Research · Taxes

How Much Is VAT in Portugal? (2026 Data)

VAT, income tax, capital gains, inheritance, stamp duty, car tax and the tourist tax - every Portuguese rate for 2026, labelled.

  • Published
  • Updated
  • 5 sources
  • 10 statistics
  • 9 min read

Key findings

  1. 23%Portugal's standard VAT rate is 23%, with 13% and 6% reduced rates - islands charge less.
  2. 48%The top IRS income tax rate is 48%, reached above EUR 81,199 of taxable income.
  3. 28%Capital gains are taxed at a flat 28%, with holding-period relief softening property-sale rates.
  4. 10%Portugal charges no inheritance tax; legacies outside the immediate family pay 10% stamp duty instead.
  5. EUR 3The tourist tax adds EUR 3 per person per night in Porto, the smallest tax a visitor meets.

How much is VAT in Portugal? The till answer is 23% - the standard IVA rate on most goods and services, with a 13% intermediate rate, a 6% reduced rate on essentials, and lower island tables (22%/12%/4% in Madeira, 16%/9%/4% in the Azores)12. And the notary answer surprises everyone: Portugal charges no inheritance tax at all, only 10% stamp duty on legacies outside the immediate family13. The main keyword's cousins (sales tax, IVA, the VAT) all resolve to the same 23%, and the page answers them once, properly.

The VAT map: rates by region and item

How much is IVA in Portugal is the Portuguese spelling of the same question, and the answer has three columns per region: standard, intermediate and reduced. The mainland's 23% covers most purchases - restaurant bills, clothes, electronics, hotel stays; the 13% intermediate rate covers specific food and service categories; the 6% reduced rate covers basics like staple foods, medicines and books1deductions2shows4page3rates5.

  • The islands are the arbitrage: 16% VAT in the Azores and 22% in Madeira undercut the mainland by one to seven points, legislated, not promotional1.
  • Portugal abolished inheritance tax but kept the stamp: zero for immediate family, 10% for everyone else, 0.8% on purchases - the notary is the tax office's front desk1.
  • The effective rates are kinder than the headlines: a EUR 30,000 salary pays roughly 17-19% effective IRS (not 48%), and the tourist tax is 1.6% of a visitor's day4.
  • Every rate on this page is policy, not destiny - the 2026 update moved thresholds 3.51% and cut middle brackets, so the honest rule is to re-read the table each January2.
  • For newcomers the practical sequence is simple: obtain a NIF first, because every transaction from a phone contract to a property purchase requires it; register with the tax authority as a resident or non-resident; and check eligibility for the special regimes before filing anything. The flat-rate regime for young workers and the scientist and digital-nomad incentives can change a household's effective rate by double digits, and they must be claimed rather than applied automatically.

    Methodology

    • Tax year 2026 (IRS thresholds shifted ~3.51% that year)
    • Island VAT tables as separately legislated

    Definition. VAT (IVA): a consumption tax embedded in prices, at standard, intermediate and reduced rates. IRS: the progressive personal income tax with marginal rates by band. Stamp duty (imposto do selo): a transaction tax on documented acts. IUC: the annual vehicle circulation tax.

    Data sources. ['PwC Tax Summaries Portugal; vatupdate; taxesledger - VAT and stamp rates (OFFICIAL-consistent relays, labelled)', 'TaxClara IRS 2026 bracket guide (relay of official tables) - GUIDE, labelled', 'Site pages: portugal-car-rental (IUC, ISV), porto-tourist-tax, cost-of-living (price examples)', 'idealista district medians via the cost page - PORTAL, labelled']

    Calculations. ['Worked employee example: our arithmetic on the 2026 brackets and 11% social security, before itemised deductions', 'USD conversions at 1 EUR = 1.15 USD (ECB reference, September 2026)']

    Limitations. ['Bracket relays can lag the Official Gazette; the page states the tax year and labels the relay', 'Effective personal rates depend heavily on deductions (health, dependants, mortgage) not modelled here', 'IMI rates are municipal choices on registered values - the map uses asking prices as the exposure proxy']

    Sources

    1. PwC Tax Summaries / vatupdate / taxesledger (2026). “Portugal VAT: standard 23%, reduced 13% and 6%; Madeira 22/12/4; Azores 16/9/4.” PwC and VAT guides (OFFICIAL-consistent relays, labelled), 2026. taxsummaries.pwc.com. Accessed 2026-09-16. Back to text
    2. TaxClara (relaying the Official Gazette IRS tables). “IRS 2026: nine progressive brackets 12.5%-48%, thresholds shifted ~3.51%; solidarity surcharge 2.5-5% above ~EUR 80k.” taxclara.pt (GUIDE relay of official tables, labelled), 2026. taxclara.pt. Accessed 2026-09-16. Back to text
    3. Porto.tours research pages. “Car page (IUC ~EUR 214/yr, ISV context); tourist-tax page (EUR 3/night Porto); cost page (VAT price examples).” porto.tours, 2026. porto.tours. Accessed 2026-09-16. Back to text
    4. Porto.tours research. “Our calculations: worked employee example, USD conversions at 1 EUR = 1.15 USD (ECB, Sep 2026).” porto.tours, 2026. porto.tours. Accessed 2026-09-16. Back to text
    5. Porto.tours property-price research (idealista district medians). “Asking prices by district - the IMI exposure context.” porto.tours / idealista (PORTAL, labelled), 2026. porto.tours. Accessed 2026-09-16. Back to text

    About the author

    Tiago Santos
    Travel Advisor & Porto City Guide Author

    Tiago Santos is a born-and-bred Tripeiro with nearly a decade chronicling Porto's shifting culinary and cultural landscape - from back-alley petisqueiras to contemporary architecture. A former contributor to Publico's Fugas supplement and Revista Visao, for this guide he turns official statistics and street-level knowledge into research visitors can check and cite.

    Mariana Gomes
    Reviewed by
    Editor-in-Chief, Porto Tours

    Every figure on this page links to its source. How we research

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