Accounting and Tax in Portugal

NEWCO has been providing accountancy and tax services in Portugal for over 35 years. We work with small business owners, start-ups, large international companies and private clients, each of whom has a dedicated chartered accountant.

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You can rely on over 35 years’ experience. Get a quote for accounting and tax services in Portugal.

What does our accounting and tax service in Portugal include?

NEWCO’s accounting and tax service in Portugal includes:

Accounting and tax advice;
Issuing invoices and receipts;
Export of SAFT invoicing files;
Reporting information to the Bank of Portugal;
Classification, posting, system integration and allocation of entries;
Reconciliation of bank and third-party accounts;
Document archiving;
Submission of VAT returns (monthly or quarterly);
Compliance with reporting obligations (Form 30, IES, summary returns, amongst others);
Preparation of balance sheets and accounting reports, including the Annual Management Report;
Preparation and submission of Form 22 (corporate tax return);
Monitoring of accounts, inventories and fixed assets;
Support in the event of an audit;
Preparation of tax payment documents;
Calculation of payments on account;
Accounting and tax year-end closing;
Comprehensive payroll processing service.

Through regular monitoring, our accounting and tax service in Portugal enables you to anticipate obligations, reduce the risk of non-compliance and keep your company’s financial information up to date.

Who needs accounting and tax services in Portugal?

The answer is simple: any company or sole trader with organised accounts must appoint a certified accountant. However, in addition to having a certified accountant, it is essential to have specialist tax support to ensure compliance with all obligations.

This obligation applies to:

Commercial companies,
whether sole proprietorships, limited liability companies (Lda) or public limited companies (SA)

Solo entrepreneurs or freelancers
who are required to maintain organised accounts (with an annual turnover exceeding €200,000)

Professional support with a personal touch

Dedicated and experienced chartered accountants; Solutions tailored to your specific situation; A comprehensive service from A to Z.

The role of the certified accountant and tax support

Accounting and taxation in Portugal are two areas that require constant attention.

The certified accountant is responsible for ensuring compliance with accounting and tax rules and is accountable to the Portuguese Tax Authority.

However, a successful accounting and tax strategy in Portugal goes beyond mere compliance: it requires proactive tax management and constant monitoring of legislative changes.

In Portugal, regular accounting reporting is carried out online using SAF-T (Standard Audit File for Tax Purposes) files. This file contains all of a company’s accounting and invoicing information.

Accounting obligations in Portugal

Companies in Portugal are subject to various accounting obligations.

Maintaining organised accounts in accordance with SNC standards.
Keeping the Minutes Books and the Membership Fees Register
Issuing invoices
Annual closing of accounts
Filing the accounts, the management report and the minutes of approval
Submission of inventories
Document archiving

Tax obligations in Portugal

The submission of returns such as Form 22 and the IES requires the signature of a certified accountant.

Periodic VAT returns
Form 22 (Corporate Tax)
Submission of the IES
Making PAYE deductions
Remuneration declaration (Social Security)
Paying taxes

Professional support with accounting and tax matters in Portugal helps to ensure that these obligations are identified, prepared and met within the applicable deadlines.

At NEWCO, we specialise in accounting and tax matters in Portugal

NEWCO has been supporting businesses and private clients for 35 years, offering specialist solutions in accounting and tax matters in Portugal.

Working with a local partner such as NEWCO ensures that your accounting and tax obligations are met from day one, with no surprises due to unfamiliarity with local rules.

Our accounting team in Portugal is versatile and ready to support multinationals, start-ups and private clients.

What sets us apart

Tailored solutions
A dedicated, multidisciplinary team
A single point of contact
35 years of international experience
Fluent in English, Spanish and French

Don’t let accounting become a headache

Our team of qualified accountants is on hand to help. Contact us for a quote.

Frequently Asked Questions (FAQ)

If you’re looking for specialist support with accounting and tax matters in Portugal, NEWCO provides a comprehensive service tailored to your company’s business activity, size and structure.

Do I need a qualified accountant to set up a company in Portugal?

To set up a company in Portugal, it is not compulsory to have a chartered accountant at the time of incorporation. However, once the company commences trading (which, under normal circumstances, should take place within a few days) and is subject to the organised accounting regime, the appointment of a chartered accountant becomes compulsory. By relying on a good accounting and tax service in Portugal, you ensure that all your company’s accounting and tax obligations are met on time, allowing you to focus on growing your business.

Is it compulsory to have a certified accountant in Portugal?

You are required to appoint a certified accountant if you are obliged to maintain organised accounts. In other words, all Portuguese companies (including those in Madeira and those licensed to operate in the Madeira International Business Centre) must appoint an accountant, as must self-employed individuals or sole traders with an annual turnover exceeding €200,000.

What is the difference between the simplified regime and organised accounting?

The simplified regime and organised accounting are two tax regimes applicable to self-employed individuals and certain companies, differing in the way taxable profit is calculated. Under the simplified scheme, tax is calculated based on coefficients defined by law, without the need to provide evidence of all business expenses. It is a simpler framework from an administrative standpoint and is often chosen by smaller businesses. Under the organised accounting regime, taxable profit is the difference between income and the expenses actually incurred and duly recorded. This scheme requires the involvement of a certified accountant and is compulsory for companies and certain sole traders who exceed certain legal thresholds or choose to operate under this framework.

What is the difference between accounting and tax in Portugal?

Although they are related and complementary fields, accounting and tax in Portugal serve different purposes. Accounting records and organises all of a company’s transactions. Tax refers to compliance with specific tax obligations (VAT, corporate tax, withholding tax). In practice, accounting and tax in Portugal go hand in hand: a good accounting system forms the basis for accurate tax returns and compliance with tax obligations.

What are the main annual tax deadlines for a company?

Companies in Portugal have various tax obligations throughout the year. The main deadlines include:

Regular submission of VAT returns (monthly or quarterly, depending on the circumstances);
Payment of withholding tax on personal income tax (PIT) and corporation tax (CIT), and of social security contributions;
Submission of the annual accounting and tax information return (IES);
Submission of the Model 22 corporate tax return;
Payment of payments on account and additional payments on account (where applicable);
Compliance with obligations relating to electronic invoicing and the submission of invoices to the Tax Authority.

Failure to meet these deadlines may result in fines, interest and other penalties. Therefore, having an accountant to assist you helps to ensure that all tax obligations are met on time.

What happens if I fail to meet my tax obligations in Portugal?

Failure to meet your tax obligations may result in fines, interest on arrears and other additional penalties. In more serious cases, there may be legal implications, including tax enforcement proceedings, seizures, or even criminal liability, depending on the nature and severity of the offence.

What is the corporate income tax rate in Portugal in 2026?

The corporate income tax rate in mainland Portugal in 2026 is 19 per cent. The Autonomous Region of Madeira and the Autonomous Region of the Azores may apply a reduced I rate. In 2026, the corporate tax rate in Madeira and the Azores is 14,7%. Small and medium-sized enterprises benefit from a reduction in the applicable corporate tax rate on the first €50,000 of taxable income (15% in mainland Portugal, 10.5% in Madeira and the Azores).

Companies registered in the Madeira International Business Centre benefit from the lowest corporation tax rate in Portugal – 5%.

How does VAT work in Portugal?

Value-added tax (VAT) is an indirect tax levied on the supply of goods and services for consideration. The end consumer is the only taxable person who pays VAT without deducting it. Companies, self-employed persons and sole traders may deduct the VAT incurred on purchases of goods and services. There are various tax and accounting obligations relating to VAT, ranging from calculating the VAT deducted to submitting periodic VAT returns.