Taxation in Portugal of interest income from Valvest (2025)

In Portugal, interest income from foreign sources (like Valvest) is generally taxed at a flat rate of 28%. However, taxpayers have the option to include this income in their annual tax return, where it will be subject to progressive tax rates ranging from 13% to 48%, depending on the total taxable income.

Declaring Valvest Interest Income

As a Portuguese tax resident, you are required to declare your worldwide income, including interest received from foreign sources like Valvest. This income must be reported in your annual Portuguese tax return.

📊 Example Calculation

Suppose you receive a total of €1,000 in interest from a loan to Valvest. If this income is taxed at 28% in Portugal, the taxation would be:

• Portuguese tax (28%): €1,000 × 28% = €280

💰 Portuguese Tax Declaration

To correctly report this foreign interest income in your Portuguese tax return, you should include the gross amount of interest received from Valvest in your annual tax return.

📉 Non-Habitual Resident (NHR) Regime

If you qualify for Portugal's Non-Habitual Resident (NHR) regime, different tax rules may apply. Under the NHR regime, foreign-source interest income may be exempt from taxation in Portugal, provided certain conditions are met, including that the income is taxed in the source country. It's essential to verify your eligibility and the specific conditions of the NHR regime to benefit from potential tax exemptions.