Portugal has become one of Europe’s most attractive destinations for business investment, combining a skilled workforce, digital infrastructure, and a stable legal framework. Yet behind every successful business, compliance is what sustains growth.
Understanding the full scope of accounting services in Portugal is vital for companies that want to operate efficiently, meet regulatory deadlines, and take advantage of the country’s favourable tax environment, particularly in Madeira.
Below are the seven essential accounting services every company should consider when setting up or expanding in Portugal.
1. Accounting and Bookkeeping Compliance
Every company incorporated in Portugal must maintain accounting records according to the Portuguese Accounting Standards (SNC), aligned with IFRS principles.Accurate bookkeeping is more than a legal obligation, it is the foundation for sound financial management. Certified accountants ensure all transactions are properly recorded, reconciliations are up to date, and periodic balance sheets comply with local reporting requirements.
Professional accounting support also guarantees compliance with SAF-T (Standard Audit File for Tax) submissions and digital archiving obligations, both of which are rigorously monitored by the Portuguese Tax Authority.
2. Corporate Tax Compliance and Planning
Portuguese companies are subject to Corporate Income Tax (IRC), typically 21% on the mainland and 14.7% or 5% in the Autonomous Region of Madeira under the International Business Centre of Madeira (MIBC) regime.
A qualified accountant not only prepares and files periodic tax returns but also advises on strategic tax planning, from applying participation exemptions and double-taxation credits to managing loss carry-forwards and optimising group structures.
3. Payroll Processing and Social Security Management
Portugal’s labour and social-security framework requires precise monthly reporting to the Autoridade Tributária e Aduaneira (AT) and Segurança Social. Payroll errors can easily lead to penalties or employee disputes.
Specialised payroll services include salary calculations, withholding tax, social contributions, and e-filing of monthly declarations. Accountants ensure timely compliance and proper classification of expatriate staff, directors, and contractors, essential for international teams operating from Madeira or mainland Portugal.
4. VAT Registration, Filing and Refunds
VAT (IVA) in Portugal applies to most goods and services at a standard rate of 23% (22% in Madeira). Businesses must register for VAT, issue certified invoices, and submit periodic returns, monthly or quarterly depending on turnover.
Accounting professionals handle registration, invoicing compliance, VAT deduction rules, and refund procedures for cross-border operations. This ensures that your company remains compliant while managing cash flow efficiently.
5. Financial Reporting and Management Accounts
Transparent financial reporting is critical for decision-making and corporate governance. Portuguese companies must prepare annual financial statements, including the balance sheet, profit and loss account, and notes to the accounts, which are submitted to the Commercial Registry.
Accountants prepare interim management reports, conduct ratio analysis, and ensure the alignment of internal controls with statutory requirements. Companies operating under the MIBC regime benefit from accountants familiar with EU-approved reporting standards and the additional substance requirements applicable in Madeira.
6. Regulatory and Statutory Filings
Beyond tax and accounting obligations, companies must comply with several regulatory filings, including Beneficial Ownership (RCBE) registration, annual confirmation statements, and sector-specific declarations (e.g., INE, Banco de Portugal).
Accounting firms coordinate these submissions, ensuring that filings are consistent and meet official deadlines. For multinational groups, this also supports compliance under the EU’s transparency framework, including DAC6 and country-by-country reporting.
7. Advisory, Audit Support and Business Structuring
As your business grows, you will face new challenges: expansion, intercompany financing, mergers, and due-diligence audits. Professional accountants provide financial projections, cost-control analysis, and audit-ready documentation, facilitating communication with auditors and regulatory authorities.
In Madeira, where international companies benefit from a 5% corporate tax rate under the MIBC, advisory services also extend to assessing substance requirements, number of employees, capital investment thresholds, and sector eligibility, ensuring the structure remains compliant with EU state-aid rules.
Why Outsourcing Accounting in Madeira Makes Sense
Madeira offers one of the most favourable business environments in Europe, combining EU-approved tax advantages, full access to Portugal’s legal and financial system, and highly experienced professional service providers.Outsourcing accounting to a Madeira-based firm ensures:
- Full compliance with Portuguese and EU accounting standards;
- Access to specialised tax planning under the Madeira International Business Centre;
- Efficient bilingual communication with tax authorities; and
- Competitive cost structures in a stable, well-regulated jurisdiction.
Final Thoughts
Whether your company is a start-up, a growing SME, or an international group entering the Portuguese market, professional accounting services are indispensable.
Accurate reporting, tax optimisation, and regulatory compliance form the backbone of any sustainable operation in Portugal. With Madeira’s unique advantages and highly qualified professionals, businesses can operate confidently while focusing on growth and innovation.
To learn more about accounting and compliance support for your business in Portugal, contact Madeira Corporate Services, your trusted partner for tax, accounting, and corporate management in the Autonomous Region of Madeira.
The founding of Madeira Corporate Services dates back to 1996. MCS started as a corporate service provider in the Madeira International Business Center and rapidly became a leading management company… Read more
