Reference
Portugal Corporate Tax Rates 2026 (IRC)
Last updated: 2026-05-03
IRC rates (2026)
| Scenario | Rate | Applies to |
|---|---|---|
| PME / Small Mid Cap, first €50k | 15% | Certified SMEs (IAPMEI) |
| Startup (Lei 21/2023), first €50k | 12.5% | Companies < 10 years, < 250 employees |
| Standard rate | 19% | All taxable income above €50k threshold |
| Standard rate (2027) | 18% | Scheduled reduction |
| Standard rate (2028) | 17% | Scheduled reduction |
A municipal surcharge (derrama municipal) of 0–1.5% may apply depending on the municipality.
IRC simplified regime (Regime Simplificado de IRC)
Companies meeting micro-entity thresholds 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)
- Annual revenue ≤ €200,000
- Balance sheet ≤ €500,000
- NC-ME accounting standard (micro-entity)
- Must opt in at company formation
Key coefficients
| Revenue type | Coefficient | Effective tax (at 15% PME rate) |
|---|---|---|
| Sales of goods, restaurant/hotel | 0.04 | ~0.6% |
| Services (general) | 0.10 | ~1.5% |
| Professional services (Art. 151 list) | 0.75 | ~11.25% |
Startup bonus (first 2 years)
| Year | Services coefficient | Effective tax on revenue |
|---|---|---|
| Year 1 | 0.05 (halved) | ~0.75% |
| Year 2 | 0.075 (reduced 25%) | ~1.1% |
| Year 3+ | 0.10 (standard) | ~1.5% |
SaaS and digital services fall under "services (general)" at 0.10, meaning ~1.5% effective tax on revenue. This makes the IRC simplified regime one of the most favorable corporate tax setups in Europe for bootstrapped software companies.
Read the full analysis of why this matters for startups.