Migrants: Taxes and Social Security in Portugal

The registry as a taxpayer, which includes the allocation of the Tax Identification Number (NIF) is mandatory in Portugal to comply with tax obligations. 

The NIF, similarly to the civil identification document (Citizen Card or Identity Document) is a personal identification number and is necessary to have a job, to celebrate contracts or to open bank accounts. 

Find out how to request a Tax Identification Number and which are the necessary documents.

From the moment you obtain income in Portugal, you are covered by a set of tax obligations. 

The obligations of foreigners living in Portugal are similar to those of Portuguese citizens. Find out which are the most common actions and obligations:

• annually, you will have to submit the income tax statement model 3 (IRS)  
• if you start a professional activity as a self-employed person or if you create a company, you are obliged to pay some taxes such as Corporate Income Tax (IRC), Value Added Tax (VAT), among others
• the purchase of a property for housing purposes, which implies the payment of the Municipal Property Transfer Tax (IMT) and Stamp Duty (IS) at the moment of its purchase; the Municipal Property Tax (IMI) is paid annually.
• if you own a vehicle you have to pay the Single Circulation Tax (IUC) annually.

You can find more information in the information leaflets available on the Portal das Finanças (Finances Portal). After the NIF has been assigned, you should request the access password to the Portal das Finanças (Finances Portal) through the Register option, to consult your tax situation.

The Personal Income Tax (IRS) is levied on annual income obtained in Portugal. The IRS is calculated according to the economic situation of the taxpayer and his/her household.

There is a specific tax regime (IRS) for foreign citizens who obtain income in Portugal and who are non-habitual residents (individuals living in Portugal, without tax obligations in the previous five years). 

If this is your situation, you earn the right to be taxed under IRS as a non-habitual resident, for a period of 10 consecutive years, starting from the year, inclusive, of your registration as resident in national territory.

You should, therefore, request your registration with Finances as a non-habitual resident when you register as a resident in Portugal or, subsequently, up to and including 31 March of the year following the year in which you become resident in Portugal. 

Access all the information about the Non Habitual Resident Tax Regime (pdf), including how income earned abroad is taxed.

If you want to work in Portugal, either as an employee or as an independent professional, you must have a Social Security Identification Number (NISS). If you don't have it yet, you can request it through the NISS on the spot service.

The NISS is the number that identifies people before Social Security, allowing access to a set of rights and duties, namely support in cases of illness, unemployment, parental leave, among others.

Social Security is the system that ensures people's basic rights and equal opportunities, through access to a set of benefits and support in terms of illness, parenthood, unemployment, disability, among others. The system is valid both for Portuguese and foreign citizens who make contributions in Portugal.

Both employees and those self-employed pay contributions to Social Security.

If you are employed, the amount for social security is automatically deducted from your salary by your employer.

If you are self-employed, you are responsible for payment if you are not exempt from this obligation. Find out the conditions for exemption from the payment of Social Security contributions and how to request the exemption.

Employees

The employer is responsible for registering employees with Social Security. They must therefore provide information concerning their address and NISS, as well as their civil identification documents and Tax Identification Number (NIF).

If you work as an employee, your contribution to Social Security is equivalent to 11% of your gross salary (total income without deductions). This amount is automatically deducted by the employer.

Find out more about social security deductions if you are employed.

Self-employed

If you are self-employed, you are responsible for paying the contributions and you must do so between the 10th and 20th of the month following the month to which the contributions relate.

Contributions can be paid:

• in Multibanco
• at the Treasury Office of Social Security
• via Homebanking
• by Direct Debit, at the Segurança Social Direta (Social Security Direct) service.

There are self-employed workers who are exempt from paying Social Security contributions. Find out about these conditions and how to request exemption.

Learn more about your Social Security obligations if you are self-employed.