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europe · EUR · EU member

Portugal

EU member with a 19% standard corporate income tax (mainland), a reduced 15% rate for SMEs on the first €50,000, and a same-day Empresa na Hora formation programme.

Corporate tax19%
VAT23%
StripeAvailable
WiseAvailable

Scorecard

All scores are derived from raw country facts via transparent methodologies — see the individual ranking pages for the underlying weights.

Founder friendliness

69 / 100

SaaS friendliness

85 / 100

Remote business

84 / 100

Tax simplicity

62 / 100

Banking access

50 / 100

Taxation

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.

VAT

Standard IVA rate is 23% on mainland Portugal (22% in Madeira; 16% in the Azores). Reduced 13% and super-reduced 6% rates apply to designated categories. EU VAT rules apply for cross-border supply.

Company formation

The standard form is the LDA (Sociedade por Quotas), with no minimum capital floor. Empresa na Hora ('On-the-Spot Firm') allows same-day registration at designated counters for around EUR 360. The standard online procedure via Empresa Online typically completes within one to two business days.

Banking & payments

Mainstream Portuguese banks (Caixa Geral de Depósitos, Millennium BCP, Santander Totta, BPI) accept LDA business clients but require in-person director identification. EMIs such as Wise Business and Revolut Business serve everyday multi-currency operations.

SaaS friendliness

Stripe is fully supported for Portuguese companies. EU VAT OSS is the standard route for cross-border B2C digital services. Software billing must comply with SAFT-PT structured exports and the AT's certified billing software requirements.

Hiring

Employment is governed primarily by the Código do Trabalho. Employer-side Segurança Social contributions add roughly 23.75% on top of gross salary. The IFICI regime (which replaced the NHR in 2024) provides personal-income-tax incentives for qualifying inbound knowledge-economy professionals.

Compliance

Modelo 22 corporate income tax return is filed annually with the Autoridade Tributária. SAFT-PT accounting and billing files must be available on request. Monthly billing communication to the AT is mandatory under the e-Fatura framework.

Startup ecosystem

Lisbon and Porto host the densest tech startup ecosystems, supported by Startup Portugal, Portugal 2030 funding, and active venture capital around Web Summit's annual Lisbon hosting.

Pros

  • Same-day company registration via the Empresa na Hora programme for around EUR 360 in government fees
  • Reduced 15% CIT rate applies on the first EUR 50,000 of taxable income for qualifying SMEs (12.5% in inland territories)
  • Madeira International Business Centre (MIBC) regime offers a 5% reduced rate for qualifying activities, subject to substance requirements

Cons

  • State surtax (Derrama Estadual) of 3% / 5% / 9% applies to large profits above EUR 1.5m / 7.5m / 35m
  • SAFT-PT structured accounting export and monthly billing communication to the AT add infrastructure obligations
  • Banking onboarding for non-resident-owned LDA companies has tightened in recent years

Best for

  • Founders qualifying for the SME 15% reduced CIT rate on the first €50,000
  • Companies serving Iberian and Lusophone markets from an EU base
  • Remote-first founders considering relocation under the IFICI (post-NHR) inbound regime

Not ideal for

  • Founders who want to avoid SAFT-PT and monthly billing reporting
  • Companies that need a personal-tax NHR style regime (the NHR was substantially closed to new applicants in 2024)

Related

Sources

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