🇵🇹 Tax7 Nov 2025
Portugal cuts corporate tax to 19% in 2026, falling to 17% by 2028
Portugal's Law 64/2025, published on 7 November 2025, cuts the general corporate income tax (IRC) rate to 19% for tax periods starting in 2026, 18% in 2027 and 17% from 1 January 2028. The rate on the first EUR 50,000 of profit for small and mid-sized companies falls to 15% from 2026. The general rate had already fallen from 21% to 20% in 2025.
Parliament approved the law on 17 October 2025 and the President promulgated it on 3 November 2025.
What changed
- General IRC rate: 19% for tax periods starting in 2026, 18% in 2027 and 17% from 2028.
- SMEs and small mid-caps: 15% on the first EUR 50,000 of taxable profit from 2026. Qualifying start-ups keep a 12.5% rate.
- The rate applies by the start of the tax period, so companies with a non-calendar year move in step with their period.
- Municipal and state surcharges are separate and unchanged by this law.
Who is affected
Portuguese companies and their finance teams, including for deferred tax calculations.