Starting a Business in PortugalTax Deductions

Starting a Business in Portugal

Those costs and bills that give rise to legitimate tax deductions  against income in Portugal – as opposed to those which do not – is a subject worthy of a fairly lengthy book. However, as a broad rule, those bills that are necessarily incurred in the operation of a business may typically be deducted.

So, the rental of offices, any employee related costs as well as the purchase and operation of office equipment (assuming that they are related to the operation of the business) may legitimately be deducted from any income before the payment of taxes.

More complex questions can sometimes arise where a telephone or vehicle are used partially for work and partially for personal use. Normally the percentage of the cost relating to work can be deducted but great care must be taken as in some cases the use of a vehicle may not be considered as a suitable deduction.

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  • Oscar Evans
    Oscar Evans, Lisbon

    As I don't speak the Portugees I have to say that Leonel have been absolutely exceptional and professional in all areas.


    Not only was he adding value to our business he also took a lot of his personal time explaining other things that have helped me and my company. I will highly recommend him to my other business partners who will open accounts in Portugal and for myself on my next ventures.


    Everything was a 5-star treatment from Leonel!


    Mar 23, 2020
  • Maryna Shapovalova
    Maryna Shapovalova , Lisbon

    I like all details of cooperation: honesty, smart solutions, fast and very smart solutions, fair prices and professional staff. Everything was perfect.


    Oct 25, 2019