Portugal

Portugal uses a progressive income tax system (IRS) with nine brackets, ranging from 13.25% to 48%. A solidarity surcharge of 2.5% applies on income above EUR 80,000 and 5% above EUR 250,000. Municipal surcharges of up to 0.5% may also apply. Social security contributions for employees are 11% of gross salary. Employer contributions are 23.75%. Portugal mandates Christmas (Subsidio de Natal) and vacation (Subsidio de Ferias) bonuses, each equal to one month's salary. The Non-Habitual Resident (NHR) regime, while reformed, still offers preferential tax treatment for qualifying new residents, particularly those in high-value-added activities. The new NHR 2.0 regime offers a flat 20% rate on qualifying employment income for researchers and professionals in specific fields. Capital gains on securities are taxed at 28%. VAT is 23% (13% and 6% reduced rates). The corporate tax rate is 21% (17% for SMEs on the first EUR 50,000).