In this page:
Accounting Rules |
Tax Rates |
Intellectual Property |
Legal Framework |
- Tax Year
From 1 January to 31 December.
- Accounting Standards
The official accounting plan (Plano Oficial de Contabilidade - POC) and accounting standards CNC) DC 1 to DC 29.
- Accounting Regulation Bodies
Ministry of Finance
- Accounting Reports
Company financial statements must include a balance sheet (simple or detailed presentation), a profit and loss account (drawn up as a table), notes to the accounts and an annual report (called D.O.G. « Documento de Orgão de Gestão»).
- Publication Requirements
There are three types of company which must legally publish their financial statements: public companies, limited liability companies and companies listed on the stock exchange (according to European norms). Company financial statements are published once a year.
- Professional Accountancy Bodies
CTOC , Chamber of Chartered Accountants
APOTEC , Accountants' Association
APPC , Accountants' Association
OROC , Order of Auditors
- Certification and Auditing
Companies have to seek a statutory auditor to conduct an annual audit of the financial health of their organization. You can contact an external auditor: Mazars ; Ernst&Young ; KPMG ; PwC ; D.F.K e ; Associados ; Moore Stephens
- Accounting News
RTP Accounting News
- Nature of the Tax
Imposto Sobre o Valor Acrescentado (I.V.A.) = Value Added Tax (VAT).
- Tax Rate
- Reduced Tax Rate
Reduced VAT rates vary between 6% and 13%. They are 13% for catering, petrol and some foodstuffs. The 6% rate applies to most foodstuffs, water, publications, electricity, transport, hotels and leisure.
- Other Consumption Taxes
A vehicle tax named IUC also apply in Portugal
Learn more about Service Providers in Portugal on Globaltrade.net, the Directory for International Trade Service Providers.
- Company Tax
- Tax Rate For Foreign Companies
Foreign companies are taxed on the profits they make in Portugal. For further information access the web portal of the Finance Ministry (in Portuguese).
- Capital Gains Taxation
Long term capital gains are taxed in Portugal at the standard Corporate Tax rate. Some exemptions apply on some type of capital.
- Main Allowable Deductions and Tax Credits
To determine fiscal results you can deduct: depreciation, interest, remuneration of directors (totally deductible), and royalties. The fiscal loss of a given year may be carried forward over one or several of the six following accounting years. On the other hand, the carry-back method is not authorized.
Expenses are deductible for depreciation or amortization, reserves, rents for premises and equipment, wages, etc.
Tax credit exists especially for apprenticeships. For more information.
- Other Corporate Taxes
Stamp duty is levied on many types of transactions. Real Estate transfer tax apply at rates from 5 to 10%, depending on type of assets and area concerned.
- Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
Country Comparison For Corporate Taxation
|Number of Payments of Taxes per Year
|Time Taken For Administrative Formalities (Hours)
|Total Share of Taxes (% of Profit)
- Last Available Data.
|Personal income tax (IRS)
||Porgressive rate from 14.5% to 48%
|Up to EUR 7,000
|EUR 7,000 - 20,000
|EUR 20,000 - 40,000
|EUR 40,000 - 80,000
|Over EUR 80.000
|Additional Solidarity Surcharge
||An additional 2,5% solidarity surcharge will be levied on taxable income between EUR 80,000 and EUR 250,000 and 5% on the taxable income exceeding EUR 250,000. Moreover a surcharge of 3.5% applies to income in excess of the annual minimum wage (EUR 6,790).
- Allowable Deductions and Tax Credits
Children's education and prolonged studies for adults (courses approved by the Ministry), health expenses, investment in renewable energies, buying IT equipment, etc.
- Special Expatriate Tax Regime
If expatriates do not have a residence in Portugal, they can choose between total income tax in Portugal or in their country of origin. If they do have a residence in Portugal, they are subject to the IRS regime.
Learn more about Taxes and Accounting in Portugal on Globaltrade.net, the Directory for International Trade Service Providers.
- Independence of Justice
- Equal Treatment of Nationals and Foreigners
- The Language of Justice
Portuguese and Mirandese in a region of the north-east of the country.
- Recourse to an Interpreter
- Sources of the Law and Legal Similarities
Portuguese law has various sources: the Constitution, laws passed by Parliament, ministerial decrees and orders, international conventions and treaties ratified by Portugal.
Because Portugal belongs to the European Union, national law conforms to the requirements of Community legislation.
There are legal similarities with all the countries whose law has come from Roman law, in particular with French law which inspired the Portuguese model.
- Checking National Laws Online
Diário Republica (Official Gazette)
Learn more about Lawyers and Legal in Portugal on Globaltrade.net, the Directory for International Trade Service Providers.
- General Information
- Opening Hours and Days
Businesses are closed on Saturday afternoon and Sundays and closed between noon and 3pm for lunch.
Banks close at 3pm, while shops close at 7 o'clock in the evening. Hypermarkets close at midnight from Monday to Saturday, and also on Sunday in November and December.
|New Year's Day
|Shrove Tuesday (the day before Ash Wednesday, the first day of Lent) (not compulsory, but followed by everybody, all companies and public and private organizations)
|Good Friday (the Friday before Easter)
|Saint Anthony (in Lisbon and some other smaller cities)
|Saint John (in Porto, Braga and some other smaller cities)
|Birth of the Republic
||25 December, but 24 December, which is not a public holiday, is considered to be one too, by decision of the Council of Ministers every year.
- Holiday Compensation
Consult the Portugal Employment Reform.
Periods When Companies Usually Close
||There are not many periods when companies close in Portugal. The Administration and companies are always open, with most staff and management present.
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Last Updates: January 2015