Real Estate Tax In Portugal

For Investments in Portugal:

Investors are subject to a flat rate of 10% in Portugal. Taxable Income Calculation: The taxable income for indivi- duals or corporations will be adjusted to include a credit for this 10% deduction

For Israeli Investors:

Israeli investors are subject to an additional 15% tax rate.
Tax Treaty Benefits: Due to the tax treaty between Portugal and Israel, Israeli investors (and those from countries other than Portugal) can benefit from favorable tax conditions. The treaty aims to prevent double taxation, allowing a credit for taxes paid in Portugal (10%) to be applied against the tax liability in Israel of 25%.

Strategic Tax Planning

Individuals and Corporations: Both entities are eligible for the stated tax rates and deductions. International Consideration:

Israeli investors, along with investors from other countries not including Portugal, should account for their home country's taxation in addition to Portuguese tax obligations.

It's essential for investors to engage in strategic tax planning, considering both the initial 10% deduction in Portugal and the applicable tax rate in their home country.

Investors are encouraged to consult with tax professionals to fully understand and optimize their tax positions under the Portugal tax treaty frameworks.

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