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Law 73/2013 of 3 September, which establishes the financial regime of the local municipalities and inter-municipal entities, stipulates that municipalities may annually decide to implement a surcharge up to a maximum limit of 1.5% on taxable profit, subject to and not exempt from corporate income tax.

A reduced Municipal Surcharge rate can be applied for companies with a turnover of less than €150,000 during the previous taxation period. The Municipal Surcharge applies to taxable profit before deduction of reportable tax losses.

In the municipalities of Lisbon and Oporto, the Municipal Surcharge rate is 1.5%, and taxpayers whose turnover during the previous year did not exceed €150,000 are exempt.

To find out more about the fees applicable in other municipalities of the country and any reductions and/or exemptions, please contact us.

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NEWCO is an inward investment services provider specialized in the implementation of foreign investment in Portugal and Malta. With 30 years of experience and know how, we help our clients maximize the opportunities and minimize the risks of operating in a new country, allowing them to stay focused on their business. Contact us to find out how we can help you invest or relocate into Portugal, including Madeira, or Malta.

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