Corporate income tax (IRC in Portuguese) is regulated by the Corporate Income Tax Code which came into force on 1 January 1989.
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.
The Value Added Tax is an indirect tax levied on the supply of goods and services rendered for remuneration.
Contributions toward social security in Portugal are levied on employees, members of statutory bodies and self-employed professionals.
For cases in which the Participation Exemption does not apply, there is a unilateral tax credit for international economic double taxation.
Portugal provides for the following mechanisms for eliminating double taxation on income taxed at source in a foreign country.
Know more information about the double taxation agreements entered into by Portugal.
Portugal currently has Tax Information Exchange Agreements with the following 15 countries/territories.
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.
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.
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.
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.
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.
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).
The Municipal Property Tax (IMI) is a tax levied on the taxable value of rural, urban or mixed properties located 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.
Stamp Duty is levied on a number of acts, contracts, documents, titles, papers and other legal facts or situations in Portugal.
NHRs in Portugal benefit from certain income tax exemptions and reductions. Learn more about this regime and the conditions for accessing it.
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.
The partners of a Company in Portugal may be individuals or companies. Since in Portugal there are no restrictions to the transfer of capital nor to the distribution of profits or dividends, non-resident Partners are allowed.
Madeira
Lisboa
Malta
Madrid
