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Social Security Benefits are taxed at the same rate as your salary but not higher than 52%. This amount is determined by multiplying a percentage of the total Social Security tax paid by your income bracket. The Portuguese government also provides a rebate program to return money to the expat.

TAX GUIDE US CITIZENS LIVING IN PORTUGAL

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Portugal has a high corporate tax rate of 31.5 percent, including multiple surtaxes (the OECD average is 23.6 percent). The VAT at a rate of 23 percent applies to just half of the potential consumption tax base. Portugal has a high top tax rate on personal income of 53 percent, including top-up taxes.

Portugal Tax Rates & Rankings

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