Portugal Slashes Corporate Tax to 17% to Boost Business Growth
Correio Da Manhã6 hours ago
950

Portugal Slashes Corporate Tax to 17% to Boost Business Growth

Economy
economy
tax
business
investment
portugal
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Summary:

  • Portugal reduces IRC to 17%, with SMEs possibly paying just 15% based on profits

  • Aims to boost economic growth and attract investment

  • Portugal's GDP growth outperformed the EU average in 2024

  • Part of a broader strategy to enhance business competitiveness and international connectivity

In a bold move to stimulate the economy, the Portuguese government has announced a reduction in the Corporate Income Tax (IRC) rate to 17%, with Small and Medium-sized Enterprises (SMEs) potentially benefiting from a rate as low as 15%, contingent on their profit margins. This initiative is part of the XXV Constitutional Government Program, unveiled last Saturday, aiming to foster a highly competitive institutional framework and enhance international connectivity to attract both domestic and foreign investment.

Key Highlights:

  • Economic Growth: Portugal's GDP grew by 2.7% in late 2024, surpassing the EU average of 0.8%.
  • Strategic Focus: The government's strategy emphasizes creating a conducive environment for business expansion and investment.
  • SME Support: Lower tax rates for SMEs are designed to alleviate financial pressures and encourage growth.

This tax reform underscores the government's commitment to economic resilience and competitive business practices, positioning Portugal as an attractive destination for investors.

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