Portugal generally treats expatriates as Portuguese tax residents if they spend more than 183 days in the country during a relevant 12-month period, or if they have a home in Portugal that indicates an intention to maintain it as their habitual residence.

Other criteria can also apply. If someone is treated as resident under both Portuguese and another country’s domestic rules, the relevant double taxation agreement may determine their residence for treaty purposes.

Portuguese tax residents are typically subject to tax on their worldwide income, while non-residents are usually taxed only on Portuguese-source income.

Many expats who are Portuguese tax residents need to submit an annual Portuguese income tax return, known as a Modelo 3, declaring their applicable Portuguese and overseas income. Statutory exemptions from filing can apply in some circumstances.

Non-residents may also need to file a return if they receive taxable Portuguese-source income. Filing requirements may depend on each person’s residency status, circumstances, and the types of income they receive.

Portugal’s former NHR regime is closed to people newly relocating under its previous general rules. Existing beneficiaries may continue to use it for the remainder of their entitlement, while limited transitional provisions may still apply to people who became resident by the relevant earlier deadline.

A newer regime, the Tax Incentive for Scientific Research and Innovation (IFICI), is available to qualifying new Portuguese tax residents who work in specific professions and activities. 

The eligibility requirements are considerably narrower than under the former NHR scheme, so anyone relocating to Portugal and expecting to qualify should check how those rules may apply to their circumstances.

The treatment depends on the type of pension and the individual’s tax residence. Under the UK–Portugal Double Taxation Convention that took effect in 2026, pensions and similar payments to a resident of one country are generally taxable only in that country.

A separate rule applies to certain pensions for government service, and nationality can affect which country may tax them. The terms of each pension and the individual’s circumstances should therefore be checked before a move or before benefits are drawn.

Yes, Portuguese tax residents generally need to declare foreign dividends and interest as part of their worldwide income.

The Portuguese tax payable will depend on the type and source of the income, the applicable Portuguese tax rules, and any relief available under any relevant double taxation agreement.

Portuguese tax residents typically need to declare rental income from overseas property in Portugal.

Tax obligations may also arise in the country where the property is located. If a relevant double taxation agreement is in place, relief may be available to reduce or eliminate double taxation, subject to the relevant rules and limitations.

No, there is no general Portuguese wealth tax that covers all assets.

The Additional Municipal Property Tax, known as AIMI, may apply to higher-value Portuguese property holdings. AIMI obligations may depend on factors like the property’s taxable value, ownership structure and available allowances.

How a capital gain is taxed in Portugal depends on factors including tax residence, the type and location of the asset, the nature and amount of the gain, and any applicable relief.

Portuguese tax residents may also need to declare gains arising from overseas assets. Double taxation agreements and specific exemptions or reliefs may affect the individual’s final tax position.

Purchasing a property in Portugal may involve several tax obligations, including Property Transfer Tax (IMT) and stamp duty. This can vary depending on the property value, location and intended use, such as a permanent home, a holiday property or an investment asset.

Property owners may also become liable for annual Municipal Property Tax (IMI). AIMI potentially applies to higher-value Portuguese property holdings.

Yes. Owning property in Portugal does not, by itself, make you a Portuguese tax resident. However, a home that is available to occupy as your habitual residence can be relevant to the residence test even if you spend fewer than 184 days in Portugal.

However, non-resident property owners may still have Portuguese tax obligations, including property taxes and tax on Portuguese rental income or gains when they sell a property. Owning Portuguese property can therefore create local filing and reporting requirements for non-resident owners.

Portugal currently offers the IFICI incentive for qualifying new residents working in specified professions and activities.

Eligibility depends on several criteria, including the individual’s previous Portuguese tax residency, the nature of their employment or professional activity, and the other conditions of the regime.

Specialist advice should be obtained before assuming that the regime will apply.

Yes. A Portuguese tax identification number, known as a NIF, is required when an individual is subject to Portuguese tax obligations or needs to exercise their rights before the Portuguese Tax and Customs Authority.  

A NIF is also commonly required for activities such as filing tax returns, opening bank accounts, entering contracts and dealing with employment or Social Security matters.

Portugal no longer offers the previous NHR regime to most new retirees, so those planning for retirement should not assume that moving to Portugal will automatically result in a reduced tax rate on pension income.

Some existing or transitional NHR beneficiaries may continue to receive benefits under the previous rules. 

New retirees should review how their pensions, investments and other income will be taxed under the Portuguese system, whether their tax residency is likely to change, and any applicable double taxation agreements that may influence their tax position.

Portuguese tax residents generally need to report relevant income and gains from savings and investments held in Portugal or overseas. Merely holding an investment does not necessarily mean its value is taxable income, although separate reporting requirements can apply to overseas accounts.

Interest, dividends, and investment gains may be treated differently. The tax position might also depend on the investment structure, jurisdiction and applicable double taxation agreements. 

Reviewing existing investments before becoming a Portuguese tax resident can help identify structures that may no longer be suitable or provide taxation-related benefits.

The fact that an ISA or Premium Bond prize is tax-free in the UK does not automatically make it tax-free for a Portuguese tax resident. Income and gains arising within an ISA, and prizes from Premium Bonds, need to be assessed separately under Portuguese tax rules.

It is sensible to review these holdings before moving to Portugal and obtain specialist tax advice on their Portuguese treatment and any reporting obligations.

Portuguese tax residents who fail to declare relevant overseas income may face additional Portuguese tax liabilities, interest charges or penalties.

Reporting overseas income is different from reporting the value of every overseas asset. Portuguese residents must also identify foreign deposit and securities accounts in Annex J of their tax return, even if those accounts generated no income.

Portugal also participates in international information-sharing arrangements. This means that information about financial accounts held in other jurisdictions may be reported to the Portuguese tax authorities.

Portugal does not impose a traditional inheritance tax in the same way as some other countries. However, Portuguese stamp duty may apply to certain gifts and inheritances.

Portuguese stamp duty can apply to certain gifts and inheritances involving assets in Portugal. Spouses or recognised de facto partners, parents, children and other direct ascendants or descendants may be exempt from the duty on a gratuitous transfer, but reporting may still be required. Other stamp duty can also arise in some cases, including on gifted Portuguese property.

Cross-border estates can be more complex when UK inheritance tax and Portuguese succession or stamp duty rules must both be considered, and professional guidance may be necessary.