Portugal

Tax residency

Under Article 16 of the Portuguese Personal Income Tax Code (Código do IRS, CIRS), an individual may become tax resident in Portugal under several alternative statutory rules:

Portugal also has specific rules under which an individual may remain treated as resident for the whole tax year despite otherwise losing residence during the year. In particular, where an individual has spent more than 183 days in Portugal during the year and, after the last day of their stay, receives income that would have been taxable and not exempt if they had remained resident, the individual may remain resident for the whole year, subject to the statutory exceptions. An individual who reacquires Portuguese residence during the following year may also be treated as resident for the whole of the preceding year under the statutory conditions.

Where residence is established in more than one jurisdiction, the applicable double-tax treaty may determine treaty residence and allocate taxing rights between the states.

• 183-day test: The individual is resident if they remain in Portugal for more than 183 days, consecutive or interpolated, during any 12-month period beginning or ending in the relevant tax year.
• Habitual-residence dwelling test: Even with fewer than 183 days, the individual may be resident where, on any day of the relevant 12-month period, they have a dwelling in Portugal under conditions indicating a current intention to maintain and occupy it as their habitual residence. This criterion focuses on the existence of a dwelling together with circumstances showing that it is intended to serve as the individual's habitual home.
• Crew members: A person who, on 31 December, is a crew member of a ship or aircraft serving an entity resident, headquartered or effectively managed in Portugal is treated as resident.
• Portuguese public functions abroad: Individuals performing public functions or commissions abroad on behalf of the Portuguese State are treated as resident. This also covers Members of the European Parliament.
• Portuguese nationals relocating to listed low-tax jurisdictions: Portuguese nationals who move their tax residence to a jurisdiction included on Portugal's list of territories subject to a clearly more favourable tax regime remain treated as Portuguese residents in the year of the move and the following four years, unless they prove that the move is due to justifiable reasons, including, in particular, the exercise of temporary activity in that territory on behalf of an employer domiciled in Portugal. This treatment ceases when the individual becomes tax resident in a jurisdiction outside the listed territories.

Day counting

The Portuguese tax year is a calendar year. Where residence begins or ends during the year, the statutory rules determine the first and last day of residence, allowing for partial-year residence, subject to the specific whole-year rules described above.

• 183-day test: The threshold is more than 183 days during any 12-month period beginning or ending in the relevant tax year. The days may be consecutive or interpolated. A day of presence is any complete or partial day in Portugal that includes an overnight stay (dormida). A short visit during which the individual does not stay overnight is therefore not counted as a day of presence for this test.
• Habitual-residence dwelling test: There is no separate day threshold. The individual may become resident with fewer than 183 days where, on any day of the relevant 12-month period, they have a dwelling in Portugal under conditions indicating a current intention to maintain and occupy it as their habitual residence. The relevant issue is the existence and circumstances of the dwelling rather than the number of days spent in Portugal.
• Crew members: The relevant date is 31 December. The criterion is based on the individual's status as a qualifying crew member on that date rather than on a minimum number of days of presence in Portugal.
• Portuguese public functions abroad: This criterion is not based on a minimum number of days in Portugal. Residence follows from the qualifying performance of public functions or commissions abroad on behalf of the Portuguese State.
• Portuguese nationals relocating to listed low-tax jurisdictions: This is not a day-counting test. Where the statutory conditions are met, Portuguese residence is maintained for the year of relocation and the following four years, subject to the statutory exceptions. The rule ceases to apply when the individual becomes tax resident in a jurisdiction outside the listed territories.

Tax consequences

Portuguese tax residents are generally subject to Portuguese Personal Income Tax (IRS) on their worldwide income, while non-residents are generally taxed on Portuguese-source income. In a partial-year case, the resident and non-resident periods are treated separately for Portuguese tax purposes.

Migration / EU residence

EU/EEA/Swiss nationals generally have the right to enter and reside in Portugal under EU free-movement rules. For residence exceeding three months, an EU Registration Certificate (Certificado de Registo) is generally required from the competent local municipality. Third-country nationals require the appropriate Portuguese immigration visa or residence permit depending based on residence. Immigration status does not itself determine Portuguese tax residence.

Once an individual becomes or ceases to be Portuguese tax resident, the corresponding change of tax address (domicílio fiscal) must generally be reported to the Portuguese Tax and Customs Authority within 60 days.

Orientation references

• Código do IRS (CIRS), Article 16 — statutory rules governing when an individual is considered resident in Portugal, including the 183-day test, habitual-residence dwelling test and special whole-year residence rules.
• Código do IRS (CIRS), Article 15 — scope of taxation for residents and non-residents and treatment of resident and non-resident periods.
• Portaria n.º 150/2004, as amended — identifies the territories subject to Portugal's special rule for Portuguese nationals relocating their tax residence to jurisdictions with a clearly more favourable tax regime.
• Portuguese immigration / EU residence framework