Portugal Corporate Tax Calculator 2026

What your company keeps from its profit in Portugal after corporate tax.

Profit after corporate tax

€161,000 per year

Effective tax rate 19.5%

81% you keep€39,000 to taxes and contributions

Assumptions

Based on turnover last year: €800,000, municipality: Lisboa

2026 rates confirmed against two independent sources: the official tax administration and PwC. Nothing here rests on one. Last verified 2026-07-14. How we verify

Where the money goes

Company profit	€200,000
Corporate income tax	-€36,000	PME / Small Mid Cap (reduced rate on the first EUR 50,000)
Derrama municipal (municipal surtax)	-€3,000	Lisboa: 1.5% of taxable profit
Profit after corporate tax	€161,000	Effective rate 19.5%

Compare with another country:Spain Italy Poland

Understand your result

Portugal’s headline corporate rate is 19%. Your company will not pay that. IRC is the bottom layer; two surtaxes sit on top of it with bases of their own, and the calculator prints them as separate lines on the receipt: one of them is set by people you can vote out.

Your municipality sets part of your corporate tax

The derrama municipal is levied by the council, not the state, on taxable profit, up to a ceiling of 1.5%. Lisboa charges the full ceiling, 1.5%; Cascais, twenty minutes down the coast, charges 1%; Porto charges 1.5% and Vila Nova de Gaia, across the bridge, 1.25%.

Same profit, same business, different bill. That is why the form asks for a city instead of folding an average into the rate. For a single-establishment company the rate is the one levied where the registered office or effective management sits, which means the address on your incorporation papers was a tax decision.

The reduced rate only covers the first slice

A qualifying company pays 15% on the first €50,000 of taxable base, and the standard rate on everything above it. A cheaper band, not a cheaper company.

Qualifying, though, is barely a turnover question. The law asks whether the company is a micro, small or medium enterprise (staff numbers as well as size) or a Small Mid Cap, and whether its main activity is commercial, industrial or agricultural. Our form has no headcount input and no activity input, so the engine approximates with the one criterion it can see: a prior-year turnover ceiling of €50,000,000.

Both rates are new this year, and the standard rate falls again in each of the next two.

The state surtax starts well past you

The derrama estadual reaches taxable profit above €1,500,000 only, running from 3% up to 9% in the top band. For an owner-managed Lda the line reads zero. We print it anyway, so you can watch it read zero instead of wondering whether it was folded in somewhere.

The municipal rate above is last year’s, on purpose

No derrama rate exists yet for the current tax year: councils vote during the year the rate applies to, and the tax authority publishes the consolidated table only in the February after that year closes. Omitting the surtax until then would understate a Lisboa company by a fixed slice of its whole profit, a bigger lie than a dated rate.

So read the IRC line as law and the municipal line as a forecast: last year’s rate, in force until the council votes a new one. Whatever it votes, it cannot go above 1.5%. The error has a ceiling even where its direction does not.

Corporate tax is only half the trip

What the company pays is not what you keep. Getting the profit out is a second tax event, and in Portugal it arrives with a choice attached: that is the dividend calculator. The founder page runs the chain end to end, from taxable profit to the money in your account. If the company does not exist yet, the freelancer route taxes the same work on entirely different logic.

Where this number is wrong

Most councils waive the municipal surtax entirely for companies under a small turnover threshold. The calculator does not model that waiver, so for a first-year company the bill above runs high: we charge you a surcharge you may well not owe. Autonomous taxation runs the other way: a real charge on company cars, entertainment and undocumented spending, which cannot be read off a profit figure at all, so that part of the bill runs low.

The model is built for one company: small, standalone, founder-owned, mainland. Madeira and the Azores set their own rates and are out of scope, as are groups, consolidation and transfer pricing. And it does not decide which of your costs are deductible: it takes the taxable profit you hand it and trusts you.

Questions people actually ask

Why does the calculator ask which city my company is in?

Because part of your corporate tax is set by the municipality, not by the state. The derrama municipal is a surtax each council decides on every year, up to a statutory ceiling, and it is charged on the taxable profit rather than on the IRC already worked out. Two identical companies with identical profit in different municipalities owe different tax. For a company with one establishment the rate is the one levied where its registered office or effective management sits, so which council you register with is a tax decision and not merely an administrative one.

Are the municipal surtax rates on this page the ones for the current year?

No, and nobody has them. A Portuguese council sets its derrama rate during the year it applies to and reports it to the tax authority, which publishes the consolidated national table only in the February after the tax year ends. What you see here are the rates levied on the previous tax period, taken from that official table and marked provisional. A council deliberation stays in force until a new one replaces it, and most councils leave the rate alone for years, so this is the best estimate available. It is still an estimate, and it cannot exceed the statutory ceiling, which caps how wrong it can be.

Does my small Lda get the reduced corporate tax rate?

Probably, and only on the first slice of the taxable base: the rest is taxed at the standard rate, so the reduced rate is a discount on a band, not a rate for your whole company. The legal test is not the turnover test people repeat: the company must qualify as a micro, small or medium enterprise, or as a Small Mid Cap, on staff numbers as well as size, and it must carry on a commercial, industrial or agricultural activity as its main activity. A company that mainly holds assets fails that last condition.

Do I need to worry about the state surtax?

Almost certainly not. The derrama estadual only touches the part of taxable profit above a threshold far above founder scale, and it climbs in bands from there. The calculator prints the line anyway, at zero, so you can see where it would start rather than wonder whether it was quietly included.

Is there a minimum corporate tax in Portugal?

There is no domestic minimum corporate tax, and the special payment on account that used to work like one was repealed. If your company makes no profit, the IRC and both surtaxes come to nothing. The global minimum top-up tax exists, but it reaches only very large multinational groups and is a separate regime that has nothing to do with an owner-managed Lda.

One figure is already applied in practice but not yet fixed in law for this tax year. We use them, and we show exactly what each one rests on.

Figures not yet fixed for this tax year 1

These amounts are applied in practice, but the text that fixes them for this tax year does not exist yet: either the statute has not been passed, or the body that sets the figure publishes it later than the year it applies to. We show them because leaving them out would give you a worse answer, not a safer one, and we show you exactly what each one rests on.

surcharges[derrama_municipal].localities[].rate: These are the rates levied on the 2025 tax period, not 2026. A Portuguese municipal council sets its derrama municipal rate for a year during that year and reports it to the tax authority, which publishes the consolidated national table only in the February that follows: the 2025 table appeared on 2 February 2026, so the 2026 table is not due until around February 2027. No 2026 rate therefore exists for any municipality today. All eleven rates offered here (Lisboa 1.50%, Porto 1.50%, Cascais 1.00%, Oeiras 1.50%, Sintra 1.50%, Braga 1.50%, Coimbra 1.45%, Faro 1.20%, Matosinhos 1.50%, Vila Nova de Gaia 1.25%, Setúbal 1.50%) come from that one official 2025 list. A derrama deliberation stays in force until the council passes a new one (art. 18.º/1 of Lei n.º 73/2013), and most councils leave their rate unchanged for years, so last year's rate is the best available estimate for 2026. But it is an estimate, not the 2026 rate: a council is free to raise or cut it, and you would not learn of the change until 2027. The alternative was to omit the surcharge, which would understate the tax of a company based in Lisboa by 1.5% of its taxable profit. (what we relied on) · we re-check after 2027-02-01

Your result can move: personal deductions, family status and special regimes we do not model can make your real tax lower in 2 cases, and higher in 2 cases.

Important limitations 5

Every rule below is real and is left out on purpose. Modelling it would need information this form does not ask you for, or a mechanism we have not built yet. What matters is not that something is missing, but which way it moves your number, so that is what we tell you.

Your real tax may be LOWER: Most councils charge no municipal surcharge at all on companies whose prior-year turnover was EUR 150,000 or less (Porto and Vila Nova de Gaia charge a reduced rate instead). The calculator applies the full municipal rate to everyone, so it shows a surcharge you may not owe. Applies to: Companies with prior-year turnover of EUR 150,000 or less, which is most founders in their first year.
Your real tax may be LOWER: The reduced 15% band is granted by a headcount test (fewer than 250 staff, or fewer than 500 for a small mid cap), not purely by turnover. We approximate it with the EUR 50,000,000 turnover limit, so a small mid cap above that turnover is denied the band here even though the law may grant it. Applies to: Companies above EUR 50,000,000 turnover with fewer than 500 staff.
Your real tax may be HIGHER: Autonomous taxation (tributacoes autonomas) is a real corporate charge, but it falls on certain expenses (company cars, entertainment, undocumented spending) rather than on profit, so it cannot be derived from the numbers this form asks for. Applies to: Companies that run cars or incur entertainment expenses.
Your real tax may be HIGHER: The reduced 15% band is granted here to every company at or below the turnover limit, but the law also demands a headcount test and a commercial, industrial or agricultural main activity. A company under the turnover limit that fails either test would not get the band. Applies to: Companies below the turnover limit with 500 or more staff, or whose main activity is not commercial, industrial or agricultural.
May not apply to you: Corporate tax is charged on the taxable base after carried-forward losses and tax benefits, while both surcharges are charged on taxable profit before them. This calculator uses one profit figure for all three, so the numbers diverge once you carry losses forward. Applies to: Companies carrying losses forward or claiming tax benefits.

This calculator is for information only and is not tax advice. Rates and thresholds change; check the methodology page for sources and verification dates, and confirm your own situation with a qualified adviser.