Income is reported in different categories: A) Salaries, B) Sole Traders, E) Capital, F) Property, G) Capital Gains and H) Pensions and is taxable in Portugal regardless of its origin. For non-residents, only income actually arising in Portugal is subject to assessment.
Taxation of bank interest was harmonised throughout the European Union with the introduction of the EU Savings Directive. The following situations reveal which tax options exist and the implications of each scenario.