englobamento
Published 5 November 2026, 03:36
englobamento (aggregating income)
An option for Portuguese residents to have income taxed not at a separate flat rate but together with all their other income on the progressive IRS scale. For interest on deposits and savings certificates, this only makes sense if your total income is low enough that the rate for your band is below 28%.
Where you come across it. Filling in the annual IRS return, Annex E.
If you choose englobamento, you must add the whole category to your total income, not just the income where it pays off (Article 22(5) of the IRS Code). You have to work it out again every year, as the band thresholds change.
Guides
Where to keep your savings in Portugal: a bank deposit or government savings certificates How to pay tax on cryptocurrency in Portugal How to calculate and pay IRS income tax in Portugal How to deal with NHR and apply for IFICI in Portugal How to rent out your property yourself in Portugal: the contract, taxes and what to do if the tenant doesn't pay