Portugal’s Official Gazette published Law No. 45-A/2023 on 31 December 2024, which approves the Budget for 2025. Effective from 1 January 2025, the standard corporate tax rate decreased from 21% to 20%, and reduced the rate for SMEs on the first EUR 50,000 of taxable income will drop from 17% to 16%.
The State Budget data will be made available on citizen-focused channels soon.
Revised PIT rates
| Tax brackets | Rates |
| up to EUR 8,059 | 13.00% |
| over EUR 8,059 up to 12,160 | 16.50% |
| over EUR 12,160 up to 17,233 | 22.00% |
| over EUR 17,233 up to 22,306 | 25.00% |
| over EUR 22,306 up to 28,400 | 32.00% |
| over EUR 28,400 up to 41,629 | 35.50% |
| over EUR 41,629 up to 44,987 | 43.50% |
| over EUR 44,987 up to 83,696 | 45.00% |
| over EUR 83,696 | 48.00% |
Tax incentives for company capitalisation
The tax incentive amendment for company capitalisation involves raising the standard variable rate on eligible equity increases to the 12-month EURIBOR average plus 2.0% and increasing the deduction increase to 50% in 2025, instead of the planned 30% rate.
VAT exemption extension
The VAT exemption with deduction is extended until 31 December 2025, for fertilisers, soil conditioners, and products for feeding livestock used in agriculture, as well as for products intended for feeding companion animals by legally constituted animal protection associations.
Earlier, The Parliament approved the Budget Bill 2025 on 29 November 2024.
