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Madeira: Personal Taxation

Residence and Liability for Taxation

Madeira is part of Portugal, so that individual taxation follows Portuguese principles.

Madeira Residence and Liability for Taxation

An individual is considered to be 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 December 31 which he intends to use as his permanent residence (ie he establishes domicile).

Individuals who are resident in Portugal pay income tax on their world-wide 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 establishement;
  • Investment income;
  • Pensions;
  • Income and capital gains from movable or immovable property.

 

 

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