Tax Updates
Changes to Portuguese tax rules, brackets and deadlines - verified against Portal das Finanças and Diário da República.
IRS 2026 - the filing window opens on 1 April and closes on 30 June
Modelo 3 returns for 2025 income are filed between 1 April and 30 June 2026, on the Portal das Finanças. Tax still due is paid by 31 August. First IMI instalment by 31 May.
CalendarMadeira extends its 30% IRS differential to all 9 brackets in 2026
The 2026 Regional Budget (DLR 8/2025/M, 30 Dec 2025) extended the maximum 30% reduction in the IRS rate to all 9 income brackets; before, it was limited to the lower brackets. The withholding exemption threshold rose to €980/month.
TaxGeneral IRC rate cut to 19% in 2026 (18% in 2027, 17% in 2028)
The general IRC rate fell from 21% to 19% for 2026 tax periods. The simplified SME regime stays at 15% on the first €50,000 of taxable profit. Staged cuts: 18% in 2027 and 17% in 2028.
TaxIRS brackets updated for 2026 - limits +3.51%, rates in brackets 2 to 5 -0.3 pp
The 9 IRS brackets for 2026 were updated by 3.51% to keep up with inflation. The rates of brackets 2 to 5 fell by 0.3 percentage points. The 9-bracket structure stays. Withholding tables were published in January 2026.
TaxIAS (Indexante dos Apoios Sociais) rises to €537.13 in 2026
IAS 2026 = €537.13/month (from €522.50 in 2025). It sets the ceiling for self-employed contributions (12 × IAS = €6,445.56/month of maximum relevant income).
TaxMadeira Free Trade Zone extended to 2033 - new licences until 31-12-2026
Parliament approved the extension of the IBC / Madeira Free Trade Zone regime: companies already licensed keep the 5% IRC until 31 Dec 2033; new licences can be issued until 31 Dec 2026 and also benefit until 2033.
TaxIFICI (Incentivo Fiscal à Investigação Científica e Inovação) replaces NHR - active since January 2025
The NHR regime closed to new applicants at the end of 2023, with a transition into 2024. IFICI (Incentivo Fiscal à Investigação Científica e Inovação) is its successor: a 20% rate on Portuguese-source employment and professional income, for 10 years, for qualified professionals (EQF level 6+) in high-value sectors.
TaxThe 365-day crypto rule - 0% vs 28% stays in 2026
Since 2023 Portugal taxes capital gains on crypto-assets at a flat 28% if the asset is held for less than 365 days; exempt if ≥ 365 days. A crypto-to-crypto swap RESTARTS the holding period. In 2026 the rule stays, but AT enforcement has increased.
Tax