What is the corporate income tax (IRC) rate in Portugal in 2026?

Checked on 2026-10-25

Portugal's standard corporate income tax (IRC) rate for 2026 is 19% on the mainland and 16.8% in the Azores, according to the Ministry of Finance. Small and medium-sized companies whose main activity is agricultural, commercial or industrial pay 15% on the first €50,000 of taxable profit and the standard rate on the rest.

Key facts

What	The Ministry of Finance says	Source
Standard rate 2026, mainland	19%	Ministério das Finanças, “Quais são as taxas de IRC?”
Standard rate 2026, Azores	16.8%	Ministério das Finanças, “Quais são as taxas de IRC?”
SMEs (agricultural, commercial or industrial main activity)	15% on the first €50,000 of taxable profit, standard rate above	Ministério das Finanças, “Quais são as taxas de IRC?”
2025 rates	20% standard; 16% for SMEs on the first €50,000	Ministério das Finanças, novidades fiscais 2026, “IRC”
Planned path	1 percentage point lower each year, reaching 17% in 2028	Both Ministry pages
Surcharges	State and municipal surcharges (derrama) can raise the total burden	Ministério das Finanças, “O que tributa o IRC?”
Annual return	By 31 May for the previous tax year	Ministério das Finanças, “Quando e como se paga o IRC?”

The rate

The Ministry of Finance’s explainer, dated 12 March 2026, says the standard IRC rate for 2026 is 19% on the Portuguese mainland and 16.8% in the Autonomous Region of the Azores. Small and medium-sized enterprises whose main activity is agricultural, commercial or industrial pay 15% on the first €50,000 of taxable profit and the standard rate on the remainder. The Ministry’s January 2026 note on the 2026 budget says the SME rate applies also to small mid-cap companies, and that the rates in 2025 were 20% and 16%.

The explainer says these rates result from a legislative change that cuts IRC by 1 percentage point a year between 2026 and 2028, reaching 17% in 2028; the budget note also says the rate will be 17% from 2028.

What is taxed

IRC applies to companies and other entities with their seat or effective management in Portugal, and to foreign entities on Portuguese income not subject to IRS. For businesses it is charged on taxable profit, after costs such as salaries, interest, accepted depreciation and provisions; past tax losses and tax benefits can then be deducted. The Ministry notes that IRC has a single base rate, not progressive brackets, but the total burden can vary with profits because of the state and municipal surcharges (derrama estadual and derrama municipal).

Filing

Companies file a periodic income return (declaração periódica de rendimentos) on the Portal das Finanças by 31 May for the previous tax year. If the company uses a tax year different from the calendar year, the deadline is the last day of the fifth month after that year ends.

Setting up a company: there is no fixed minimum share capital for an Lda, but each quota must be at least €1 (Código das Sociedades Comerciais, arts. 201 and 219(3)).

Sources

Ministério das Finanças (oe.gov.pt), O que é o IRC e quem tem de o pagar? (12 March 2026) checked 2026-10-25
Ministério das Finanças (oe.gov.pt), Sabe quais são as principais novidades fiscais em 2026? (16 January 2026) checked 2026-10-25

Change history

2026-10-25: Page created

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