The real cost of working in Portugal revealed

A study by Fundação Francisco Manuel dos Santos highlights the 'tax wedge' between employer costs and worker take-home pay, noting that for a gross salary of 40,504 euros, the employer pays 50,124 euros while the employee receives 27,476 euros. The report also details that the standard corporate tax rate (IRC) is 19% in 2026, with plans to reach 17% by 2028, and notes significant administrative complexity with nearly 27,000 pending tax cases as of late 2025.