Law No. 64/2025 of 7 November amended the Corporate Income Tax Code (CIT Code), progressively reducing the corporate income tax rates as follows:
Standard Corporate Income Tax Rate
The standard corporate income tax rate applicable in 2026 to the total income of entities having their registered office or place of effective management in Portuguese territory shall be 19%.
For the tax period commencing in 2027, the general corporate income tax rate shall be 18%.
For the tax periods commencing in 2028, the general corporate income tax rate is set at 17%.
Special Corporate Income Tax Rate – SMEs
For tax periods commencing on or after 1 January 2026, taxable persons that carry on, directly and as their main activity, an agricultural, commercial or industrial business and that qualify as a small or medium-sized enterprise or as a small mid-cap company shall be subject to a corporate income tax rate of 15% on the first EUR 50,000 of taxable income, with the general rate in force for each tax period applying to the excess.
Law No. 64/2025 shall enter into force on 12 November 2025; however, this regime shall apply only to tax periods commencing on or after 1 January 2026.
