How is a non-resident taxed on salary or freelance income from Portugal?

Checked on 2026-10-25

Portugal's income tax code taxes non-residents' Portuguese salary, self-employed income and pensions by a final 25% withholding on gross income. Monthly pay from a single payer is not withheld up to the guaranteed minimum monthly wage. Residents of another EU or EEA state can ask for a refund down to resident rates.

Key facts

What	The law says	Source
Rate	25%, withheld at source as the final tax	Código do IRS, art. 71.4
Which income	Employment income; all business and professional income, even from one-off acts; pensions; some capital income and capital gains	Código do IRS, art. 71.4(a)–(d)
Base	Gross income; pensions get the deduction in art. 53	Código do IRS, art. 71.8
Low monthly pay from one payer	No withholding up to the guaranteed minimum monthly wage; 25% on the excess	Código do IRS, art. 71.5–71.6
Residents of another EU/EEA state	Can request a refund of tax above what the resident rate table would give	Código do IRS, art. 71.11–71.12
Refund deadline	Two years from the end of the calendar year after the one in which the income arose	Código do IRS, art. 71.13

The 25% rate

For people who are not tax resident in Portugal, the law sets a final withholding of 25% on these Portuguese-source incomes (art. 71.4):

employment income and all business and professional income, even from isolated acts;
capital income listed in art. 5.2(m) and (n);
pensions;
the increases in wealth in art. 9.1(b) and (c).

The rate applies to gross income, except pensions, which benefit from the deduction in article 53 (art. 71.8).

Low monthly pay

When monthly work income comes from a single payer, nothing is withheld up to the guaranteed minimum monthly wage, and 25% applies to the part above it (art. 71.5). To use this, you give the payer a written statement that you have no income of the same type from other Portuguese payers (art. 71.6). For overtime, the same limit applies separately to income from the first 100 hours (art. 71.7).

Refund for EU and EEA residents

If you live in another EU state, or an EEA state with equivalent tax cooperation, and the income is of a type listed in art. 18.1(a)–(d), (f), (m) or (o), you can ask for back the part of the 25% that exceeds what you would have paid under the general rate table in art. 68.1, counting all your income, including income from outside Portugal, on the same terms as residents (art. 71.11). Proven expenses directly linked to the Portuguese income are deductible; for employment income, the deduction in art. 25 applies (art. 71.12).

You file the request with the tax authority within two years from the end of the calendar year after the one in which the income arose. The refund is due by the end of the third month after you provide the documents needed; late payment earns compensatory interest (art. 71.13). The tax authority tells your country of residence about the request and the amount (art. 71.16).

A 35% rate applies instead in the cases in art. 71.17, for example income paid into accounts held for unidentified third parties, unless the beneficial owner is identified.
Whether you count as a non-resident is covered on the page on tax residency.

Sources

Código do IRS, art. 71 (consolidated text published by the Autoridade Tributária e Aduaneira) checked 2026-10-25

Change history

2026-10-25: Page created

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