Navigating the Portuguese Tax System as an Expat

Moving to Portugal and unsure about how the local tax system works, especially if you’re self-employed?

Here’s a quick overview that might help:

Portugal operates under a simplified tax regime for self-employed individuals and small businesses, which calculates taxable income based on specific coefficients depending on your type of activity. For example:

• 15% for sales of goods, cryptocurrency transactions, and services in the hospitality sector.
• 75% for certain professional activities (e.g., doctors, lawyers, architects).
• 35% for other service activities not listed elsewhere.
• 95% for income from mining crypto assets, royalties, and capital income.

If you’re moving from a country like Canada or the UK, understanding these coefficients can be crucial in optimizing your tax situation. Some deductions and allowances may apply, such as social security contributions and certain expenses related to your activity.