Portugal corporate taxes

Portugal cut its corporate income tax to 19% for 2026 (with a 15% rate on the first €50,000 for SMEs), on a path to 17% by 2028. On top sit municipal and state surcharges and a distinctive autonomous taxation of cars and certain expenses. VAT is 23% on the mainland, and payroll runs on a progressive income tax plus flat social contributions. E-invoicing rules, SAF-T and QR codes are well established.

Currency EUR (€)Tax year Calendar year (or chosen financial year)EU member stateLast reviewed 2026-07-12

19%

Corporate income tax

15% on first €50,000 (SMEs)

23%

VAT standard (mainland)

Reduced: 13% and 6%

up to 48%

Income tax

Progressive; +solidarity surcharge

28%

Dividend tax

Residents; 25% WHT non-residents

23.75%

Social — employer

Employee 11%

3–9%

State surcharge (large profits)

On profit above €1.5m

Company forms & registration

Companies can be set up same-day (Empresa na Hora) or online; they register with the Commercial Register and file beneficial-owner data (RCBE).

Main legal forms	LDA (private limited), SA (public limited), sole trader^[2][10]The LDA (sociedade por quotas) is the default choice for most businesses.
Minimum share capital	LDA: €1 per share; SA: €50,000^[10]A single-member LDA needs €1; a plural LDA €2 (one €1 quota per partner).
Registers a new employer meets	Registo Comercial (incorporation) → AT (tax & VAT) → Segurança Social (employer) → RCBE (beneficial owners)^[10][9]

Other statutory requirements

Obligations beyond filing a tax return that every operating company must satisfy.

Certified invoicing, ATCUD & QR code	Invoices carry a unique code (ATCUD) and a QR code^[6][2]Certified billing software is required. SAF-T (PT) billing data is submitted monthly by the 5th; PDF invoices are accepted as electronic invoices until end-2026.
Beneficial owners (RCBE)	Declared and confirmed annually by 31 December^[10]Changes are filed within 30 days; the annual confirmation can go with the IES.
IES (simplified business information)	Annual filing by 15 July^[8]A single electronic filing covering accounts, tax and statistics.
Document retention	10 years^[2]

Corporate income tax (IRC)

Standard rate	19% (2026)^[1][2]Cut from 20% in 2025 and 21% in 2024, on a path to 18% (2027) and 17% (2028). Madeira and the Azores apply lower regional rates.
SME reduced rate	15% on the first €50,000^[1][2]For small and medium-sized companies; the remainder is taxed at 19%.
Municipal & state surcharges	Derrama up to 1.5%; state 3–9%^[2]A municipal surcharge up to 1.5% of profit, plus a state surcharge of 3% (profit €1.5m–7.5m), 5% (€7.5m–35m) and 9% (above €35m).
Autonomous taxation	8% / 25% / 32% on cars^[2]Company cars are taxed by cost band (from under €37,500 to €45,000+); representation and undocumented expenses also carry autonomous tax.
Return & advances	Modelo 22 by 31 May; three advances (Jul, Sep, Dec)^[5][2]Payments on account are due 31 July, 30 September and 15 December.

Withholding taxes & dividends

Dividends, interest, royalties (non-residents)	25%^[2]EU parent-subsidiary exemption to 0% for a ≥10% holding held a year; the EU Interest & Royalties Directive removes withholding between associated companies. Payments to blacklisted jurisdictions: 35%.
Dividends to resident individuals	28%^[4]Final withholding tax; the recipient may instead opt to aggregate at progressive rates on half the dividend.
Dividends to resident companies	0% participation exemption^[2]Exempt where a ≥10% holding has been held for at least a year.

VAT (IVA)

Mainland rates	23% / 13% / 6%^[3][6]The Azores (16/9/4%) and Madeira (22/12/4%) use lower rates. 0% for exports and intra-EU supplies.
Small-business exemption	Turnover up to €15,000^[3][6]Below the threshold a business charges no VAT and cannot deduct input VAT.
VAT return	Monthly (turnover > €650k) or quarterly^[6]Filed by the 20th of the second following month; paid by the 25th.

Payroll: income tax & social security

Income tax is progressive across nine bands; the employer withholds it and pays flat social-security contributions.

Income tax (IRS)	12.5% → 48%^[4][7]Nine progressive bands from 12.5% up to 48% (2026), plus a solidarity surcharge of 2.5% above €80,000 and 5% above €250,000.
Employer social security	23.75% of gross^[9]
Employee social security	11% of gross^[9]Combined rate 34.75%.
Minimum wage	€920/month × 14 (2026)^[9]
Reporting	Monthly remuneration return (DMR) by the 10th^[9][7]Reports withheld income tax and remuneration to the AT and social security.

Other taxes companies meet

Property tax (IMI)	0.3%–0.45% urban; 0.8% rural^[5]Annual municipal tax on the taxable value (VPT) of real estate.
Property transfer tax (IMT)	Progressive, up to ~7.5%–8%^[5]On the higher of price or taxable value; brackets updated for 2026.
Stamp duty (Imposto do Selo)	0.8% on property; various rates elsewhere^[5]On property transfers, financing, guarantees and gifts.

Accounting & financial statements

Accounting standards	SNC (Portuguese GAAP) or IFRS^[2]IFRS is used for consolidated accounts of listed groups.
Accounts approval & IES	Approve by 31 March; IES by 15 July^[8][2]
Statutory auditor (ROC)	All SA; LDA if 2 of 3 exceeded^[2]For an LDA: balance sheet €1.5m, turnover €3m, 50 employees, over two consecutive years.
SAF-T (accounting)	Applies from 2027 (first filing 2028)^[6]The SAF-T accounting file has been postponed again; the billing file remains monthly.

Forms & filings

Every recurring return and report a typical company deals with, what triggers it, and where it goes. Registration-time and one-off filings are marked “per event”.

Form	What it is	Who files	Frequency	Deadline	Filed with
`Modelo 22`	Corporate income tax return^[5][2]	IRC payers	annual	31 May	ATPortal das Finanças
`PPC`	IRC payments on account^[5]	IRC payers	quarterly	31 Jul, 30 Sep, 15 Dec	ATPortal das Finanças
`IVA`	VAT return^[6]	VAT-registered persons	monthly	20th of the 2nd following month; pay by 25th	ATPortal das Finanças
`SAF-T billing`	SAF-T (PT) billing file^[6]	All businesses	monthly	By the 5th of the following month	ATPortal das Finanças
`DMR`	Monthly remuneration return^[9][7]	All employers	monthly	By the 10th of the following month	ATPortal das Finanças
`IES`	Simplified business information^[8]	All companies	annual	15 July	ATPortal das Finanças
`RCBE`	Beneficial owner register^[10]	All companies	annual	Confirm by 31 December; 30 days on change	Registo ComercialRCBE

Compliance calendar

The same filings grouped by rhythm — what recurs when.

monthly

IVA20th of the 2nd following month; pay by 25th
SAF-T billingBy the 5th of the following month
DMRBy the 10th of the following month

quarterly

PPC31 Jul, 30 Sep, 15 Dec

annual

Modelo 2231 May
IES15 July
RCBEConfirm by 31 December; 30 days on change

Sources

Numbered references cited throughout this profile. Laws link to consolidated texts in the official register.

Law 64/2025 (2026 corporate tax rates)Diário da República · law
Corporate Income Tax Code (Código do IRC)Autoridade Tributária · law
VAT Code (Código do IVA)Autoridade Tributária · law
Personal Income Tax Code (Código do IRS)Autoridade Tributária · law
Corporate income tax (IRC) — guidanceAT (Tax Authority) · authority
VAT, SAF-T & e-invoicingAT (Tax Authority) · authority
Personal income tax (IRS) — guidanceAT (Tax Authority) · authority
IES — simplified business informationAT (Tax Authority) · authority
Social security contributionsSegurança Social · authority
Company registration & beneficial owners (RCBE)Registo Comercial / IRN · register