Banking, Money and Taxes in Portugal
Expats are recommended to open a bank account in Portugal and this may be required to pay certain bills. All Portuguese banks are part of a national grouping of banks called Mulitbanko. This makes accounts easily accessible and account holders may use a Multibanko debit card in ATMs across the country and for buying most goods.
To open an account, residents of EU countries will need an identity card or passport, tax card, residency card and proof of residence. Non-EU expats will require a passport, proof of address in country of origin, tax card and proof of employment.
Portugal taxes residents and non-residents differently. To be considered a resident for tax purposes, one must reside in the country for 183 days of the year or have a permanent home in Portugal. If one is considered a resident they are liable to be taxed on their worldwide income. Expats in Portugal are regularly concerned about being taxed in both Portugal and their home country but tax treaties with most western nations will prevent double taxation. Often, becoming a resident of Portugal can exempt expats from higher overseas taxes. To find the most advantageous tax plan it is a good idea to consult an international tax planner.
Resident expats working for an employer will have their income tax automatically deducted from their salary on a sliding scale based on their worldwide income. Non-residents are taxed only on income derived from business in Portugal, usually at a flat rate.
To open an account, residents of EU countries will need an identity card or passport, tax card, residency card and proof of residence. Non-EU expats will require a passport, proof of address in country of origin, tax card and proof of employment.
Portugal taxes residents and non-residents differently. To be considered a resident for tax purposes, one must reside in the country for 183 days of the year or have a permanent home in Portugal. If one is considered a resident they are liable to be taxed on their worldwide income. Expats in Portugal are regularly concerned about being taxed in both Portugal and their home country but tax treaties with most western nations will prevent double taxation. Often, becoming a resident of Portugal can exempt expats from higher overseas taxes. To find the most advantageous tax plan it is a good idea to consult an international tax planner.
Resident expats working for an employer will have their income tax automatically deducted from their salary on a sliding scale based on their worldwide income. Non-residents are taxed only on income derived from business in Portugal, usually at a flat rate.
