Investment ·
State Budget for 2027: corporate tax falls to 18%
The proposal submitted on 8 October confirms the cut in the standard corporate tax rate to 18% in 2027. In Madeira, the Regional Government points to 12.6%.
On 8 October 2026 the Portuguese Government submitted its State Budget proposal for 2027. The standard corporate tax (IRC) rate falls by one point, from 19% to 18%, as already set by Law 64/2025, which sets 17% for 2028. The reduced rate for SMEs and small mid caps stays at 15% on the first €50,000 of taxable profit.
In Madeira, where a 30% reduction applies to the national rates, the Regional Government has presented a 12.6% corporate tax rate for 2027 to investors. The final figure depends on the Regional Budget for 2027.
The proposal also extends SIFIDE II (the tax incentive for research and development) to the end of 2027 and includes the rise of the national minimum wage to €970. The final vote is scheduled for 24 November 2026, and measures may still change in Parliament.
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Photo: Jornal Económico
