Portugal
Companies Taxation
Overview
Portugal offers a business-friendly corporate tax system aligned with EU standards. With a competitive corporate income tax rate, regional incentives, and a beneficial participation exemption regime.
Portugal is a strategic choice for international businesses, holding companies, and startups operating in Europe.
Portuguese Tax System for Companies
- Standard corporate income tax (CIT) rate: 21%.
- Municipal surcharge up to 1.5% depending on location.
- State surcharge for large profits (3%-9%) on taxable income over €1.5M.
- Participation exemption on qualifying dividends and capital gains.
- Patent Box regime: 85% exemption on qualifying IP income.
- R&D tax incentives, including SIFIDE II for innovation.
- No withholding tax on dividends to EU/EEA entities (with conditions).
- Deduction of carried-forward losses up to 65% of taxable income.
- Transfer pricing rules based on OECD guidelines.
- Extensive tax treaty network to avoid double taxation.
Requirements and Procedures
- Register the company with the Portuguese Companies Registry and obtain NIF.
- Maintain accounting in accordance with Portuguese GAAP or IFRS.
- Annual CIT return (Modelo 22) due by May 31 or five months after year-end.
- Payment of CIT in advance in three instalments (July, September, December).
- File IES (Annual Simplified Business Information) by July 15.
- Submit VAT returns monthly or quarterly depending on turnover.
- Withholding tax returns and Modelo 10 submitted annually.
- Mandatory e-invoicing and SAF-T file submission for large companies.
- Maintain transfer pricing documentation if thresholds are exceeded.
- Audit requirement if two out of three criteria are met: turnover > €3M, assets > €1.5M, or >50 employees.ax resident and obtain a Portuguese NIF (tax ID).
How Charfort can help you?
- Full company incorporation and tax registration in Portugal.
- CIT and VAT compliance, including Modelo 22 and Modelo 10 filings.
- Advisory on tax-efficient structures for Portuguese and EU operations.
- Optimization using participation exemption and IP Box regimes.
- Assistance with SIFIDE II R&D tax credit applications.
- Setup and compliance for e-invoicing and SAF-T obligations.
- Transfer pricing planning and documentation.
- Tax audit support and interaction with Portuguese Tax Authority.
- Representation for tax ruling requests and treaty benefit claims.
- End-to-end corporate governance and fiscal compliance solutions.
Frequently asked questions
Everything you need to know about the process.
Contact us today
Charfort assists international clients in obtaining residence and citizenship under the respective programs. Contact us to arrange an initial private consultation.
