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Company taxes in Portugal

How to start a Portuguese limited company. Incorporation or formation of a company in Portugal.

 

 

Companies and taxation in Portugal

There are tax advantages for groups or individual companies, which may wish to establish in Portugal.

The country is not a tax haven, but there is a network of double tax agreements that offer some big advantages.

Requirements and steps for the registration of a company in Portugal

Once it is incorporated, the company must register with the Tax Services.

Corporate tax in Portugal

In 2012, based on the taxable profits:

  • Taking into account the municipal surcharge, the aggregate rate is 29.4% to 31.5%, depending on the municipality.
  • Tthere has been a special tax of 25% in net profit from € 2,000,000

Withholding taxes on Dividends

Normally this is 25%, but it can be reduced to zero when:

  • It is another company of the European Union
  • In case of many double taxation agreements
  • A major shareholder is subject to a special exemption