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Portugal: Domestic Taxation

Domestic Corporate Taxation

Portugal has a corporate income tax rate of 25% (plus a local tax of up to 1.5%, depending on the municipality) and is not generally considered to have an attractive fiscal environment. However, it can offer the Madeira Free Trade Zone, and a number of other tax breaks which are useful to certain types of company.

In addition, a state surtax applies from January 1, 2012:

  • 3% (2.5% for payments on account) on taxable profits above EUR1.5m and up to EUR10m
  • 5% (2.5% for payments on account) on taxable profits above EUR10m

Budget proposals for 2013 would reduce the 5% surtax threshold from EUR10m to EUR7.5m.

NB: For a full treatment of all aspects of the low-tax regime in Madeira, see the relevant section elsewhere on this site at Madeira.



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