1. Overview The Portuguese Tax Authority (Autoridade Tributária e Aduaneira – AT) recently issued a binding ruling confirming that self-employed professionals and freelancers can deduct the full amount of VAT paid on the purchase of a 100% electric car, provided certain conditions are met. This clarification is highly relevant for lawyers, consultants, architects, accountants, and…

Portugal’s tax authority confirms that crypto swaps to stablecoins like USDC are not taxable if held > 365 days. Learn how the IRS exemption applies. Introduction In October 2025, Portugal’s Tax Authority (Autoridade Tributária e Aduaneira, AT) issued a binding ruling (Process No. 28969) clarifying how crypto-asset swaps are treated under the Portuguese Personal Income…

Many U.S. expatriates living in Portugal operate through a Limited Liability Company (LLC) — often a single-member disregarded entity for U.S. tax purposes. However, when it comes to Portuguese taxation, the treatment of LLC income is very different and can easily lead to double taxation or under-reporting if not properly understood. A recent technical opinion…

If you are a Portuguese tax resident (and not under the Non-Habitual Resident regime) who owns a single-member US Limited Liability Company (LLC) that carries on active business or investment activity, you should be aware that Portuguese tax law — and recent binding clarifications from the Autoridade Tributária (AT) — impose specific reporting and classification…

Many small businesses and independent professionals in Portugal benefit from the special VAT exemption regime under Article 53 of the VAT Code (CIVA). This simplified regime allows taxpayers with modest turnover to operate without charging VAT on their invoices. However, there are clear legal limits — and once these limits are exceeded, the business must…

The rise of remote work has opened the door to new professional opportunities — but also to new tax questions. Many individuals now live in Portugal while working online for companies based abroad. The key question is: which country has the right to tax your income? The General Rule: Taxation Where the Work Is Performed…

Since January 2024, Portugal has introduced a new tax incentive known as the Incentivo Fiscal à Investigação Científica e Inovação (IFICI), replacing the well-known Non-Habitual Resident (NHR) program. This new regime—often referred to as NHR 2.0—was created under Article 58-A of the Estatuto dos Benefícios Fiscais (EBF) and aims to attract international talent in research,…

Selling a property in Portugal can be a significant financial event, often resulting in a substantial capital gain, or “mais-valia.” However, the Portuguese Tax Code (Código do IRS – CIRS) provides a powerful relief mechanism for homeowners: the exemption of capital gains tax through reinvestment into a new primary residence. Understanding the conditions and timelines…

What is IFICI (Art. 58-A EBF)? The Scientific Research and Innovation Tax Incentive (IFICI) grants a 20% flat tax rate on net income from employment (Category A) and self-employment (Category B) in eligible activities, for 10 consecutive years starting in the year the taxpayer becomes a Portuguese resident. As a general rule, foreign-source income (Categories…

One of the most common questions from clients pursuing the Golden Visa via cultural donation is whether the €250,000 gift to an institution like Fundação de Serralves also provides tax relief in Portugal. The short answer: yes, such donations can generate an IRS (personal income tax) deduction — but the benefit is limited, strictly regulated,…