Portugal

Overview

Last reviewed - 13 January 2020

Portugal, 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 2018, the projected gross domestic product (GDP) is 2.1%; 1.8% projected in 2019.

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 Cabo Verde.

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).
Personal income tax (PIT) rates
Headline PIT rate (%) Residents: 48% plus solidarity surtax of 2.5% on the amount of taxable income exceeding EUR 80,000 and 5% on the amount of taxable income exceeding EUR 250,000

Non-residents: 25%
Personal income tax (PIT) due dates
PIT return due date 30 June of the year following the one the income relates to
PIT final payment due date For Portuguese income tax returns electronically submitted by 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 (%) (Div/Int/Roy) Resident: 25 / 25 / 25;
Non-resident: 25 / 0 or 25 / 0 or 25
Capital gains tax (CGT) rates
Corporate capital gains tax rate (%) See Portugal's corporate tax summary for capital gain rates.
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
Inheritance tax rate (%) Free acquisition of goods by individuals (inheritance and gifts) is taxed under the stamp tax at 10%.
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%.

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.

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