Regions of Portugal
Moving to the Azores: the tax guide
IRS rates 30% lower than on the mainland and lower corporate tax. What it takes to qualify.
In short
- The Azores are part of Portugal: the same NIF, Social Security rules, IFICI and IRS return as on the mainland.
- If your tax residence is in the Azores, your IRS rates are 30% lower than the national rates, in every bracket.
- Companies in the Azores pay 10.5% IRC on the first €50,000 of profit (SMEs) and 13.3% above.
IRS: 30% off every bracket
By regional law, IRS rates in the Azores are the national rates reduced by 30%. On the 2026 national table that means the lowest rate falls from 12.5% to 8.75%, and the top rate from 48% to 33.6%.
| National rate 2026 | Azores rate |
|---|---|
| 12.5% | 8.75% |
| 21.2% | 14.84% |
| 31.1% | 21.77% |
| 34.9% | 24.43% |
| 44.6% | 31.22% |
| 48% | 33.6% |
Selected brackets. The bracket limits are the same as on the mainland.
Companies in the Azores
| IRC in 2026 | Mainland | Azores |
|---|---|---|
| SMEs, first €50,000 of profit | 15% | 10.5% |
| Profit above that, and other companies | 19% | 13.3% |
Before you move
- The regional rates follow your tax address. It must be a real home in the Azores, not a mailing address.
- Under IFICI your qualifying work income is taxed at the flat IFICI rate, so the regional reduction matters most for income outside the regime and for people who do not qualify.
- Check flights and internet for the island you choose. São Miguel and Terceira are the best connected.
Sources: Autoridade Tributária, tax rates 2026.
Frequently asked questions
Are taxes lower in the Azores?
Yes. IRS rates for Azores residents are 30% lower than the national rates, and corporate tax is 13.3%, or 10.5% on the first €50,000 for small companies.
Do I need to live in the Azores to get the lower rates?
Yes. The regional rates apply when your tax residence, the address registered with the tax office, is in the Azores.
Can I work remotely from the Azores for a foreign company?
Yes. You are taxed as a Portuguese resident at Azores rates, and the usual rules on employer, Social Security and IFICI apply.
Ask a specialist
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