Portugal’s 2026 corporate income tax: the general and SME rates, the state derrama brackets and the municipal derrama cap — each figure set by Lei n.º 64/2025 or the CIRC, dated and linked to its primary source.
| Item | Rate | Legal reference |
|---|---|---|
| IRC — general rate (2026) | 19%Transitional reduction path set by Lei n.º 64/2025: 20% → 19% (2026) → 18% → 17% by 2028. | CIRC Art. 87.º (Lei n.º 64/2025) |
| IRC — reduced rate for SMEs / Small Mid Caps | 15% on the first €50,000 of taxable income; the excess is taxed at the general rateApplies to small and medium-sized enterprises and Small Mid Caps. Applies from tax periods starting on/after 1 Jan 2026. | CIRC Art. 87.º (Lei n.º 64/2025) |
Last verified: · Source: Diário da República — Lei n.º 64/2025 (IRC); OCC OE2026
| Taxable profit | Rate | Legal reference |
|---|---|---|
| Derrama estadual — taxable profit > €1.5M to €7.5M | 3%State surtax on the portion of taxable profit in this band. | CIRC Art. 87.º-A |
| Derrama estadual — taxable profit > €7.5M to €35M | 5%State surtax on the portion of taxable profit in this band. | CIRC Art. 87.º-A |
| Derrama estadual — taxable profit > €35M | 9%State surtax on the portion of taxable profit in this band. | CIRC Art. 87.º-A |
Last verified: · Source: Diário da República — Lei n.º 64/2025 (IRC); OCC OE2026
| Item | Rate | Legal reference |
|---|---|---|
| Derrama municipal — maximum rate | Up to 1.5% (each municipality sets its own rate)Municipal surtax on taxable profit, capped at 1.5%; the actual rate is fixed annually by each município. | Lei n.º 73/2013 Art. 18.º |
Last verified: · Source: Diário da República — Lei n.º 64/2025 (IRC); OCC OE2026
Related: How to open a company in Portugal · Company setup
