taxa liberatória
Published 8 November 2026, 22:44
taxa liberatória (final withholding rate)
A tax withheld at the moment of payment that settles the matter: income taxed at this rate does not have to go on your tax return. For interest on deposits and certificates it is 28% (Article 71(1) of the IRS code), or 19.6% for residents of the Azores.
Where you come across it. A deposit statement showing interest already paid net of tax; conversations along the lines of "Do I need to declare this?"
A Portuguese resident may instead add such income to their total income and have it taxed on the progressive scale (englobamento) — but then the whole category has to be included, not selected items. A 35% rate applies to accounts held in the name of an undisclosed third party and to income from countries on the list of "more favourable tax regimes".