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Portugal — Orbitax Country Chapters

The central tax issues that foreign enterprises may encounter when doing business in Portugal are:

  • the tax burden on enterprises who wish to invest in Portugal is high and may become higher considering the financial and economic crisis;
  • Portuguese tax law is very complex and susceptible to several interpretations, hence the taxpayers’ interpretation of a specific provision may not coincide with the tax authorities’ or courts’ interpretation;
  • the Portuguese tax authorities are now resorting to the application of the GAAR, and specific anti-avoidance rules, where there is little case law. justice is not prompt; procedures may be pending in court for a number of years.