Tax and Accounting Information

Corporate Tax in Portugal

Corporate income tax (IRC in Portuguese) is regulated by the Corporate Income Tax Code which came into force on 1 January 1989.

IRS in Portugal

Residents in Portugal are taxed on the totality of their income (in Portugal and abroad) and non-residents are taxed for income obtained in Portugal. 

Social Security in Portugal

Contributions toward social security in Portugal are levied on employees, members of statutory bodies and self-employed professionals.

Value added Tax (IVA)

The Value Added Tax is an indirect tax levied on the supply of goods and services rendered for remuneration.

Participation Exemption

For cases in which the Participation Exemption does not apply, there is a unilateral tax credit for international economic double taxation.

Double tax relief mechanisms in Portugal

Portugal provides for the following mechanisms for eliminating double taxation on income taxed at source in a foreign country.

Double Taxation Treaties

Know more information about the double taxation agreements entered into by Portugal.

Tax Information Exchange Agreements

Portugal currently has Tax Information Exchange Agreements with the following 15 countries/territories. 

Distribution of profits/dividends

Profits/dividends distributed by a Portuguese company to its shareholders who are natural persons shall be taxed in accordance with the Personal Income Tax Code (28%), but there are exceptions. Find out which ones.

Reinvestment of Capital Gains

In order to determine taxable profit, the positive difference between capital gains and capital losses that have occurred subsequent to the transfer of tangible fixed assets, intangible assets and non-consumable biological assets at a cost shall.

Deduction of tax losses

In Portugal, a company can deduct tax losses from previous years from the taxable profit of the current year. These losses can be deducted up to 65% of the year's taxable income.

Anti-tax avoidance legislation in Portugal

Portuguese legislation provides for a series of anti-abuse rules (a general rule and various specific ones) that make ineffective in the eyes of the tax authorities. Next, we highlight some of the more relevant regulations.

European directives

As a member of the European Union, Portugal is subject to and benefits from the application of the European Directives, which aim to reduce the tax obstacles in cross-border operations.

Accounting Standards

Approved by Decree-Law no. 158/2009 dated July 13, the national model for accounting standards is characterized by its affinity to the accounting legislation implemented by the European Union (EU).

IMI in Portugal - Municipal Property Tax

The Municipal Property Tax (IMI) is a tax levied on the taxable value of rural, urban or mixed properties located in Portugal.

IMT in Portugal

IMT is a tax levied on onerous transfers of the right to property, or of parts of that right, over immovable property located in Portugal.

IS - Stamp Duty in Portugal

Stamp Duty is levied on a number of acts, contracts, documents, titles, papers and other legal facts or situations in Portugal.

Tax regime for Non-Habitual Residents in Portugal (NHR)

NHRs in Portugal benefit from certain income tax exemptions and reductions. Learn more about this regime and the conditions for accessing it.

Minutes and Minute Books

Minutes are official documents that record in detail the discussions, decisions and deliberations that took place at a formal meeting. 

Re-domiciliation of a company in Portugal

A Portuguese company may transfer its head office to another country as long as the law of said country allows such re-domiciliation. The company, upon such re-domiciliation, shall keep its legal personality.