No special regime
- Legal basis
- Standard CIRS
Eligibility
- All Portuguese tax residents by default
Standard Portuguese IRS
Without a special regime, all income is subject to standard CIRS rules: progressive bracket rates apply to aggregated income (englobamento), with category-specific autonomous taxation available for investment income, rental income, and capital gains where the law permits a flat rate alternative.
This is the baseline every resident faces. Special regimes (IFICI, NHR Legacy, IRS Jovem) are opt-in — the standard rules apply by default unless a qualifying application is made and accepted.
2026 progressive IRS brackets
Portugal uses a marginal bracket system. The rates below apply to each increment of taxable income (after deductions):
| Taxable income (€) | Marginal rate |
|---|---|
| 0–8,342 | 12.5% |
| 8,342–12,587 | 15.7% |
| 12,587–17,838 | 21.2% |
| 17,838–23,089 | 24.1% |
| 23,089–29,397 | 31.1% |
| 29,397–43,090 | 34.9% |
| 43,090–46,566 | 43.1% |
| 46,566–86,634 | 44.6% |
| Above 86,634 | 48.0% |
A bracket deduction (parcela a abater) is applied at each step, so the effective rate is always lower than the marginal rate. The calculator applies these deductions automatically.
Solidarity surcharge
A surcharge applies to income above €80,000:
| Income range (€) | Additional rate |
|---|---|
| 0–80,000 | 0% |
| 80,000–250,000 | 2.5% |
| Above 250,000 | 5.0% |
The solidarity surcharge is applied on top of the progressive IRS rate, bringing the maximum combined rate to 53% on income above €250,000.
Autonomous taxation by category
Several income categories may be taxed at a flat autonomous rate instead of being aggregated at progressive rates. The default rules for 2026:
- Cat. E (investment income): 28% flat rate on dividends and interest. The taxpayer may elect aggregation (englobamento) if the progressive rate is lower.
- Cat. F (rental income): 25% flat rate. Reduced rates apply for longer-term leases and the moderate-rent programme (see rental strategies).
- Cat. G (capital gains): 28% flat rate on securities and real estate. Crypto assets held for ≥ 365 days are fully exempt under 2023 reforms.
Category B: simplified regime coefficients
Self-employed income (Cat. B) under the simplified regime is not taxed on gross revenue. A coefficient is applied to estimate taxable income:
- 0.75 — services rendered under professional table (Art. 151 CIRS)
- 0.35 — other services
- 0.15 — sale of goods and hospitality
- 0.35 — local accommodation (apartments)
A taxpayer earning €50,000 providing consulting services under Art. 151 would have taxable income of €37,500 (€50,000 × 0.75), which is then subject to progressive rates after further deductions.
When standard residency is the right baseline
The standard regime is the correct starting point for anyone who does not qualify for (or has not applied to) a special regime. It is also relevant as a comparison: the calculator always shows the standard-regime outcome alongside the optimised outcome, so you can quantify the value of any special regime you may qualify for.