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Portugal
Overview
Last reviewed - 21 July 2024Portugal, a democratic republic located on the Iberian Peninsula in Southwestern Europe, is bordered by the Atlantic Ocean to the west and south and Spain to the east and north. It is divided into 18 districts, with Lisbon as the capital. The official language of Portugal is Portuguese, and the currency is the euro (EUR).
A global maritime power during the 15th and 16th centuries, Portugal lost much of its wealth and status with the destruction of Lisbon in a 1755 earthquake, occupation during the Napoleonic Wars, and the independence of Brazil, its wealthiest colony, in 1822.
Portugal is a founding member of the North Atlantic Treaty Organization (NATO) and entered the European Union (EU) in 1986. Portugal has become a diversified and increasingly service-based economy since joining the European Community in 1986. Over the past two decades, successive governments have privatised many state-controlled firms and liberalised key areas of the economy, including the financial and telecommunications sectors. Part of the European Monetary Union (EMU) since 1998, Portugal began circulating the euro on 1 January 2002.
For 2023, the projected gross domestic product (GDP) was 2.1%; 1.2% projected for 2024.
PwC Portugal supports clients with the local knowledge and skills of its people and with access to a broad range of other professionals across the PwC global network of firms. The firm provides assurance, advisory, and tax services, not only in Portugal but also through a local presence in Angola, Cabo Verde, and Mozambique.
Quick rates and dates
| Corporate income tax (CIT) rates | |
|---|---|
| Headline CIT rate (%) |
21 |
| Corporate income tax (CIT) due dates | |
|---|---|
| CIT return due date |
Last day of the fifth month following the end of the tax year. |
| CIT final payment due date |
Last day of the fifth month following the end of the tax year. |
| CIT estimated payment due dates |
Three instalments due in July, September, and December (if the tax year corresponds to the calendar year). Last instalment can be waived under certain conditions. |
| Personal income tax (PIT) rates | |
|---|---|
| Headline PIT rate (%) |
Residents: Up to 48% plus solidarity surtax of 2.5% on the taxable income exceeding EUR 80,000 and 5% on the amount of taxable income exceeding EUR 250,000. Special tax rates may apply on certain types of income. Non-residents: As a rule, 25% for employment / self-employment and pension income from a Portuguese source. |
| Personal income tax (PIT) due dates | |
|---|---|
| PIT return due date |
30 June of the year following the one the income relates to (an extended deadline may apply if certain conditions are met). |
| PIT final payment due date |
For Portuguese income tax returns electronically submitted within the legal deadline (i.e. by 30 June of the year following the one the income relates to), the Portuguese tax authorities should issue the tax assessment by 31 July of that year and the respective tax due, if applicable, should be paid by 31 August. If the Portuguese tax authorities do not issue the tax assessment by 31 July, the tax liability should be paid within one month from the issue of the referred tax assessment. |
| PIT estimated payment due dates |
PAYE |
| Value-added tax (VAT) rates | |
|---|---|
| Standard VAT rate (%) |
23 |
| Withholding tax (WHT) rates | |
|---|---|
| WHT rates (%) (Dividends/Interest/Royalties) |
Resident: 25 / 25 / 25; Non-resident: 25 / 0 or 25 / 0 or 25 |
| Capital gains tax (CGT) rates | |
|---|---|
| Headline corporate capital gains tax rate (%) |
See Portugal's corporate tax summary for capital gain rates. |
| Headline individual capital gains tax rate (%) |
See Portugal's individual tax summary for capital gain rates. |
| Net wealth/worth tax rates | |
|---|---|
| Headline net wealth/worth tax rate (%) |
NA |
| Inheritance and gift tax rates | |
|---|---|
| Headline inheritance tax rate (%) |
Free acquisition of goods by individuals (inheritance and gifts) is taxed under the stamp tax at 10%. |
| Headline gift tax rate (%) |
Donation of property is taxed under the stamp tax at 0.8%; Free acquisition of goods by individuals (inheritance and gifts) is taxed under the stamp tax at 10%. |
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