How much tax will I pay on my pension if I retire in Portugal?
| Pension per year | €30,000 |
| IRS per year | − €4,561 |
| Average tax rate | 15.2% |
| You keep per year | €25,439 |
Mainland Portugal: income tax is lower in the Azores and Madeira · Figures checked in October 2026 · See assumptions ↓
How it was calculated
Since 2024, new residents can no longer join NHR (RNH), and IFICI does not cover pensions. So a pension received by a tax resident of Portugal is taxed at the normal IRS rates, from 12.5% to 48%, after a deduction of €4,587.09 per person (2026). Each person is taxed separately here.
Tax treaties can change this: some pensions, such as government service pensions, may be taxed only in the country that pays them. Check your country’s treaty with Portugal. Estimate for 2026, without health or other deductions. Not tax advice.
Joint taxation can pay off if the two spouses’ pensions are very different.
The 2026 IRS rates may still be cut with effect from January (decree-law approved by the Government, awaiting publication). This page uses the rates currently in force.
Figures checked in October 2026 · Sources: CIRS, art. 53.º, Portal das Finanças
Estimate: An approximate result that depends on assumptions. Confirm important figures with the relevant authority.
Frequently asked questions
Is my foreign pension taxed in Portugal?
If you are tax resident in Portugal, usually yes, at normal IRS rates from 12.5% to 48%. Some pensions, such as government service pensions, may be taxed only in the paying country under a tax treaty.
Can I still get NHR for my pension?
No. NHR closed to new residents in 2024, and its replacement, IFICI, does not cover pensions.