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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).

Portugal pairs a median salary of $21,000 in euros with a comparatively high top income-tax rate of 48%, a 23% value-added tax, and a 21% corporate rate. Employees contribute 11% to social security and employers 23.8%. Technology leadership reaches about $77,000 for chief technology officers and $61,249 for engineering managers. A cost-of-living index of 45 keeps domestic prices below northern Europe, and GDP per capita of $25,000 rises to $37,000 in purchasing-power terms. Unemployment is 6.5% and the Gini coefficient 0.33. The statutory minimum wage is roughly EUR 11,200 a year. Moderate living costs alongside relatively high income taxation have made Portugal a growing base for remote workers and technology employers in southern Europe.

Median Salary

$21 000,00

Top Tax Rate

48,0%

Cost of Living

45,00

Min. Wage

€11 200,00

Salaries by Role

Role Median (USD) Net (USD) Entry Senior
CTO $77 000,00 $55 440,00 $56 000,00 $133 000,00
Responsable d'ingénierie $61 249,00 $44 099,00 $47 250,00 $87 500,00
AI/ML Researcher $56 000,00 $40 320,00 $38 500,00 $87 500,00
Cloud Architect $54 250,00 $39 060,00 $40 250,00 $78 750,00
Tech Lead $54 250,00 $39 060,00 $40 250,00 $77 000,00
ML Engineer $49 000,00 $35 280,00 $35 000,00 $73 500,00
Site Reliability Engineer $47 250,00 $34 020,00 $33 250,00 $70 000,00
Chef de produit $45 500,00 $32 760,00 $31 499,00 $70 000,00
Security Engineer $45 500,00 $32 760,00 $32 199,00 $68 250,00
Blockchain Developer $45 500,00 $32 760,00 $31 499,00 $70 000,00
Data scientist $43 750,00 $31 500,00 $29 749,00 $66 500,00
Ingénieur DevOps $43 750,00 $31 500,00 $30 799,00 $66 500,00
Ingénieur logiciel $42 000,00 $30 240,00 $29 749,00 $64 749,00
Data Engineer $42 000,00 $30 240,00 $28 699,00 $64 749,00
Backend Developer $40 250,00 $28 980,00 $28 000,00 $61 249,00
Full Stack Developer $39 200,00 $28 224,00 $27 300,00 $59 499,00
Mobile Developer $38 500,00 $27 720,00 $26 250,00 $58 799,00
Développeur frontend $36 750,00 $26 460,00 $25 200,00 $56 000,00
UI/UX Designer $35 000,00 $25 200,00 $23 800,00 $52 500,00
QA Engineer $29 749,00 $21 419,00 $20 300,00 $43 750,00

Tax System

Income Tax

Progressive — up to 48,0%

Social Security (Employee)

11,0%

Corporate Tax

21,0%

VAT / GST

23,0%