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  • Writer's pictureJaime Esteves

Portuguese Budget Act Proposal - 2021 - Highlights

Updated: Dec 11, 2020

Blue tiles, Portugal


Capital gains realized by individuals with transaction with related parties will be scrutinized under transfer pricing rules.

New tax rules will be applicable to deemed capital gains relating to the allocation of real estate to (or from) business activities.


New rules regarding the concept of permanent establishment and its “force of attraction” principle are also to be introduced.


IVAucher (VAT Voucher) program will grant a discount in the hospitality sector, restaurants and cultural events equal to the total amount of VAT paid during the prior trimester in the acquisition of similar services.

Real Estate Transfer Tax

The acquisition of more than 75% of the share capital of certain SA (AG) companies, will lead to RETT liability assessed on the taxable value of certain real estate assets owned by the acquired company,

Tax Benefits

New rules will be introduced in relation to the up to 82,5% tax credit on investments in qualifying I&D Investment Funds.

Companies from blacklisted jurisdictions or controlled by companies from the same jurisdictions as well as profitable large companies that will reduce the average number of employees may be prevented to access certain tax benefits.


For information purposes only


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