Portugal Lowers Corporate Tax Rate to 19% in 2026, Boosting SME Incentives

Portugal’s 2026 corporate income tax (IRC) rate has been reduced to 19%, down from 21% in previous years, with a significant incentive for small and medium enterprises (SMEs). SMEs now benefit from a reduced rate of 15% on the first €50,000 of taxable income, aimed at fostering business growth and innovation. This adjustment aligns with broader efforts to enhance competitiveness and attract investment, particularly in sectors facing economic headwinds.