Portugal

Click here for more Europe Links and Resources

FITA helps you find
service providers for:

Business Environment

Business Practices

General information: Executive planet
Opening hours and days: Closed on Saturday afternoon and Sunday.
Closed for the lunch break between 12 noon and 3pm.
Banks close at 3pm. 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.

Public holidays

New Year's Day	1 January
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)	March/April
Good Friday (the Friday before Easter)	March/April
Freedom Day	25 April
Labor Day	1 May
National Day	10 June
Corpus Christi	11 June
Saint Anthony (only in Lisbon)	13 June
Saint John (only in Porto)	21 June
Assumption	15 August
Birth of the Republic	5 October
All Saints	1 November
Independence Day	1 December
Immaculate Conception	8 December
Christmas	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.

Periods when companies usually close

There are not really periods when companies close in Portugal. The Administration or companies are always open, with more or less staff and management present.

Accounting Rules

Tax year: From 1 January to 31 December.
Accounting standards: The official accounting plan (Plano Oficial de Contabilidade - POC) and accounting standards (Directrizes Contabilísticas - DC) DC 1 to DC 29.
Accounting regulation bodies: Ministry of Finance
CNC
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: Three types of company 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
APOTEC
APPC
OROC
Certification and auditing: Mazars
Ernst&Young
KPMG
PwC
D.F.K e Associados
Moore Stephens
Accounting news

Tax Rates

Consumption taxes

Nature of the tax: Imposto Sobre o Valor Acrescentado (I.V.A.) = Value Added Tax (VAT).
Tax rate: 20%
Reduced tax rate: Reduced VAT rates vary between 5% and 12%. They are 12% for catering, petrol and some foodstuffs. The 5% rate applies to most foodstuffs, water, publications, electricity, transport, hotels and leisure.
Other consumption taxes: Ther is also a vehicle tax named IUC.

Corporate taxes

Company tax: 25%.
Tax rate for foreign companies: Foreign companies are taxed on the profits they make in Portugal. For further information , click here.
Capital gains taxation: Long term capital gains are taxed in Portugal at the standard Corporate Tax rate, i.e. 25% + a municipal tax of 10% of the maximum IRC.
Main allowable deductions and tax credit: 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 for apprenticeships especially.

Individual taxes

Tax rate

Personal income tax (IRS)	from 12 to 40%
Up to EUR 4,639	10.5%
EUR 4,640 - 7,017	13%
EUR 7,018 - 17,401	23.5%
EUR 17,402 - 40,020	34%
EUR 40,021 - 58,000	36.5%
EUR 58,001 - 62,546	40%
EUR 62,547 and over	42%

Allowable deductions and tax credit: Children's education and prolonging 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.

Double taxation treaties

Countries with whom a double taxation treaty have been signed: Portugal has signed agreements with 51 countries, including EU countries, Switzerland, the USA, some Portuguese-speaking countries (Brazil, Mozambique, Cape Verde) and South American countries (Chile and Argentina), China, etc.
Whithholding taxes: Dividends: 20%, Interest: 15%/20%, Royalties: 15%

Sources of fiscal information

Tax Authorities: Directorate General of taxes in Portugal
Other domestic resources: The "lojas do cidadão" (citizen shops) to help you with tax issues, social security, water, gas and electricity contracts, etc..

Intellectual Property

National organizations: The National Institute for Industrial Property, the organization for the protection of intellectual property.
The Portuguese Authors' Society for copyright
List of the institutions which manage copyright.
Regional organizations: For the protection of patents: the European Patent Office.
International membership: Signatory to the Paris Convention for the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)

National regulation and international agreements

Type of property and law	Validity	International agreements signed
Patent Industrial property Code, Decree- Act n° 16/95 24 January 1995	20 years	Patent Cooperation Treaty (PCT) Strasbourg agreement concerning the International Patent Classification
Trademark Industrial property Code, Decree- Act n° 16/95 24 January 1995	10 years	Trademark law treaty Nice agreement Protocol relating to the Madrid Agreement
Design Industrial property Code, Decree- Act n° 16/95 24 January 1995	25 years
Copyright "Código Direitos de autor" (Copyright Code)	70 years after the death of its author, or after the most recent death of its authors.	Berne convention Convention for the Protection of Producers of Phonograms against unauthorized duplication of their phonograms Rome convention for the protection of performers, producers of phonograms and Broadcasting organizations WIPO copyright treaty WIPO performances and Phonograms treaty
Industrial Models

Legal Framework

Independence of justice: Yes
Equal treatment of nationals and foreigners: Yes
The language of justice: Portuguese and Mirandese in a region of the north-east of the country.
Recourse to an interpreter: Possible.
Sources of the law and legal similarities: Portuguese law has various sources: the Constitution, laws voted 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 Portuguese law.
Checking national laws online: Diário Republica (Official Gazette)

Standards

National standards organizations: Portuguese certification association (APCER)
Portuguese quality institute (IPQ)
Integration in the international standards network: At the European level:
- CEN, European Committee for Standardization
- CENELEC, European Committee for Electrotechnical Standardization

At the international level:
- International Standard organization (ISO)
- International Electrotechnical Commission (IEC)
Classification of standards: NP, the national certfication mark
CE, European certification mark. It is compulsory for a product to be sold on the market.
Online consultation of standards: APCER, certification association
Certification organizations: Portuguese accreditation institute (IPAC)

Any comments about this content? Report it to us.