Portugal's headline corporate income tax (CIT) rate is 19.
The headline personal income tax (PIT) rate is residents up to 48% (+2.5-5% solidarity surtax); non-residents 25% generally.
The standard VAT/GST (or equivalent consumption tax) rate is 23. Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.
An individual is a Portuguese tax resident if they spend more than 183 days in Portugal within any 12-month period beginning or ending in the tax year (days need not be consecutive), or if they maintain a place of abode available to them on December 31 that indicates an intention of habitual residence. Where residence is acquired via the 183-day test, it is deemed to begin on the first day of presence. Residents are taxed on worldwide income; non-residents only on Portugal-source income. Portugal also imposes an exit tax on unrealized capital gains for certain assets upon cessation of residency.
Portugal's CFC regime (aligned with EU ATAD) attributes the profits of a non-resident entity to Portuguese-resident shareholders (individuals or companies) holding, directly or indirectly, at least 25% of the capital, voting rights, or income/asset rights (reduced to 10% if Portuguese residents collectively hold at least 50%) - including holdings via a legal representative, fiduciary, or intermediary. Attribution applies where the entity is resident in a blacklisted jurisdiction, or where its effective tax rate is below 50% of the tax that would apply under Portuguese rules (a related "not low-taxed" safe harbor requires an effective rate of at least 60% of the standard Portuguese CIT rate, i.e., roughly 12.6%). CFC treatment does not apply to entities resident in another EU or EEA state (with administrative cooperation) provided there are valid economic reasons for the entity's operations, supported by real staff, equipment, and premises. Distributed profits previously imputed under CFC rules are deductible on actual distribution to avoid double taxation.
Portugal has no formal debt-to-equity thin capitalization rule. Instead, net financing expenses are deductible up to the higher of EUR 1 million or 30% of tax-EBITDA (some sources cite an EUR 4 million de minimis in certain contexts - confirm the current threshold before relying on it). Unused deduction capacity where net interest falls below the 30% ceiling can be carried forward up to five years; groups filing under Portugal's group taxation regime may elect to apply the limitation on a group-consolidated basis.
Portugal maintains double tax treaties with approximately 78-80 countries per PwC and other sources, covering the US, UK, Canada, South Africa, most major European economies, and the CPLP Portuguese-speaking nations (Brazil, Angola, Mozambique, and others). A new Portugal-UK treaty, signed September 15, 2025 and ratified by Portugal, entered into force December 29, 2025, taking effect January 1, 2026. Notably, Finland terminated its treaty with Portugal effective January 1, 2019, and Sweden terminated its treaty effective January 1, 2022 - neither has been replaced as of the most recent verification.