
The favorable
tax regime makes
Portugal a preferred business destination among the European countries for many foreign entrepreneurs. Our
company formation specialists in Portugal can provide information about the taxes a company needs to pay in this country. Also, assistance in
company formation in Portugal is at the disposal of foreigners looking to
start a business in Portugal.
What is the corporate income tax in Portugal?
The
corporate income tax rate in Portugal is set at 21% and it is applicable to the taxable incomes of companies with establishments in
Portugal. It is good to know that a reduced corporate income tax of 17% is applicable to businesses in Madeira, the autonomous region, for the first registered revenues of EUR 15,000. A
corporate income tax of 16.8% is imposed in the Azores, a Portuguese region that has a special tax regime.
What is the non-habitual residents regime in Portugal?
The
non-habitual residents regime or NHR as it is known offers a series of tax advantages for residents in
Portugal for the first 10 years. For example, the incomes are levied at a 20% tax rate no matter the amount of the registered revenues. Tax exemptions are applicable to dividends and other
investment revenues of foreigners in
Portugal. A beneficial tax treatment is provided to individuals who contributed to pension funds in
Portugal.
Tax facts in Portugal
The following tax matters should be in the attention of all foreign investors looking to
register a company in Portugal. Before that, we remind that our
company formation agents in Portugal can help them in setting up a company. Here is important information about the
taxation in Portugal:
- • a tax rate of 28% is applicable to capital gains, dividends and interests generated from investments in Portugal;
- • the VAT rate in Portugal is set at 6% for fresh food category, hotel accommodations, and specific health services;
- • the wealth tax was introduced in 2017 and it is set at 1% for owners of properties of more than EUR 1 million;
- • the inheritance tax has a 10% rate and it is not applicable for assets distributed in the family.
You should request complete information about the
taxes you need to pay in Portugal from our
team of company incorporation representatives in Portugal. Feel free to
contact us at any time.