🇵🇹 Corporate Tax in Portugal

Headline rate: 21% (17% SME rate on first €50K)

Private Limited Company (Lda)

The Lda pays IRC (Imposto sobre o Rendimento das Pessoas Coletivas) at a standard rate of 21%. SMEs benefit from a reduced rate of 17% on the first €50,000 of taxable profit. A municipal surcharge (derrama municipal) of up to 1.5% may apply depending on the municipality. A state surcharge (derrama estadual) applies to taxable profits above €1.5 million at progressive rates (3–9%). Portugal has an extensive treaty network (79 treaties) and participates in the EU Parent-Subsidiary Directive for intra-EU dividend flows. The Madeira International Business Centre (MIBC) offers reduced rates for qualifying companies operating in the Madeira Free Zone.

Public Limited Company (SA)

Taxed identically to the Lda under the IRC code. Standard 21% rate with the SME reduced rate of 17% on first €50,000 (if qualifying). Municipal and state surcharges apply on the same basis. SAs used as holding vehicles benefit from Portugal's participation exemption on dividends from EU and treaty-country subsidiaries (subject to conditions). The same Madeira Free Zone incentives are available for qualifying SA structures.

Key Facts

Double tax treaties: 79
Memberships: EU, WTO, Eurozone, UN, NATO, OECD
Legal system: Civil law
Fiscal year: Calendar year (January–December)

This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.