# Portugal: taxes, residence and cost of living

Source: https://domicile.wiki/places/portugal/ (domicile.wiki, researched 2026-10-15). Data licence CC BY-SA 4.0. Research, not tax or legal advice.

## At a glance

For an EU-citizen family of five living off a EUR 30M portfolio (the guide's default reader).

- Score for a wealthy family: 71 / 100
- Can EU citizens live here?: free: register as an EU citizen
- Can US citizens live here?: income of €11,040 a year · D7 residence visa (passive income / retirees)
- Other passports: income of €11,040 a year · D7 residence visa (passive income / retirees)
- Tax on a €30M portfolio: €228,050 a year
- Wealth tax: limited
- Children inherit: tax-free, with conditions
- After 60 years: €153,698,000 of €30,000,000 (with no tax at all: €286,928,000)
- Living costs, family of five: €214,455 a year
- EU member: yes
- Currency: EUR
- Capital: Lisbon

## Tax on investments, inheritance and wealth

Residents pay a flat 28% on capital gains and dividends (35% if from blacklisted jurisdictions); since 2024, 10%/20%/30% of gains on listed securities and fund units held 2/5/8+ years is excluded (effective 19.6% after 8 years). Children, spouse and parents are exempt from the 10% stamp duty on inheritances and gifts; only a 0.8% stamp duty on gifts of Portuguese real estate remains. No general wealth tax, but AIMI (from 0.7%) on Portuguese real estate above EUR 600,000 per person. The IFICI regime ('NHR 2.0') exempts most foreign income but only for people working in qualifying high-value activities: it does not help a purely passive investor, and the old NHR is closed to new arrivals.

- **Ordinary tax residence**: Worldwide taxation. Investment income and gains taxed at special flat rates (28%), with an option to aggregate at progressive rates (12.5%-48% plus 2.5%/5% solidarity surcharge above EUR 80,000/250,000).
- **IFICI ('NHR 2.0', scientific research and innovation incentive)**: 10-year regime: 20% flat rate on Portuguese employment/business income from eligible high-value activities, and exemption of most foreign-source income (including dividends, interest and capital gains) except pensions and income from blacklisted jurisdictions. Requires carrying out an eligible activity in an eligible entity: a purely passive investor or family-office principal without such a role does not qualify. The old NHR is closed to people becoming resident after 2024.

## Income tax

Resident income tax is progressive from 12.5% to 48% on taxable income, plus a solidarity surcharge of 2.5% above EUR 80,000 and 5% above EUR 250,000, which gives top marginal rates of 50.5% (EUR 86,634 to 250,000) and 53%. Employees pay 11% social security with no stated cap. Self-employed pay 21.4% on a base of 70% of service income (effective 14.98% of income).

## How to get residence

EU citizens only register after 3 months. Non-EU citizens (US and others) can use the D7 (passive income of about EUR 11,040 a year), the D8 (remote income of EUR 44,160 a year), or the Golden Visa from EUR 250,000 (donation) or EUR 500,000 (fund). Property no longer qualifies.

- **EU free movement (registration certificate)** (Free movement; EU citizens; open): EU citizens may live in Portugal without a visa and register with the municipality after 3 months.
- **Golden Visa (ARI): regulated investment fund** (Investor residence; US citizens, other passports; open): A residence permit for investing at least EUR 500,000 in a regulated fund that invests mainly in Portuguese companies. Real estate no longer qualifies.
- **Golden Visa (ARI): cultural or heritage donation** (Investor residence; US citizens, other passports; open): A non-refundable donation of at least EUR 250,000 to an approved arts or heritage project gives a residence permit.
- **Golden Visa (ARI): research, company creation or job creation** (Investor residence; US citizens, other passports; open): Permits for EUR 500,000 into accredited research, EUR 500,000 into a Portuguese company that creates 5 jobs, or creating 10 jobs.
- **Golden Visa (ARI): real estate and capital transfer** (Investor residence; US citizens, other passports; closed to new applicants): Property purchase (EUR 500,000 and up), property funds and a EUR 1.5 million capital transfer no longer give a permit.
- **D7 residence visa (passive income / retirees)** (Passive income / retirement; US citizens, other passports; open): For people living on pensions, rent or dividends: show regular passive income of at least the minimum wage (EUR 920 a month in 2026) and a home in Portugal.
- **D8 digital nomad visa** (Digital nomad; US citizens, other passports; open): For remote workers earning four times the Portuguese minimum wage (EUR 3,680 a month in 2026) from clients or an employer outside Portugal.
- **D2 entrepreneur / independent professional visa** (Entrepreneur; US citizens, other passports; open): For people starting a business or working independently in Portugal; needs a business plan and proof of means.
- **Work permits (D1 employee, D3 highly qualified, job-seeker)** (Work; US citizens, other passports; open): Non-EU workers need a job offer or contract and a work visa; highly qualified workers have a fast track.

Citizenship: Lei Organica 1/2026 (in force 19 May 2026): 10 years of legal residence for most nationalities, 7 years for EU and Portuguese-speaking-country citizens; Portuguese language (A2 level reported) and civic knowledge. Applications filed on or before 18 May 2026 stay under the old 5-year rule. Counted from permit issue, per one law firm.

## Inheritance law and trusts

A spouse, children and ascendants are guaranteed a legitimate share, between a half and two thirds of the estate. A foreign resident can choose the law of their nationality (EU Succession Regulation art. 22). Portugal has no general trust law, and its foundations are for social-interest purposes.

## Daily life (0-100, higher is better)

- Safety and personal security: 78
- Political and institutional stability: 65
- Corruption and government integrity: 60
- Legal system and property rights: 72
- Healthcare quality and access: 85
- Education quality: 58
- Human development and quality of life: 78
- Infrastructure and connectivity: 78
- Cost of living and housing: 78
- Business opportunities and economy: 70
- Cultural fit and lifestyle: 62

## Research notes

### Portugal — family-office tax dossier

Last reviewed: 2026-10-15
Tax year: 2026
Reviewer: research agent (Claude), unreviewed by a tax adviser

#### Summary

- Capital gains and dividends: flat 28% (35% if from blacklisted jurisdictions). Gains on listed securities held 8+
  years are taxed at an effective 19.6%.
- Inheritances and gifts: children are exempt from the 10% stamp duty. Only a 0.8% stamp duty on gifts of
  Portuguese real estate remains.
- Wealth tax: none in general. AIMI applies to Portuguese residential property above EUR 600,000.
- IFICI ("NHR 2.0") requires a qualifying high-value activity, so it does not help a passive investor. The old NHR
  is closed.

#### Residence and eligibility

- Resident if more than 183 days in any 12-month period, or if holding a habitual residence intended as the
  primary home. Split-year treatment applies (PwC).
- EU citizens move freely.
- Non-EU citizens: D7 visa or Golden Visa. Real estate routes for the Golden Visa were removed in 2023. Amounts
  are not verified.

#### Capital gains

- Shares and other securities: 28% flat.
- Holding-period exclusions on listed securities and fund units (PwC, "2024 changes"):
  - 10% excluded if held 2-5 years.
  - 20% excluded if held 5-8 years.
  - 30% excluded if held 8 years or more.
- Holdings of less than 365 days must be aggregated at progressive rates if taxable income is EUR 86,634 or more.
- Unlisted micro and small company shares: 50% of the gain is taxed.
- Real estate: 50% of the gain is taxed at progressive rates (top 48% plus a 5% solidarity surcharge).
- Decree-Law 97/2026: reinvestment relief for residential letting.
- JSON: listed securities 0.28 x 0.7 = 0.196; private business 0.28; real estate 0.5 x 53% = 0.265.

#### Dividends

- 28% flat, or optional aggregation at progressive rates.
- 35% if from blacklisted jurisdictions.
- Foreign tax credit capped at the treaty rate.
- JSON: 0.28 with credit.

#### Inheritance and gifts to children

Código do Imposto do Selo, read on the Portal das Finanças:

- Tabela Geral verba 1.2: 10% on free acquisitions (inheritances and gifts).
- Art. 6(1)(e): the spouse or de facto partner, descendants and ascendants are exempt from verba 1.2.
- Verba 1.1: 0.8% on acquisitions of real estate for consideration or by gift. It still applies to gifts of
  Portuguese real estate to children. On its wording it does not cover inheritance.
- Scope: Portuguese-situs assets only (general knowledge of art. 4, unverified).
- JSON: beneficiary basis, children_treatment exempt_with_conditions, brackets [], other cost 0.
- Surviving spouse (`spouse_treatment` `fully_exempt`): Spouse is exempt from the 10% stamp duty on free transfers (Código do Imposto do Selo Art. 6(1)(e)); the 0.8% charge on Portuguese real estate is not covered by the verified exemption.

#### Wealth tax

- No net wealth tax (PwC).
- AIMI: 0.7% for individuals (PwC). The EUR 600,000 allowance and the 1% / 1.5% tiers above EUR 1M / EUR 2M come
  from general knowledge.
- Modelled as limited, on local real estate, with exempt 600,000 and brackets 0.007 / 0.01 / 0.015.
- IMI is 0.3-0.45% (municipal property tax).

#### Special regimes

- **IFICI** (art. 58-A EBF, 2024 State Budget):
  - 10 years.
  - 20% on Portuguese income from eligible activities.
  - Foreign-source income is generally exempt, except pensions and blacklisted sources (PwC).
  - Requires an eligible activity in an eligible entity. It is not available to a purely passive investor.
  - Whether foreign securities gains are exempt is unconfirmed; the old NHR taxed them at 28%.
- **Old NHR**: only for people resident by the end of 2024.

#### Holding structures

No holding structure is scored for Portugal. A company that only manages securities or other assets (sociedade de
simples administração de bens, art. 6 n.º 4 b) CIRC) is tax-transparent under art. 6 n.º 1 c) CIRC when:

- a family group (relatives up to the 4th degree) owns the majority of the capital for more than 183 days; or
- it has five or fewer shareholders.

Its profit is attributed to the shareholders and taxed as their own income every year, so it cannot defer tax
(Autoridade Tributária, CIRC art. 6). The participation exemption needs a stake of at least 10% and would not cover
the portfolio anyway. How transparent income is taxed in the shareholders' hands was not verified.

#### Company taxation (kept separate from personal tax)

Not researched in this pass.

#### Cost of living notes

- Lisbon / Cascais.
- Family home rent (monthly): EUR 3,100 (2026). Median asking rent of 13 T4 flats of 157-241 m2 in Lisbon family districts on Imovirtual, read 2026-10-15 from the first 37 of 193 results of the Lisbon T4 apartment rental search: Avenidas Novas/Campo Pequeno (3: EUR 3,100, 4,500, 7,000; plus Gulbenkian EUR 7,500 and Parque Eduardo VII EUR 4,500), Areeiro (EUR 2,900), Alvalade/Entrecampos (EUR 2,500), Estrela (EUR 2,950), Restelo (EUR 2,600), Benfica/Laranjeiras (EUR 2,400 and 2,950), Campolide (EUR 3,980) and Rato/Amoreiras (EUR 3,850). Range EUR 2,400-7,500. Chiado, Avenida da Liberdade and a 306 m2 Parque das Nacoes flat left out as prime or oversized. Asking rents, partly furnished. Replaces the Cascais figure of EUR 6,500 (75 T4/T5 houses), because Lisbon is the main city. Source: Imovirtual, Apartamentos T4 para arrendar em Lisboa. Cascais/Estoril houses (many international families) rent higher: EUR 6,500 median of 75 T4/T5 moradias on Imovirtual, 2026-10-15.
- School: Carlucci American International School of Lisbon (CAISL), Grades 9-12 EUR 23,532 a year (2026-27), plus a
  EUR 600 one-time registration fee and a EUR 1,953 annual building fee for the first five years. St. Julian's School
  publishes its 2026/27 fees only as images, not read.
- Purchase price, health insurance and housekeeper costs are not sourced.

#### Open questions

- IFICI treatment of foreign securities gains.
- AIMI tiers.
- Corporate tax rate.
- Outbound withholding tax and treaty count.
- Visa thresholds.
- Purchase price, health insurance and housekeeper costs.

#### Sources

- PwC, Portugal income determination: https://taxsummaries.pwc.com/portugal/individual/income-determination
- PwC, Portugal taxes on personal income: https://taxsummaries.pwc.com/portugal/individual/taxes-on-personal-income
- PwC, Portugal other taxes: https://taxsummaries.pwc.com/portugal/individual/other-taxes
- PwC, Portugal corporate other taxes: https://taxsummaries.pwc.com/portugal/corporate/other-taxes
- PwC, Portugal other tax credits and incentives: https://taxsummaries.pwc.com/portugal/individual/other-tax-credits-and-incentives
- PwC, Portugal residence: https://taxsummaries.pwc.com/portugal/individual/residence
- AT, Código do Imposto do Selo art. 6: https://info.portaldasfinancas.gov.pt/pt/informacao_fiscal/codigos_tributarios/selo/Pages/selo6.aspx
- AT, Tabela Geral do Imposto do Selo: https://info.portaldasfinancas.gov.pt/pt/informacao_fiscal/codigos_tributarios/selo/Pages/ccod-selo-tabgiselo.aspx
- Imovirtual, apartamentos T4 para arrendar em Lisboa: https://www.imovirtual.com/pt/resultados/arrendar/apartamento/lisboa/lisboa?roomsNumber=%5BFIVE%5D&limit=72
- Imovirtual, moradias T4/T5 para arrendar em Cascais (previous figure): https://www.imovirtual.com/pt/resultados/arrendar/moradia/lisboa/cascais?roomsNumber=%5BFOUR%2CFIVE%5D&limit=72
- CAISL, 2026-2027 Schedule of Required Fees: https://www.caislisbon.org/fs/resource-manager/view/669fa5f0-f4a0-4e4f-abba-acfafcc02f1e
- [Código do IRC - artigo 6.º (Transparência fiscal)](https://info.portaldasfinancas.gov.pt/pt/informacao_fiscal/codigos_tributarios/CIRC_2R/Pages/irc6.aspx) — Autoridade Tributária e Aduaneira (tax_authority)

#### Change log
- 2026-10-15: initial research.
- 2026-10-15 (data-quality pass): added prime rent (Imovirtual sample, EUR 6,500/month) and CAISL fee (EUR 23,532).
- 2026-10-15: flagged `ifici` as requiring employment or a qualifying activity (`requires_qualifying_activity`), so it is no longer used as the best regime for a passive investor family unless the user opts in.
- 2026-10-15: added a Holding structures section and a holding_company_notes sentence explaining why no holding structure is scored (art. 6 CIRC transparency).
- 2026-10-15: fact check: corporate income tax rate filled in (19% mainland IRC for 2026, PwC), previously left blank.
- 2026-10-15: family rent re-checked against the upper-middle-class standard: kept.
- 2026-10-15: family rent re-checked a second time: changed from EUR 6,500 (Cascais houses) to EUR 3,100 (13 Lisbon T4 flats, Avenidas Novas/Areeiro/Alvalade/Estrela/Restelo/Benfica).
- 2026-10-16: added surviving-spouse treatment.


## Residence and succession sources

- [Portugal Golden Visa 2026: requirements, investment routes, stay, citizenship](https://connaughtlaw.com/portugal-golden-visa-program-guide/) — Connaught Law
- [O que muda com a Lei da Nacionalidade?](https://eco.sapo.pt/descodificador/o-que-muda-com-a-lei-da-nacionalidade/01-o-que-e-a-a-nova-lei-da-nacionalidade/) — ECO (Sapo)
- [Your Europe: Residence rights in another EU country](https://europa.eu/youreurope/citizens/residence/residence-rights/index_en.htm) — European Union
- [Lei n.º 23/2007 (foreigners' law), consolidated](https://diariodarepublica.pt/dr/legislacao-consolidada/lei/2007-34563975) — Diário da República
- [Portugal D7 visa requirements 2026](https://www.portugalist.com/d7-changes-2026) — Portugalist
- [Portugal D8 visa threshold increase 2026](https://remoteworkeurope.eu/news/2026/portugal-d8-visa-threshold-increase) — Remote Work Europe
- [European e-Justice: Succession, Portugal](https://e-justice.europa.eu/166/EN/succession?PORTUGAL&member=1) — European e-Justice Portal
- [Regulation (EU) No 650/2012 on succession](https://eur-lex.europa.eu/eli/reg/2012/650/oj) — European Union
- [HCCH status table: Convention of 1 July 1985 on the Law Applicable to Trusts and on their Recognition](https://www.hcch.net/en/instruments/conventions/status-table/?cid=59) — Hague Conference on Private International Law