Portugal Corporate Tax Rates 2026 (IRC)

IRC rates (2026)

Scenario	Rate	Applies to
PME / Small Mid Cap, first €50,000	15%	Companies qualifying as an SME or Small Mid Cap (DL 372/2007; IAPMEI certification is the usual proof), with a commercial, industrial or agricultural main activity, within the EU de minimis limits
Startup (Lei 21/2023), same first band	12.5%	Companies that meet the SME conditions above, qualify as a startup under Lei 21/2023 and meet the conditions of its Art. 2.º n.º 1 f) (Art. 87.º n.º 8 CIRC)
Standard rate	19%	Taxable income above that band for a PME or startup, and all taxable income of other resident companies on the mainland
Standard rate (2027)	18%	Scheduled reduction
Standard rate (2028)	17%	Scheduled reduction

A municipal surcharge (derrama municipal) of 0 to 1.5% may apply depending on the municipality.

IRC simplified regime (Regime Simplificado de IRC)

Small companies within the Art. 86-A limits below can opt into the simplified regime. Instead of deducting actual expenses, a coefficient is applied to revenue to determine taxable income.

Eligibility (all conditions required)

The company must be resident in Portugal, neither exempt from IRC nor subject to a special tax regime, and have a commercial, industrial or agricultural activity as its main activity. On top of that (Art. 86-A n.º 1 CIRC):

• Gross income in the previous tax period ≤ €200,000 (alínea a)
• Balance-sheet total in the previous tax period ≤ €500,000 (alínea b)
• Not required to have its accounts legally audited (alínea c)
• No more than 20% of its capital held, directly or indirectly, by entities that fail these conditions, venture-capital holders excepted (alínea d)
• Uses the NC-ME accounting standard for micro-entities (alínea e)
• Has not renounced the regime in the three years before the date it would start applying (alínea f)

How to opt in: tick it on the declaração de início de atividade, or later through a declaração de alterações filed by the end of the 2nd month of the tax period (Art. 86-A n.º 3 CIRC). A company that renounces it cannot return for three years (Art. 86-A n.º 1 f) CIRC).

Key coefficients

Revenue type	Coefficient	Effective tax (at 15% PME rate)
Sales of goods, restaurant/hotel (alínea a)	0.04	~0.6%
Other services (alínea c)	0.10	~1.5%
Professional services on the Art. 151 CIRS list (alínea b)	0.75	~11.25%

Startup bonus (first 2 years)

In the first two tax periods of activity, the coefficients of alíneas a) and c) are reduced. Alínea b), the Art. 151 professional services, gets no reduction.

Year	Reduction	Other-services coefficient (alínea c)	Effective tax on revenue
Year 1	50%	0.05	~0.75%
Year 2	25%	0.075	~1.1%
Year 3+	none	0.10	~1.5%

SaaS and digital services. Whether SaaS revenue falls under alínea c) at 0.10 or alínea b) at 0.75 depends on how the activity is classified. Programmers (programadores informáticos) are on the Art. 151 list, and AT judges the activity a company actually performs rather than the activity code it registered. We have not located a published binding ruling on SaaS subscriptions. Confirm with your accountant (contabilista certificado) before opting in.

Read the full analysis of why this matters for startups.