Portugal
Corporate Tax Guide
Time of Update: 4/04/2026
Portugal has a general corporate income tax rate of 21%, with a value-added tax rate of 23%. Capital gains for corporations are taxed at 25%. Companies file returns by the last day of the fifth month after the tax year ends. Three installment payments are due in July, September, and December, with a possible waiver for the final installment. Resident withholding tax is 25% on dividends, interest, and royalties. Non-resident withholding tax is 25% on dividends and royalties, and 0% or 25% on interest depending on conditions. The Composite Effective Average Tax Rate is 28.42% and the Composite Effective Marginal Tax Rate is 16.01%.
Portugal Corporate Income Tax (CIT)
General CIT Rate:
21
CIT Return Due Date:
The last day of the fifth month after the end of the tax year.
CIT Payment Due Date:
The last day of the fifth month after the end of the tax year.
CIT Estimated Payment Due Date:
Three-stage installment payments due in July, September, and December (if the tax year corresponds to the calendar year). Under certain conditions, the final installment payment may be waived.
Portugal Withholding Tax (WHT)
Resident Withholding Tax (Dividend/Interest/Royalty):
25/25/25
None-Resident Withholding Tax (Dividend/Interest/Royalty):
25/0-25/25
Portugal Value-Added Tax (VAT)
General VAT Rate:
23
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Portugal Capital Gain Tax (CGT)
General Capital Gain Tax Rate:
25 (same as the normal CIT rate for corporations)
Portugal Effective Tax Rate (ETR)
Composite Effective Average Tax Rate:
28.42%
Composite Effective Marginal Tax Rate:
16.01%
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TKEG Expat ™ (NL) Portugal Corporate Tax Guide
1.
Portugal Corporate Income Tax (CIT)
In Portugal, the headline Corporate Income Tax (CIT) rate is set at 21%. Companies are required to submit their CIT returns by the last day of the fifth month following the end of the tax year. The final CIT payment is also due by this date. Additionally, estimated CIT payments must be made in three installments, typically in July, September, and December, with a possible waiver for the last installment under certain conditions.
2.
Portugal Personal Income Tax (PIT)
Portugal applies a progressive Personal Income Tax (PIT) system with rates for residents reaching up to 48%, alongside a solidarity surtax for high-income earners. Non-residents are taxed at a flat rate of 25% on employment or self-employment income. Tax returns are due by June 30th of the following year, with extended deadlines available for certain taxpayers. The final payment is due by the same date, and Portuguese authorities may issue tax assessments by July 31st, with the tax payable by August 31st.
3.
Portugal Withholding Tax (WHT)
In Portugal, the withholding tax rates vary depending on the type of income. For residents, the rate is 25% across dividends, interest, and royalties. Non-residents are subject to the same 25% rate for dividends and royalties, while interest may be exempt depending on certain conditions.
4.
Portugal Value-Added Tax (VAT)
Portugal operates a multi-tiered VAT system. The standard VAT rate is 23%, with reduced rates of 13% and 6% applied to certain goods and services. Special reduced rates apply in the Autonomous Regions of Madeira and the Azores. The VAT covers a wide range of transactions, including goods and services supplied within Portugal, intra-EU acquisitions, and exports, which are zero-rated.
5.
Social security contributions
As a rule, employers are required to make monthly social security contributions at the standard rate of 23.75% on the monthly gross remuneration of their employees.
Social security contributions are deductible for CIT purposes.
Social security contributions are deductible for CIT purposes.
