Accounting Rules

Tax Year: From 1 January to 31 December.
Accounting Standards: The official accounting plan (Plano Oficial de Contabilidade - POC) and accounting standards (Directrizes Contabilísticas - DC) DC 1 to DC 29.
Accounting Regulation Bodies: Ministry of Finance
CNC
Accounting Reports: Company financial statements must include a balance sheet (simple or detailed presentation), a profit and loss account (drawn up as a table), notes to the accounts and an annual report (called D.O.G. « Documento de Orgão de Gestão»).
Publication Requirements: There are three types of company which must legally publish their financial statements: public companies, limited liability companies and companies listed on the stock exchange (according to European norms). Company financial statements are published once a year.
Professional Accountancy Bodies: CTOC , Chamber of Chartered Accountants
APOTEC , Accountants' Association
APPC , Accountants' Association
OROC , Order of Auditors
Certification and Auditing: Companies have to seek a statutory auditor to conduct an annual audit of the financial health of their organization. You can contact an external auditor: Mazars ; Ernst&Young ; KPMG ; PwC ; D.F.K e ; Associados ; Moore Stephens
Accounting News: RTP Accounting News

Tax Rates

Consumption Taxes

Nature of the Tax: Imposto Sobre o Valor Acrescentado (I.V.A.) = Value Added Tax (VAT).
Tax Rate: 23%
Reduced Tax Rate: Reduced VAT rates vary between 6% and 13%. They are 13% for catering, petrol and some foodstuffs. The 6% rate applies to most foodstuffs, water, publications, electricity, transport, hotels and leisure.
Other Consumption Taxes: A vehicle tax named IUC also apply in Portugal

Learn more about Service Providers in Portugal on Globaltrade.net, the Directory for International Trade Services.

Corporate Taxes

Company Tax: 25% + a municipal surcharge (up to 1.5% of the taxable income). Effective rate: 26.5%
Tax Rate For Foreign Companies: Foreign companies are taxed on the profits they make in Portugal. For further information access the web portal of the Finance Ministry (in Portuguese).
Capital Gains Taxation: Long term capital gains are taxed in Portugal at the standard Corporate Tax rate, i.e. 26.5%. Some exemptions apply on some type of capital.
Main Allowable Deductions and Tax Credit: To determine fiscal results you can deduct: depreciation, interest, remuneration of directors (totally deductible), and royalties. The fiscal loss of a given year may be carried forward over one or several of the six following accounting years. On the other hand, the carry-back method is not authorized.
Expenses are deductible for depreciation or amortization, reserves, rents for premises and equipment, wages, etc.
Tax credit exists especially for apprenticeships. Additional information.
Other Corporate Taxes: Stamp duty is levied on many types of transactions. Real Estate transfer tax apply at rates from 5 to 8%, depending on type of assets and area concerned.

Individual Taxes

Tax Rate

Personal income tax (IRS)	Porgressive rate from 11.5% to 50%
Up to EUR 4,898	11.5%
EUR 4,898 - 7,410	14% + a 3.5% surtax
EUR 7,410 - 18,375	24.5% + a 3.5% surtax
EUR 18,375 - 42,259	35.5% + a 3.5% surtax
EUR 42,259 - 61,244	38% + a 3.5% surtax
EUR 61,244 - 66,045	41.5% + a 3.5% surtax
EUR 66,045 to 153,300	43.5% + a 3.5% surtax
Over EUR 153,300	46.5% + a 3.5% surtax

Allowable Deductions and Tax Credit: Children's education and prolonged studies for adults (courses approved by the Ministry), health expenses, investment in renewable energies, buying IT equipment, etc.
Special Expatriate Tax Regime: If expatriates do not have a residence in Portugal, they can choose between total income tax in Portugal or in their country of origin. If they do have a residence in Portugal, they are subject to the IRS regime.

Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed: Portugal has signed agreements with 52 countries
Withholding Taxes: Dividends: 21.5%, Interest: 21.5%, Royalties: 15% (rates may be lower in the case of a tax treaty)

Sources of Fiscal Information

Tax Authorities: Directorate General of taxes in Portugal
Other Domestic Resources: The "lojas do cidadão" (citizen shops) to help you with tax issues, social security, water, gas and electricity contracts, etc..

Learn more about Taxes and Accounting in Portugal on Globaltrade.net, the Directory for International Trade Services.

Intellectual Property

National Organizations: The National Institute for Industrial Property, the organization for the protection of intellectual property.
The Portuguese Authors' Society for copyright
List of the institutions which manage copyright.
Regional Organizations: For the protection of patents: the European Patent Office.
International Membership: Signatory to the Paris Convention For the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)

National Regulation and International Agreements

Type of property and law	Validity	International Agreements Signed
Patent Industrial property Code, Decree- Act n° 16/95 24 January 1995	20 years	Patent Cooperation Treaty (PCT)
Trademark Industrial property Code, Decree- Act n° 16/95 24 January 1995	10 years	Trademark Law Treaty Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks
Design Industrial property Code, Decree- Act n° 16/95 24 January 1995	25 years
Copyright "Código Direitos de autor" (Copyright Code)	70 years after the death of its author, or after the most recent death of its authors.	Berne convention For the Protection of Literary and Artistic Works Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication of Their Phonograms Rome ConventionFor the Protection of Performers, Producers of Phonograms and Broadcasting Organizations WIPO Copyright Treaty WIPO Performances and Phonograms Treaty

Legal Framework

Independence of Justice: Yes
Equal Treatment of Nationals and Foreigners: Yes
The Language of Justice: Portuguese and Mirandese in a region of the north-east of the country.
Recourse to an Interpreter: Possible.
Sources of the Law and Legal Similarities: Portuguese law has various sources: the Constitution, laws passed by Parliament, ministerial decrees and orders, international conventions and treaties ratified by Portugal.
Because Portugal belongs to the European Union, national law conforms to the requirements of Community legislation.
There are legal similarities with all the countries whose law has come from Roman law, in particular with French law which inspired the Portuguese model.
Checking National Laws Online: Diário Republica (Official Gazette)

Learn more about Lawyers and Legal in Portugal on Globaltrade.net, the Directory for International Trade Services.

Standards

National Standards Organizations: Portuguese certification association (APCER)
Portuguese quality institute (IPQ)
Integration in the International Standards Network: At the European level:
- CEN, European Committee for Standardization
- CENELEC, European Committee for Electrotechnical Standardization

At the international level:
- International Standard organization (ISO)
- International Electrotechnical Commission (IEC)
Classification of Standards: NP, the national certfication mark
CE, European certification mark. It is compulsory for a product to be sold on the market.
Online Consultation of Standards: APCER, certification association
Certification Organizations: Portuguese accreditation institute (IPAC)

Business Practices

General Information: Executive planet
Opening Hours and Days: Businesses are closed on Saturday afternoon and Sundays and closed between noon and 3pm for lunch.
Banks close at 3pm, while shops close at 7 o'clock in the evening. Hypermarkets close at midnight from Monday to Saturday, and also on Sunday in November and December.

Public Holidays

New Year's Day	1 January
Shrove Tuesday (the day before Ash Wednesday, the first day of Lent) (not compulsory, but followed by everybody, all companies and public and private organizations)	March/April
Good Friday (the Friday before Easter)	March/April
Freedom Day	25 April
Labor Day	1 May
National Day	10 June
Corpus Christi	June
Saint Anthony (only in Lisbon)	13 June
Saint John (only in Porto)	21 June
Assumption	15 August
Birth of the Republic	5 October
All Saints	1 November
Independence Day	1 December
Immaculate Conception	8 December
Christmas	25 December, but 24 December, which is not a public holiday, is considered to be one too, by decision of the Council of Ministers every year.

Periods When Companies Usually Close

There are not many periods when companies close in Portugal. The Administration and companies are always open, with most staff and management present.

Any Comments About This Content? Report It to Us.

Portugal: Business Environment