Portugal › Municipalities › Santa Cruz

Santa Cruz — IRS Municipal Rate 2026

Santa Cruz gives residents a 1.0% credit against their IRS — one of the available municipal credits in Portugal.

Resident credit

1.0%

of IRS base

Retained by municipality

4.0%

of IRS base

Legal ceiling

5.0%

Lei 73/2013

How municipal IRS participation works

Under Lei 73/2013, each of Portugal's municipalities votes annually on how much of the 5% IRS participation ceiling to retain. The share they do not retain is returned to residents as a credit against their IRS bill. A municipality retaining 0% gives residents the maximum 5% credit; one retaining 5% gives residents nothing.

The credit is applied after calculating your IRS liability using the standard brackets and deductions. It is based on your IRS base (tax before credits and surcharges) — not directly on your gross income.

Estimated credit by income level

Approximate values based on gross income and 2026 brackets, before personal deductions. Actual credit depends on your full tax return.

Why municipality matters for your IRS

Your tax residence address on 31 December determines which municipality's rate applies to your entire year's IRS. AT uses the address registered in your Modelo 3 (annual IRS return). To benefit from a lower-retained-rate municipality, you must be officially registered there as your tax residence — not simply own property or occasionally stay there.

The credit is automatically calculated by AT when you file Modelo 3 — there is no separate application required. Simply ensure your registered address is correct.