2-3 minutes
The Government has presented an initiative to revise Portugal’s list of countries, territories, and regions with privileged tax regimes that are clearly more favorable.
The stated goal is to bring Portuguese criteria closer to those used by the European Union and the OECD, particularly regarding tax transparency, fair taxation, and combating base erosion and profit shifting.
The change could be relevant for foreign investors, holding companies, real estate developers, and people who hold assets or carry out transactions in Portugal through jurisdictions currently included on the list.
Summary
- Portugal currently has its own list, which is much more extensive than the EU list.
- The Government intends to bring national criteria closer to European criteria.
- A new, definitive Portuguese list has not yet been approved.
- Being on the list can trigger increased rates of IMT (property transfer tax), IMI (municipal property tax), and income taxes.
- A jurisdiction’s removal from the list will only take effect going forward.
What is a non-cooperative jurisdiction?
The European Union evaluates jurisdictions based on criteria related to:
- transparency and exchange of information;
- the existence of harmful tax regimes;
- fair taxation;
- compliance with international measures against base erosion and profit shifting.
As of February 17, 2026, the EU list includes 10 jurisdictions: American Samoa, Anguilla, Guam, Palau, Panama, Russia, the Turks and Caicos Islands, the US Virgin Islands, Vanuatu, and Vietnam.
Will the Portuguese list automatically drop from 77 to 10?
Not necessarily.
Information initially released suggested a direct reduction to the EU list’s 10 jurisdictions. However, it was later clarified that the final number of jurisdictions on the Portuguese list is not yet known.
The Government has requested legislative authorization to revise the criteria and align them with the European model. Russia and Vietnam are expected to be added, but it is not yet known which jurisdictions will be removed.
Until the change is approved and published, the current Portuguese list remains in effect, approved under Ordinance (Portaria) No. 150/2004 and subsequently updated.
What are the consequences of a jurisdiction being on the list?
Inclusion on the Portuguese list is not merely reputational. It can have direct tax consequences.
10% IMT
When the purchaser of a property in Portugal has tax domicile in a jurisdiction included on the list, the IMT rate is, as a rule, 10%, without the exemptions or reductions normally available.
The same rate may apply when the purchaser is directly or indirectly controlled by an entity domiciled in one of these jurisdictions.
7.5% IMI
Properties belonging to certain entities domiciled in jurisdictions included on the list may be subject to an IMI rate of 7.5%, far higher than the normally applicable municipal rates.
35% Taxation on Income
Certain capital income earned in Portugal by entities domiciled in a listed jurisdiction may be taxed at a rate of 35%.
Payments Subject to Autonomous Taxation
Expenses paid or owed to persons or entities domiciled in jurisdictions on the list may be subject to autonomous taxation of 35% or 55%.
This taxation can be avoided if the taxpayer demonstrates that the transactions were actually carried out and are not abnormal in nature or excessive in amount. However, the burden of proof is demanding.
Greater Tax Scrutiny
Transactions with jurisdictions on the list are also subject to anti-abuse rules, reporting obligations, and enhanced controls.
In practice, there must be contracts, invoices, proof of services, banking documentation, and sufficient economic justification to demonstrate the reality and normalcy of the transaction.
What happens when a jurisdiction is removed from the list?
Removal can significantly change the tax treatment of:
- property acquisitions in Portugal;
- corporate structures;
- international payments;
- dividends and interest;
- investments held through foreign companies.
However, changes to the list only take effect going forward. Removing a jurisdiction does not retroactively eliminate the tax effects that applied while that jurisdiction was on the list.
Who should be following this change?
The revision is especially relevant for:
- international investors with real estate in Portugal;
- foreign companies looking to acquire real estate;
- holding structures;
- Portuguese companies with suppliers in listed jurisdictions;
- beneficiaries of Portuguese dividends, interest, or other income;
- private clients with international wealth structures.
The impact should not be assessed based solely on the entity’s country. It is also necessary to evaluate who controls the structure, what economic substance exists, and how payments are made.
How can we help?
URB Law Services advises on international investments and structures connected to Portugal, including real estate acquisitions, corporate reorganizations, cross-border payments, and analysis of exposure to privileged tax regimes.
For those looking for a lawyer in Almancil with experience in international taxation, real estate investment, and wealth structuring, we provide service in Almancil and support clients throughout the Algarve and across the country.
Contact us to learn more.
11th of June, 2026
