Portugal vs Luxembourg
Corporate Tax Comparison
Time of Update: Portugal: 4/04/2026 / Luxembourg: 4/05/2026
Compare Portugal and Luxembourg corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Portugal vs Luxembourg Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Portugal
Luxembourg
General CIT Rate:
21
General CIT Rate:
23.87% (CIT, solidarity surtax, and municipal business tax [Luxembourg City, from tax year 2025])
CIT Return Due Date:
The last day of the fifth month after the end of the tax year.
CIT Return Due Date:
December 31 of the following year.
CIT Payment Due Date:
The last day of the fifth month after the end of the tax year.
CIT Payment Due Date:
At the end of the month following the receipt of the tax assessment receipt.
CIT Estimated Payment Due Date:
Three-stage installment payments due in July, September, and December (if the tax year corresponds to the calendar year). Under certain conditions, the final installment payment may be waived.
CIT Estimated Payment Due Date:
Quarterly installment payment.
Withholding Tax (WHT)
Portugal
Luxembourg
Resident Withholding Tax (Dividend/Interest/Royalty):
25/25/25
Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
25/0-25/25
None-Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Portugal
Luxembourg
General Capital Gain Tax Rate:
25 (same as the normal CIT rate for corporations)
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate income tax rate constraint.
Effective Tax Rate (ETR)
Portugal
Luxembourg
Composite Effective Average Tax Rate:
28.42%
Composite Effective Average Tax Rate:
23.24%
Composite Effective Marginal Tax Rate:
16.01%
Composite Effective Marginal Tax Rate:
18.09%
