Portuguese Tax Glossary 2026
Portuguese tax glossary in English with 50+ essential terms updated for 2026 — IRC (corporate tax), IRS (personal tax), VAT/IVA, TSU (social security), IES, Modelo 22, IFICI (NHR replacement), IMT, AIMI, Alojamento Local, special regimes and tax identifiers. Short definitions with legal references and current 2026 values. Useful for entrepreneurs, expats, accountants and business students operating in Portugal.
Corporate Tax (IRC)
- IRC
- Portuguese corporate income tax. Standard rate 19%; SME reduced rate 15% on the first €50,000 of taxable profit.
- Modelo 22
- Annual IRC tax return for companies. Filed by 31 May of the year following the fiscal year. Modelo 22 guide →
- IES
- Simplified Business Information annual statement. Due by 15 July.
- PEC
- Special advance payment of IRC due in March. Minimum €850, maximum €70,000.
- Pagamentos por Conta (PC)
- Three IRC advance payments (July, September, December) for companies with prior-year turnover > €500,000.
- RFAI
- IRC tax credit up to 25% (North/Algarve regions) on eligible fixed asset investments.
- SIFIDE II
- R&D tax incentive — IRC credit of 32.5% on eligible research and development expenses.
- DLRR
- IRC deduction of 10% on retained profits reinvested in fixed assets, up to €12M.
- ICE
- Capitalisation incentive — deduction of 4.5% on the increase in eligible equity. CIRC art. 41-A.
- Autonomous Taxation
- Additional tax on vehicles, entertainment, payments to tax havens. Rates 5%-35%. CIRC art. 88.
- Derrama (Municipal/State)
- Municipal: up to 1.5%. State: progressive surcharge for profits > €1.5M (3%/5%/9%).
Personal Income Tax (IRS)
- IRS
- Personal income tax. Progressive rates 13.25%-48% in 2026.
- Modelo 3
- Annual IRS tax return. Filed between 1 April and 30 June of the following year.
- Annex L
- Modelo 3 form dedicated to special regimes (NHR and IFICI). How to fill Annex L →
- Annex G
- Modelo 3 form for capital gains (real estate, securities, rights).
- Annex J
- Modelo 3 form for foreign income earned by Portuguese tax residents.
- Minimum Existence
- Income level below which no IRS is due. 2026: €12,880/year.
- Aggregation
- Option to consolidate flat-tax income with general income, taxed at progressive rates.
- Tax Credits / Deductions
- Amounts deducted directly from IRS. Health, education, housing, care home expenses.
- Withholding Tables
- Monthly tables determining IRS withholding % on salaries.
- Capital Gain (Mais-Valia)
- Gain on selling assets. Real estate: residents 50% aggregated, non-residents 28%.
- Category A
- Employment income — salaries, wages.
- Category B
- Self-employment — green receipts, liberal professions.
- Category F
- Rental income — lease, sub-lease, AL. Flat 28%.
- PPR
- Retirement savings plan with tax benefits and reduced retirement-age taxation.
- IRS Jovem
- Tax regime offering partial IRS exemption for under-35s, over 10 years. 2026 cap €29,542.15.
VAT (IVA)
- VAT (IVA)
- Value-Added Tax. Rates: 6% reduced, 13% intermediate, 23% standard.
- SAF-T
- Standard Audit File for Tax. Monthly invoicing or accounting file submitted to AT.
- VIES
- EU intra-community VAT number validation system.
- Special Exemption Regime (Art. 53)
- VAT exemption for small contributors with annual turnover up to €15,000.
- Reverse Charge
- Buyer accounts for VAT (not seller). Used in construction, intra-EU services.
Employment and Social Security
- TSU
- Social security contribution. 11% employee + 23.75% employer on gross salary.
- DMR
- Monthly Wage Statement to AT/Social Security by the 10th of the following month.
- Meal Allowance
- Daily allowance, exempt up to €6 (cash) or €10.46 (card) in 2026.
- Holiday Allowance
- Annual allowance = 1 month base salary, paid before vacation. Subject to IRS/TSU.
- Christmas Allowance
- 13th-month equivalent = 1 month base salary, paid by 15 December.
- First Year TSU Exemption
- Self-employed exempt from social security for the first 12 months.
Real Estate
- IMI
- Annual municipal property tax. 0.3%-0.45% urban, 0.8% rural.
- IMT
- Property transfer tax paid by buyer. Up to 7.5%-8% for primary residence.
- AIMI
- Additional IMI on personal property holdings where total VPT > €600,000. Rate 0.7%-1.5%.
- Alojamento Local (AL)
- Short-term tourist rental regime. RNAL registration required.
- RNAL
- National AL Registry managed by Turismo de Portugal.
International Taxation
- NHR
- Non-Habitual Resident regime — closed to new applicants end of 2023. Replaced by IFICI.
- IFICI
- 20% flat tax on Portuguese employment income for 10 years. Law 41/2024. IFICI pillar →
- DTA / Tax Treaty
- Double Taxation Agreement. Bilateral treaty allocating taxation rights.
- Tax Residency
- Subject to Portuguese IRS on worldwide income. 183+ days OR habitual residence.
- RFI 21/22
- Forms to claim reduced withholding under DTA. RFI 21 individuals, RFI 22 companies.
- Golden Visa (ARI)
- Residence permit for non-EU investors with qualified investment. Golden Visa guide →
Identifiers and Codes
- NIF
- Portuguese tax ID. 9 digits. Required for any transaction in Portugal. How to get a NIF →
- NISS
- Social security number in the Portuguese system.
- CAE
- Portuguese economic activity classification. 5-digit code.
- IAS
- Social Support Index reference value. 2026: €537.13.
- SMN (Minimum Wage)
- National minimum wage 2026: €920 gross (~€818.80 net).