# Corporate Tax in Portugal (2026): IRC Rates for an Lda.

> IRC rates in Portugal for 2026: the 19% standard rate, the 15% SME rate, surcharges, dividend tax and key filing deadlines.

Source: https://getlda.pt/guides/portugal-corporate-tax-irc · Updated 2026-09-27

**Quick answer:** In 2026 a Portuguese Lda. pays corporate income tax (IRC) at 19%. SMEs pay 15% on the first €50,000 of taxable profit. Municipalities can add up to 1.5%, a state surcharge applies above €1,500,000, and dividends paid to resident individuals are taxed at 28%.

Portugal has been cutting its corporate tax rate year by year. Here is what an Lda. pays in 2026 and the obligations that come with it.

## IRC rates in 2026

| Taxable profit | Rate |
|---|---|
| Standard rate | **19%** |
| SMEs — first €50,000 | **15%** |
| SMEs — above €50,000 | 19% |

An **SME** follows the EU definition: broadly, fewer than 250 employees and annual turnover up to €50 million (or a balance sheet up to €43 million). Most new Lda.s qualify.

Further reduced rates exist for companies operating in Portugal's designated interior regions and for certified startups (12.5% on the first €50,000) — see our guide to the [12.5% interior and startup rate](https://getlda.pt/guides/irc-12-5-percent-interior-portugal). Madeira and the Azores have their own rates.

The standard rate is scheduled to keep falling — to 18% in 2027 and 17% in 2028 — under the reduction path approved by Parliament.

## Surcharges (derramas)

On top of IRC, two surcharges may apply to taxable profit:

- **Municipal surcharge (derrama municipal)** — set by each municipality, up to **1.5%**. Many municipalities apply lower rates or exemptions for small companies.
- **State surcharge (derrama estadual)** — only on profits above **€1,500,000**: 3% up to €7.5 million, 5% up to €35 million and 9% above that.

## Autonomous taxation

Some expenses are taxed separately even when the company makes a loss — for example certain company car costs, entertainment expenses and undocumented expenses. Keeping clean records with your accountant keeps these low.

## Taking money out: salary or dividends

Profit belongs to the company. To pay yourself you can:

- **Pay a salary** as manager. It is a deductible cost for the company, but it's subject to personal income tax (IRS) at progressive rates and to Social Security contributions from both the company and you.
- **Distribute dividends** from after-tax profit. Dividends paid to Portuguese-resident individuals are taxed at a flat **28%** (they can opt to include them in their income at progressive rates). Dividends paid to non-residents may benefit from a reduced rate under a double tax treaty.

The right mix depends on your personal tax residence and profit level — worth modelling with your accountant before your first year end.

## VAT

Most Lda.s charge VAT (IVA). The standard mainland rate is **23%**, with reduced rates for some goods and services. VAT returns are filed monthly or quarterly depending on turnover.

## Key annual deadlines

| Filing | Deadline |
|---|---|
| IRC return (Modelo 22) | Normally the last working day of May, for the previous year |
| Annual accounts information (IES) | Normally 15 July |
| RCBE confirmation | 31 December |
| Advance tax payments (pagamentos por conta) | July, September and December |

All of this is filed by your company's [certified accountant](https://getlda.pt/guides/accountant-requirements-portugal).

## Example

An SME with €80,000 of taxable profit in 2026 pays roughly €50,000 × 15% + €30,000 × 19%, before any municipal surcharge. Your accountant will adjust for deductions, tax benefits and autonomous taxation.

## Related guides

- [12.5% Corporate Tax in Portugal's Interior (Low-Density) Regions](https://getlda.pt/guides/irc-12-5-percent-interior-portugal.md)
- [How Much Does It Cost to Open a Company in Portugal?](https://getlda.pt/guides/cost-of-opening-a-company-in-portugal.md)
- [Do I Need an Accountant for My Portuguese Company?](https://getlda.pt/guides/accountant-requirements-portugal.md)

Ready to open your Lda.? Licensed Portuguese lawyers handle it 100% online: https://getlda.pt/register