Portugal: Tax Authorities

European financial sector tax reform is imminent, with the European Parliament and Commission acknowledging that current VAT exemption rules from the 1970s no longer reflect modern fintech business models. Leaders of digital banks, payment companies, and financial platforms face a critical window to influence policy outcomes that will fundamentally reshape their tax obligations and competitive positioning.

DAC8 and the OECD’s Crypto-Asset Reporting Framework (CARF) are ending anonymity in crypto transactions across participating jurisdictions, including Portugal. From 2026, crypto asset service providers must collect and report user transaction data to tax authorities, significantly increasing transparency and tax enforcement.

Portugal's Law 13/2026 authorises significant changes to the Tax Investment Code, extending SIFIDE II until 2026 while eliminating the widely-used indirect investment fund route.

Portugal tem ganho cada vez mais reconhecimento como centro de negócios inovadores e de ecossistemas tecnológicos vibrantes.

Portugal has gained increasing recognition as a hub for innovative businesses and a vibrant tech ecosystem.

The first quarter of 2025 has seen significant developments in Portuguese VAT legislation, with several new measures being introduced to clarify, simplify, and modernize the VAT framework.

According to the statement, taxpayers who have not paid their tax obligations on time will be able to voluntarily pay the tax until 31 December 2023, regardless of the stage of the tax debt settlement process.

Portugal is still perceived as a frustrating country to start a business. The bureaucracy associated together with some difficulty in accessing complete and credible information contribute to this generalised idea.

The Portuguese Patent Box Regime, introduced in 2014 as part of the Corporate Income Tax reform, was not immediately competitive compared to its European counterparts.