Portugal’s Tax Authority has issued a new binding ruling concerning US single-member LLCs. For people living in Portugal and operating a US LLC, however, the most important point is what the ruling does not say. PIV 30630 does not establish that a Portuguese tax resident who owns a US single-member LLC must automatically declare the…

The tax relationship between Portugal and the United Kingdom changed significantly in 2026. A new Double Taxation Convention between Portugal and the United Kingdom was signed on 15 September 2025 and entered into force on 29 December 2025. In Portugal, it applies from 1 January 2026 to the taxes covered by the Convention. In the…

A significant ruling on Portuguese IRS treatment of property previously allocated to a business activity A recent decision from the Portuguese tax arbitration court, CAAD, has clarified an important point in the taxation of real estate that was previously used in a business or professional activity. In CAAD Case no. 1036/2025-T, decided on 11 May…

For people relocating from the United States to Portugal, selling a former US home after purchasing a property in Portugal can raise an important Portuguese capital gains tax question: can the gain qualify for Portugal’s main-home reinvestment relief? Article 10(5) of the Portuguese Personal Income Tax Code (CIRS) may provide an argument in favour of…

For U.S. citizens who are tax resident in Portugal, U.S. Social Security can create an unusual double-taxation problem. Both Portugal and the United States may tax the same benefit, but the key question is not simply whether a Foreign Tax Credit, or FTC, is available. The real question is: Which country is required to give…

Introduction A recent decision from the Portuguese Centre for Administrative Arbitration (CAAD) provides important guidance on two key tax issues: (1) the evidentiary value of Modelo 40 bank transaction data in tax audits, and (2) the correct method for calculating VAT when the taxpayer has not charged it to final consumers. The case, Processo n.º 1049/2025-T,…

For Americans living in Portugal, one of the most common sources of confusion is the distinction between dual citizenship and dual tax residency. A U.S.-Portuguese citizen may assume that holding two passports means being tax resident in both countries. That is not necessarily the case. Citizenship, legal residence and tax residence are separate concepts, and…

Updated: August 2026 Portugal introduced a significant package of tax incentives for housing in 2026. The new rules affect property buyers, landlords, real estate investors, developers and individuals building their own permanent home in Portugal. The measures were introduced by Decree-Law No. 97/2026 of 20 May and cover VAT, personal income tax (IRS), property transfer…

Can you avoid Portuguese capital gains tax by reinvesting the proceeds from your home into a PPR? Not necessarily. A Portuguese Tax Authority binding ruling issued on 20 August 2026 — Process No. 26447 — confirms that simply investing the proceeds from the sale of a main home into a PPR or life-insurance product is…

Portugal has enacted an important clarification for property owners, developers, contractors and investors involved in urban rehabilitation projects. Law no. 48/2026, of 17 August, effective from 18 August 2026, confirms that the reduced 6% VAT rate under the former wording of item 2.23 of List I of the Portuguese VAT Code applies to qualifying urban…