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Portugal — Orbitax Country Chapters
8.1.1. Other Taxes

The following table provides an overview of other taxes that may be imposed on a company doing business in the country.

Tax Type Rate(s) Notes
Capital Duty NIL There is no capital duty in Portugal.
Payroll Tax NIL There is no payroll tax separately due by companies on their total payroll expenditure. Employers are required to withhold income tax and social security premiums on behalf of their employees.
Social Security Employer Contribution 23.75% Employer contributions are equal to 23.75% of employees' gross monthly salary. Due to the impact of the conflict between Russia and Ukraine on the Portuguese economy, the Portuguese government introduced a deferral program for the payment of social security contributions by employers engaged in specified qualifying activities, whereby, for the months of March, April, May, and June 2022 one-third of the contributions must be paid by the standard due date (i.e., by 20th of the following month) and the remaining two-thirds of the contributions can be paid in six equal instalments (without interest) beginning from August 2022. If the contribution for the month of March 2022 is fully paid then no contribution will be due for the month of April and May 2022.
Social Security Employee Contribution 11% Employee contributions are equal to 11% of their gross monthly salary. The contributions are withheld and paid by the employer.
Property Tax 0.3% to 0.8%, 7.5% A property tax is levied annually by municipalities on the tax registration value (Valor Patrimonial Tributário) of the real property. The general rates range from 0.3% to 0.8%, but a 7.5% rate applies if the property owner is resident in a blacklisted jurisdiction (see Sec. 13.5.).
Transfer Tax 5% to 7.5%, 10% Real estate transfer tax is levied by municipalities at a maximum rate of 5% on the transfer of rural property, 7.5% on the transfer of urban property, and 10% on the transfer of any property if the purchaser is resident in a blacklisted jurisdiction (see Sec. 13.5.). There is an upward adjustment of 4% (increased from 1%, effective 1 January 2023) to the taxable basis in the case of transfer of urban property used exclusively for residential purposes. The transfer tax is due if the taxable basis of the urban property exceeds EUR 97,064 (increased from EUR 93,331). The transfer tax may also apply when a single holder acquires 75% or more of the share capital of an LLC or partnership owning real estate in Portugal. Effective 1 January 2021, the transfer tax also applies on the acquisition of at least 75% shares in joint-stock companies, subject to certain conditions.
Stamp Duty Varies Stamp duty is levied on various agreements, deeds, and documents, as well as transactions not subject to VAT, such as real estate acquisitions, leases, financial transactions, insurance premiums, and others. Effective 1 January 2023, the transfer of crypto assets without consideration is subject to stamp duty at the rate of 10%. Commissions and other payments charged by or with the intermediation of crypto assets service providers are subject to stamp duty at the rate of 4%.
Excise Taxes Varies Excise taxes are levied on oil and oil products, alcohol and alcoholic beverages, tobacco products, and vehicles. A separate CO2 factor is added to excise taxes on petroleum, coal, natural gas, coke, liquefied petroleum gas (LPG), and fuel oil. Excise taxes are also levied on the consumption of electricity by producers, traders, self-producers, and consumers that buy electricity in organized markets.
Customs Duty Varies Customs duties are imposed on certain goods imported from outside the European Union.
Financial Sector Contribution Varies Financial Sector Contribution is levied on credit institutions whose head office or place of effective management is in Portugal, as well as foreign credit institutions with subsidiaries or branches in Portugal. The levy is at a rate of 0.11% on the value of certain liabilities and at a rate of 0.00030% on the notional amount of off-balance sheet financial derivatives, excluding hedging derivatives and back-to-back derivatives.
Additional Solidarity Bank Levy Varies In response to the COVID-19 pandemic, the Portuguese government introduced an additional solidarity bank levy to finance the social security financial stabilization fund, in addition to the financial sector contribution (mentioned above). The levy is payable by credit institutions whose head office or place of effective management is in Portugal, as well as foreign credit institutions with subsidiaries or branches in Portugal. The levy is at a rate of 0.02% on the average value of certain liabilities and a rate of 0.00005% on off-balance sheet financial derivatives.
Exhibition Levy 4% An exhibition levy at a rate of 4% applies to the price paid for commercial audiovisual advertising in cinemas and television broadcasts. Effective 17 February 2021, the levy is extended to audiovisual advertising displayed via on-demand and video sharing platform services.
Annual Levy 1% Effective 17 February 2021, an annual levy (also known as Netflix tax) of 1% is introduced for on-demand service operators on income derived from Portugal. However, an exemption is provided to service providers with an annual income below EUR 200,000 or a low subscription (i.e., less than 0.5% of total subscribers).
Autonomous Taxation Varies Autonomous taxation applies to specified expenses incurred by companies in addition to corporate tax, even if no corporate tax is payable (see Note below)


Autonomous taxation applies to expenses incurred by companies at the following rates:

  • Entertainment and representation expenses: 10%;
  • Mileage allowance: 5%;
  • Per diem (daily allowance for employees): 5%;
  • Undocumented expenses: 50% (70% for companies partly or fully exempt from corporate tax, not principally engaged in commercial, industrial or agricultural activities or subject to Gaming tax);
  • Bonus and variable compensation paid to board members or managers if the amount exceeds 25% of the annual salary and EUR 27,500: 35%;
  • Indemnities and compensation paid to board members or managers (including “golden parachutes”): 35%;
  • Dividends distributed to wholly or partly exempt taxpayers holding shares for less than 1 year: 23%;
  • Company car expenses (including depreciation, rentals, leasing, insurance, maintenance, repairs, fuel, and taxes), except fully electric cars, vehicles allocated to public transport, or vehicles that are taxed as income in kind for personal income tax purposes, depending on the type of vehicle (certain plug-in hybrids, vehicles moved by compressed natural gas, and other vehicles), the acquisition cost, and regardless of the year of acquisition in the range of 2.5%;
  • Effective 1 January 2023, expenses incurred for electric vehicles with acquisition cost exceeding EUR 62,500: 10%.

The autonomous tax rates are generally increased by 10% for companies having tax losses in the tax year in which the expenses are incurred except for the initial 2 years of commencement of activity. However, for the tax years 2022 and 2023, companies having tax losses are not subject to the increased autonomous tax rate of 10% if:

  • Taxable profits are generated in any one of the previous 3 tax years
  • The corporate tax return and the annual statement are timely submitted for the previous 2 tax years; or
  • The 2022 and 2023 tax years fall within the initial 3 years of the commencement of the activity.