Portugal: CIT rate is progressively reduced until 2028 to 17%
The general Corporate Income Tax (CIT) rate will be progressively reduced from 20% to 17% between 2026 and 2028, while the special rate will decrease from 16% to 15% already in 2026.
The commitment assumed by the portuguese Government regarding the phased reduction of the CIT rate is finally implemented by Law no. 64/2025, of 7 November 2025.
The general rate will therefore be reduced from 20% to 19% for fiscal periods beginning in 2026, to 18% for those beginning in 2027, and to 17% for those beginning in 2028. This reduction will apply equally to entities headquartered in Portugal that do not primarily carry out commercial, industrial, or agricultural activities.
The special rate applicable to the first EUR 50,000 of taxable income earned by small and medium-sized enterprises (SMEs) and small mid caps that directly and primarily carry on an agricultural, commercial, or industrial economic activity will decrease from 16% to 15% from 2026 onwards, with the general rate applying to any amount exceeding the abovementioned threshold.
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