Moving to Portugal: tax, residence and real costs (2026)
Portugal: 0% on most foreign income (IFICI, 10 years) · 20% flat on qualifying Portuguese work income · 48% otherwise. The cheapest route to residence is d7 visa (~EUR 870/month passive income) + savings for a year: USD 12k that stays yours (deposit, investment or funds shown) plus about USD 1,500 in fees, with about USD 950 a month of income shown, in about 6 months. Living costs about USD 1,950 a month for one person in Lisbon, USD 1,050 in Barcelos, and around USD 980 on a bare-minimum budget.
Key facts
| Tax in one line | 0% on most foreign income (IFICI, 10 years) · 20% flat on qualifying Portuguese work income · 48% otherwise |
| Foreign income | IFICI: most foreign income exempt (not foreign pensions) for qualifying professions |
| Gains · dividends | 28% (foreign often exempt under IFICI) · 28% |
| Wealth · inheritance tax | none (stamp duty on high-value property) · 10% stamp duty, spouses and children exempt |
| Cheapest residence | D7 visa (~EUR 870/month passive income) + savings for a year |
| Money needed | USD 12k that stays yours (deposit, investment or funds shown) plus about USD 1,500 in fees |
| Time | about 6 months |
| Doable yourself? | Yes, with a checklist |
| Days you must spend there | 183 days or a home |
| Citizenship | 5 years (proposals to raise to 10 |
| Online business | 30% effective, about USD 1,000 a year to run: IFICI 20% only for qualifying jobs; otherwise self-employed simplified regime ~30% effective on 150k |
| Living (one person a month) | Lisbon ~USD 1,950; bare minimum ~USD 980; family of four ~USD 3,300 |
| Good for | IFICI for researchers, tech and start-up staff; crypto held over 365 days untaxed; D7 (passive income) and D8 (digital nomad) visas |
| Common set-up | D7 or D8 visa + IFICI if eligible; others: crypto and long-term gains planning |
Pros and cons
| Pros | Cons |
|---|---|
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Programmes
| Programme | All-in, one person | Months | Notes |
|---|---|---|---|
| Golden Visa (funds) | USD 600k | 12 | No property route since 2023: EUR 500k in qualifying funds, or EUR 250k culture/research. Backlogs at AIMA. |
| D8 digital nomad visa | USD 1,500 | 4 | Income ~4x minimum wage (~EUR 3.5-3.7k/month); a route to IFICI if the activity qualifies. |
Questions
- How much does residence in Portugal cost?
- D7 visa (~EUR 870/month passive income) + savings for a year: USD 12k that stays yours (deposit, investment or funds shown) plus about USD 1,500 in fees, about 6 months.
- Does Portugal tax foreign income?
- IFICI: most foreign income exempt (not foreign pensions) for qualifying professions. In one line: 0% on most foreign income (IFICI, 10 years) · 20% flat on qualifying Portuguese work income · 48% otherwise.
- What does it cost to live in Portugal?
- Living costs about USD 1,950 a month for one person in Lisbon, USD 1,050 in Barcelos, and around USD 980 on a bare-minimum budget (based on livingcost.org, 2026).
- Can I run an online business from Portugal?
- Effective tax about 30% with the cheapest legal set-up, which costs about USD 1,000 a year: IFICI 20% only for qualifying jobs; otherwise self-employed simplified regime ~30% effective on 150k.
- What is the catch in Portugal?
- Categories are limited; .
- What residence or citizenship programmes does Portugal have?
- Golden Visa (funds): about USD 600k all-in for one person, ~12 months; D8 digital nomad visa: about USD 1,500 all-in for one person, ~4 months
Compare
- Monaco: 0% on foreign income · 0% on local income (French citizens excepted)
- Andorra: 10% on foreign income (credit for tax paid abroad) · 10% on local income · 10% top
- Switzerland (lump-sum taxation): lump-sum: a yearly fixed tax on living costs instead of tax on income (foreign income and gains included)
- Italy (flat tax for new residents): EUR 300k a year flat on all foreign income and gains, whatever the amount · 43% on Italian income
- Greece (non-dom): EUR 100k a year flat on all foreign income (+EUR 20k per family member) · up to 44% on Greek income
- Cyprus (non-dom): 0% on dividends and interest (non-dom, 17 years) · 20-35% on work income · 0% on securities gains
- Malta: foreign income: 0% unless brought to Malta (min. tax EUR 5k) · 35% top on Maltese income
- United Kingdom (FIG regime): first 4 years: 0% on foreign income and gains (FIG) · up to 45% on UK income · then worldwide
Compare all 53 places with your own income and budget →
Sources
- https://info.portaldasfinancas.gov.pt
- Living costs: based on livingcost.org (livingcost.org, June 2026), rounded