# Income tax in portugal



## supermono (Feb 10, 2014)

Hello,
I,m new to this site.
So please be gentle lol

I,m trying to get my head around income tax in Portugal.
I have tried searching but not found what I,m looking for.

I wish to know firstly if the Portuguese have a tax free allowance like we do here in the Uk.
I can earn upto about £9 k before any income tax is deducted.

Many thanks for any advice


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## Bevdeforges (Nov 16, 2007)

Afraid I have no experience with Portuguese taxes, but in general I think you'll find that most countries have their own ways of doing income taxes that don't usually correspond with how they do things in the UK (or wherever you may call "home").

We have lots of people from the UK asking about the "tax free allowance" - which doesn't exist other places (such as, for instance, France). Here, for example, we have a taxation by household principle, which means that you add up all the income in the household, divide it by the number of "parts" (which is a function of how many people in the household), figure the tax on that amount and then multiple the tax by the number of parts. 

It can also depend on the source of the income - i.e. salary, rentals, investment interest, capital gains, etc.

Perhaps someone in Portugal could give us an overview about how the tax system there works.
Cheers,
Bev


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## BBCWatcher (Dec 28, 2012)

KPMG appears to have an excellent summary. Using your favorite search engine, search for KPMG Tax TIES Portugal and you should find the article.


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## supermono (Feb 10, 2014)

BBCWatcher said:


> KPMG appears to have an excellent summary. Using your favorite search engine, search for KPMG Tax TIES Portugal and you should find the article.


Ok
Many thanks for the advice.


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