A good news that companies
A good news that companies which operate in free-trade zone of Madeira pay reduced income tax (5 percent – 12.5 percent).
Value added tax (VAT) applied to all goods and services sold within Portuguese but in free-trade zones it is significantly reduced. Its rate varies from 5 percent to 21 percent: standard rate ? 21 percent, intermediary rate ? 12 percent and reduced rate ? 5 percent; in free-trade zones these rates are 15 percent, 8 percent and 4 percent correspondingly .
Excise duties on alcohol and alcoholic beverages are driven by European Union?s one: minimum 2.2 Euro per litre of a product (considering spirits).
Social obligations are quite significant and equal to 27.5 percent of the wages fund.
Moreover, 25 percent of tax is levied from the corporation dividends.
In general taxation in Portugal is quite significant but it can not be considered as too heavy. But taking into consideration possible benefits from subsidies, grants and tax cuts available for foreign investors, Portuguese taxation can be considered as moderate.
