Corporate Tax in Portugal

The corporate income tax in Portugal applies both to resident companies and to non-resident corporations that derive income from the country. A certain company is considered a resident one of it has its legal seat or place of management in Portugal. 

 

Our lawyers in Portugal can provide you with complete information on the tax laws, including the one for foreign investors in the country.

 

 

The Portuguese corporate income tax applies to the company’s profits, which may be derived from actual business or trading income, from passive income as well as capital gains. Small companies in Portugal can benefit from a simplified taxation regime. For these types of companies, the taxable income is calculated in a different manner, as a percentage of the turnover and this percentage may depend on the activity. 

 

The effective standard corporate income tax rate in Portugal is 21% and a reduced rate of 17% applies to the first 15,000 EUR of the taxable profits (only for qualifying small and medium-sized businesses).

 

Our lawyers in Portugal can give you details on the municipal surcharge and the state surcharge that applies on the taxable profits that exceed 1.5 million EUR and more.

 

 

Other taxes for companies in Portugal include the property tax, the real estate transfer tax, stamp duty and social security applicable to employers in Portugal. There is no capital duty tax and no payroll tax. Withholding taxes on dividends, royalties, and interest apply. One of our experts can tell you more about the taxation of dividends and how foreign investors in Portugal who derive income both from the country and from their country or origin can benefit from special tax rates included in the double tax treaties.

 

The tax year in Portugal is generally the same as the calendar year. resident companies and those non-resident companies that have a permanent establishment in Portugal may use a different tax year.

 

You can contact the experts at our law firm in Portugal for more information and advice on tax planning. We can also help you with details on the taxation of individuals, for either residents or expats.