After completing your first year of business, it will be time to settle your tax on income with the Tax Office. The
fiscal year in Portugal corresponds to the calendar year. Business activities fall into Category B and are reported on in the second internet filing period in May. For Residents, net local lodging invoicing is added to other sources of income, such as pensions, dividends, etc. Tax is calculated at marginal rates (14.5% – 48% in 2014). Non-Residents are assessed at a flat rate of 25%.