Accounting in 2026: Complete Guide to Tax Changes for Companies in Portugal
The 2026 tax year brought significant changes transforming how Portuguese companies manage their accounting. With Law No. 73-A/2025 of 30 December, which approved the State Budget for 2026, changes were introduced ranging from corporate tax cuts to postponement of technological obligations, new salary uplift incentives, and an innovative VAT group regime.
In this article, we organize clearly and practically everything entrepreneurs, managers and certified accountants need to know to ensure tax compliance and optimize financial management in 2026.
Corporate Tax Cut: Lower Taxes for Companies
One of the most relevant changes in the 2026 State Budget is the reduction of the general corporate tax rate. The general IRC rate drops from 20% to 19% in 2026, with a forecast of reaching 17% by 2028.
For SMEs and Small Mid Caps, the benefit is even greater: an additional reduced rate of 15% on the first €50,000 of taxable profit.
Madeira Free Zone with Extended Benefits
Companies licensed to operate in the Madeira Free Zone now have their tax benefit extended until 31 December 2033, with a corporate tax rate of just 5%.
IRS in 2026: New Brackets and Lower Rates
IRS brackets were updated by 3.51%, with a 0.3 percentage point reduction in rates from the 2nd to the 5th bracket.
Existence Minimum
The existence minimum was updated to €12,880, €700 more than in 2025, given the 2026 minimum wage of €920.
Accounting SAF-T: Another Postponement
The accounting SAF-T (PT) submission was postponed for another year, applicable to 2027 periods onward, due in 2028.
Invoice SAF-T Remains
Despite the accounting SAF-T postponement, monthly invoice reporting to the Tax Authority remains mandatory by the 5th of the following month.
Invoicing in 2026: PDF Still Valid
PDF invoices remain accepted as electronic invoices for one more year, until 31 December 2026.
Digital Signature: Postponed to 2027
Mandatory Digital Signature postponed to 2027, giving companies more time to adapt.
VAT Group Regime: The Big 2026 Novelty
From January 2026, a new VAT group regime comes into force, allowing consolidation of VAT balances across a group of companies.
Main advantages:
- Consolidation of VAT balances payable and recoverable
- Treasury management optimization
- Reduction of administrative costs
- Simplified tax reporting
Entities must be linked by financial, economic and organizational ties.
Autonomous Taxation: Aggravation Suspension Continues
The suspension of the 10 p.p. aggravation on autonomous taxation rates was renewed for another year for companies with tax losses meeting specific conditions.
Salary Uplift Incentive
The Article 19-B regime continues, with the minimum required salary increase dropping from 4.7% (2025) to 4.6%.
In practice: 200% deduction of expenses with salary increases of at least 4.6%.
Productivity Bonuses
IRS and Social Security exemption up to 6% of annual base remuneration on productivity bonuses, profit sharing and balance sheet gratuities.
National Minimum Wage in 2026
From 1 January 2026, the national minimum wage is €920 gross per month.
2026 Tax Calendar: Key Dates
- IRS: 1 April to 30 June
- IES/DA: by 15 July
- IRC Model 22: 31 May
- Monthly VAT: by the 25th of each month
- Quarterly VAT: by the 25th of the 2nd month after quarter end
- Withholding tax: by the 20th of each month
- Payroll declarations: by the 10th of each month
- Invoice SAF-T: by the 5th of the following month
How to Prepare Your Company for 2026 Accounting
- Review software for compliance with new rules
- Update salary tables with new minimum wage and IRS brackets
- Assess VAT group regime adoption
- Plan salary increases meeting the 200% tax uplift criteria
- Anticipate transition to certified electronic invoicing before 31 December 2026
- Structure analytical accounting to leverage IRC reduction
- Closely monitor declarative obligations and deadlines
Conclusion: A Year of Opportunities for Those Who Plan
Accounting in 2026 offers a rare combination: real tax relief, more time to adapt, and concrete incentives to invest in people.
If you need specialised support to manage your company's accounting in 2026, contact our team.
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