03/09/2026
Withholding tax is one of the most frequently misunderstood obligations for companies and individuals operating in Portugal.
The standard rates are 25% for corporate payments to non-residents and 28% on investment income for individuals, but the actual rate that applies depends on the type of income, the recipient's residency, and whether a tax treaty or EU Directive is in play.
This post covers the core rules, where reductions apply, and what the Madeira IBC changes for international structures.
If you'd like to review your specific situation, our tax team is available.
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