Tips etiquette in Portugal
In Portugal, tipping is generally not mandatory, but it is appreciated as a gesture for good service. However, there are some exceptions to this rule that every customer should be aware of.
Most restaurants in Portugal leave tipping optional, allowing customers to decide how much, if anything, to tip. But, if a restaurant explicitly includes a tip or service charge amount in its price list or on the bill, the customer is obliged to pay that specified tip. This mandatory tip is usually clearly stated on the bill or menu.
The mandatory tip or service charge appears explicitly on the bill as a separate charge, often labeled as a "service charge" or "tip" amount. Optional or suggested tips may also be present, but these are not compulsory and should be clearly marked as such.
The Portuguese Hotel, Restaurant, and Similar Association (AHRESP) advises against restaurants suggesting a tip by including it on the cash register receipt or price list. Instead, they recommend that customers are informed about any service charge on their bill.
It is important to note that if a customer finds themselves in a situation where an establishment insists on paying the tip, they have the right to file a complaint. In such cases, it is better to opt for the electronic complaints book if a customer needs to file a complaint about an establishment.
When paying with a bank card, it is advisable to check the amount entered on the device before paying to confirm whether the amount includes the tip or not.
Income from dependent employment, such as tips, is considered 'bonuses received for the provision or by reason of the provision of work'. As a result, tips are subject to taxation, and the employer is responsible for distributing them among employees.
In extreme cases, it may be necessary for a customer to appeal to the authorities if an establishment insists on paying a tip. However, this is a rare occurrence, and the vast majority of restaurants in Portugal are transparent and fair in their tipping practices.
In summary, tipping is voluntary in Portugal unless a restaurant makes it compulsory by listing a tip amount on the bill or menu, in which case customers have no choice but to pay it. The mandatory tip is usually clearly stated on the bill for transparency. Otherwise, a 5–10% tip is a common and appreciated custom for good service but not enforced by law.
In Portugal, if a restaurant lists a tip amount on the bill or menu, it becomes a mandatory charge that customers must pay, usually clearly stated as a "service charge" or "tip." Conversely, in most restaurants, tipping is optional but appreciated, and a 5–10% tip is commonly given for good service as a voluntary gesture.
