The late-payment interest rate applicable to debts owed to the Portuguese State and other covered public entities has been set at 7.221% for 2026.
The new rate was established by Notice no. 18/2026/2, of 2 January, published in the Portuguese Official Gazette, and applies from 1 January 2026, inclusive.
When does the rate apply?
Late-payment interest becomes due when an amount owed to the Portuguese State or another covered public entity is not paid within the applicable deadline.
- tax debts owed to the Portuguese Tax Authority;
- contributions and other debts owed to public entities;
- public fees, charges and other amounts paid after the voluntary payment deadline;
- amounts being collected through tax enforcement proceedings, without prejudice to the specific rules applicable to those proceedings.
Interest is added to the outstanding debt and is generally calculated in proportion to the number of days for which payment remains overdue.
For illustration purposes, using a proportional calculation based on 365 days, an outstanding debt of €1,000, paid 30 days after the deadline, would generate approximately €5.94 in late-payment interest.
The amount actually assessed may differ depending on the rules applicable to the specific case, including those governing tax enforcement proceedings, and may also be accompanied by penalties, enforcement costs or other charges.
Reduction compared with 2025
In 2025, the late-payment interest rate applicable to debts owed to the State was 8.309%. The 2026 rate therefore represents a reduction of 1.088 percentage points.
Despite this reduction, late compliance with Portuguese tax obligations may still result in significant additional costs, particularly where substantial amounts or extended periods of non-compliance are involved.
The importance of meeting payment deadlines
Taxpayers should regularly review their tax deadlines and check for any outstanding amounts through the Portuguese Tax Authority’s online portal or with the relevant public entity.
Where it is not possible to settle an amount in full by the applicable deadline, taxpayers should consider the available regularisation options as early as possible, including payment by instalments where permitted by law.
Important distinction
This rate does not apply indiscriminately to every type of overdue payment. The regime covers debts owed to the Portuguese State and other public entities falling within Decree-Law no. 73/99, including contributions, taxes, public fees and other amounts covered by that legislation.
It should not be confused with statutory commercial late-payment interest rates, which are governed by different rates and rules.
Legal references:
- Notice no. 18/2026/2, of 2 January;
- Decree-Law no. 73/99, of 16 March, as amended;
- Notice no. 29181/2024/2, of 27 December, for comparison with the 2025 rate.
This article is provided for general information purposes only and does not replace professional advice based on the taxpayer’s individual circumstances.