Autonomous Taxation Simulator 2026
Autonomous taxation in Portugal (Article 88 of the Corporate Tax Code) is a tax on certain company expenses, due whether or not the company makes a profit. In 2026, passenger car costs are taxed at 8%, 25% or 32% depending on the purchase price, entertainment at 10%, untaxed travel allowances at 5% and undocumented expenses at 50%.
Calculate the autonomous taxation (tributações autónomas) on your company's expenses in Portugal for 2026. It is assessed on the expense itself and added to the corporate tax (IRC) bill in the Modelo 22 return.
Autonomous taxation rates in 2026
- Passenger cars, light goods vehicles and motorbikes: 8% if the acquisition cost is below €37,500, 25% from €37,500 to below €45,000, and 32% from €45,000 (Article 88(3), wording of Law 45-A/2024).
- Plug-in hybrids meeting the range and emission conditions, and natural-gas cars: 2.5%, 7.5% and 15% for the same price bands (Article 88(18), wording of Law 73-A/2025).
- Fully electric cars: taxed at 10% only when the acquisition cost exceeds the limit set by ministerial order under Article 34(1)(e) (Article 88(20)).
- Entertainment and representation expenses: 10% (Article 88(7)).
- Travel allowances and per-kilometre payments for employees' own cars, not billed to clients and not taxed as the employee's income: 5% (Article 88(9)).
- Undocumented expenses: 50%, or 70% for exempt entities (Article 88(1) and (2)).
- Payments to entities in tax havens: 35%, or 55% (Article 88(8)).
- Managers' termination payments and bonuses above 25% of annual pay and above €27,500, unless half is deferred for three years: 35% (Article 88(13)).
Companies with a tax loss
The rates rise by 10 percentage points in a year with a tax loss (Article 88(14)). The increase does not apply in the start-up year and the following year (Article 88(15)) and, for 2026, it is also waived for companies that made a taxable profit in one of the three previous years and filed the last two Modelo 22 and IES returns on time, or that are within their first three years (Article 95(5) of Law 73-A/2025). Companies under the simplified corporate tax regime are exempt from the rates in paragraphs 7, 9, 11 and 13 (Article 88(16)).
Worked example
A company car cost €40,000 and generates €8,000 a year in depreciation, fuel, insurance and maintenance. It falls in the 25% band, so autonomous taxation is €2,000. With a tax loss and no 2026 waiver, the rate becomes 35% and the tax €2,800.
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Frequently asked questions
What are the 2026 autonomous taxation rates for company cars?
For combustion passenger cars: 8% if the acquisition cost is below €37,500, 25% from €37,500 to €45,000 and 32% from €45,000 (article 88 of the Corporate Tax Code).
How are electric and plug-in hybrid cars taxed?
Fully electric cars pay no autonomous taxation up to an acquisition cost of €62,500 and 10% above it. Plug-in hybrids that meet the range and emissions requirements pay 2.5%, 7.5% or 15% depending on cost (article 88 of the Corporate Tax Code).
Which other expenses carry autonomous taxation?
Entertainment expenses pay 10%, travel allowances and mileage in an employee's own car pay 5% when they are not invoiced to clients or taxed as personal income, and undocumented expenses pay 50% (article 88 of the Corporate Tax Code).
Does autonomous taxation increase if the company makes a loss?
Yes. Rates rise by 10 percentage points in a year with a tax loss (article 88(14) of the Corporate Tax Code), except in the year the business starts and the following year (article 88(15)). In 2026 the increase is also waived for companies with taxable profit in one of the three previous years that filed the last two Modelo 22 and IES returns on time, and in the first three years of activity (article 95(5) of Law 73-A/2025).
How can a company reduce autonomous taxation?
Document every expense properly, review the car policy (electric cars up to €62,500 pay no autonomous taxation) and plan with a certified accountant before the year-end.