Europe · Tax guide
Portugal
Portugal taxes company profits at 17% in 2026, with 15% on the first slice for SMEs, plus municipal and state surcharges; it charges VAT at 23% on the mainland and requires certified invoicing software. Taxes are administered by the Autoridade Tributária e Aduaneira.
At a glance
- Corporate income tax (IRC)
- 17%
- VAT (mainland)
- 23%
- Withholding on payments abroad
- 25%
- Employer social security
- 23.75%
- Transfer pricing file
- €10 million
- Global minimum tax
- 15%
15% on the first €50,000 for SMEs
Reduced rates 13% and 6%
Dividends, interest and royalties, before relief
On salaries
Turnover at which it is required
Groups with revenue of €750 million or more
Corporate income tax (IRC)
The IRC rate is 17% in 2026. SMEs pay 15% on their first €50,000 of profit. On top come a municipal surcharge of up to 1.5% and a state surcharge of 3% to 9% on profits above €1.5 million. Three advance payments are made during the year and the Modelo 22 return is filed by the end of May for calendar-year companies.
VAT (IVA)
VAT on the mainland is 23%, with reduced rates of 13% and 6%; Madeira and the Azores have lower rates. Businesses with turnover up to €15,000 can be exempt. Invoices must be issued with certified software and reported to the tax authority (SAF-T).
Withholding tax on payments abroad
Dividends, interest and royalties paid to non-residents carry 25%, reduced by treaties and EU directives with the right forms. Higher rates apply to entities in blacklisted jurisdictions.
Employers
Employers withhold income tax from salaries and pay social security contributions of 23.75%, with employees contributing on top.
Transfer pricing and the global minimum tax
Related-party transactions must be at arm's length; companies with turnover of €10 million or more prepare a transfer pricing documentation file. Groups with €750 million or more are subject to the global minimum tax at 15%.
Property
Buyers pay up to 6.5% property transfer tax (IMT) plus 0.8% stamp duty, plus annual municipal property tax (IMI).
Key dates
- Monthly or quarterlyVAT returns, depending on turnover
- July, September and DecemberIRC advance payments
- End of MayAnnual IRC return (Modelo 22) for calendar-year companies
Figures and sources
13 figures- Corporate income tax (IRC) rate for 202617%Checked against the official source
- Reduced SME rate on the first slice of profit15%Checked against the official source
- VAT (IVA) standard rate on the mainland23%Checked against the official source
- Profit taxed at the reduced SME rate€50,000Checked against the official source
- VAT reduced rates on the mainland13% and 6%Checked against the official source
- Withholding on dividends, interest and royalties paid to non-residents (35% for blacklisted jurisdictions)25%Checked against the official source
- Employer social security contribution23.75%Under professional review
- Turnover at which a transfer pricing documentation file is required€10 millionChecked against the official source
- Global minimum tax rate15%Checked against the official source
- Group revenue for the global minimum tax€750 millionChecked against the official source
- Surcharges on IRCa municipal surcharge of up to 1.5% and a state surcharge of 3% to 9% on profits above €1.5 millionChecked against the official source
- Annual turnover limit for the small business VAT exemption€15,000Checked against the official source
- Taxes on property purchasesup to 6.5% property transfer tax (IMT) plus 0.8% stamp dutyChecked against the official source
Indicative only. This assessment is a high-level overview of tax obligations in Portugal based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a Portuguese certified accountant or tax lawyer before making compliance decisions.