount); Imports and intra-Community acquisitions of goods and services related to the activity. 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