Portugal

Expats in Portugal face higher tax burden this year

Expats in Portugal face paying more tax this year as the government is aiming to increase tax revenues by 30% in 2013 as part of its national austerity programme. The new charges mean that Portugal’s tax burden is now higher than in the UK, France, Spain, Germany and Italy. Expats resident in Portugal are required to pay tax on their worldwide income.

The rise is quite considerable. In 2012 the tax on income up to €4,898 was 11.5%, from €4,898 to €7,410 it was 14%, 24.5% from €7410 to €18,375, from €18,375 to €42,259 it was 35.5%, 38% from €42,259 to €61,244, from €66,045 to €153,300 it was 43.5% and over €153,300 it was 46.5%. For 2013 the rate is 14.5% on income up to €7,000, 28.5% for €7,000 to €20,000, 37% for €40,000 to €80,000 and 48% for income over €80,000. In 2012 a 2.5% surtax was charged on income over €153,300. This year it is charged on income over €80,000, and increases to 5% for income over €250,000. [click to continue…]

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