Taxes
What do I need to know once I want to start living and working in Lisbon?
As said in another article, NIF is important, since it represents the starting point for your future working life in Portugal. NIF is the Tax Identification Number.
Here you have some important information about tax regulation in Portugal and also some names to get familiar with and investigate more!
IRS – is the tax that is taken from people’s income, which means that if you work in Portugal a percentage of your income will be paid to the state. The percentage will vary depending on how much you earn, with certain exceptions, such as self-employed workers, disabled workers and if you are married or have any children. To make it easier to file your IRS, it’s best to know or hire someone who is used to working with this matter.
IRS Jovem- is a tax scheme that offers tax benefits and exemptions to young people starting out in their professional lives. The main advantage of this scheme is the reduction in the percentage that will be taken each month from the salary of people who are starting to work or develop their professional activity.
IRC – is a tax on companies’ profits. Companies must pay a percentage of their profits to the state. This tax is aimed at companies and the percentage can also vary depending on certain situations.
IVA – A tax on the consumption of goods and services. Companies pay the IVA, but it is passed on in the prices of products and services purchased by consumers. For example, on supermarket purchases, public transport tickets, cafés, etc.
IMT – is a tax that you pay when you buy a property in Portugal. The latest government measure indicates that young people are exempt from paying IMT when they buy their first home.
Segurança Social – These are contributions to the social security system, which finances retirement pensions, unemployment benefits and other social benefits.The tax is paid by workers and employers. The percentage varies depending on whether you are employed or self-employed.
For more information consult: https://www.gov.pt/
Some opportunities that Portugues Government offers right now to young people include:
1. 100% Mortgage Financing for Young First-Time Homebuyers
To facilitate homeownership among young adults, the Portuguese government introduced a measure allowing individuals up to 35 years old to obtain state-backed guarantees for 100% mortgage financing when purchasing their first home. This initiative aims to assist young people facing challenges entering the property market.
2. Tax Incentives for Young Professionals
In an effort to retain young talent and address the brain drain, the government proposed a decade-long progressive tax break for workers aged 18 to 35. This policy includes significant income tax exemptions in the initial years, gradually decreasing over time, to improve financial stability and housing affordability for young professionals.
These programs reflect Lisbon’s commitment to providing diverse financial assistance options to address the housing needs of its residents.
- Information on Tax Benefits and Legislation – Provides access to relevant publications, studies, legislation, and tax benefits related to housing. (portaldahabitacao.pt)
- Financial Support Programs – Offers details on financial aid for construction, purchase, or rehabilitation of housing at controlled costs, aimed at primary residence or rental purposes. (gov.pt)
