Corporate Income Tax (CIT)

CIT rate applicable to startups

Entities qualified as startups are now subject to a 12.5% CIT rate on the first EUR 50,000 of taxable income. The following requirements must be cumulatively met:

i) they are innovative companies with a high growth potential; or the National Agency of Innovation (“Agência Nacional de Inovação” or “ANI”) recognized that they develop competent R&D activities or certification of the process of recognition of companies in the technology sector.

ii) have completed at least one round of venture capital financing or have had contributions of equity or quasi-equity from business angels.

iii) have been granted funds from the Banco Português de Fomento, or funds managed by this entity, or by its subsidiaries, or from one of its equity or quasi-equity instruments.

Although the Budget Law establishes that these requirements must be met cumulatively, they are established as an alternative in the startups legal framework Law. Therefore the wording of the State Budget may be a clerical error

This benefit is subject to the applicable European Union rules on matters of de minimis aid.

“Startups shall be subject to CIT at 12.5% on the first EUR 50,000 of taxable income.”

Autonomous taxation rates

Expenses related to lightweight passenger vehicles, certain lightweight commercial vehicles or motorcycles are subject to autonomous taxation at the rates of 8.5%, 25.5% and 32.5% (formerly 10%, 27.5% and 35% respectively).

It is now specifically foreseen that expenses related to vehicles powered exclusively by electricity are not subject to autonomous taxation, regardless of the respective cost of acquisition, whenever these are used for public transport services, rented out on the normal course of the taxpayer’s activity or its use is taxed as employment income. 

CIT exemption – Remuneration of public debt

Interest on public debt paid to social security and welfare institutions are exempt from CIT.


The acquisition cost of goodwill acquired in a business combination is now allowed as a tax-deductible cost, in equal amounts, during the first 15 tax years (currently, 20) after its initial recognition.

This amendment shall apply only to intangibles whose initial recognition occurs from 1 January 2024 onward.

Accelerated depreciation of buildings

An accelerated depreciation at a rate of 4% (formerly, 2%) shall be allowed for buildings owned, built, acquired or whose purpose changed, covered by the tax incentive applicable to employees in the case of availability of housing by the employer.

Contact us

Rosa Areias

Rosa Areias

Tax Lead Partner | Entrepreneurial & Private Business Leader | Membro da Comissão Executiva, PwC Portugal

Tel: +351 225 433 101