News Share

The Tax Hub

Daily Tax Newsletter


3 July 2015

Responsive image

Portugal's New Tax Regime for Undertakings for Collective Investment has Entered into Force

Portugal's new tax regime for undertakings for collective investment (UCI) (Decree-Law No. 7/2015) entered into force on 1 July 2015 and generally applies from that date.

UCI Types

The new regime applies to the following Portuguese UCI types:

  • Securities investment funds (fundos de investimento mobiliário);
  • Real estate investment funds (fundos de investimento imobiliário);
  • Securities investment companies (sociedades de investimento mobiliário); and
  • Real estate investment companies (sociedades de investimento imobiliário)

UCI Taxation

Under the new regime, UCIs are not subject to withholding tax, and investment income, capital gains and rental income is not included in taxable profits unless it originates from entities resident or domiciled in jurisdictions included on Portugal's blacklist. Costs incurred in relation to excluded income are also not considered in determining taxable profits.

Taxable profits are taxed based on the net profit for the financial year in accordance with the corporate income tax rules. The standard corporate tax rate (21%) applies, but UCIs are not subject to the municipal surcharge or state surcharge. Tax losses may be carried forward up to 12 years.

In addition, UCIs are subject to a stamp tax based on its global net asset value. A 0.0025% rate applies for UCIs investing exclusively in monetary market instruments and deposits. For other UCIs, the stamp tax rate is 0.0125%. The stamp tax must be self-assessed and paid quarterly.

UCI Investor Taxation

The taxation of investor income from a UCI depends on the residence of the investors and the UCI type.

For individual investors resident in Portugal, income distributed by a UCI or derived from the redemption of units or shares of a UCI is subject to final withholding tax at a rate of 28%. For corporate investors resident in Portugal, a 25% non-final withholding tax applies. However, if the corporate investor benefits from an investment income tax exemption, the withholding tax is final.

For both individual and corporate non-resident investors, income distributed by a securities investment UCI or derived from the redemption of units or shares is tax exempt as long as evidence is provided for their non-resident status and they do not have a permanent establishment in any Portuguese territory to which the income may be attributed. Income derived from a real estate investment UCI is subject to tax at a rate of 10%.

If a non-resident fails to meet the general conditions, is resident in a black-listed jurisdiction, or is directly or indirectly held by a Portuguese resident (25% or more), then the exemption or 10% rate will not apply. In such cases, a final withholding tax of 25% will apply for corporate investors, 28% for individuals, and 35% if resident in a black-listed jurisdiction.

Powerful Tax Tools


FX Rates

Global FX Rates including Tax Year Average FX Rates and Spot Rates for all Reporting Currencies.


Corporate Tax Rates

Corporate tax rates, surtaxes, and effective tax rates for the current year, as well as historical rates and approved future rates.


Country Analysis

Detailed tax guidance for companies doing business in over 100 countries, including summaries and snapshots of key tax facts and issues.


Cross Border Tax Calculator

Calculate total tax costs and benefits of a cross border transaction including withholding tax, participation exemption and foreign tax credit rules.


Cross Border Tax Rates

Provides Domestic, treaty and EU cross border tax rates for over 5,000 country combinations for 9 different payment streams.



Complete overview of the OECD BEPS Project, including daily BEPS news, country adoption of BEPS measures, and an overview of the 15 BEPS Actions.


Tax Calendar

Customizable calendar tool that tracks corporate income tax, value added tax and transfer pricing obligations by country or entity.


Tax Forms

English translations of key tax forms for over 80 countries, including tax return forms, treaty benefit forms, withholding tax forms, and more.


Worldwide Tax Treaties

Repository including thousands of tax treaties (in English), OECD, UN and US Models, relevant EU Directives, Technical Explanations, and more.


Worldwide Tax Planner

Calculates the worldwide tax cost of what-if scenarios based on legal entity structure, taxable income, and cross border transactions.


Certified Rates Report

Customizable Certified Rates Report providing updated corporate and withholding tax rates at the end of each month for over 100 countries.


Withholding Tax Minimizer

Enables quick calculation of tax costs and benefits of cross border transactions considering all possible transaction combinations and optimal routes.


VAT Rates

Provides value added tax (VAT) rates, goods and services tax (GST) rates and other indirect tax rates for over 100 countries.


NOL Calculator

Country specific calculator to determine how net operating losses can be utilized in carryback and carryforward years.


Transfer Pricing Calculator

Calculates TP ratios under various TP methods and calculates the difference between target ratios and actual ratios.


Individual Income Tax Rates

Individual tax rates for over 100 countries.

Play of the Day

Translate Documents

English translations of key tax forms for over 80 countries, including tax return forms, treaty benefit forms, withholding tax forms, and more.

We’re here to help

We’re here to answer any questions you have about the Orbitax products and services.

Send us a message

Who’s behind Orbitax?

We’re committed to providing high value, low cost tax research and management solutions.

Learn More