This article provides an in-depth overview of the corporate tax regime in Portugal for the year 2025. Readers will find a clear breakdown of the latest tax rates, brackets, and applicable local and state surcharges for companies liable to Portuguese corporate tax.
Corporate Tax Structure in Portugal: 2025 Overview
Portugal operates a progressive corporate income tax system based on taxable corporate profits. The system involves central, local, state, and, in some cases, regional taxes depending on a company’s location and profitability.
2025 Corporate Tax Rates and Brackets
Portuguese corporate income tax rates for 2025 apply progressively based on a company’s taxable income. The current structure is presented in the table below:
| Taxable Income Bracket (EUR) | Central Rate (%) |
|---|---|
| €0 – €50,000 | 16% |
| Over €50,000 | 20% |
The central government rate progresses from 16% for the first €50,000 of taxable income to 20% for income above this threshold. Detailed guidance on the central rate application can be found via Portugal’s official tax authority at portaldasfinancas.gov.pt.
Additional Surtaxes Applicable in 2025
On top of the core corporate tax, several surtaxes may apply depending on municipality, location (mainland, Madeira, Azores), and total annual taxable profits. The tables below summarize these surcharges:
Local and State Surtaxes — Mainland Portugal
| Type | Thresholds | Rate (%) | Notes |
|---|---|---|---|
| Local surtax (Derrama) | On total taxable income | Up to 1.5% | Applied in certain municipalities |
| State surtax (Derrama Estadual) | €1,500,001 to €7,500,000 | 3% | On portion of profit exceeding €1.5 million |
| State surtax | €7,500,001 to €35,000,000 | 5% | On portion of profit exceeding €7.5 million |
| State surtax | Over €35,000,000 | 9% | On portion of profit exceeding €35 million |
Regional Surtaxes — Madeira
| Thresholds | Rate (%) |
|---|---|
| €1,500,001 to €7,500,000 | 2.1% |
| €7,500,001 to €35,000,000 | 3.5% |
| Over €35,000,000 | 6.3% |
Regional Surtaxes — Azores
| Thresholds | Rate (%) |
|---|---|
| €1,500,001 to €7,500,000 | 2.4% |
| €7,500,001 to €35,000,000 | 4% |
| Over €35,000,000 | 7.2% |
Surtaxes are applied to applicable portions of profits above listed thresholds. The actual rates can vary, especially for local (municipality-level) taxes; verifying with each local authority is advisable.
Assessment Basis
Corporate taxes in Portugal are generally assessed on a company’s taxable profits, with all calculations denominated in euros (EUR, symbol: €). The progressive structure aims to capture higher taxes on more profitable firms, while smaller entities generally face lower effective rates.
Missing Data Points
There are no published minimum or maximum holding periods related to corporate tax for 2025. If such measures apply, these are not currently disclosed by Portuguese authorities, or may not be relevant to standard corporate tax assessment.
Pro Tips for Navigating Portuguese Corporate Tax in 2025
- Carefully track your total taxable profit throughout the year—crossing into a higher bracket or surtax threshold can significantly impact your effective tax rate.
- Check the specific local (Derrama) surtax rates for the municipality where your company is registered, as these are subject to local council decisions and can vary significantly.
- For companies operating in Madeira or the Azores, always account for regional surtaxes in tax planning, as rates differ from mainland Portugal and from each other.
- If you are close to a profit threshold, consider timing expenses or income to control your effective tax rate within a financial year.
- Consult the official Portuguese tax authority portal at portaldasfinancas.gov.pt for any regulatory updates and region-specific rules.
Key Considerations for 2025
For 2025, companies in Portugal can expect a progressive corporate tax regime with two core brackets—16% up to €50,000 and 20% above—and layered surcharges that vary locally and regionally. Surtaxes, especially the state and regional add-ons, can sharply increase a company’s overall tax liability at higher profit levels. Staying informed on local regulations and profit thresholds is essential for effective tax planning.