Certain changes to the corporate tax regime for Portuguese companies came into force on 1 January 2014,

The headline changes are as below:


  • a worldwide participation exemption regime, that provides tax exemptions on dividends and capital gains received.
  • an exemption from withholding tax on the payment of dividends to corporate shareholders in the EU and EEA.
  • this exemption has been extended to foreign corporate shareholders in countries that have a Double Taxation Agreement covering exchange of information with Portugal.
  • a Portuguese company can elect to not take into account the profits and losses of its foreign branches.
  • Portuguese companies licensed in the Madeira International Business Centre also benefit from a 5% corporate tax rate.