Portugal: State budget law 2017: Impact on capital gains tax


Clearstream Banking1 would like to inform customers that effective

1 January 2017

capital gains derived by non-residents from the sale of shares are no longer exempt from tax.


Following the implementation in 2012 of a general sunset provision for tax benefits, an exemption of capital gains tax was granted for a limited period of five years, expiring on 31 December 2016.

Since the Portuguese State Budget Law for 2017 did not specifically extend the application of Article 27 which was ruling the exemption of capital gains tax, the rule has expired and is no longer in force.

Under the Special Tax Regime for Debt Securities (Decree Law 193/2005 as amended by Law 83/2013) an exemption on Portuguese sourced capital gains continues to apply to beneficial owners that are resident in a jurisdiction with a tax treaty or a tax exchange of information agreement in place with Portugal or any other non-resident that are not resident in a blacklisted jurisdiction.

Impact on customers

As of 1 January 2017, capital gains derived from the sale of shares by non-resident beneficial owners, being or not resident in a blacklisted jurisdiction, may be subject to taxation.

It is the responsibility of the non-resident investor (individual or corporate) to submit a tax return to the Portuguese Tax Authorities for the assessment of the amount of tax due. Please note that this may require registration as a taxpayer.

Clearstream Banking’s local depository, BNP PARIBAS, does not provide any service on these capital gains tax. No capital gains tax is applied by Clearstream Banking on Portuguese securities and Clearstream Banking does not assist in this regard. Please consult your tax advisor for further information on the application of the Portuguese capital gains tax.

Further information

For further information, please contact the Clearstream Banking Tax Help Desk, Clearstream Banking Client Services or your Relationship Officer.

1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking Frankfurt (CBF) customers using CreationOnline), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.