Portugal Corporate Income Tax
Detailed corporate income tax rates and rules for Portugal in 2026.
Portugal's corporate income tax (IRC - Imposto sobre o Rendimento das Pessoas Coletivas) is levied at a standard rate of 19% on taxable profits as of 2026, reduced from 21%. Small and medium-sized enterprises (SMEs) benefit from a reduced rate of 15% on the first €50,000 of taxable income, with the standard 19% rate applying to profits above that threshold. A municipal surcharge (derrama municipal) of up to 1.5% may be levied by local authorities on taxable profits. Additionally, a state surcharge (derrama estadual) applies to taxable profits exceeding €1.5 million: 3% on profits between €1.5 million and €7.5 million, 5% on profits between €7.5 million and €35 million, and 9% on profits exceeding €35 million.
Standard Rate
19%
Small Business Rate
15%
Additional Notes
Portugal offers various tax incentives for businesses, including the SIFIDE II regime providing tax credits for R&D expenditure, the Investment Tax Code offering benefits for productive investments, and special regimes for the Madeira International Business Centre (MIBC) with reduced corporate tax rates. Companies in the Autonomous Regions of Madeira and Azores may also benefit from reduced IRC rates. Transfer pricing rules apply to transactions between related parties, and Portugal follows OECD guidelines.
How Portugal Corporate Tax compares
Portugal’s corporate tax rate of 19% is the 147th highest of 203 countries TaxAtlas tracks, below the global average of 22.2% and Europe’s regional average of 19%.
