Absolutely that is how it works in Portugal. You have a deductible that get‘s bigger but the tax is applied in full: https://taxsummaries.pwc.com/portugal/indi

Absolutely that is how it works in Portugal. You have a deductible that get‘s bigger but the tax is applied in full: https://taxsummaries.pwc.com/portugal/individual/taxes-on-personal-income https://taxsummaries.pwc.com/portugal/individual/taxes-on-pe... More importantly the social security is applied in full as well and it‘s 11% for the employee and 23% for the employer and if there is no Portuguese employer it‘s 34% on top of the regular taxes. There are many options to work around this, all legal and there on purpose. I‘m not denying that. My point is only that these options are necessary and fair.