Portugal · Tax and compliance

Tax and compliance in Portugal

Snapshot

A business in Portugal deals with value added tax, the IVA, at a standard 23 percent on the mainland, corporate income tax, the IRC, on profits, and the imposto do selo stamp duty on many banking commissions. Most businesses must invoice through software certified by the Autoridade Tributaria, with an ATCUD code and a QR code on each invoice.

VAT, the IVA
Standard 23 percent on the mainland, with reduced 13 and 6 percent rates
Corporate tax, the IRC
On company profits, standard rate reduced for 2026 plus a possible municipal derrama
Stamp duty
Imposto do selo, commonly 4 percent on banking commissions
Invoicing
Certified software with an ATCUD code and a QR code, as of 14 January 2026
Fees and features as of 14 January 2026Last reviewed 14 January 2026

General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider before applying.

A business in Portugal deals with several taxes overseen by the Autoridade Tributaria. Value added tax, the IVA, has a standard rate of 23 percent on the mainland, with reduced rates of 13 and 6 percent and lower regional rates in the Azores and Madeira. Corporate income tax, the IRC, is charged on profits, with the standard rate reduced for 2026, a lower rate on the first part of profit for small and medium companies, and a possible municipal derrama on top. The imposto do selo stamp duty applies to many banking commissions, commonly at 4 percent. Most businesses must invoice through certified software with an ATCUD code and a QR code. As of 14 January 2026, this is general information, not tax advice, so confirm the figures and deadlines with the Autoridade Tributaria or a qualified accountant.

Tax and compliance for businesses in Portugal

Banking is only one part of running a company in Portugal. The tax authority, the Autoridade Tributaria, oversees value added tax, corporate income tax and the reporting that goes with them. The notes below describe the main headings as of 14 January 2026. They are general information, not tax advice, so confirm the figures and the deadlines that apply to your business with the Autoridade Tributaria or a qualified accountant.

The main taxes

  1. Value added tax, the IVA, with a standard rate of 23 percent on the mainland and reduced rates of 13 percent and 6 percent on certain goods and services. The Azores and Madeira apply lower regional rates.
  2. Corporate income tax, the IRC, charged on company profits. The standard rate was reduced for 2026, a lower rate applies to the first part of taxable profit for small and medium companies, and a municipal surcharge, the derrama, can apply on top. Confirm the current rate with the Autoridade Tributaria.
  3. The imposto do selo, a stamp duty that applies to many banking commissions, commonly at 4 percent, added on top of the headline fee.

Invoicing and reporting

Portugal requires most businesses to issue invoices through software certified by the Autoridade Tributaria, and each invoice carries a unique document code, the ATCUD, and a QR code. Businesses report billing data to the tax authority on a regular basis and file periodic IVA returns. Public sector suppliers must issue structured electronic invoices to public bodies. A clean banking record helps here, since matching bank statements to invoices makes reporting simpler. As of 14 January 2026, confirm which obligations apply to your business and the current deadlines with the Autoridade Tributaria or your accountant.

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Questions about tax and compliance in Portugal

What is the VAT rate for businesses in Portugal?
The standard value added tax rate, the IVA, is 23 percent on the Portuguese mainland, with reduced rates of 13 percent and 6 percent on certain goods and services, and lower regional rates in the Azores and Madeira. Confirm the rate that applies to your supplies with the Autoridade Tributaria. As of 14 January 2026.
What is the corporate tax rate in Portugal?
Corporate income tax, the IRC, is charged on company profits. The standard rate was reduced for 2026, a lower rate applies to the first part of taxable profit for small and medium companies, and a municipal surcharge, the derrama, can apply on top, so the effective rate varies. Confirm the current figure with the Autoridade Tributaria or your accountant. As of 14 January 2026.
Do I need certified invoicing software in Portugal?
Most businesses must issue invoices through software certified by the Autoridade Tributaria, with each invoice carrying a unique document code, the ATCUD, and a QR code. The exact obligations depend on your size and activity, so confirm what applies with the Autoridade Tributaria or your accountant. As of 14 January 2026.
Is there stamp duty on bank charges in Portugal?
Yes. The imposto do selo is a stamp duty that applies to many banking commissions in Portugal, commonly at 4 percent, and it is added on top of the headline fee. Confirm how it applies to your account with the provider. As of 14 January 2026.

Fees, features, and eligibility change and vary by region. This page was last reviewed on 14 January 2026. Confirm current terms with the provider before applying.

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