It is "increasingly common" for restaurants to offer two payment options for the bill, one that includes the value of the meal and another that adds a percentage of tip or gratuity. This is according to DECO PROTeste, highlighting that "service gratuities are not mandatory in Portugal."
This means that the decision to leave a tip or not is always up to the customer: "It is your decision if they present you with a bill with two amounts".
"The Portuguese Hotel, Restaurant and Similar Association (AHRESP) even states that 'it is not considered good practice for the establishment to suggest a tip by including it on the cash register receipt or price list'. The consumer has this option if they are pleased with the quality of the meal and the service. In this case, they can pay in cash or via ATM", explains the consumer protection organisation.
Does it appear on the bill?
No, the "reference to the tip does not oblige the consumer to pay it". Therefore, "if you pay with a bank card, check the amount entered on the device before paying, to confirm whether the amount includes the tip or not".
"If the establishment insists on paying the tip, the customer can always file a complaint. In this case, it is better to opt for the electronic complaints book. In extreme cases, it may even be necessary to appeal to the authorities", explains the organisation.
Tipping is not mandatory in Portugal, but "if a restaurant determines a tip amount in its price list, the customer has no alternative but to pay it".
"Restaurants that choose to set a certain amount for the service provided, which is equivalent to a gratuity, must state this amount in the price list, displaying it in a visible place. The customer has the right to be informed in advance and clearly about what they will have to pay", explains DECO PROTeste.
"It is important to distinguish whether the tip is included in the price, in which case the consumer must pay for this service, or whether this amount is not included (as is the case in most restaurants), in which case there are no mandatory amounts".
The organisation also explains that the "obligation to include tips on the invoice is a way of controlling their receipt and allowing their withholding at source".
"To ensure that they are taxed, tips must be duly documented on the invoice, and it is up to the employer to determine the amounts received as a bonus and distribute them among the respective employees. This procedure should allow the identification, quantification and control of the amounts in question", it points out.
It is also important to emphasise that "tips are subject to IRS because they are considered income from dependent employment", and that "the IRS Code states that income from dependent employment is considered to be 'bonuses received for the provision or by reason of the provision of work, when not granted by the respective employer'".
"Gratuities not granted by the employer are considered dependent work, because the motivation for granting them lies in the provision of work of this nature. Gratuities are subject to autonomous taxation at a rate of 10%", concludes DECO PROTeste.
It is so hard to leave a tip in Portugal, made worse by the complexity of the system. I have often eaten in restaurants and wanted to leave a tip, but was told I can't, as the tip would have to be made on a second card transaction.
When I have had cash on me I have used that. I am equally suspicious of businesses that automatically add a fixed %, as I am not sure that the employees get them; (I know many companies have rules about employees receiving tips, such as deducting the cost of any breakages by the staff).
My lesson learned, and now I always carry some cash when going out to eat.
I am then sure that the person who serves me gets the money and I am not paying taxes on taxes, which seems to be the way of AT.
By Tony Williams from Other on 29 Jun 2025, 10:18
We've started leaving the tip (we leave 10%) in change on the table because, in asking people in the know, there are a lot of ways that the tips added to the bill can be jiggered by some employers. Of course, you never know which employers, so we just make it a hard and fast personal rule.
By Becca from Algarve on 29 Jun 2025, 10:30
The author of this article does not know the difference between a tip and a service charge, and conflates the two.
Want a quick guide to tipping in PT? Don't.
By André from Porto on 29 Jun 2025, 13:30
I would never go back to a restaurance who did this. It is my choice as to whether or not I think the service I received deserved to be rewarded. How do I know the restaurant owners are going to give the tip to the worker?
By L from Lisbon on 29 Jun 2025, 17:10
The amount of pay for hospitality workers in Portugal is very low - some of the lowest in Europe. With almost no opportunity for increases or promotion. Ask anyone who owns a restaurant or any worker to confirm that there is very little money except for the big brands or a few businesses. Owners cannot increase prices of food due to complaints or competition to pay workers more. So a few euro to say thank you for a good experience makes a big difference to the very low paid workers. A bit of generosity and kindness will go a long way to stop good businesses from closing and make sure you get a positive experience.
By João Mendes from Lisbon on 29 Jun 2025, 20:41
I nearly always feel like a ’commodity’ when I am in a restaurant, here in Portugal.
Very seldom, is there genuine interest in who you are. I DO tip. But it’s hardly ever a gesture full of willingness.
By Steve from Algarve on 29 Jun 2025, 22:05
But the rule is simple - just don't tip.
That's one of the first things I heard from locals here.
Tips here are for the occasions when you feel like that you received an exceptional service.
By Alex from Porto on 01 Jul 2025, 06:36
I often leave one or two euros MAX as a tip no matter how high the bill is. It's not a percentage like in the US. It's a simple thank you if the service is good
By Ronaldo from Algarve on 01 Jul 2025, 09:41
Let’s just hope that with the current influx of North Americans we don’t get into their habit of tipping ridiculous amounts because that’s what they are used to!!
By Dougal Gow from Algarve on 01 Jul 2025, 18:17