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Portugal — corporate tax, VAT, and dividend treatment

Portugal corporate income tax (19%), VAT (23%), and dividend withholding (25%), with cross-country context.

Country notes

Standard CIT (IRC) rate is 19% for companies resident on mainland Portugal (13% in the Autonomous Regions of Madeira and Azores). A reduced 15% rate applies to small and medium-sized enterprises on the first EUR 50,000 of taxable income (10.5% in the Autonomous Regions; 12.5% in qualifying inland territories of mainland Portugal). State surtax (Derrama Estadual) of 3% / 5% / 9% applies progressively to profits exceeding EUR 1.5m / 7.5m / 35m. Municipal surtax (Derrama Municipal) of up to 1.5% applies in selected municipalities.

Key data

Corporate income tax19%
Standard VAT23%
Dividend withholding (default)25%
CurrencyEUR
EU memberYes

Cross-country context

Corporate income tax19%
Median across covered countries22
Lowest in the data set9 (United Arab Emirates)
Highest in the data set30 (Germany)
Rank within the data set#4 of 13

Try the calculator with Portugal pre-selected

Country tax rate
26.5%
Profit before tax
CA$100,000.00
Estimated corporate tax
CA$26,500.00
Estimated after-tax profit
CA$73,500.00

Methodology

Applies the headline corporate income tax rate from the country profile to the entered profit before tax. Reduced rates, SME thresholds, surtaxes, dividend layers, and jurisdiction-specific deductions are not modelled. Result is an estimate for orientation, not tax advice.

These calculations are informational estimates based on headline rates and transparent assumptions — not tax, accounting, or legal advice. Verify with a qualified local advisor before relying on the results.

Sources

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