IRS Income Categories

Cat ATrabalho dependente (employment)

Employment contract income. Dedução específica: €4,350.24 (2024), €4,462.15 (2025). Formula: Gross − max(dedução específica, SS + profDues×2).

Taxation: Progressive rates

Cat BTrabalho independente (self-employment)

Freelance, professional services. Regime simplificado: income × coefficient. Coeff. 0.75 for Art. 151 CIRS. Reduction: −50% (1st year), −25% (2nd year).

Taxation: Progressive rates

Cat ECapitais (capital income)

Dividends, interest, royalties. Default — separata 28%. Englobamento beneficial if income < €22,306 (2025).

Taxation: 28% or progressive

Cat FPredial (rental)

Landlord income. Net = gross − deductible expenses. Default 28%. Englobamento is optional.

Taxation: 28% or progressive

Cat GMais-valias (capital gains)

Sale of shares, ETF, crypto, real estate. 50% exclusion for real estate. Crypto > 365 days (from 2023) — exempt.

Taxation: 28% or progressive

Cat HPensões (pensions)

Same as Cat A. Same dedução específica. Foreign pensions under NHR — 10% autonomous.

Taxation: Progressive rates