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Madeira: Personal Taxation

Residence and Liability for Taxation

This page was last updated on 12 Oct 2018.

Madeira is part of Portugal and individual taxation follows Portuguese principles. An individual is considered resident if:

  • he is physically present in Portugal (or Madeira) for more than 183 days in a calendar year; or
  • if he has a residence at his disposal in Portugal on 31 December which he intends to use as his permanent residence (i.e. he establishes domicile).

Individuals who are resident in Portugal pay income tax on their worldwide income. Taxable income falls under eight headings:

  • Employment income
  • Self-employment income
  • Commercial or industrial profits
  • Agricultural income
  • Income from capital
  • Rental income
  • Capital gains
  • Pensions
  • Other income

Non-resident individuals pay tax on their Portuguese-source income only, under the following headings:

  • Income from scientific, artistic or technical services performed in Portugal
  • Income derived from a commercial permanent establishment
  • Investment income
  • Pensions
  • Income and capital gains from movable or immovable property.

 

 

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