Portugal: a new growth leader in the Eurozone

Our Fee for setting up a LDA incl Office Service /VAT / Accounting

EURO 4500.-

Portugal company Taxation

Taxation and statutory requirements at a glance


The standard corporate tax rate in Portugal is 25% for all entities.
Other tax rates:
• VAT – 25%
• withholding tax on dividends – 25%
• withholding tax on interest – 25%
• withholding tax on royalties – 25%
• on lottery prizes – 25-35%
• on rental income – 15%
• on consulting and management service payments – 15%
• progressive personal income tax – 14.5% on €7000 or less, through to 48% on €80,000 or more, of annual income
All taxes should be paid quarterly in advance.

Advantages of using Portugal as your jurisdiction of choice:

1. Membership in European Union, NATO, OECD
2. A Schengen state
3. Official currency is the Euro
4. Political stability
5. Favourable business conditions
6. Foreign investment promotion programs
7. One of the lowest operational costs in western Europe
8. Easy terms of the economic citizenship program
9. Nominal service of directors and shareholders is available
10. Operating free-trade zones on Madeira and the Azores with special tax regime
11. No currency control
12. Wide participation in double taxation treaties

Company Type

A limited liability company (Sociedade limitada, Lda) is the most popular type of company. The distinctive feature of the jurisdiction is that the owners hold quotas in the company, rather than shares.

Filing Requirements

What documents will you receive upon company registration?

• Notarised Certificate of Incorporation
• Memorandum and Articles of Association
• Extract from commercial register
• Certificate of registration in social security and accident security bodies
• Certificate of registration in the local office of the Ministry of the Economy or DGE(General Directorate for Energy) of Portugal

  • Modern and efficient multilingual banking & financial services sector;
  • Excellent air and sea connections and telecommunications services;
  • Professional, reputable and efficient Government and Tax Authorities;
  • A mature professional services sector;
  • Very low expense level (fees) for financial and professional service provision compared to other Jurisdictions. The difference is more evident in the case of professional service recurring costs (administration, accounting & tax compliance) are estimated to be at 35- 40% of Western European rates.