Relief at source - eligibility, documentation, deadlines - Portuguese debt securities

16.03.2020

Who can obtain relief at source?

Relief at source of withholding tax on interest from Portuguese debt securities is available through Clearstream Banking for beneficial owners depending on the applicable legislation, as follows:

Domestic bonds subject to Law 83/2013 clarified by Circular Letter 4/2014

Eligible beneficial owners

Rate applicable at source

Non-residents of Portugal eligible for tax exemption as per Law 83/2013

0%

Central banks and government agencies

0%

International/Supranational organisations recognised by the Portuguese state

0%

Portuguese residents eligible for tax exemption

0%

Portuguese beneficial owners not eligible for tax exemption but applying for reduced tax rates

25% / 28%

Documentation requirements

There are different documentation requirements depending on the applicable legislation and on the status and residency of the beneficial owner.

Domestic bonds subject to Law 83/2013 clarified by Circular Letter 4/2014

To apply for tax relief at source, all customers holding such bonds must submit:

  • One-Time Certificate for Portuguese Debt Securities - DL 193/2005 amended by Law 83/2013;
  • Per-payment instruction, if no standing instruction in place;
  • List of Portuguese Beneficial Owners, if applicable.

Important Note: To obtain tax exemption at source on behalf of non-residents of Portugal eligible for tax exemption as per Law 83/2013, customers must provide only the total position held by such beneficial owners. Their identity and separate holdings are not requested.

Form descriptions are presented according to the procedures available for relief and/or reclaim of withholding tax on income from Portuguese debt securities.

Deadlines for receipt of documents

Documentation for relief at source of withholding tax on interest from Portuguese debt securities must be received by Clearstream Banking at least one business day before the respective payment date by 10:00 CET.

Important note:

If any instruction, tax certification or amendment is received after these deadlines, the customer’s entire application for relief at source will be rejected, with the possibility to be processed via the quick refund.