LVP Advogados - Insights

Lisbon’s New AL Rules: What Owners and Investors Need to Know

Fri, 17 Apr 2026 11:15:08 GMT

Lisbon has entered a new era of regulation for Alojamento Local (AL) . Following approval by the Municipal Assembly, the new Municipal Regulation on Local Accommodation (RMAL) is now in effect. This reform represents a major shift in how the city balances its vibrant tourism sector with the essential housing rights of its residents.

For property owners, investors, and relocation professionals, these changes are not merely administrative - they fundamentally reshape the licensing landscape and the future of short-term rentals in the Portuguese capital.

A New Strategy * : Granular Monitoring

The city has moved away from broad, city-wide assumptions. Instead, the municipality now monitors housing pressure at a "micro" level, focusing on specific parishes (freguesias) and even individual neighborhoods (bairros) .

This data-driven approach means that the "Containment Zones"- areas where new licenses are restricted - are now defined by a precise ratio: the number of AL units compared to the number of permanent residential homes. If the percentage of ALs in a specific neighborhood climbs too high, restrictions trigger automatically.

The Numbers Have Changed: New Thresholds for Containment

The most impactful change in this regulation is the significant lowering of the "saturation" thresholds. Essentially, the city has halved the limit of allowed ALs in many areas:

1. Absolute Containment (New Limit: 10%)

Previously, an area was only "closed" to new licenses if ALs made up 20% of the housing stock. That limit has now been slashed to 10% .

The Impact: As a result, several of Lisbon’s most iconic central districts are now strictly under Absolute Containment .

This includes Santa Maria Maior, Misericórdia, Santo António, São Vicente, Arroios, and Estrela . In these zones, new AL registrations are, as general rule, no longer permitted, subject to limited exceptions.

2. Relative Containment (New Limit: 5%)

Areas where ALs represent between 5% and 10% of housing are now considered zones of Relative Containment .

The Impact: In these neighborhoods (such as parts of Avenidas Novas ), new licenses are exceptionally difficult to obtain and are subject to strict municipal evaluation and specific conditions.

3. The City-Wide "Kill Switch"

The regulation introduces a safeguard for the entire city: if the total ratio of AL units across all of Lisbon reaches 10% , the entire municipality will automatically be declared an Absolute Containment area.

The "Quarto" (Room) Modality: A Small Window of Opportunity

While the rules for entire apartments have tightened, the municipality has introduced a specific exception to encourage a more integrated form of tourism.

You may now register a "Quarto" (Room) modality under very specific conditions:

It must be the owner’s primary and permanent residence .
The property must be located in a Relative Containment area (not Absolute).
The property must be at least a T2 (two-bedroom) typology or larger .

This measure is intended to help local residents generate supplementary income without removing entire apartments from the long-term rental market .

Key Restrictions and Operational Changes

Beyond zoning, the new regulation introduces several operational "roadblocks" that investors must be aware of:

Public Auctions: Properties purchased through municipal public auctions are now strictly prohibited from receiving exceptional AL authorizations.
No "Mini-Hotels": There are new restrictions on offering complementary commercial services (like small shops or restaurant services) inside AL establishments.
Transferability Limits: In containment zones, an AL license is generally non-transferable . If you sell the property , the license does not go to the buyer (except in specific legal cases like inheritance). This effectively means the "life" of many licenses ends with the current owner.

Why Is This Happening Now?

This reform is the local implementation of a broader national trend. Following the " Mais Habitação " (More Housing) program and subsequent legislative updates (such as Decree-Law 76/2024 ), Portuguese municipalities have been granted much greater autonomy.

Lisbon is using this power to align its tourism strategy with the Lisbon Municipal Housing Charter . The goal is clear: to ensure that the city remains affordable and livable for locals, even as it remains a top global destination.

Summary Table: Old vs. New

How LVP Advogados Can Help

The complexity of these new rules means that "standard" investment strategies may no longer apply in Lisbon’s historic center. Whether you are looking to acquire a property , manage an existing license, or understand the specific ratios of a neighborhood you are interested in, expert legal guidance is essential.

Navigating the intersection of municipal law and national housing policy requires a detailed, case-by-case analysis. We remain at your disposal to clarify how these changes affect your specific situation or investment plans in Portugal Reach us through our contact form for a more detailed analysis.

* The application of these rules may vary depending on specific circumstances and administrative interpretation.

When a Portuguese Visa Application Stalls: Silence, Delay and the Duty to Decide

Wed, 15 Apr 2026 12:36:07 GMT

Javier Mateo | Lawyer

Is your Portuguese visa application lost in a cycle of administrative silence? While intermediaries may manage the logistics, the legal responsibility to issue a timely decision rests solely with the State. This article explores the "Duty to Decide" under Portuguese law and the specific judicial mechanisms available to end unlawful delays and restore legal certainty to your relocation plans.

Challenging Consular Inaction: Your Rights Under the Portuguese Code of Administrative Procedure

For many applicants seeking a Portuguese visa, the most difficult part of the process is not a refusal , but silence.

Months pass without updates. Emails remain unanswered. In some countries, even securing an appointment becomes a challenge in itself, particularly where the process is managed through private intermediaries. What should be a structured administrative procedure turns into a prolonged state of uncertainty , with no clear explanation and no visible progress.

In these situations, a fundamental legal question arises: who is actually responsible for the delay ?

Under Portuguese law, even where parts of the visa process are operationally handled through private service providers, the procedure remains attributable to the Portuguese administrative authorities . The State cannot avoid its legal obligations by delegating practical or logistical aspects of the process. From a legal standpoint, the applicant’s relationship is always with the administration, and it is the administration that must answer for any failure to act.

This becomes particularly relevant in jurisdictions where visa procedures are mediated by private service providers . Applicants often face significant practical barriers , such as the inability to secure appointments, lack of transparency in scheduling systems, or the absence of meaningful communication channels. However, these operational difficulties do not alter the legal framework. Private entities act merely as intermediaries. They do not assume the State’s duty to process applications or to issue decisions within a reasonable time. That duty remains with the competent public authorities .

Portuguese administrative law imposes a clear and binding obligation on the administration: it must decide. This is not a matter of discretion or convenience, but a legal duty enshrined in the principle of decision, set out in Article 13 of the Code of Administrative Procedure. Public authorities are required to rule on requests addressed to them, bringing administrative procedures to a conclusion through an express decision.

This duty is closely linked to broader principles governing administrative action, namely the principle of good administration and efficiency, under Article 5 of the Code of Administrative Procedure , and the principle of celerity, under Article 59 of the same Code . These principles require that administrative procedures be conducted in a timely and effective manner, ensuring that individuals are not left in prolonged uncertainty.

In the specific context of residence visas , the law establishes a standard decision period of 60 days , pursuant to Article 58(4) of Law no. 23/2007 . While practical constraints may, in some cases, affect the pace of the procedure, prolonged inaction extending over many months or even years is difficult to reconcile with the administration’s duty to decide within a reasonable time. A delay of this magnitude will often amount to a breach of the administration’s legal obligations .

Administrative silence , in such cases, is not neutral. It may amount to an unlawful omission . It reflects a failure to comply with the duty to decide and undermines fundamental principles of administrative law , including legal certainty and the protection of individuals’ rights. The absence of any decision also leaves the applicant without any meaningful understanding of the administration’s position or the status of the application.

The consequences of this silence are significant. Applicants are left unable to organise their personal and professional lives. They cannot relocate , secure housing , plan their financial affairs, or make long term decisions with confidence. In many cases, this uncertainty persists indefinitely, creating a situation that is both legally unacceptable and humanly unsustainable .

Portuguese law does not require applicants to passively endure this situation. While initial steps may involve administrative complaints or approaches to oversight bodies such as the Ombudsman, there are also effective judicial remedies available. In particular, applicants may bring proceedings before the administrative courts to seek the condemnation of the administration to practise the legally due act , thereby compelling the authorities to issue a decision. These actions are designed not to replace the administration’s judgment, but to ensure that it fulfils its fundamental duty to decide .

In more severe cases, particularly where the delay is extreme or where the applicant’s personal circumstances justify urgency, it may also be possible to resort to expedited judicial mechanisms aimed at protecting fundamental rights . That said, Portuguese case law has made clear that such urgent remedies are exceptional and depend on strict requirements, including the indispensability of an urgent final judicial decision .

Conclusion

Ultimately, what must be emphasised is that the administration cannot remain silent indefinitely. The duty to decide is a cornerstone of administrative law, and its violation opens the door to legal action . Applicants are entitled to a decision within a reasonable timeframe, and when that entitlement is ignored, the courts provide a means to restore legality and certainty .

At LVP Advogados , we have extensive experience assisting clients facing visa delays, consular inaction, and systemic obstacles in accessing the Portuguese immigration system . We understand both the legal framework and the practical challenges involved, and we are prepared to act decisively to protect our clients’ rights.

If you are experiencing prolonged delays, lack of response, or difficulties in progressing your visa application, we invite you to reach us through our contact form . We will carefully assess your situation and advise on the most effective course of action to help ensure that your case receives the decision it is legally entitled to.

Immigration Compliance in Portugal: Are Your Foreign Employees Legally Authorised to Work?

Fri, 10 Apr 2026 14:40:40 GMT

Luís Maria Branco | Lawyer

Ensuring that foreign employees are legally authorised to work in Portugal is a core compliance obligation for employers, not a mere administrative step.

This article outlines the key legal principles governing right to work, highlights common misconceptions around visas and residence status, and explains why a substantive, case-by-case assessment is essential to managing immigration risk effectively.

Right to Work in Portugal: What Employers Need to Know About Immigration Compliance

Portugal continues to attract foreign professionals and international employers through a combination of economic openness, access to the European market, and an immigration framework that offers several legal pathways for work and residence. As companies increasingly recruit foreign nationals, immigration compliance has become a more visible and relevant part of day to day employment practice.

In that context, one question arises repeatedly: how should employers in Portugal assess whether a foreign employee is legally authorised to work, and what exactly should be checked before and during the employment relationship?

For employers, this is not merely an administrative formality. Right to work checks form part of a wider compliance duty and should be approached accordingly. If they are overlooked, the company may face administrative offences, fines, disruption to its workforce, and reputational exposure. In practice, many issues do not arise because the employer acted in bad faith, but because it assumed that lawful presence in Portugal automatically meant lawful permission to perform the role in question.

That assumption is not always correct.

Under Portuguese law, the decisive issue is not simply whether the individual is legally in the country. The relevant question is whether that person’s specific immigration status authorises the exercise of the professional activity that the employer intends to offer. This distinction is essential. A foreign national may have entered Portugal lawfully and yet still not be entitled to perform the type of work envisaged. Conversely, a foreign national may in some cases be lawfully working even before the final residence card has been issued, provided the statutory requirements are met.

The analysis is therefore substantive rather than merely formal.

This is one of the reasons why employers should be cautious about relying on a superficial review of documents. In practice, many employers only discover that there is an immigration compliance issue when a renewal is delayed, a document expires, a labour inspection takes place, or the employment relationship becomes contentious. By that stage, the legal and operational consequences may already be significant.

Employers must therefore distinguish carefully between different immigration routes and understand the legal basis on which the individual is present and working in Portugal.

One of the most common routes is the residence visa . This visa allows the individual to enter Portugal for the purpose of applying for a residence permit. In employment related cases, it may be based on a work contract , a promise of employment , or, in some situations, proof of qualifications and a specific manifestation of interest from the employer . The residence visa is valid for entry and for the initial stay in Portugal, but it is only one step in the broader regularisation process. The grant of residence still depends on compliance with the general legal requirements, including lawful presence, means of subsistence, accommodation, social security registration where applicable, and the absence of relevant criminal or security related impediments .

This matters because employers often assume that the existence of a visa is, by itself, sufficient. It is not always so. A visa may allow entry into Portugal and the initiation of the residence process, but the legality of the employment relationship depends on whether the employee can in fact obtain or maintain residence status under the applicable rules .

A common mistake is to treat the initial immigration document as if it were a definitive right to work confirmation.

For example, an individual may hold a visa that permits entry into Portugal, but not a status that supports local employment with a Portuguese company under the specific conditions of the role being offered. Equally, a foreign national may appear to be in an incomplete immigration stage and yet still be lawfully entitled to work, depending on the category of visa held and the procedural status of the residence application. These are precisely the situations in which a formalistic document check is not enough.

Particular care is required in relation to the different categories of visa that may permit work.

One important example is the residence visa for highly qualified activity . Portuguese law provides a specific route for highly qualified employees, subject to conditions such as a valid employment contract or promise of contract, minimum salary thresholds, and, where applicable, proof of the necessary qualifications. This route is particularly relevant for companies hiring technical specialists, senior professionals, or other qualified international talent.

However, the mere existence of this immigration route does not eliminate the need for an individual legal assessment . Employers should verify whether the applicable criteria are actually met in the specific case.

Another relevant route is the visa for the search for qualified work . This visa reflects Portugal’s intention to attract qualified professionals by allowing them to enter the country in order to seek employment. Importantly, it also authorises the exercise of highly qualified professional activity during its period of validity. Once employment is secured, the holder may proceed to apply for a residence permit, provided the general residence conditions are satisfied.

This creates an important compliance point for employers. A foreign national holding this type of visa may be lawfully allowed to work in Portugal even before obtaining a residence card, but only within the legal limits of the regime and provided that the subsequent regularisation process is properly pursued. Here again, the issue is not whether there is a document, but what that document legally permits and under what conditions.

Temporary stay visas add further complexity. Portuguese law allows temporary stay visas for a wide range of purposes, including independent work, short duration highly qualified work, remote work for entities established outside Portugal, seasonal work, research, teaching, study, and other temporary situations. Some of these categories clearly allow professional activity in Portugal, while others are limited to very specific purposes .

From the employer’s perspective, this means that the mere existence of a temporary stay visa does not automatically answer the right to work question. What matters is the legal basis on which the visa was granted and whether that basis is compatible with the activity the employee will perform.

For example, a temporary stay visa for remote work for a foreign company does not necessarily authorise local employment with a Portuguese employer. Likewise, a visa granted for seasonal work or a short term highly qualified activity may only authorise work within the limits of that specific regime .

Once the employee is in Portugal and the residence process has progressed, the residence permit becomes the central document . At that stage, the law is generally clearer. The holder of a residence permit is, as a rule, authorised to carry out subordinate and independent professional activity without the need for additional authorisation linked specifically to their condition as a foreign national.

Even then, however, employers should not assume that the compliance analysis has ended.

Residence rights are ongoing rights. They are subject to renewal and may be affected by changes in the employee’s legal or factual situation . For that reason, right to work checks should not be limited to the recruitment stage.

Employers should monitor validity dates , confirm whether renewal applications have been submitted in due time , and ensure that the employee’s immigration position continues to support the work being performed.

This is particularly important because Portuguese law imposes substantive conditions for renewal, including means of subsistence, accommodation , compliance with tax and social security obligations , and the absence of disqualifying criminal convictions . In certain situations, residence rights may also be cancelled, for example where the original authorisation was obtained on the basis of false statements or fraudulent documents, or where serious public order or security concerns arise.

There is also an important practical point in cases where the residence process remains pending . Portuguese law recognises that, where a residence visa holder has applied for residence and the delay is not attributable to the applicant , professional activity may be exercised in accordance with the law while the application remains pending . In the current administrative context, this is highly relevant. Employers may incorrectly conclude that a person cannot work simply because the final residence card has not yet been issued, when in fact the law may support continued professional activity at that stage. Equally, employers should not assume that every pending process automatically allows work. What is required is a careful assessment of the precise immigration route, the procedural status of the application, and the legal basis invoked.

Certain specific regimes may require even more tailored analysis. CPLP nationals , for example, may fall under their own residence framework, and foreign nationals in diplomatic or similar positions may fall outside the ordinary residence permit regime altogether. These examples reinforce the same practical lesson: there is no single universal checklist that applies identically to every foreign employee.

Each case must be assessed in light of the individual’s precise immigration category, the activity to be performed, and the current procedural stage of the immigration process.

In short, right to work checks in Portugal are not a mere box ticking exercise. They require employers to identify the employee’s exact immigration route, assess whether that route authorises the relevant professional activity, confirm that any transition from visa to residence is legally sustainable where applicable, and continue to monitor compliance throughout the employment relationship.

For companies employing or planning to hire foreign nationals, this is not simply a matter of good administration. It is a key compliance safeguard and an essential part of legal risk management .

At LVP Advogados , we assist employers and foreign nationals in navigating these issues with a practical and risk focused approach. We support companies in assessing whether candidates and employees are legally authorised to work in Portugal, identifying immigration compliance risks, advising on the most appropriate immigration pathway, and implementing clearer internal procedures for international hiring.

If your company employs or intends to hire foreign nationals in Portugal, a proper right to work assessment should be carried out before hiring and revisited throughout the employment relationship. In a legal framework with multiple visa categories, evolving regularisation pathways, and different rules for different types of professional activity, a superficial review of documents is often not enough.

For a detailed assessment, please reach us through our contact form .

Portuguese Nationality Law: A New Version Has Been Approved, But It Is Not Yet in Force

Wed, 08 Apr 2026 15:47:16 GMT

It may sound like an April Fool’s headline, but it is not. On April 1, 2026, the Portuguese Parliament approved, for a second time, amendments to the Portuguese Nationality Law . This follows the Constitutional Court’s earlier review of the previous version and introduces changes that may affect the residency and citizenship plans of many applicants.

That said, the most important point at this stage is simple: the law is not yet in force . Although the revised text has been approved by Parliament, it has not yet completed the remaining constitutional and political steps required for it to become effective. Until then, the current nationality regime remains applicable .

Key changes and their potential impact

Based on the approved text, some of the most relevant proposed changes are the following:

Extended residency requirements

The minimum legal residence period for naturalisation is expected to increase from 5 years to 7 years for nationals of Portuguese-speaking countries and citizens of EU Member States, and to 10 years for nationals of other countries.

Stricter integration requirements

The new text goes beyond the traditional language requirement. It refers to knowledge of Portuguese culture, history and national symbols , as well as knowledge of the fundamental rights and duties associated with nationality and the political organisation of the State. It also refers to a formal declaration of adherence to the principles of the democratic rule of law and to the applicant’s ability to ensure his or her own subsistence .

A stricter framework for residence counting

One of the most sensitive aspects concerns how periods of legal residence are assessed. The law confirms that only legally recognised residence periods are relevant, which may be counted cumulatively, whether consecutive or not, within certain reference limits depending on the applicant’s category.

This is particularly relevant for applicants who have experienced long immigration delays. However, the exact practical effect of this framework will only be fully understood once the law is formally enacted and implemented.

Pending applications remain protected

This is a crucial point. The approved text expressly states that administrative procedures already pending when the new law enters into force will continue to be governed by the previous version of the law. In practical terms, applications already submitted should not be reassessed under the new rules .

How these changes may affect current and future plans

“Can I still apply before the law changes?”

Many applicants who are approaching eligibility under the current rules are understandably considering submitting their applications now. If you already meet the current 5-year legal residence requirement, this may be an important moment to assess your position carefully. However, submitting an application before fully meeting the legal requirements still carries a significant risk of refusal.

“What about the waiting time for my residence card?”

This remains one of the most sensitive issues, particularly for Golden Visa applicants who have experienced long administrative delays . While the new framework appears to reinforce the relevance of formally recognised legal residence, the full practical impact on these situations will only become clear after promulgation, publication and implementation of the law.

“Is litigation an option?”

Legislative amendments are part of the normal functioning of a democratic system governed by the rule of law. At this stage, and based on the information currently available, litigation is not generally the most effective route . The State has the power to change legal requirements, provided constitutional limits are respected. Any decision to litigate would therefore need to be assessed carefully on a case-by-case basis .

What are the main differences compared to the October 2025 version ?

Although both versions aim to tighten access to nationality , there are relevant differences.

Criminal conviction thresholds

The October 2025 version proposed a broader exclusion, potentially disqualifying applicants sentenced to prison terms of 2 years or more for any crime punishable under Portuguese law. The April 2026 version adopts a narrower approach, focusing on more serious categories of crime and higher thresholds .

A more proportionate approach

The newer version appears more balanced in certain areas, avoiding broader or more indeterminate criteria and introducing a more structured framework in sensitive areas such as criminal background assessment .

Opposition to nationality

The new version also adjusts the wording on opposition grounds linked to lack of connection to the national community . In particular, it includes express reference to the possible relevance of conviction for the crime of insulting national symbols.

Current scenarios and next steps

If the law is promulgated and published, the new rules will apply to applications submitted after its entry into force . Applications already pending should remain protected under the transitional regime expressly included in the approved text.

If the law is vetoed or subject to further constitutional review, its entry into force may be delayed and the wording may still be subject to change.

For now, the position remains clear: until the new law is officially enacted and published, the current nationality regime remains in place .

For applicants who are close to becoming eligible under the current rules, this may be an important time to review their position.

For those with pending renewals or ongoing residence matters, maintaining uninterrupted legal residence status remains especially important.

LVP Advogados is following this legislative process closely and will continue to share updates as soon as there are further developments. For more immediate updates, you may also follow our LVP WhatsApp Channel , where we regularly share legal news and practical insights on Portuguese law.

If you would like to assess your eligibility or discuss whether this is the right time to move forward with a nationality application , our team would be pleased to assist you. Please feel free to reach us through our contact form for a personalized assessment.

The Borderless Wallet: The Tax Reality of Your International Accounts

Wed, 08 Apr 2026 09:34:11 GMT

Francisca Abrantes | Tax Consultant

Holding accounts abroad is no longer just for investors or travelers, many everyday fintech users now have international financial footprints. In Portugal, even zero-balance accounts must be reported in Annex J of your IRS return. Disclosure ensures transparency, separates reporting from taxation, and helps avoid fines.

International Finances Made Simple: Reporting Obligations in Portugal

Understanding the New Paradigm of Financial Transparency

For decades, holding a " foreign bank account " was primarily associated with high-net-worth individuals or corporations with international tax planning needs. Today, that reality has shifted. If you use a smartphone for your daily finances - whether for traveling without exchange fees, investing in the S&P 500, or simply keeping a digital savings account, your financial footprint likely extends across borders . The fintech tools we use daily are often registered in jurisdictions far beyond Portugal.

The Age of Automatic Exchange

The Portuguese Tax Authority (Autoridade Tributária - AT) now operates with unprecedented visibility into international finances. We are firmly entrenched in the Common Reporting Standard (CRS) era. This global agreement ensures that financial institutions in over 100 countries automatically report account holder data to the tax authorities of their resident countries .

This means that when you open an account in a fintech app, that information is digitally "flagged" and shared with the AT . The focus is no longer on whether the AT will discover your foreign accounts, but on ensuring your tax return (Modelo 3) accurately reflects the information the government already possesses.

The Misconception of "No Profit, No Report"

The most common error we encounter is the assumption that reporting is only necessary if the account generated interest or holds a significant balance. In Portugal, the obligation to declare foreign accounts is formal, not just material . You are reporting the existence of the financial relationship, regardless of the amount of money held within it. It is a matter of transparency, not necessarily a matter of immediate taxation.

Even an account with:

€0.00 balance throughout the year
No transactions
No interest earned

... must still be declared if it was open at any point during the tax year.

Think of it as: Transparency first, taxation second .

The declaration is separate from income reporting. Most foreign accounts trigger only a disclosure obligation, not an immediate tax bill.

Navigating Annex J and the Fintech Landscape

When filling out your IRS return (Modelo 3), foreign financial activities are reported in Annex J .

Specifically, Table 11 is dedicated to listing every foreign bank account (IBAN) held during the previous tax year.

Defining "Foreign" in the Digital Age

A bank account is considered "foreign" if it is held with a financial institution located outside Portugal. In practice, this means that any IBAN that does not begin with "PT"** (Portugal's two-letter country code).

It doesn't matter if you opened the account while sitting on your sofa in Lisbon. What matters is where the institution is registered . If your account is with a Lithuanian bank (IBAN starting with "LT"), it's a foreign account.

Common Examples & Jurisdictions

Here are the fintech platforms most frequently encountered in our practice, with the specific details you need for accurate reporting:

Revolut (Lithuania - LT): Most Revolut accounts are now with Revolut Bank UAB (Lithuania). Declare the main account IBAN regardless of usage - daily spending, "Pockets," or savings all count.

Degiro (Germany - DE): Investors often forget that behind their portfolio lies a "Cash Account" (FlatexDEGIRO) used to hold uninvested funds. This account has a German IBAN and is a mandatory disclosure.

N26 / Bunq (Germany/Netherlands - DE/NL): Popular choices for digital nomads and tech-savvy savers. These are full-fledged bank accounts that trigger the reporting requirement.

Wise (Belgium/various - BE): While often used for transfers, if you hold a "Balance" with a dedicated IBAN, the AT expects to see it listed.

Interactive Brokers (Ireland/Luxembourg/Hungary): A staple for serious investors. Depending on which entity holds your account, the jurisdiction must be correctly identified.

The Difference Between Disclosure and Tax Liability

One of the primary reasons taxpayers hesitate to report foreign accounts is fear—fear of unexpected tax bills, double taxation , or triggering an audit simply by being transparent.

The reality is simpler: Disclosure is not taxation. Reporting an account's existence does not, by itself, create a tax liability.

Table 11 vs. Table 8: A Vital Distinction

Understanding which tables do what is the key to stress-free compliance:

Table 11 (Identification) : You provide the IBAN and the BIC/SWIFT. You do not report the balance. There is €0.00 tax associated with this table. It is purely for the AT's records.

Table 8 (Income) : This is where you report actual earnings ( dividends, interest from a savings vault, or capital gains from selling stocks ). If your foreign account is just a "transit" account with no interest, Table 8 remains empty, and you pay nothing.

The Consequences of Omission

The cost of forgetting to declare a foreign account typically exceeds any tax you might have owed. Here's what happens when the AT detects a mismatch through CRS data :

Divergences : Your IRS settlement will be suspended. You will be asked to justify the existence of the account, often resulting in a delay of your tax refund.

Fines (Coimas): Failure to declare a foreign account can lead to administrative penalties. While often negotiable if corrected voluntarily, these can range from €200 to significantly higher amounts depending on the omission's impact.

Audits : Consistent failure to report foreign assets can trigger a more comprehensive "second look" at your global financial activities.

Summary Checklist for April

To ensure a "brilliant" and stress-free filing, taxpayers should:

Download the " Statement of Assets " or " Tax Report " from every fintech/bank app they use.
Identify the country code (the first two letters of the IBAN).
Check for any accrued interest , even if it was just a few cents, as this moves the requirement from "Reporting" to "Taxation."

Compliance in the digital age is not about complexity - it is about consistency. By being proactive with Annex J, you align your digital footprint with your fiscal responsibilities, ensuring that your international financial flexibility remains an asset, not a liability.

Ensuring compliance with international accounts doesn’t have to be done alone. Our team is here to guide you, reach out via our contact form for tailored support.

Public Utility Status in Portugal: what it is, who can apply, and why it matters

Tue, 07 Apr 2026 09:51:07 GMT

Pedro Mofreita | Legal Assistant

Public Utility Status in Portugal is a mark of trust and credibility for non-profit organizations. Reserved for associations, foundations, and cooperatives with a clear societal mission and transparent governance, it offers legal and tax benefits and strengthens ties with public authorities. At the same time, it requires ongoing accountability, reporting, and compliance, making it both an honor and a responsibility.

Public Utility Status in Portugal: Eligibility, Process, and Benefits

In Portugal, Public Utility Status is a legal recognition granted to certain non-profit legal persons that pursue purposes of general, regional or local interest and cooperate with the public administration in the pursuit of those purposes. It is currently governed by Law No. 36/2021 of 14 June , which approved the Framework Law on Public Utility Status , and by Ordinance No. 138-A/2021 of 30 June, which regulates the administrative procedure.

For many entities, obtaining this status may represent an important institutional milestone . It may strengthen public credibility , reinforce relationships with public bodies and, in certain cases, open the door to relevant legal and tax benefits .

That said, Public Utility Status is not granted lightly. It requires a clear public interest mission , a consistent record of activity , and ongoing transparency in governance and reporting.

As a rule, Public Utility Status may be granted to associations , foundations and cooperatives that pursue qualifying purposes and cooperate with the central, regional or local administration in that context. The law covers a broad range of sectors, including culture , sport , local development , social solidarity , education , citizenship and human rights , youth , development cooperation , health , civil protection , scientific research , economic and social development , environment , animal welfare , housing and urban planning , consumer protection , the protection of vulnerable persons and family policies .

However, not every non-profit entity will qualify. The applicant must meet a number of legal requirements , including valid incorporation , effective activity for at least three years , adequate human and material resources , non-discriminatory admission criteria, an updated register of members or cooperators, a publicly accessible website containing key institutional and financial information , and properly organised or cash-based accounts . These requirements reflect the legislator’s intention to reserve the status for entities that combine public interest purposes with genuine operational capacity and accountability.

From a procedural standpoint, the application must be submitted to the General Secretariat of the Presidency of the Council of Ministers through the ePortugal portal . The applicant must identify the territorial scope requested, explain the public utility purposes pursued, justify the request, submit a detailed activity report, identify its representative, indicate its public website and attach the supporting documentation required by law. This includes, among other elements, a reasoned opinion from the municipal council of the municipality where the entity has its headquarters.

The advantages of Public Utility Status may be significant. The Framework Law expressly refers to a set of rights and benefits , including the right to use the designation “ entity with public utility status ” or “ EUP ”, as well as access to certain tax exemptions and legal benefits provided for in the applicable legislation. These may include, depending on the case, benefits relating to stamp duty , IMT , IMI , corporate income tax , court costs and certain fees and charges .

That said, the tax effects of Public Utility Status should not be approached in overly simplistic terms. The legislation confirms some of those consequences more specifically, including amendments to the Stamp Duty Code, the IMT Code and the IRC Code, but the practical effect of the status must always be assessed in light of the relevant substantive tax provisions and the nature of the entity concerned.

In other words, Public Utility Status may be highly advantageous, but it is not a one-size-fits-all tax solution.

The granting of the status also brings ongoing duties . Once recognised, the entity must continue to satisfy the conditions that justified the attribution of the status. It must submit annual accounts to the SGPCM within six months of the end of the financial year, submit an activity report , retain records and original legal and accounting documents for at least five years , cooperate with the competent public authorities, and ensure transparency in its management.

Public Utility Status is therefore not merely an honorary recognition. It is a legal framework of continued responsibility and oversight.

The status is granted, renewed and revoked by the Prime Minister. Once granted, it lasts for ten years and may be renewed successively for equal periods. It may cease by expiry, extinction of the legal person or revocation.

Revocation may occur if the entity ceases to meet the legal requirements for attribution, seriously or repeatedly breaches its duties, or makes false statements.

The SGPCM is responsible for monitoring the activity of entities with Public Utility Status and supervising compliance with the duties arising from that status.

In practice, Public Utility Status is particularly relevant for entities that already have a stable structure, transparent governance, and a demonstrable public interest mission .

For these organisations, it may represent not only a mark of institutional recognition but also a valuable legal tool that supports their activity and reinforces their credibility .

If your entity needs guidance or assistance with the application process, please reach out to LVP Advogados through our contact form for legal support.

When a Loved One Dies in Portugal: A Practical Guide for Foreign Families

Mon, 06 Apr 2026 11:20:03 GMT

Domingas Andresen Guimarães | Lawyer

Navigating Succession in Portugal: A Practical Guide for Foreign Families

With an increasing number of foreign residents in Portugal, cross-border succession is becoming more common and often complex. Understanding which law applies, and how Portuguese rules impact inheritance, is essential to avoid complications and ensure a smooth transfer of assets.

It’s no surprise that Portugal has become an increasingly attractive destination for foreign nationals looking to build their lives here. Many choose Portugal to work remotely or to enjoy their retirement .

As a result, it is not uncommon for foreign residents to pass away in Portugal, often without close family members nearby, which can raise several questions and concerns about the law applicable to the succession and how to comply with the legal obligations required by the Portuguese authorities.

In Portugal, the succession process begins at the moment of death. This is when the estate is formally opened and the transfer of assets to the heirs is triggered.

Before that transfer takes place, however, there are some steps that the presumed heirs must take. One of the most important is determining which law applies to the succession .

In Portugal, successions with an international element are largely governed by Regulation (EU) No. 650/2012 of 4 July (the European Succession Regulation), which applies across most European Union countries, with the exception of the United Kingdom, Ireland, and Denmark.

Under this Regulation, the law applicable to a succession is, in principle, the l aw of the deceased’s last habitual residence , regardless of nationality. So, if a foreign national was living in Portugal on a stable and regular basis, with the centre of their life established here, the succession may be governed by Portuguese law.

However, the Regulation also allows individuals to choose the law that will apply to their succession . A national may, during their lifetime, in a clear and explicit manner, typically through a will , elect for the law of their nationality to apply. This can help avoid uncertainty, giving heirs greater predictability and legal certainty throughout the process.

If no such choice has been made, habi tual residence becomes the key factor in determining the applicable law .

It’s also important to note that even where Portuguese law does not apply, it may still be necessary to deal with Portuguese authorities in order to transfer assets located in Portugal .

This highlights the importance of having coordinated legal advice in cross-border situations .

Once the applicable law has been identified, and if it is Portuguese law, it becomes essential to identify the heirs . A distinction must be made between “ forced heirs ” (such as the surviving spouse, descendants, and ascendants), who are entitled to a minimum share of the estate (the “reserved portion”), and any testamentary heirs named in a will.

The concept of the “reserved portion” often raises questions among foreign residents, as Portuguese law does not allow someone to leave their entire estate to a single individual . A portion is always reserved for forced heirs. For this reason, many foreign nationals choose to make a will and opt for the law of their nationality to apply.

One of the first formal steps in the succession process, after obtaining the death certificate, is the execution of the deed of heirs (“habilitação de herdeiros”). This document officially identifies the heirs and confirms whether a will exists. If the presumed heirs are unsure whether a will was made, they may request this information from the Portuguese civil registry.

Once the heirs have been formally identified, a full list of the deceased’s assets must be prepared. This includes real estate , bank accounts , financial investments , company shares , vehicles, as well as any other assets and liabilities existing at the date of death.

This asset list is necessary to comply with the obligation to report the death to the Portuguese Tax Authority within three months , for stamp duty purposes. Although transfers to forced heirs are exempt from stamp duty, the reporting obligation still applies, and failure to comply may result in penalties.

After dealing with the Tax Authority, the estate remains undivided until the assets are formally distributed among the heirs. During this period, the estate is typically managed by the Head of Estate (Cabeça-de-Casal), who is responsible for day-to-day management, reporting to the other heirs, and representing the estate before third parties. This phase can be particularly challenging, especially where ongoing asset management is required or where disagreements arise between heirs.

The distribution of assets is, without a doubt, the key moment in the succession process. It can take place in one of two ways:

Out of court , where all heirs agree on how to divide the estate; or
Through the courts , where there is disagreement and the division is decided by a judge.

Once the distribution is completed, the heirs must update the ownership of the inherited assets through the relevant registrations with the competent authorities.

Given the complexity that succession proceedings can involve, especially in cases with diverse assets or conflicts between interested parties, particularly in cross-border situations, specialised legal support is essential to ensure proper coordination and legal certainty throughout the process.

For families navigating succession in Portugal, especially in cross-border situations, professional guidance is essential.

If you need personalised support or have questions about the succession process, you can reach out to the team at LVP Advogados via our contact form to arrange a consultation.

Our specialists can help ensure that legal obligations are met and that the process is handled smoothly and efficiently.

Portugal 2026 IRS Statutory Compliance: A Professional Roadmap

Tue, 31 Mar 2026 12:42:07 GMT

As the Portal das Finanças prepares to open for the 2025 tax year submission on April 1st , the transition from preparation to execution begins. However, for the sophisticated taxpayer, the opening of the portal is not a signal to rush, but a call for strategic patience.

In the 2026 cycle, fiscal integrity is defined by three pillars: Clarity, Strategy, and Technical Readiness.

The Window of Technical Stability

While the statutory window technically opens on 1st April , we advocate for a "Wait and Verify" approach. Historically, the initial days of the submission period are marked by the stabilization of pre-filled data . By targeting a filing date from mid-April onwards , we ensure that the Tax Authority’s internal systems have reconciled, preventing administrative inconsistencies that often trigger unnecessary audits.

Beyond the "Automatic" Regime

The "IRS Automático" is a tool of convenience, but it is rarely a tool of optimization. For taxpayers with diverse income streams - such as professional services , rental income , or foreign-sourced capital - the automatic regime is often insufficient.

True compliance requires the manual preparation of Modelo 3 and its specific annexes. Professional oversight ensures every euro is categorized correctly, ensuring your filing remains robust under statutory scrutiny.

Protecting Capital Gains: The Annex G Mandate

One of the most significant pitfalls in the Portuguese tax system occurs during the sale of a primary residence . To benefit from the Reinvestment Exclusion - a mechanism designed to mitigate or eliminate tax on capital gains - the taxpayer must explicitly declare this intention within Annex G .

Missing this step, or failing to report it with technical precision, often results in the forfeiture of significant tax relief. In a high-stakes real estate market, this declaration is the primary line of defense for your capital.

The Conclusion of the Cycle

Submission is merely the midpoint of the compliance journey. A professional roadmap accounts for the final milestones that conclude the tax year:

31 July: The issuance of the Official Tax Assessment Notice , which confirms the final calculation of your tax liability.

31 August: The Statutory Settlement , marking the legal deadline for refunds to be issued or final payments to be settled.

Securing Professional Oversight

As we move into the 2026 cycle, our priority intake is now active. Navigating the Portal das Finanças with confidence requires a strategy that balances technical readiness with legal accuracy.

If you require assistance with your 2026 filing, please reach out to LVP Advogados Tax Team through our contact form to formalize your instructions and secure your place in our priority window.

Stopped Studying in Portugal? You May Still Be Able to Stay Legally

Thu, 26 Mar 2026 16:18:05 GMT

Javier Mateo | Lawyer

Portugal remains an attractive destination for international students, but not every academic journey follows the original plan. In many cases, students interrupt or discontinue their studies while building professional opportunities in the country. This raises an important question: is it possible to remain in Portugal legally after stopping studies? While the answer can be yes, it depends on timely action and a properly structured legal approach.

Timing Matters: Staying in Portugal After Stopping Your Studies

Portugal continues to attract international students from around the world. However, not all academic paths go as planned. In many cases, students interrupt or abandon their studies and begin working or developing an independent activity in Portugal.

This is one of the most frequent questions we receive from international clients: can you remain in Portugal if you stop studying but start working?

The answer is yes, in certain circumstances. However, the solution is not automatic and requires careful legal positioning from an early stage.

The Starting Point: Student Residence Depends on Studies

Residence permits granted for study purposes under Articles 91 (higher education) and 92 (secondary education) of Law 23/2007 are conditional upon effective enrolment and attendance in an educational programme.

Once the student ceases to attend or is no longer enrolled, the legal basis for that residence permit effectively ceases to exist.

In practical terms, this means that the permit cannot be renewed under the student regime if the academic activity has ended without completion . Continuing to rely on student status without meeting its requirements will, in most cases, lead to refusal of renewal or other administrative consequences.

However, this does not necessarily mean that the individual must leave Portugal .

Changing the Purpose of Residence

Portuguese immigration law allows, in certain situations, a change in the purpose of residence from within national territory.

For individuals who have secured employment or started an independent activity , the most relevant legal pathways are:

Residence for subordinate work under Article 88
Residence for independent work or entrepreneurial activity under Article 89

Rather than attempting to renew the student residence permit, the applicant must reposition their legal status and submit a new residence application based on their professional activity .

This is not a purely formal step. It is a substantive change that must be properly structured, justified and supported with the appropriate documentation.

Key Conditions for a Successful Transition

The success of this transition depends primarily on timing and documentation .

First, the applicant must still be in a lawful situation in Portugal. Ideally, the request should be submitted while the residence permit remains valid or within the applicable renewal period.

Once the permit has expired and the individual is no longer in a regular situation, the available options become significantly more limited.

Second, there must be a solid professional basis

For Article 88 , this includes a valid employment contract , proof of registration or enrolment with Social Security , and compliance with applicable labour requirements .

For Article 89 , the applicant must demonstrate an active independent activity , including tax registration , Social Security enrolment, and evidence that the activity is genuine and economically viable .

Third, the application must present a coherent and credible narrative . It is important to demonstrate that the applicant entered Portugal legally, complied with the requirements of the student residence permit, and has now transitioned into professional integration in the country.

Articles 122 and 123: Limited and Exceptional Pathways

Articles 122 and 123 of Law 23/2007 establish limited exceptions to the general rule requiring a prior residence visa .

Article 122 sets out a closed list of situations where a residence permit may be granted without a visa, typically involving individuals with an existing legal or factual connection to Portugal , such as former students or previous residence permit holders.

Article 123 establishes a discretionary regime allowing residence permits to be granted in exceptional circumstances, including humanitarian grounds or national interest .

These provisions are interpreted restrictively and should not be approached as standard pathways for regularisation.

Recent Administrative Practice: A Limited Window for Former Students

Recent administrative practice has been showing a limited but relevant degree of flexibility in cases where residence permit holders for study purposes have discontinued their studies but entered the labour market.

Where there is clear evidence of employment or independent activity, together with Social Security contributions, authorities have, in some cases, accepted applications based on a change of purpose .

In practice, these situations have often been framed under Article 122, particularly paragraph j), in cases where the individual’s residence status has lapsed but there is demonstrable integration in Portugal .

This approach reflects a limited and evolving administrative position. It is applied on a case by case basis and should not be interpreted as a general route to regularisation.

Common Pitfalls

A frequent misconception is to assume that securing a job automatically allows a student to remain in Portugal.

In practice, this often leads to refusal. Employment alone does not regularise immigration status . The appropriate legal framework must always be followed.

Another common issue is delay . Waiting until the residence permit has expired significantly reduces the available options and, in some cases, may require the applicant to leave Portugal and restart the process through a Consulate.

Overstaying does not create rights and may have serious consequences for future applications.

Strategic Conclusion

Stopping studies in Portugal does not automatically require leaving the country. However, it does require a timely and well structured legal response .

In most cases, the appropriate route is to transition to a work based residence permit under Articles 88 or 89 of Law 23/2007, while maintaining lawful status.

At the same time, recent administrative practice suggests that some flexibility may exist in specific cases involving former students . That flexibility remains limited, discretionary and highly dependent on the strength of the applicant’s situation.

In practice, timing and legal structuring are often the decisive factors between a successful transition and the loss of legal status in Portugal.

At LVP Advogados , we assist clients in structuring this transition with a clear legal strategy, ensuring that each step is properly aligned with the applicable framework and current administrative practice.

Fill out our contact form , and our team will reach out to guide you through the process.

NHR in Portugal vs. Spanish Tax Residency: A Growing Interpretative Conflict

Tue, 24 Mar 2026 15:43:24 GMT

António Pratas Nunes | Lawyer

Portugal’s Non-Habitual Resident (NHR) regime has long been celebrated for attracting high-net-worth individuals and skilled professionals with its favorable tax treatment. However, the growing scrutiny from Spanish tax authorities has sparked a complex cross-border dispute over tax residence interpretation, exposing a widening gap between Portugal’s generous exemptions and Spain’s stricter approach under the Portugal–Spain Double Taxation Agreement. For individuals leveraging the NHR, understanding these conflicting positions is now critical to managing potential risks and ensuring compliance.

Tax Residency Challenges under Portugal’s NHR Regime: Diverging Views from Spain

Since the introduction of the Non-Habitual Resident (NHR) regime , Portugal has positioned itself as a key destination for high-net-worth individuals and highly qualified professionals .

The combination of exemptions on foreign-source income and a flat 20% tax rate on certain Portuguese-source income has attracted thousands of individuals from around the world. However, this success has increasingly drawn the attention of foreign tax authorities - most notably in Spain .

This reform represents a structural shift in Portuguese tax law, as crypto-asset transactions are now expressly framed within the existing income tax categories, rather than being addressed on an ad hoc basis.

The Position of the Spanish Tax Authorities

In recent years, the Spanish tax authorities have intensified their scrutiny of individuals who have relocated to Portugal under the NHR regime . In several cases, this relocation resulted in the elimination or significant reduction of Spanish taxation , prompting a more aggressive stance.

More recently, the Spanish Central Economic-Administrative Court (TEAC) has reinforced a restrictive interpretation:

Even with a Portuguese tax residency certificate , individuals may still be treated as Spanish tax residents if they are not effectively taxed on their worldwide income in Portugal .

This is based on a specific reading of Article 4 of the Double Taxation Agreements (DTAs) . According to the Spanish authorities, to qualify as a "resident" under a treaty, an individual must be subject to comprehensive taxation on their global income, rather than benefiting from broad exemptions.

The Role of Tax Residence Certificates

In practice, it is through tax residence certificates that taxpayers are able to ensure that the mechanisms provided under Double Taxation Agreements (DTAs) effectively apply.

In simple terms, the taxpayer requests a tax residence certificate from their country of residence , which is then presented to the requesting entity of the other State (typically the source of the income). This confirms the individual is a tax resident in that jurisdiction and intend to declare their worldwide income there, particularly the source of income in dispute.

Upon receipt, the source State should apply the relevant provisions of the DTA - either granting an exemption or applying a reduced withholding tax.

However, Spanish tax authorities have begun challenging these certificates. They argue NHR beneficiaries, by utilizing the exemption method , may not meet the residency requirements of article 4 of the DTA.

The Portuguese Tax Authorities’ Position

The Portuguese Tax Authorities addressed this issue in Binding Ruling no. 29111 , explicitly rejecting the interpretation adopted by Spain.

According to the Portuguese authorities:

The fact that certain foreign-source income benefits from an exemption under the NHR regime does not mean that the individual is not subject to comprehensive taxation in Portugal;
A clear distinction must be made between non-taxation and tax exemption .

This follows long-standing Portuguese case law (( Supreme Administrative Court decision, case no. 0144/11, 25 January 2012) , which clarified that:

Non-taxation occurs when a situation falls outside the scope of taxation;
Tax exemption applies where taxation exists but is waived by a specific legal provision;
Under the NHR, foreign income is within the scope of Portuguese law but may be exempt "with progression"-meaning it is still factored in to determine the tax rate on other income.

Furthermore, there are clear instances of effective taxation in Portugal for NHRs on foreign-source income, such as:

Capital gains , where NHR exemption requirements are typically not met;
Pension income , which, for individuals becoming tax residents after 2020, is generally subject to a flat 10% tax rate .

The Core Issue: Interpretation of Tax Residence

The dispute goes beyond the income classification and lies in the interpretation of tax residence for treaty purposes .

Double Taxation Agreements do not autonomously define residence; instead, they rely on domestic law definitions , while providing mechanisms to resolve dual residence conflicts .

In such cases, Article 4 of the DTA establishes a "tie-breaker" hierarchy of criteria:

Permanent home;
Centre of vital interests;
Habitual abode;
Nationality;
Mutual agreement between the States.

If the conflict cannot be resolved, taxpayers may resort to the Mutual Agreement Procedure (MAP) under Article 25 of the DTA — although this does not guarantee a binding outcome.

Conclusion

Although Spain has adopted a restrictive interpretation of the Portugal–Spain Double Taxation Agreement - particularly regarding the concept of tax residence in the context of the NHR regime - this position is not aligned with the interpretation of the Portuguese Tax Authorities .

As such, a clear divergence currently exists between the two jurisdictions, creating potential uncertainty and risk for taxpayers. In this context, careful structuring, consistency in tax reporting , and proactive advisory become essential to mitigate exposure to cross-border tax disputes.

For individuals considering Portugal’s NHR regime, or already benefiting from it - the differing interpretations of tax residency between Portugal and Spain may create uncertainty. Those seeking legal assistance or clarification on cross-border tax matters can consult our legal team through our contact form .

Entered Portugal as a Tourist and Want to Stay? What Legal Options Do You Have?

Thu, 19 Mar 2026 13:54:52 GMT

Javier Mateo | Lawyer

Falling in love with Portugal as a tourist is easy, but staying long-term requires navigating strict immigration rules. Short-stay or visa-free entry does not grant a right to reside, and in-country regularisation is limited.

Articles 122 and 123 of Law 23/2007 allow exceptions in specific cases, while EU family members follow a separate framework under Directive 2004/38/EC. Overstaying carries serious risks, so expert guidance is essential to ensure a secure and compliant pathway, usually via a consular visa.

From Tourist to Resident: Navigating Portugal’s Immigration Rules

Many visitors fall in love with Portugal the first time they arrive. The climate, safety, lifestyle and international environment make it easy to imagine staying longer. It is therefore natural that many non European citizens who enter Portugal as tourists begin to explore whether they can remain permanently.

However, the current legal framework is significantly more restrictive than in previous years.

The General Rule: A Residence Visa Is Required

Under Law 23/2007, the general principle is clear. A residence permit must normally be preceded by a residence visa issued by a Portuguese Consulate abroad

Entering Portugal as a tourist, whether visa free under the Schengen regime or with a short stay visa, does not by itself entitle a third country national to apply for residence from within Portuguese territory.

In most cases, individuals who decide to live, work or invest in Portugal after entering as tourists will need to return to their country of residence and apply for the appropriate residence visa through the Consulate.

Very Limited Exceptions

Article 122 of Law 23/2007 establishes a closed list of situations in which a residence permit may be granted without a prior residence visa. These are not general regularisation pathways for newly arrived tourists. In practice, most of the situations covered presuppose a previous legal or factual connection to Portugal , such as having pursued studies in the country, having held a residence permit that has since expired , having benefited from temporary or international protection , or having lived in Portugal since childhood.

The provision also covers specific cases involving minors born in Portugal , parents of minor children residing in Portugal or holding Portuguese nationality, certain victims of serious labour exploitation , and limited post study or research transitions .

The common denominator is clear: Article 122 applies where there is prior lawful presence, established integration, protection of vulnerable persons, or an already existing legal link to Portugal. Simply entering as a tourist and deciding to remain does not fall within its scope.

And where Article 122 does not apply, Article 123 provides an exceptional and discretionary mechanism. In extraordinary circumstances, a temporary residence permit may be granted on grounds of national interest , humanitarian reasons including the best interests of the child, or public interest arising from relevant scientific, cultural, economic or social activity.

This regime is not a substitute for failing to meet the normal visa requirements . It is applied restrictively and requires compelling, well documented justification demonstrating that the situation is truly exceptional. Approval depends on an assessment at the highest administrative level and must be duly reasoned.

EU Family Members: A Separate Legal Framework

Where the non European national is a qualifying family member of an EU citizen exercising treaty rights in Portugal, a different regime applies.

Law 37/2006 , which transposes Directive 2004/38/EC, governs the residence rights of EU citizens and their family members. Under this framework, the family member may apply for a residence card from within Portugal, even if they entered as tourists, provided all legal conditions are met. This is not an immigration shortcut, but a distinct European Union free movement regime with its own eligibility criteria .

Overstaying Does Not Create Rights

Remaining in Portugal beyond the authorised Schengen period does not generate a right to regularisation. Tourist status does not grant permission to work or carry out professional activity .

Overstaying may result in fines, removal decisions , and potential entry bans within the Schengen Area. It may also negatively affect future visa or residence applications.

In practical terms, unless the individual clearly qualifies under Article 122, Article 123, or the EU free movement regime, the legally secure path will generally require returning abroad and applying for the appropriate residence visa through the Portuguese Consulate .

A Word of Caution

Outdated or inaccurate information continues to circulate online, particularly on social media platforms and informal discussion groups. Since June 2024, Portugal has formally closed the “manifestation of interest” pathway , which previously allowed certain third country nationals who had entered legally and obtained tax and social security registration to apply for residence from within the country without a prior residence visa.

As a result, regardless of what may still be read online, in country regularisation based solely on securing employment or activity after arrival is no longer available , and the general rule requiring a residence visa issued by a Portuguese Consulate once again fully applies.

Immigration law evolves quickly. Advice based on previous practice may no longer reflect the current legal framework. Acting on incorrect assumptions can lead to overstaying, procedural dead ends, and long term immigration complications.

Strategic Conclusion

Portugal remains one of Europe’s most attractive destinations for relocation. However, entering as a tourist does not automatically create a pathway to residence.

The default rule applies: residence generally requires a prior residence visa issued abroad . Articles 122 and 123 provide limited and exceptional in country solutions, but only in clearly defined circumstances.

Each case requires careful legal analysis.

At LVP Advogados , we assist clients in determining whether in country regularisation is legally viable under the current framework or whether a structured consular visa application is the safer and more sustainable solution.

If you entered Portugal as a tourist and are considering remaining long term, seeking legal guidance before your authorised stay expires is essential.

Should you require our support or a detailed analysis of your current situation, please feel free to reach out to us through our contact form .

Why Your “Foreign” Income Might Be Portuguese in the Eyes of Portuguese Tax Authorities

Wed, 18 Mar 2026 16:14:37 GMT

Francisca Abrantes | Tax Consultant

In today’s globalized and remote work environment, the line between “foreign” and “domestic” income has become increasingly blurred. Even if you earn from clients abroad, the Portuguese Tax Authority may still consider your income Portuguese under Article 18 of the CIRS. This article explores the risks for digital nomads and international professionals, highlighting why careful tax planning and expert guidance are essential to avoid unexpected liabilities and maximize available exemptions.

Foreign Income in Portugal: What Expats and Digital Nomads Must Know

The Digital Nomad & Global Professional Dilemma

In an era of remote work and global consultancies , the lines between "here" and "there" have blurred. You live in Portugal, your client is in New York, and the bank account is in London. Naturally, you might think: "This is foreign income ".

However, the Portuguese Tax Authority (AT) has a different lens. They don’t just follow the money; they follow the person - you .

The purpose of this briefing is to highlight a specific technical risk - Article 18 of the CIRS - and why navigating this year’s tax return requires more than just a calculator; it requires a defensive strategy .

The "Article 18" Reality Check

Article 18 is the "GPS" of the Portuguese tax system. It determines whether income is "obtained in Portuguese territory." If the AT clicks "Yes" on Article 18, your "foreign" income is suddenly "domestic".

Why does this happen?

Article 18(1) determines whether income is "obtained in Portuguese territory". The AT’s interpretation is increasingly strict: if you are sitting in a home office in Lisbon or a café in Porto while performing a service, the law argues that the source of that wealth is your physical presence in Portugal.

Even if the entity paying you has no presence in Portugal, the mere fact that the activity was exercised here is enough for the AT to claim its piece of the pie.

The Stakes: It’s Not Just About a Different Form

You might ask, "What’s the big deal if it’s called Portuguese or Foreign, as long as I pay tax?" The difference, in reality, can be worth thousands of Euros.

The NHR (Non-Habitual Resident) Vulnerability

For those under the NHR regime , the "Exemption Method" is the Holy Grail. Foreign income may be exempt in Portugal if certain conditions are met in the source country. However, If the AT invokes Article 18 and reclassifies your income as "Portuguese Source," you lose that exemption. You could go from paying 0% or a flat 20% to the standard progressive scales that reach up to 48% (plus solidarity surcharges).

The Double Taxation Ghost

If Portugal claims the income is domestic and the other country also claims it (because the payer is there), you are stuck in a bureaucratic minefield. Avoiding double taxation requires precise reporting and a deep understanding of International Double Taxation Agreements (DTAs) . One wrong box on your Tax Return , and you are paying two governments for the same hour of work.

Conclusion: Let the Experts Handle the Heat

At LVP Advogados , we believe that preparing a tax return is a defensive exercise. The Portuguese Tax Authority is becoming increasingly digital and aggressive in its " automatic cross-checking ". They are looking for inconsistencies between what foreign entities report and what you declare here.

Our role is to look beyond the surface. We analyze the substance over form -checking how international treaties (DTAs) interact with Article 18 to find the most secure path for your specific case. We want to ensure that your global professional success doesn't get tangled in local red tape.

As we prepare for the upcoming Tax Season, our message is simple: don't leave your financial peace of mind to chance. The risk of Article 18 is real, but it is manageable with the right approach .

Should you require our support or a detailed analysis of your tax situation, please feel free to reach out to us through our contact form .

Buying Property in Portugal: What every buyer should know

Tue, 17 Mar 2026 17:50:45 GMT

Joana Loureiro Veríssimo | Lawyer

Buying property in Portugal can be an exciting opportunity, whether for personal residence, relocation, or investment. Yet, beneath the appeal of sun-soaked locations and attractive prices lies a complex legal and administrative landscape that every buyer should understand. From verifying land registry records and assessing tax obligations to navigating urban planning regulations and contractual commitments, a careful legal review is essential to safeguard your investment. By addressing potential issues early and seeking expert guidance, buyers can ensure a smoother, more secure acquisition process and make informed decisions that protect both their property and their interests.

Property in Portugal: Legal, Tax, and Planning Insights for Buyers

The acquisition of real estate often represents one of the most significant investments made by individuals or companies. In Portugal, the property market continues to attract both domestic and international buyers , whether for residential purposes, relocation , or investment .

Although the process of purchasing property may initially appear straightforward, real estate transactions frequently involve a number of legal, administrative, and regulatory issues that deserve careful consideration.

In practice, prospective buyers tend to focus primarily on aspects such as location, price, and financing conditions. While these factors are undoubtedly important, the legal dimensions of a property transaction are equally relevant. Matters relating to property registration , urban planning compliance , contractual obligations , and tax implications may significantly affect both the security of the transaction and the rights associated with the property .

One of the first aspects to be assessed is the legal status of the property.

In Portugal, ownership and the existence of any encumbrances are recorded at the Land Registry. However, the mere existence of a registry record does not eliminate the need for careful review.

A property may be subject to mortgages, usufruct rights, easements, or other encumbrances capable of affecting the buyer’s position.

In addition, discrepancies may exist between the information recorded in the registry and the property’s actual legal or physical situation.

The property’s tax documentation also requires particular attention. The tax record contains essential information regarding the property’s fiscal identification , official valuation , and classification . These elements may have a direct impact not only on the taxes applicable to the transaction, but also on the annual tax obligations arising after the acquisition.

Urban planning and licensing matters constitute another area that often raises important issues in real estate transactions. Buyers may reasonably assume that a property currently in use necessarily complies with all applicable planning and construction rules. However, this is not always the case. Questions may arise regarding the existence of the appropriate use licence , the legality of alterations carried out over time, or the building’s compliance with municipal planning regulations.

These matters may be particularly relevant in the case of older properties , renovated buildings , or properties located in historic centres or protected areas . In such situations, the regulatory framework applicable to the property may be more complex and may impose additional restrictions or requirements .

The contractual phase of the transaction also deserves careful attention. In Portugal, it is common for the parties to enter into a promissory purchase and sale agreement prior to the execution of the final deed. Although often perceived as a preliminary step, this agreement creates binding obligations for both parties and typically involves the payment of a deposit .

At this stage, the contractual allocation of risk becomes especially important. Matters such as completion deadlines, conditions precedent, financing contingencies, and the consequences of non-performance should be clearly addressed. Certain provisions that may appear standard can, under Portuguese law, carry significant legal consequences, particularly in light of the legal framework governing deposits .

Tax considerations likewise form an integral part of any property transaction. Although buyers are generally aware that taxes apply to real estate acquisitions, the determination of the applicable tax burden may depend on several factors, including the nature of the property, its intended use, the value attributed to it for tax purposes, and the buyer’s specific circumstances. In some cases, these aspects require careful assessment before the transaction is completed.

Finally, the formal transfer of ownership , typically carried out by means of a public deed or an authenticated private document , represents only one stage of the overall process. The subsequent registration of the acquisition at the Land Registry , together with compliance with the relevant tax formalities, remains essential to ensure the full effectiveness of the transfer.

In practice, each real estate transaction presents its own particularities. What may initially appear to be a straightforward acquisition may, upon closer examination, reveal legal or administrative issues requiring further analysis. Identifying and addressing these matters at an early stage can play an important role in safeguarding the overall security of the transaction and mitigating potential risks.

A careful legal review before completion may therefore assist buyers in gaining a clearer understanding of the legal framework applicable to both the property and the transaction itself. In many cases, early legal guidance can help anticipate potential issues and contribute to a smoother and more secure acquisition process.

At LVP Advogados , we specialize in providing comprehensive legal support to international buyers navigating the Portuguese property market. Our team conducts rigorous due diligence, covering land registry verification, urban planning compliance, and tax optimization to ensure your interests are fully protected from the promissory stage to the final deed.

If you are considering a property investment in Portugal and require expert legal guidance to ensure a secure transaction, please reach out through our contact form .

Our team will be happy to assess your specific situation and provide the strategic oversight necessary for a successful acquisition.

When Diplomatic Service Ends: Residence in Portugal under Article 122(1)(l)

Mon, 16 Mar 2026 17:17:12 GMT

Luís Maria Branco | Lawyer

Foreign diplomats and their families often spend several years living in Portugal while serving in embassies, consulates, or international missions. During this time, many establish meaningful personal and professional connections in the country. Portuguese immigration law recognises this reality by allowing certain diplomatic and consular agents who have been accredited in Portugal for at least three years to apply for a residence permit without first obtaining a residence visa.

Article 122(1)(l) provides a practical legal pathway that enables diplomats and their families to transition from diplomatic status to the ordinary residence regime and continue their lives in Portugal.

Ending Diplomatic Service in Portugal? A Residence Path May Exist

Portugal has long been recognised as a country that values international cooperation , diplomatic presence, and global mobility. As a member of the European Union and host to numerous diplomatic missions, international organisations, and consular representations, Portugal regularly welcomes foreign diplomats and their families who spend several years living and working in the country. During this time, many develop strong professional and personal ties to Portugal.

Portuguese immigration law acknowledges this reality and provides mechanisms that allow certain individuals who have lived in the country under diplomatic status to transition into the ordinary residence regime.

One such mechanism is found in Article 122 of the Portuguese Immigration Law .

Article 122 of Law no. 23/2007 establishes a set of situations in which nationals of third countries may obtain a residence permit in Portugal without first obtaining a residence visa. As a general rule, individuals who wish to reside in Portugal must apply for a residence visa through a Portuguese consulate abroad before entering the country.

Article 122 creates exceptions to this rule by allowing residence applications to be submitted directly in Portugal when specific circumstances justify a more flexible approach.

Among these exceptions is the situation addressed in Article 122(1)(l), which applies to diplomatic and consular agents accredited in Portugal and certain members of their families . Under this provision, a residence permit may be granted without a residence visa to individuals who have served as diplomatic or consular agents in Portugal for a period of at least three years . The regime also extends to their spouses and other dependent family members .

Diplomatic and consular agents constitute a special category of foreign nationals during the period in which they are accredited in Portugal. Their presence in the country is governed primarily by diplomatic status and international law rather than by the ordinary immigration framework .

In practice, diplomats and members of diplomatic missions are issued diplomatic identity cards by the Portuguese Ministry of Foreign Affairs , which serve as the official document legitimising their stay in Portugal during the period of accreditation.

Once their diplomatic functions come to an end, however, these individuals may wish to remain in Portugal for professional, personal, or family reasons.

Article 122(1)(l) addresses this situation by allowing diplomats and consular agents who have been accredited in Portugal for a significant period to obtain a residence permit without the need to leave the country and apply for a residence visa abroad. This provision reflects a clear legislative intention to recognise the time already spent living in Portugal under diplomatic accreditation.

A diplomat who has lived and worked in the country for several years will often have established social, professional, and family connections. Requiring such individuals to restart the immigration process from outside Portugal would not only be impractical but would also disregard the integration that may already have taken place.

The visa waiver mechanism therefore acts as a bridge between diplomatic status and the general immigration regime.

The scope of the rule is also particularly favourable for family members. The waiver of the residence visa requirement applies not only to the diplomatic or consular agent but also to their spouse and dependent family members.

In practice, family members accompanying diplomats are also issued diplomatic identity cards reflecting their status as dependants of the mission member. This means that family members who have lived in Portugal alongside the diplomatic agent may also apply for residence without having to initiate a separate immigration process from abroad.

Where dependent family members apply for residence, however, the dependency relationship must exist at the moment the application is submitted.

It is important to note that the waiver of the residence visa requirement does not eliminate the other legal conditions necessary for obtaining a residence permit . Article 122 removes only one procedural requirement. Applicants must still demonstrate compliance with the general conditions set out in the Immigration Law , including proof of accommodation in Portugal , sufficient means of subsistence, and the absence of relevant criminal convictions.

In practical terms, applications under Article 122(1)(l) are submitted in Portugal before the Agency for Integration, Migration and Asylum (AIMA) . The applicant must generally provide documentation demonstrating both the general residence requirements and the specific eligibility conditions under the diplomatic provision. Family members must also present documentation proving the relevant family relationship, such as marriage or birth certificates and, where applicable, evidence of economic dependency.

It is also important to distinguish diplomatic and consular agents from other categories of personnel working within embassies and consulates . Diplomatic missions frequently include administrative, technical, and service staff, such as drivers, technicians, or domestic employees. Although these individuals may hold diplomatic identity cards issued by the Ministry of Foreign Affairs, they are generally not considered diplomatic or consular agents for the purposes of Article 122(1)(l). As a result, the specific residence pathway described in this provision normally applies only to individuals formally accredited as diplomatic or consular agents and not to all personnel attached to a diplomatic mission.

Article 122(1)(l) illustrates how Portuguese immigration law seeks to balance legal certainty with practical realities . By allowing diplomats and their families to transition into the ordinary residence regime without unnecessary procedural obstacles, the law recognises the connections established during diplomatic service in Portugal.

For individuals who have spent several years in the country representing their States or supporting diplomatic missions, this provision offers a clear and structured pathway to continue living in Portugal after the end of their official functions .

At LVP Advogados , we regularly assist individuals and families navigating the Portuguese immigration system, including those transitioning from diplomatic status to residence in Portugal .

Should you believe you may be eligible under Article 122 or another residence pathway, you can contact us through our contact form and our team can assess your situation, guide you through the applicable requirements, and support your application process from start to finish.

Telework in Portugal: What Employers Should Put in Writing Before Problems Arise

Fri, 13 Mar 2026 16:44:28 GMT

Margarida Tempera | Lawyer

Telework is here to stay in Portugal but flexibility only works when expectations are clear. This article explains what employers should put in writing to ensure remote work is fair, productive, and fully compliant with the Labour Code.

Remote Work in Lisbon: Clear Rules, Happy Teams

Remote work is now part of the way many companies operate in Portugal, but under Portuguese law it is not an informal perk that can be managed through ad hoc emails or changing practice.

The Portuguese Labour Code establishes a specific telework regime , notably in Articles 165 to 171, and starts with a basic requirement: a written agreement setting out the key terms of the arrangement.

In practice, this is often the difference between a workable model and a later dispute .

The first point to define is the telework model itself. “Remote work” may mean fully remote work, hybrid work with fixed office days , hybrid work with a variable schedule, or remote work combined with mandatory in person attendance for training, meetings or other business needs .

If the agreement does not make this clear, managers may apply different standards and employees may form different expectations.

A well drafted clause should therefore define the usual place of work , whether the arrangement is fully remote or hybrid, the expected frequency of in person attendance and, where relevant, the circumstances in which the employer may require attendance on site, ideally with a reasonable notice period .

Portuguese law is also clear that telework does not create a second class employment status.

Teleworkers must have the same rights as comparable onsite employees, particularly in relation to pay, training, orking time and health and safety.

For employers, this means telework should be framed as a form of work organisation, not as a basis for reducing access, visibility or progression.

In practice, disputes often arise not from the existence of telework itself, but from the perception that remote employees have been treated differently over time.

Working time and availability should also be addressed carefully. Telework can make informal overtime easier to normalise , especially in businesses with international teams or demanding client schedules. A few messages after hours or an expectation of constant responsiveness may later be relied on as evidence of excessive working time or failure to respect rest periods .

The agreement, together with any internal policy, should therefore define working hours , time recording , breaks and what “availability” means in practice. It is also advisable to address contact outside working hours, in line with the Portuguese legal principle of respecting employees’ rest periods .

Equipment, IT access and expenses should be treated as part of a clear and repeatable system. The written terms should identify what equipment is provided , who owns it, who is responsible for installation and maintenance, and what the employee must do in the event of faults or technical issues.

Expenses should also be addressed with precision. Whether the company adopts a fixed allowance or a reimbursement model , the method should be clearly defined, including what is covered, what supporting evidence is required and when payments are made. Under Portuguese law, additional expenses arising from telework must be borne by the employer .

Privacy and monitoring are another area where employers should proceed with caution. Telework does not justify turning the employee’s home into a place of permanent supervision . Any monitoring, security logging or device management tools should be proportionate, transparent and aligned with what the company actually uses in practice.

Employers should be particularly careful to avoid any form of continuous image or sound monitoring and should ensure that internal policies accurately reflect the tools in place. In any dispute , what matters is not only what the policy says, but also what the systems actually do and what managers effectively require.

Health and safety obligations do not disappear simply because work is carried out from home.

Employers should adopt a practical and preventive approach, including ergonomic guidance , training , reporting procedures and, where necessary, a mechanism for assessing working conditions in a manner that respects privacy. This is especially important because, for workplace accident purposes, the agreed telework location may become legally relevant. For that reason, the place of work should be properly identified in the written arrangement .

Every telework arrangement should also include a clear mechanism for change or termination .

One common source of conflict is the employee treating telework as permanent while the employer assumes it can be withdrawn at any moment. The written terms should therefore address how the arrangement may be reviewed , under what conditions it may be altered, what notice should apply and how a return to onsite work will be implemented. This becomes particularly relevant during restructurings , office moves , management changes or performance related processes.

Finally, companies should be careful not to use telework language in the wrong contractual context.

If a business engages remote service providers rather than employees, the services agreement should focus on deliverables, service levels, confidentiality, security and any necessary presence requirements. It should avoid employer style control that may contribute to later reclassification risk .

For employers in Portugal, telework works best when it is treated as a structured legal and operational model , rather than an informal arrangement shaped manager by manager.

A concise written addendum , aligned with day to day practice and drafted with the Portuguese Labour Code in mind, can prevent far more disputes than a long set of generic clauses.

At LVP Advogados , our team advises companies on structuring telework arrangements in compliance with the Portuguese Labour Code , including the preparation of telework agreements, internal policies and practical frameworks that reflect how businesses operate in practice.

If your organisation is reviewing or implementing remote or hybrid work models in Portugal, feel free to reach out through our contact form . Our team will be happy to assist you in ensuring that your telework arrangements are clear, compliant and sustainable.

Portugal’s Golden Visa from €200,000: The Cultural Donation Route

Thu, 12 Mar 2026 17:53:32 GMT

Luís Maria Branco | Lawyer

Portugal’s Golden Visa programme continues to offer a strategic residency pathway for non-EU nationals. Although recent legislative changes have removed the real estate investment option, alternative routes remain available. Among them, the Cultural Investment pathway has emerged as one of the most accessible options, allowing investors to contribute to the preservation of Portugal’s cultural heritage while maintaining eligibility for residency and a potential path to citizenship.

Understanding Portugal’s Cultural Investment Route for Golden Visa Applicants

Despite the legislative changes introduced in recent years, the Portuguese Golden Visa remains available as a residence-by-investment program for non-EU nationals seeking a flexible pathway to Portuguese residency.

The Golden Visa allows third-country nationals to obtain a residence permit in Portugal through a qualifying investment while benefiting from significantly reduced minimum stay requirements compared to other residence options.

In practice, holders are only required to spend a limited amount of time in Portugal, typically 14 days during each two-year period , allowing them to maintain their residence permit without permanently relocating to the country.

This flexibility remains one of the key reasons why the program continues to attract international investors who wish to secure residency in Portugal while maintaining their professional, personal or tax ties in other jurisdictions .

In addition, Golden Visa holders benefit from freedom of movement within the Schengen Area and the right to live and work in Portugal. The program also allows eligible family members to apply under the same process, which can be an important advantage for those planning a long-term relocation strategy for themselves and their families.

Although real estate investment is no longer eligible under the program, several alternative pathways remain available under the current legal framework.

One of these options is the cultural or artistic contribution route , which is also one of the most accessible pathways under the program.

Under this route, applicants may qualify for the Golden Visa through a capital transfer of €250,000 directed to artistic production or to the recovery and maintenance of Portuguese national cultural heritage .

Where the investment is made in a low-density area , the minimum amount may be reduced by 20 percent, bringing the threshold to €200,000 .

Unlike other Golden Visa routes, this option is structured as a non-refundable contribution rather than a financial investment with economic return. For some investors, however, this characteristic can be appealing, as it allows them to support cultural initiatives or heritage preservation projects while pursuing their residency objectives in Portugal.

In practice, the process begins with the identification of an eligible cultural initiative or project. Cultural institutions and other eligible entities may present initiatives related to artistic production, cultural programming or heritage conservation that are open to receiving funding from Golden Visa investors .

Before the investment can take place, the proposed project must undergo a preliminary assessment coordinated by the Gabinete de Estratégia, Planeamento e Avaliação Culturais (GEPAC) , operating under the supervision of the Portuguese Ministry of Culture . This step confirms that the entity receiving the contribution is eligible and that the activity falls within the scope of artistic production or cultural heritage preservation as required by law.

From a practical perspective, investors will typically need to obtain a Portuguese tax identification number (NIF) and open a Portuguese bank account before completing the investment. These steps allow the transfer of funds to Portugal and ensure that the capital transfer can be properly documented for Golden Visa purposes.

Once the project has been validated and the operational steps completed, the investor may proceed with the transfer of the capital contribution to the entity responsible for the approved cultural activity. After the transfer is completed, the investor or their representative requests a declaration confirming the effective transfer of the funds.

If all documentation is in order, GEPAC issues a declaration confirming the transfer of capital to the approved cultural initiative, which serves as a key supporting document for the Golden Visa application .

From an immigration perspective, the cultural donation pathway grants access to the same residence rights as other Golden Visa options. Applicants and their eligible family members may obtain residence permits in Portugal , benefit from mobility within the Schengen Area and maintain the permit with reduced minimum stay requirements .

Over time, Golden Visa holders may also pursue permanent residence or Portuguese citizenship , provided that the applicable legal requirements are met. These include maintaining the qualifying investment for the required period, complying with the residence obligations and demonstrating basic knowledge of the Portuguese language .

For some investors, this pathway offers a distinctive opportunity to combine their immigration strategy with support for projects that contribute to Portugal’s cultural landscape and the preservation of national heritage .

As with any immigration and investment decision, careful legal planning is essential . Identifying eligible projects, confirming the compliance of the receiving entities and structuring the contribution correctly are key steps in the process.

At LVP Advogados , our team guides clients through every stage of the process, from identifying suitable cultural initiatives to preparing and submitting the Golden Visa residence permit application.

For those exploring their options or seeking expert guidance, our contact form provides a direct way to connect with our team and navigate the Golden Visa process with confidence.

Taxation of Inheritance Shares: A Major Shift in the Portuguese Tax Authority’s Position

Mon, 09 Mar 2026 16:21:14 GMT

Francisca Abrantes | Tax Consultant

For years, heirs in Portugal faced a significant tax hurdle: when selling an inheritance share (quinhão hereditário) that included real estate, the Tax Authority (AT) insisted on taxing it as a property sale. This often resulted in unexpected and, as it turns out, legally flawed capital gains assessments.

Inheritance Shares Taxation in Portugal: How the Tax Authority’s New Position Affects Heirs

However, following a landmark ruling by the Supreme Administrative Court (STA), the landscape has changed . The AT has finally aligned its practice with the court’s interpretation through Administrative Circular No. 20281/2025 .

The issue

For several years, the Tax Authority argued that where an inheritance included real estate, the sale of an inheritance share before the partition of the estate should be treated as the sale of immovable property .

On that basis, it assessed capital gains tax under Article 10(1)(a) of the IRS Code.

This interpretation was challenged in court and resulted in conflicting case law.

The Court’s position

The Supreme Administrative Court clarified that the object transferred in these transactions is not the real estate itself but the inheritance share as such.

Until the estate is partitioned, heirs do not hold ownership over specific assets . They hold a share in the estate as a whole .

The transfer of that share therefore does not amount to the transfer of a real right over immovable property for the purposes of Article 10(1)(a) of the IRS Code.

The Court also made clear that this characterization does not change even if the estate consists exclusively of real estate.

Administrative guidance

Following the judgment, the Portuguese Tax Authority issued Administrative Circular No. 20281/2025 aligning its administrative practice with the Court’s interpretation.

The circular clarifies that the non-taxation principle applies where the transaction clearly involves the transfer of the inheritance share itself. Where the transaction concerns the transfer of specific assets belonging to the estate , a different tax treatment may apply.

Review of past assessments

Following the Supreme Administrative Court’s decision and the subsequent administrative guidance, taxpayers who were taxed in the past on the sale of an inheritance share may wish to review their situation.

Where such transactions were treated as real estate disposals and capital gains tax was assessed accordingly, it may be possible to request a revision of the assessment and seek a refund of the tax paid , subject to the applicable legal deadlines and procedural requirements.

For this reason, taxpayers who have carried out similar transactions in recent years should consider reviewing the relevant documentation and tax filings in order to determine whether corrective action is available.

How LVP Advogados can assist

Given the recent clarification of the law and the potential impact on past transactions , taxpayers may benefit from a review of their specific circumstances.

LVP Advogados can assist in assessing whether previous tax assessments may be open to revision, analysing the relevant documentation and, where appropriate, supporting the submission of requests for review or refund before the Portuguese Tax Authority .

For tailored tax advice, please contact our team through our contact form .

When Parents Naturalise: Can Their Children Become Portuguese Citizens Too?

Wed, 04 Mar 2026 12:34:19 GMT

Danielle Avidago | Lawyer

Portugal has become a leading destination for individuals and families seeking both quality of life and a clear path to citizenship. As more residents obtain Portuguese nationality through naturalisation, an important question arises: can their children become Portuguese citizens too? For internationally mobile families, citizenship is a shared objective, making it essential to understand how minor children may acquire nationality after a parent naturalises.

Can My Child Become Portuguese If I Naturalise? A Legal Guide for Families

Many individuals from around the world come to Portugal not only because of its quality of life , but also because of its accessible legal framewor k for acquiring Portuguese citizenship.

Portugal ranks highly in terms of education standards and overall safety , making it an attractive destination not only for individual residents such as Digital Nomads , but also for internationally mobile families seeking long term stability within the European Union.

Regardless of potential future changes to the minimum residency period required for naturalisation , Portuguese citizenship remains a strategic objective for many foreign residents .

Under Article 6(1) of the Portuguese Nationality Law, Law no. 37/81 of 3 October, residents may apply for Portuguese citizenship once the following requirements are met:

Be of legal age or emancipated under Portuguese law
Have been legally resident in Portugal for at least five years
Have sufficient knowledge of the Portuguese language
Not have been convicted , by final judgment, to a prison sentence of three years or more for a crime punishable under Portuguese law
Not pose a danger or threat to national security or defence

For an individual applicant, the legal framework is relatively straightforward. Families, however, often raise an additional question: must minor children wait until reaching legal age to apply for Portuguese citizenship, or can they benefit from their parent’s naturalisation ?

It is commonly assumed that once a parent becomes a naturalised Portuguese citizen, nationality may automatically be passed to minor children. That assumption is not entirely accurate.

The Portuguese Nationality Law contains a specific provision addressing this situation. Article 2 establishes that minor or legally incapacitated children of a parent who acquires Portuguese nationality may also acquire Portuguese citizenship, by declaration .

Article 2 reflects an important principle of nationality law: family unity . When a parent becomes Portuguese, the legal system provides a mechanism to align the status of dependent children .

However, acquisition under Article 2 is not automatic and is subject to legal scrutiny .

An often overlooked element arises from Article 56(4) of the Portuguese Nationality Regulation, approved by Decree Law no. 237 A/2006 of 14 December. Under this provision, the Public Prosecutor may oppose the acquisition of nationality where no effective connection to the Portuguese community is demonstrated.

In practice, such connection is generally evidenced where the child:

Has legally resided in Portugal for at least five years
Has attended a Portuguese educational establishment

This requirement frequently raises questions for internationally mobile families .

For example, Golden Visa applicants may wonder whether it is sufficient for the main applicant to become a Portuguese citizen , or whether children must also reside or study in Portugal .

Due to the specific residency requirements of the Golden Visa regime, children are not expected to reside continuously in Portugal for five years , nor is school attendance in Portugal mandatory . However, it is essential that children hold a valid residence permit as dependent family members .

Although it may appear unnecessary at an early stage to submit a residence application for a very young child, maintaining lawful residence status is of fundamental importance to preserve future eligibility under Article 2.

Without holding a residence permit for the relevant period, the child’s application may face increased scrutiny regarding the existence of a genuine link to Portugal .

In some cases, children born in Portugal to foreign parents may qualify for Portuguese nationality under different provisions of the law, depending on the parents’ residence status at the time of birth. Careful legal analysis is required to determine the most appropriate pathway .

Given the ongoing public discussions surrounding nationality law in Portugal, it is essential to rely on the legislation currently in force and on the administrative practice of the Portuguese authorities. Applications should be structured in accordance with the prevailing legal framework rather than anticipated reforms.

For internationally mobile families, advance planning and coordinated strategy are key. With proper preparation and specialised legal guidance, the process can be managed efficiently and predictably, ensuring that the entire family progresses together towards a shared legal status .

If you’re considering your options or would like guidance on the process, feel free to reach out through our contact form , we’re here to help you navigate Portuguese citizenship.

Reinvesting Capital Gains: Does the Portuguese Tax Exemption Follow You Abroad?

Tue, 03 Mar 2026 12:12:05 GMT

Francisca Abrantes | Tax Consultant

Portuguese tax residents who sell their primary home can face significant capital gains taxation, but the Reinvestment Exclusion offers a powerful relief. By reinvesting the proceeds into a new primary residence, residents may qualify for full or partial tax exemption . Importantly, this benefit is not limited to properties in Portugal, it can extend to other EU and EEA countries , providing flexibility for globally mobile taxpayers. Understanding the rules around timing, residency, and compliance is essential to fully leverage this tax advantage.

Reinvesting Capital Gains: How Portugal’s Tax Exemption Works Abroad

When a Portuguese tax resident sells their primary residence (Habitação Própria e Permanente), any profit - the capital gain - is typically subject to IRS (Personal Income Tax) . For residents, 50% of this gain is added to their taxable income and taxed at progressive rates .

However, many taxpayers are unaware that Portuguese law offers a powerful relief: the Reinvestment Exclusion .

If you sell your home and reinvest the proceeds into a new primary residence, you may qualify for a full or partial tax exemption .

Crucially for those with a global lifestyle, this benefit is not restricted to Portuguese territory.

How the Reinvestment Mechanism Works

To benefit from the exclusion:

The property sold must qualify as the taxpayer’s primary and permanent residence .
The proceeds must be reinvested in the acquisition , construction or improvement of another primary residence.
The amount to be reinvested corresponds to the sale price, net of any outstanding mortgage used to acquire the property.
Reinvestment may occur:

- within 36 months after the sale, or

- up to 24 months before the sale

The new property must be used as the taxpayer’s primary residence within the legally established deadlines.

The exclusion applies proportionally if only part of the eligible amount is reinvested .

Reinvestment in Another EU or EEA Country

The regime is not geographically limited to Portugal . The exclusion may apply where the new primary residence is located in another EU Member State or in an EEA country with an effective exchange of tax information agreement.

This allows Portuguese residents to relocate within the EU/EEA without automatically losing the reinvestment benefit.

This means a resident moving from Lisbon to Madrid, Paris, or Berlin can maintain the same tax relief as if they were moving to Porto or the Algarve.

However, careful planning is required where:

tax residence changes between the sale and the reinvestment;
the new property is not effectively used as a primary residence ; or
reinvestment is incomplete.

Transactions Outside the EU/EEA

It is vital to note that reinvesting in jurisdictions outside the EU/EEA , such as the United Kingdom (post-Brexit) , the USA, or the UAE does not qualify for this exemption .

In these cases, the capital gain remains fully taxable in Portugal under the general rules.

Compliance Matters

The intention to reinvest must be declared in the Portuguese IRS return (Annex G). If reinvestment does not occur within the statutory timeframe, a corrective tax return must be filed and tax becomes due, potentially with interest.

Conclusion

The reinvestment regime is an excellent tool for wealth planning and mobility , but its success depends on strict adherence to residency and timing requirements . Cross-border transactions require coordinated tax planning to ensure your global move doesn’t trigger an unexpected tax bill.

LVP Advogados advises clients on structuring real estate disposals and reinvestments in full alignment with Portuguese and international tax rules.

If you’re considering your options or would like guidance on the process, feel free to reach out through our contact form , we’re here to help you navigate Portuguese citizenship.

When a Portuguese Consulate Refuses Your Residence Visa

Fri, 27 Feb 2026 12:10:14 GMT

Javier Mateo | Lawyer

A refusal of a Portuguese residence visa is often perceived as a definitive outcome. However, under Portuguese administrative law, such decisions do not necessarily mark the end of the process. Depending on the legal grounds and the strength of the original application, applicants may consider administrative complaints, judicial review or the submission of a reinforced new application. A structured and timely legal assessment is essential to determine the most effective path forward.

Residence Visa Refusal Portugal: Appeal, Reapply or Challenge the Decision

Under Article 58 of Law 23/2007 , a residence visa allows its holder to enter Portugal for the purpose of applying for a residence permit . The visa is typically valid for two entries and authorises a stay of up to four months .

When a Portuguese Consulate refuses a residence visa application , applicants frequently assume that the process has been definitively closed . From a legal perspective, however, a refusal does not necessarily represent the end of the matter. Portuguese law provides structured mechanisms to challeng e such decisions and, depending on the circumstances, a new and reinforced application may constitute a more effective strategic response.

Although the application is lodged abroad , the refusal of a residence visa constitutes an administrative act governed by Portuguese administrative law . Article 58(4) establishes that a decision should, as a rule, be issued within 60 days , while Article 58(3) clarifies that the authorities must assess the intended purpose of residence and verify compliance with the requirements applicable to the specific visa category.

A refusal must be duly reasoned , clearly identifying the legal and factual grounds supporting the decision. In practice, refusals commonly rely on findings such as insufficient means of subsistence , inadequate documentation , inconsistencies in the declared purpose of stay , or failure to meet statutory criteria .

Upon notification, the applicant may resort to remedies available under Portuguese law.

A complaint may be filed with the Consular Post that issued the decision within 15 days, allowing the authority to reconsider its position, particularly where the refusal arises from documentary deficiencies or misunderstandings.

A hierarchical administrative appeal may also be available within the applicable statutory deadline, allowing review by a superior authority. Judicial challenge may generally be pursued within three months before the Portuguese Administrative Courts , where the legality of the decision may be scrutinised, including the correct application of the law, adequacy of reasoning , and proper assessment of evidence .

However, not every refusal should be approached through litigation .

A careful distinction must be drawn between legally questionable refusals and decisions that reflect objective weaknesses in the application file. Where the applicant satisfies the statutory requirements and the refusal appears to stem from misinterpretation or misassessment, administrative or judicial remedies may be justified.

Conversely, where the refusal is grounded in substantive deficiencies, such as insufficient financial evidence , fragile accommodation proof , or documentary inconsistencies , pursuing legal challenge may prove ineffective . Legal remedies address the legality of the act, not the correction of underlying evidentiary shortcomings.

In many cases, reapplication represents the most pragmatic and efficient course of action. Portuguese law does not prohibit the submission of a new residence visa application following refusal, provided the subsequent request properly addresses the grounds identified in the earlier decision.

A reinforced application may involve strengthening financial documentation , clarifying inconsistencies , restructuring evidentiary elements , or ensuring that statutory thresholds are convincingly met. Frequently, this approach is faster, more cost effective, and better aligned with long term immigration planning .

Importantly, many consular refusals can be mitigated through careful preparation at the outset. Ensuring documentary consistency, presenting a clear and credible purpose of stay narrative, providing robust proof of means of subsistence, and complying with consular and legalisation requirements significantly reduces the risk of adverse decisions.

A residence visa application is not merely a collection of documents, but a coherent legal and factual presentation requiring precision and strategic alignment.

A residence visa refusal should therefore be analysed objectively and with legal rigour . Strict time limits apply , and the appropriate response depends on a structured assessment of the decision’s legal foundations and the strength of the underlying application.

At LVP Advogados , we assist clients in reviewing visa refusals , preparing administrative complaints and appeals , initiating judicial proceedings where appropriate, and designing reinforced reapplication strategies .

Where a residence visa has been refused, a careful legal and strategic evaluation constitutes the essential first step toward identifying the most effective and sustainable path forward.

Fill in our contact form and our team will contact you shortly to assist you.

Thinking of Moving to Portugal? The D7 Visa May be the Right Option for You

Thu, 26 Feb 2026 17:46:41 GMT

Joana Loureiro Veríssimo | Lawyer

Relocating to Portugal has become an increasingly strategic decision for individuals seeking stability, quality of life and legal certainty within the European Union. Among the available residence pathways, the D7 visa continues to stand out for its accessibility and structured legal framework. Below, we explain how this residence route works, who it is designed for and why proper preparation remains essential to a successful application.

D7 Visa Portugal: How to Obtain Legal Residence with Stable Passive Income

Portugal has become one of the most sought-after destinations in Europe for individuals looking to relocate to a stable, safe and high-quality environment . Among the various immigration routes available, the D7 visa stands out as one of the most straightforward and reliable ways for non-EU nationals to obtain residence in Portugal.

Commonly referred to as the “passive income visa,” the D7 is intended for applicants who can demonstrate stable and regular income , typically passive in nature, allowing them to live in Portugal without relying on Portuguese employment as the basis of residence. When properly structured, it is often considered one of the most predictable residence options available under Portuguese immigration law.

The D7 visa allows the applicant to enter Portugal and subsequently obtain a residence permit issued by AIMA (the Portuguese Immigration Authority). The first residence card is generally valid for two years and renewable thereafter for successive three-year periods , provided the legal requirements, including minimum stay obligations , remain fulfilled.

Unlike work visas, the D7 does not depend on an employment contract in Portugal , and unlike investment-based residence permits, it does not require property acquisition or significant capital commitment. Instead, the authorities assess whether the applicant has sufficient and stable financial means to reside in Portugal independently.

A key aspect of this visa is that the qualifying income is traditionally expected to be passive in nature . Eligible income typically includes pensions, rental income, dividends, interest, royalties or other recurring returns on assets. While active professional income linked to an employment relationship is not, in principle, the foundation of this residence route, certain forms of remote professional income may be considered, provided they demonstrate stability, regularity and financial independence .

The law focuses on financial autonomy. The applicant must be able to support themselves through stable and regular own income. For this reason, proper classification and presentation of income is critical. Many applications encounter difficulties not because the applicant lacks sufficient financial means, but because the nature or stability of the income is not clearly demonstrated.

The process follows a defined sequence . Initially, preparatory steps must be completed in Portugal, including obtaining a Portuguese tax number , opening a bank account and securing accommodation , all of which may be carried out through a legal representative by means of a power of attorney , without the applicant needing to be physically present in the country.

The visa application is then submitted at the Portuguese Consulate or through VFS Global in the applicant’s country of residence. Once approved, the visa allows entry into Portugal for the purpose of obtaining the residence permit.

After arrival, the applicant attends an appointment with AIMA to collect biometric data and receive the residence card. At that point, the individual becomes a legal resident of Portuga l and may reside in the country and travel within the Schengen Area, subject to applicable stay limits.

One of the main advantages of the D7 visa is its accessibility combined with legal clarity . It does not require substantial investments and is particularly suitable for individuals planning relocation, retirement or a stable presence in the European Union based on independent financial resources.

Although the D7 is often perceived as straightforward, success depends largely on the way the application is prepared. Consulates retain discretionary assessment powers , and refusals frequently arise from interpretative or documentary issues rather than actual ineligibility.

Authorities may misinterpret company-related income, fail to properly assess dividends, or consider documentation insufficiently clear. For this reason, careful legal preparation is essential to ensure the application aligns not only with the statutory requirements but also with prevailing administrative practice.

In an immigration landscape increasingly dominated by complex investment programs and restrictive employment-based permits , the D7 visa remains a practical and transparent solution . It recognises financial independence as a legitimate basis for relocation and offers a stable path to residence in Portugal . With proper preparation and guidance, it continues to be one of the most efficient ways to establish lawful residence in the country.

At LVP Advogados , we provide comprehensive legal assistance throughout the entire process, from assessing eligibility and structuring documentation to obtaining the residence permit , ensuring clarity, compliance and efficiency at every stage.

Fill in our contact form and our team will contact you shortly to assist you.

Storm or Flood Damage in Portugal? How to Handle Your Insurance Claim and Challenge a Refusal

Wed, 25 Feb 2026 11:18:32 GMT

Margarida Tempera | Lawyer

In the wake of severe weather in Portugal, the distance between a "straightforward claim" and a "protracted dispute" is often a matter of semantics. Insurers frequently retreat behind technical thresholds-wind speed data or maintenance exclusions—to reclassify sudden losses as gradual deterioration. However, Portuguese law is increasingly clear: coverage cannot be rendered illusory by dense wording. This briefing by Margarida Tempera explores the two pillars of a successful recovery: a disciplined causation narrative and the strategic rebuttal of technical denials.

Storm or Flood Damage in Portugal? How to Navigate Insurance Claims and Challenge Refusals

When severe storms or heavy rain cause damage in Portugal, insured homeowners and business owners usually have the same immediate concern: how quickly they can make the property safe , repair what was damaged , and recover the financial loss without being trapped in a long and exhausting exchange with an insurer .

In most cases, the claim should be straightforward, but disputes tend to arise because storm and flood losses sit right on the fault line between what the policy was sold to cover and what some insurers later try to reclassify as “ maintenance ”, “ gradual deterioration ”, or “ ordinary rainfall ”.

The reality is that Portuguese law and market practice impose clear expectations on insurers about how they must handle claims , and courts have repeatedly shown that they will not endorse clause wording or claims handling behavior that empties the cover of its practical value .

The starting point is always the policy wording , but the way the wording is applied matters just as much. Most property policies in Portugal are multi-risk products that combine a base set of risks with optional extensions such as storm , flood , water damage , and sometimes business interruption . Insurers often include definitions that sound objective and scientific , for example by linking “storm” to wind speed , the existence of damage in a certain area, or meteorological measurements , and by treating “flood” as something different from “water ingress” or “water damage”.

These distinctions are not automatically wrong, but they are frequently used in a way that surprises policyholders, particularly when a storm produces mixed mechanisms of loss, such as wind lifting tiles , rain entering through the roof , water running into basements , and saturated ground pushing moisture into walls .

In practice, what matters is whether the chain of events is consistent with the insured peril as a sensible person would understand it when buying cover, and whether the insurer can genuinely justify an exclusion, rather than simply pointing to a clause and hoping the policyholder gives up.

Portuguese courts have been attentive to this problem. There have been cases where insurers relied on extremely technical thresholds to deny claims , including rainfall intensity requirements that would be very difficult for an ordinary policyholder to anticipate or prove.

The higher courts have taken the view that if a clause makes cover practically illusory, it may not stand, particularly in the context of standard form contracts where the customer has no real power to negotiate.

At the same time, courts will still enforce clear triggers where the wording is properly presented, and the evidence genuinely does not meet the threshold.

This is why good claims are built on two pillars: a credible causation narrative and disciplined evidence that matches the language of the policy , rather than relying only on common sense descriptions such as “it was a terrible night”.

From the client’s perspective, the most effective approach is to treat the claim like a structured file from the first day, even if you hope it will settle quickly.

Notice should be given promptly and in writing , with a short factual summary that fixes the key points in time and place. Photographs and video should be taken before any cleaning or removal where it is safe to do so, and it is worth capturing the broader scene as well, such as fallen objects , displaced tiles , blocked drains , and water lines on walls . Receipts and invoices for emergency works , temporary accommodation , and protective measures should be kept.

If you are a business owner , you should also preserve evidence of stock loss , equipment damage , and any forced closure , because the difference between a quick settlement and a prolonged dispute often comes down to whether the financial impact is evidenced in a way the insurer cannot dismiss as speculative .

A common source of friction is the insurer’s tendency to ask for repeated documentation or to keep the claim “under analysis” for too long.

There is nothing improper about reasonable requests for information , but the requests must be relevant and proportionate , and the insurer is expected to progress the claim and reach a position within a reasonable timeframe . In day to day practice, the insurer should acknowledge the claim quickly, arrange inspection promptly, explain what information is missing if anything, and then confirm in writing whether cover is accepted and on what basis, or declined and on what basis.

Where the insurer delays without a clear explanation, or changes the rationale repeatedly, that behavior can become legally significant , because claims handling is not meant to be a game of attrition .

Delay is not just inconvenient. It can increase the loss , for example where repairs cannot start, mold spreads, or a business remains closed , and it can place the policyholder under financial pressure that is completely at odds with the purpose of insurance.

Storm and flood claims also raise recurring arguments around property condition . Insurers often try to reframe losses as the result of poor maintenance , especially for roofs, gutters, terraces, basements , and older waterproofing systems.

Sometimes the argument is fair : if there was a long-standing leak , visible deterioration , or clear neglect , an exclusion may genuinely apply to part of the damage . Often, however, the insurer uses “maintenance” as a broad label without proving it, particularly where the damage appears suddenly and directly after an extreme weather event.

The practical way to protect your position is not to argue in general terms but to produce targeted evidence: prior repair invoices, periodic maintenance records, photographs showing the condition before the event, and technical opinions that separate what was preexisting from what was triggered or materially worsened by the storm.

Where the insurer alleges an exclusion, it should have to justify that allegation with facts, not assumptions.

Meteorological evidence can be useful, but it should be handled sensibly. Many policies refer to IPMA data, wind speeds, or rainfall records, and in some disputes those records are decisive.

The mistake is to assume that without a specific certificate the claim is automatically lost, or conversely that any official warning guarantees cover. The stronger approach is to use weather data as corroboration that supports a broader factual picture : what happened at the site, what damage patterns were observed, what neighbors experienced, and what technical inspection indicates about causation.

When these pieces align, the insurer has far less room to deny the claim on a technicality , and if litigation becomes necessary , a judge is more likely to see the claim as credible and properly grounded.

Two further practical points often decide outcomes and deserve careful handling. The first is underinsurance , where the insured sum does not reflect the real rebuild or replacement value.

In that scenario, insurers typically apply proportional settlement , meaning the indemnity is reduced by the ratio between the insured sum and the true value at risk. This is a frequent surprise, particularly for businesses whose stock levels fluctuate and for older policies where values were never updated .

The second is mitigation . Policyholders are expected to take reasonable steps to limit further damage, such as temporary protection measures , safe shut off of water or electricity where appropriate, and prompt engagement of emergency services . Insurers sometimes use mitigation as a pressure point , arguing that the customer “did nothing” and therefore should receive less .

The answer is practical: act reasonably , document what you did, and keep proof of urgent expenses, because these are exactly the actions that show you behaved responsibly .

If the insurer refuses the claim, offers an unreasonably low figure, or simply delays to the point that your position becomes untenable, escalation should be strategic rather than emotional.

A well drafted complaint, sent through the insurer’s formal channel, often forces a clearer written stance and can unlock settlement because it signals that the policyholder is organised and advised. Where necessary, a complaint to the regulator can also be appropriate, particularly if the core issue is delay, poor communication, or an approach that looks systemic rather than case specific.

If settlement still does not happen, arbitration or court may be the right route, and at that stage the dispute becomes evidence led. The strongest cases are those that present a coherent narrative of the event, a clear mapping of the damage to that event, a careful rebuttal of exclusions , and realistic quantification supported by estimates and expert input.

The overall message for clients is reassuring.

Storm and flood losses can feel chaotic , but the legal and practical framework is far less vague than many people assume. Insurers cannot simply hide behind dense wording or create endless procedural hurdles , and Portuguese courts have shown that they understand the imbalance between an individual policyholder and a sophisticated insurer, particularly where standard form wording is used to defeat the reasonable expectations created when the policy was sold.

With prompt notification, disciplined evidence, and a firm but constructive approach, most disputes resolve without a full trial, and when litigation is necessary, a well prepared claim can be strong.

If you are facing resistance from an insurer after storm or flood damage, legal support is not just about going to court, it is about presenting your claim in a way that makes a fair outcome difficult to avoid.

To discuss your situation, please complete our contact form and our team will contact you.

Portugal: Key Tax Obligations and Deadlines for 2026

Tue, 24 Feb 2026 13:28:09 GMT

As the 2026 tax calendar begins in Portugal, several key compliance obligations require attention, including the confirmation of household composition, validation of invoices through the Portal e-Fatura, and reporting duties related to domestic workers. With important deadlines falling at the end of February and on 2 March 2026, timely action is essential to ensure accurate IRS assessments and safeguard available tax deductions

Portugal: Key Tax Obligations and Deadlines for 2026

With the start of a new year, several tax compliance obligations in Portugal require attention. Meeting the relevant deadlines is essential to ensure accurate tax assessments, safeguard available deductions, and avoid potential penalties. Below is an overview of the main requirements and deadlines for the 2026 tax calendar relating to the 2025 tax year.

Household Composition (Agregado Familiar)

For IRS purposes, the personal and family situation considered by the tax authorities is the one existing on 31 December of the relevant tax year. This includes marital status, tax domicile, and dependent status.

Under Article 13 of the Portuguese Personal Income Tax Code (CIRS), an individual may not simultaneously belong to more than one household for IRS purposes.

Situations Requiring an Update

Household composition must be updated whenever there are changes to the family situation, including:

Marriage
Birth of children
Divorce or legal separation (including termination of a de facto union)
Acquisition of a main and permanent residence
Children ceasing to qualify as dependents (for example, upon reaching 26 years of age or earning more than €9,870 per year)
Joint custody arrangements with alternating residence, as established in a parental responsibilities agreement

Deadline

2 March 2026

If no update is made, the Autoridade Tributária e Aduaneira will automatically rely on the information from the previous year , which may result in inaccuracies in the IRS assessment .

Invoice Validation: e-Fatura

Invoice validation remains a crucial step in securing tax deductions.

By this date, taxpayers must validate all invoices through the Portal e-Fatura to ensure that expenses are correctly classified and considered for deduction purposes.

In particular:

All invoices must be reviewed and validated to confirm their allocation to the appropriate expense categories .
Self-employed individuals are required to indicate whether each expense relates exclusively to their professional activity or is of a mixed/personal nature.

Failure to validate invoices may lead to expenses being disregarded for deduction purposes , potentially increasing the final tax liability.

Deadline

2 March 2026

Domestic Workers: Salary Reporting and Annual Declaration

Employers of domestic workers are subject to specific annual reporting obligations.

Communication of Salaries and Social Security Contributions (Relating to 2025)

Deadline: 2 March 2026

Salaries paid and the corresponding social security contributions must be properly communicated within the applicable deadline.

Submission of Modelo 10

Modelo 10 must be filed with the Autoridade Tributária e Aduaneira by the end of February , maintaining the annual obligation to report payments made in connection with domestic employment.

Compliance and Planning

Accurate and timely compliance with these obligations is fundamental to ensuring correct tax treatment and avoiding unnecessary exposure to penalties or additional tax assessments. Early review of personal, professional, and household information is strongly recommended to ensure all data is properly reflected within the established deadlines.

At LVP Advogados , we assist individuals and families in ensuring full compliance with Portuguese tax obligations, including household updates, invoice validation, and domestic employment reporting .

For tailored guidance on meeting upcoming deadlines and optimising your tax position, please submit our contact form and our team will get in touch with you shortly.

Corporate Relocation to Portugal: Article 123-A of the Immigration Law

Fri, 20 Feb 2026 09:37:42 GMT

Luís Maria Branco | Lawyer

Joana Loureiro Veríssimo | Lawyer

Relocating to Portugal as a company or senior executive involves more than just logistics, it requires navigating a complex mix of corporate, regulatory, and immigration considerations . Understanding the framework for relocation, eligibility requirements, and residence procedures is essential to ensure a seamless transition. In this article, we break down what businesses and high-level professionals need to know to plan their move effectively .

Relocating Your Company to Portugal? How Article 123-A Supports Executive Mobility.

Portugal has increasingly positioned itself as a strategic gateway to Europe , combining political stability, European Union membership, a competitive business environment, and a high quality of life . Over the past decade, the country has actively attracted international investors , technology companies , financial services firms , and multinational groups seeking an EU base . In parallel with this trend, corporate mobility has become more relevant, and Portuguese immigration law has evolved to facilitate the relocation of companies and their key personnel .

One of the clearest examples of this approach is Article 123-A of Law no. 23/2007 of 4 July, which establishes a special residence regime applicable to the relocation of companies to Portugal. This provision is designed to ensure continuity when a company transfers its registered office or establishes a principal or secondary operation in Portugal, avoiding the need for holders, directors, board members , or employees to restart the immigration process from the beginning.

Under this regime, a residence permit may be granted to individuals linked to companies established in a Member State of the European Economic Area or in another State defined by Government order, provided that the company relocates its seat or sets up an establishment in Portugal. The applicant must hold a valid residence permit in the State where the company was previously established and must not constitute a threat to public order or public security.

In addition to these specific requirements, applicants must also comply with the general conditions set out in Article 77 of the Immigration Law , including lawful entry into Portugal or possession of an appropriate visa, proof of sufficient means of subsistence , evidence of accommodation , social security registration where applicable, a bsence of relevant criminal convictions , and the inexistence of alerts in the Schengen Information System or national immigration databases .

A central feature of Article 123-A is the recognition of the foreign residence title . Once the applicable legal requirements are satisfied, Portuguese authorities recognise the residence status previously granted by another State and issue a similar residence permit valid in Portugal . This mechanism provides legal certainty and reduces administrative disruption, particularly in the context of corporate restructuring or cross-border expansion .

From a corporate law perspective , relocating business activity to Portugal typically involves either the incorporation of a local legal entity or the registration of a branch of a foreign company . The most commonly adopted structure is the private limited liability company , including its single-member form, due to its flexibility , limited liability regime , and suitability for residence permit applications linked to managerial or qualified professional activity. Alternatively, foreign companies may establish a branch or representative office , allowing the parent entity to operate in Portugal without creating a separate legal personality. The chosen corporate structure is directly relevant for immigration purposes , as the residence application must demonstrate a genuine economic presence in Portugal and the effective exercise of management or professional functions within the Portuguese establishment.

Importantly, incorporation and registration procedures may be completed remotely through a power of attorney granted to local legal representatives, allowing corporate formalities to be carried out without requiring prior travel to Portugal.

The residence application itself is submitted by prior appointment and delivered in person, together with general documentation such as a valid travel document, proof of means of subsistence , accommodation , and criminal records . Specific corporate documentation is also required, including an updated commercial registry certificate , proof of the applicant’s role within the company , evidence of social security registration , and confirmation of a valid residence permit in the State of origin .

Where granted, the residence permit follows the general duration rules of the Immigration Law . Temporary residence permits are valid for two years and renewable for successive three-year periods , while permanent residence permits are valid for five years and renewable in accordance with the statutory framework. The regime also extends to family members , allowing relocation without disrupting family unity.

In practice, Article 123-A operates as a strategic instrument for companies seeking to establish or reorganise their presence in Portugal while ensuring immigration stability for their key personnel . Nevertheless, careful preparation remains essential, as authorities assess both corporate documentation and individual compliance requirements .

At LVP Advogados , we regularly assist companies and senior executives in structuring relocation projects that combine corporate, regulatory, and immigration considerations. If your business is considering establishing operations in Portugal , or if you are planning a management transfer , our team can assess eligibility , coordinate documentation , and support the residence application process from start to finish.

If you require legal assistance , contact us by through our contact form , and our experts will reach out to guide you through every step of your relocation process

Freedom of Movement, Yes. Zero Bureaucracy? Not Quite.

Wed, 18 Feb 2026 11:19:37 GMT

Javier Mateo | Lawyer

Freedom of movement within the European Union offers EU citizens and their families a uniquely protective and flexible path to living in Portugal. Yet while the rights themselves are automatic, their practical effectiveness depends on complying with specific administrative steps under Portuguese law. Understanding how Articles 14 and 15 operate, particularly in relation to registration, residence cards for non-EU family members, and long-term stability is essential to transforming legal entitlement into operational certainty.

Freedom of Movement, Yes. Zero Bureaucracy? Not Quite.

Freedom of movement is one of the most tangible and transformative achievements of the European Union . It allows EU citizens and their families to live, work, and settle across Member States with a level of legal protection unmatched in most immigration systems worldwide.

In practice, however, one misconception appears time and again. Many EU citizens and their families assume that freedom of movement also means freedom from administrative formalities .

It does not.

Portugal has transposed the EU free movement framework through Law 37/2006, creating a residence regime that is generous, flexible, and strongly protective of family life . Yet legal certainty under this regime does not arise from rights alone. It depends on compliance with specific administrative steps, particularly those set out in Articles 14 and 15.

Understanding the difference between automatic rights and operational legal certainty is essential.

Article 14. Registration of EU Citizens

Article 14 establishes a clear and straightforward obligation. EU citizens who remain in Portugal for more than three months must register their residence with the municipality of their area of residence and obtain a Certificate of Registration .

This certificate is valid for up to five years and is issued through a declarative process, largely based on a statement of honour confirming that the individual meets the conditions required under EU law. There is no prior approval, no substantive assessment, and no discretionary decision by the authorities.

Precisely because the procedure is so light, it is often underestimated. Some EU citizens postpone it indefinitely. Others never complete it at all.

From a strictly legal perspective, failure to register does not automatically extinguish the right of residence . In everyday life, however, the absence of this document creates immediate and practical obstacles . Banks , employers, schools, landlords, and public bodies consistently require clear and standardised proof of residence status. In most cases, the Certificate of Registration is the only document that fulfils that role without hesitation .

Article 14 is therefore less about creating rights and more about making those rights usable.

Article 15. Residence Rights for Non EU Family Members

Article 15 is one of the most powerful yet least understood provisions of Portuguese immigration law.

It allows non EU family members of EU citizens to apply directly for a residence card valid for five years , without visas, quotas, or minimum income requirements typically associated with immigration procedures. The application is submitted to Agência para a Integração, Migrações e Asilo, AIMA I.P., and the law expressly requires that a receipt be issued immediately upon submission.

This receipt is not a mere administrative formality. It formally confirms lawful residence while the application is pending and allows the family member to live, work, and function legally in Portugal. The residence card itself must be issued within a maximum period of three months .

Crucially, this regime also applies to non EU family members of Portuguese nationals . This point remains widely overlooked. Portuguese citizens who have exercised their right of free movement within the EU, or who return to Portugal after living abroad, may rely on the same EU family reunification framework. As a result, their non EU spouses, partners, children, or dependent relatives can benefit directly from Article 15 , rather than being channelled into more restrictive national immigration routes .

In practical terms, this means access to a five year residence card under EU law , with stronger protections, clearer timelines, and significantly reduced administrative discretion.

A Direct Path to Long Term Stability

One of the most significant advantages of Article 15 lies in what follows.

After completing the initial five year residence period, non EU family members may apply for permanent residence valid for ten years . This status offers a high level of stability and continuity and is among the strongest residence titles available under Portuguese law. Ultimately, these residence certificates and cards are the only documents accepted by the IRN and the Ministry of Justice in the context of a future citizenship application .

From a comparative perspective, this pathway is remarkably efficient. Few immigration systems offer such a direct transition from initial residence to long term status without economic thresholds or integration tests.

For families planning their future in Portugal, Article 15 is not merely a short term solution. It is a strategic legal foundation.

Article 21. Rights Without Documents, But Only in Theory

Article 21 clarifies that holding a registration certificate or residence card is not, in itself, a formal precondition for exercising EU residence rights . In theory, lawful status may be demonstrated by other means.

In practice, this distinction rarely survives outside legal argumentation.

Administrative reality is document driven. Without the certificates issued under Articles 14 and 15, EU citizens and their family members frequently face delays , refusals , or repeated requests for additional proof . What may be legally sufficient in theory is often not operationally accepted in daily interactions.

As a result, Articles 14 and 15 function as the only universally recognised proof of residence status under the EU regime. Freedom of movement may be automatic. Legal certainty is not.

Conclusion

The EU residence framework is one of the most protective and generous mobility regimes in the world, and Portugal has implemented it faithfully and pragmatically. Yet the system still requires timely and informed action.

Ignoring or postponing the formalities set out in Articles 14 and 15 rarely eliminates rights, but it almost always complicates family life , professional activity , and long term planning .

Understanding these provisions, and applying them correctly from the outset, is not about limiting freedom. It is about making freedom workable.

If you or your family are relocating to Portugal under the EU free movement regime, or if you are a Portuguese national with non EU family members, legal advice at an early stage can make a decisive difference.

At LVP Advogados , we assist EU citizens, Portuguese nationals, and their families in navigating this framework with clarity, compliance, and long-term stability.

If you would like tailored guidance, please submit our contact form and our team will get in touch with you shortly.

Getting Married in Portugal as a Foreigner? The Legal Path to Your Happily Ever After

Fri, 13 Feb 2026 16:19:22 GMT

Danielle Avidago | Lawyer

Planning Your Portuguese Wedding as a Foreigner: Legal Framework

A sunset ceremony in Portugal may look effortless, but for international couples , the path to “I do” is paved with legal formalities , strict documentation , and careful planning . Romance may set the scene, yet it is legal precision that ensures the celebration truly lasts a lifetime.

Every girl in this world has probably dreamed, even if just for a second, of a wedding by the beach at sunset. Blame it on Hollywood, but do not be afraid to admit that a small part of you has imagined yourself in a summery white dress, holding the hands of your loved one beneath a floral arch, while guests sit happily in wicker chairs overlooking a purple and orange sky.

When you picture this fairytale setting, certain countries may come to mind, and Portugal is certainly one of them.

With the rise of Portuguese tourism and the influence of social media, Paris is no longer the only capital of love. Many Portuguese cities are now closely associated with romance, from sun drenched coastlines and historic towns to timeless villages and an unmistakable sense of charm. It is no surprise that many international couples choose Portugal as the place where their happily ever after formally begins .

However, behind this Disney fairytale, there is a bureaucratic structure that must be followed. When one or both parties are foreign nationals , Portuguese marriage law requires careful preparation, strict documentation and procedural accuracy . This is where experienced legal guidance becomes not only helpful, but essential.

Legal assistance is particularly important when the couple intends to enter into a prenuptial agreement . A prenuptial agreement allows future spouses to choose their matrimonial property regime , protect pre existing assets , address cross border concerns and reduce future legal uncertainty .

Each country has its own rules regarding matrimonial property regimes and the matters that may or may not be regulated in such agreements. For this reason, understanding the limits imposed by Portuguese law on this fairytale agreement is essential for a peaceful married life.

Although Portuguese law allows people of every nationality, religion, sex and residency status to marry in Portugal, there are still specific legal requirements that must be met.

Eligibility is subject to strict legal criteria, and the burden of proof rests entirely with the couple. The Portuguese Civil Registry places particular emphasis on verifying the parties’ civil status and legal capacity to marry.

In practical terms, to be legally eligible to marry in Portugal, each party must:

be at least 18 years old or legally emancipated
have legal capacity to marry under their national law
not be legally married to another person
not be closely related by blood or adoption in a manner prohibited by Portuguese law.

Once the documentation is submitted to the Civil Registry , it will be carefully analysed by the Registrar, who may request additional documents to confirm that the couple meets all legal requirements . If the application is approved, a wedding date may then be scheduled between the fiancés and the Registrar.

The use of the word if approved is not accidental. The Civil Registry has discretionary powers to refuse a marriage process if it considers that the legal requirements have not been fulfilled.

If, for any reason, one of the fiancés cannot be present on the day of the civil wedding, a specialised lawyer can quite literally save the day. Portuguese law allows civil weddings to be celebrated with the presence of one fiancé and a legal representative granted specific powers for that purpose.

While having your first wedding ceremony in a Civil Registry Office may not be as magical as saying I do on the beach, the guests will certainly make the moment memorable. Depending on the Civil Registry where the wedding takes place, the number of guests allowed will depend on the capacity of the venue.

With careful planning and experienced legal guidance , getting married in Portugal can be as smooth as it is memorable, setting the stage to live happily ever after , both romantically and legally.

At LVP Advogados, we guide international couples through every legal stage of marrying in Portugal , from verifying eligibility and preparing documentation to advising on prenuptial agreements and representation before the Civil Registry .

If you are planning to celebrate your wedding in Portugal, ensure the legal foundation is as secure as the setting is beautiful by seeking advice tailored to your specific circumstances through our contact form .

Considering Portuguese Citizenship by Naturalisation? Act While the Current Rules Apply

Thu, 12 Feb 2026 17:31:14 GMT

Luís Maria Branco | Lawyer

Portuguese citizenship offers a wide range of advantages , including the right to live and work freely in all European Union Member States, the European Economic Area (Norway, Iceland and Liechtenstein), and Switzerland under EU free movement arrangements. It also grants visa-free or visa-on-arrival access to a large number of countries worldwide, full political and civic rights in Portugal, and long-term security of status.

Applying for Portuguese Citizenship in 2026: What the Nationality Law Currently Allows

A reform of the Portuguese Nationality Law has been under political discussion and was approved by Parliament. Among other changes, it is foreseeable that the minimum legal residence period required for naturalisation may increase from the current five years to up to ten years , alongside reinforced integration requirements. Following the Portuguese Constitutional Court decision of 15 December 2025, however, key provisions of that reform were declared unconstitutional, preventing it from taking effect in its current form.

As a result, the current Nationality Law continues to apply, and naturalisation applications remain assessed under the existing rules , creating a relevant window of opportunity for eligible applicants to proceed now.

In reaching its decision, the Constitutional Court placed particular emphasis on legal certainty and the protection of legitimate expectations, criticising legislative changes capable of disrupting paths already underway under the existing legal framework.

In line with these constitutional principles, applications submitted before any future changes enter into force should be assessed under the legal regime applicable at the time of submission , and future reforms should not undermine procedures already in progress. This is a key consideration for applicants concerned that a revised reform may introduce more demanding criteria.

In practice, eligibility for naturalisation is not assessed solely by reference to the number of years of legal residence. Applicants must ensure that their file is fully aligned with the documentary and substantive requirements typically reviewed by the authorities, including proof of lawful residence , language compliance , and criminal record checks in the relevant jurisdictions.

Particular attention should be given to the validity periods of key documents , as criminal records and certain certificates may need to be issued within specific timeframes at the moment of submission. It is also essential to ensure consistency across the application , supporting documents, and registry records, as discrepancies in names, dates, marital status, or filiation frequently lead to requests for clarification and additional documentation.

A further point to consider is what constitutes legal residence for naturalisation purposes . As a rule, the relevant period is calculated based on time spent holding valid residence status in Portugal , and applicants should ensure their residence history is properly documented .

Gaps in residence status, expired permits, or inconsistencies in residence records may raise issues and should be identified and addressed before submission. For applicants approaching the five-year threshold, early planning can be decisive, allowing sufficient time to obtain up-to-date certificates , legalise documents where required, and arrange certified translations , while avoiding unnecessary delays.

Nationality planning often has a family dimension . Depending on the circumstances, a successful naturalisation may open clearer pathways for minor children or for a spouse or partner and can simplify long-term mobility and settlement planning. For families considering relocation within the EU or long-term stability in Portugal, assessing the broader family strategy alongside the main applicant’s timeline can help avoid fragmented applications and missed opportunities.

Finally, this window of opportunity ahead of a potential legislative change may trigger a surge in applications. While acting promptly can be strategic, submitting an application in haste without proper legal review may lead to avoidable issues, including incomplete documentation, inconsistencies, or requests for additional information, which can ultimately delay the process .

Our team can assist by confirming eligibility , preparing a clear and tailored document checklist , reviewing and organising the application with a focus on accuracy and consistency, and submitting it efficiently once the file is complete.

We provide full assistance throughout the process, including follow-up with the authorities and ongoing case monitoring . If you would like to discuss your situation, please submit a request via our contact form .

Married Abroad and Want to Get Divorced in Portugal? Yes, It’s Possible

Wed, 11 Feb 2026 16:28:31 GMT

Domingas Andresen Guimarães | Lawyer

Married Abroad and Seeking Divorce in Portugal? Here’s What You Need to Know

A marriage celebrated abroad does not prevent a divorce from being granted in Portugal. For foreign residents, the decisive factors are jurisdiction, applicable law, and strategic legal guidance, not the country where the wedding once took place.

Portugal has increasingly become a destination of choice for foreign nationals looking to live, work, or invest. But even when living abroad, life goes on and relationships change . It is therefore not uncommon for foreign citizens residing in Portugal to face major personal transitions during their stay.

One of those transitions is divorce .

But is it possible to get divorced in Portugal if you were married in another country?

The answer is yes. Below, we explain the main rules applicable to international divorce proceedings in Portugal.

As a rule, foreign couples seeking a divorce in Portugal were married abroad , often in the home country of one of the spouses. However, the place where the marriage was celebrated does not prevent divorce proceedings from taking place in Portugal, provided the couple, or one of the spouses, has a relevant connection to the Portuguese territory .

Under Portuguese law, a divorce involving foreign nationals may be granted in Portugal if at least one of the spouses is resident in Portugal . This criterion applies equally to citizens of the European Union and to non-EU nationals .

For citizens of the European Union , Regulation (EU) 2019/1111 (Brussels II-ter) is also applicable. This Regulation provides that divorce proceedings may be initiated in the country of the spouses’ habitual residence , or in the country of their last habitual residence , provided that one of them still resides there.

Although divorce proceedings may take place in Portugal, Portuguese law does not automatically apply .

Depending on the circumstances, the applicable law may instead be, for example, the law of the spouses’ common nationality or another law determined under EU private international law rules.

The choice of applicable law is particularly important, as it may determine the grounds for divorce, or the rules governing the division of assets.

Once a divorce is granted in Portugal, it may be recognised in the country of origin of one or both spouses. Such recognition depends on the domestic law of the country concerned, as well as on any applicable international treaties.

In Portugal, divorce may take one of two forms.

Divorce by Mutual Consent

This form of divorce is filed before a Civil Registry Office and requires agreement between the spouses not only on the desire to divorce, but also on several related matters. These include the exercise of parental responsibilities are going to be carried out if there are minor children , the use of the family home during the proceedings regardless of ownership, the division of common assets , spousal maintenance if applicable, and the responsibility for pets .

Where minor children are involved, the agreement on parental responsibilities must receive a favourable opinion from the Public Prosecutor of the competent court, after which the divorce is granted by the registrar.

The costs of these proceedings depend on whether the divorce includes the division of assets. If no asset division is included, the cost is € 280.00. If the process includes the division and registration of real estate or vehicles , the cost increases to € 625.00.

Divorce Without the Consent of the Other Spouse

This type of divorce applies when there is no agreement between the spouses on the divorce itself or on any of the matters listed above.

The proceedings take place before a court and are naturally more time-consuming , more expensive , and emotionally more demanding .

In this case, it is sufficient for only one spouse to wish to divorce . However, the request must be based on concrete facts demonstrating the irretrievable breakdown of the marriage, such as:

separation in fact for at least one consecutive year
mental illness of the other spouse lasting more than one year and seriously affecting marital life
absence of the other spouse for at least one year, without news
any other facts which, irrespective of fault, clearly show the definitive breakdown of the marriage

Legal representation by a lawyer is mandatory in this type of divorce.

International divorce proceedings often involve complex issues of private international law, including jurisdiction , applicable law , and cross-border recognition of decisions.

For this reason, legal assistance from a lawyer experienced in international family law is essential to ensure that the parties’ rights are protected and that the process runs as smoothly as possible.

At LVP Advogados, we regularly advise international clients on cross-border family law matters , providing clear guidance on jurisdiction, applicable law, and the practical steps involved. If you wish to obtain advice tailored to your specific circumstances, please contact us through our contact form .

New Portugal and the United Kingdom Double Taxation Agreement and Tax Information Exchange Agreement

Tue, 10 Feb 2026 12:05:05 GMT

Portugal-UK Double Taxation & Tax Information Exchange Agreements

As of 1 January 2026, a new tax framework governs cross-border relations between Portugal and the United Kingdom. Replacing the 1968 treaty, the new Double Taxation Convention and Tax Information Exchange Agreement introduce modernised rules on dividends, capital gains, interest and other income streams, significantly impacting individuals and corporate groups with cross-border exposure.

As of 1 January 2026, the new Double Taxation Convention (DTC) and the Agreement on the Exchange of Tax Information between Portugal and the United Kingdom have officially entered into force.

This new legal framework , ratified in late 2025, replaces the outdated 1968 treaty . For investors, companies, and residents with cross-border interests , 2026 marks the beginning of a modernized era characterized by greater legal certainty and enhanced tax efficiency.

Below, we highlight the most critical technical developments that individuals and corporate groups must consider for the 2026 tax year.

Key Changes Now in Effect

Persons covered

Under the previous convention, the opening provisions merely established that the agreement applied to residents of one or both Contracting States.

The new Convention introduces an additional clarification, expressly stating that nothing in the Convention prevents a Contracting State from taxing its own residents , except where specific treaty benefits are expressly granted.

Dividends

Two significant changes were introduced in relation to dividends.

Full Exemption : Dividends paid to a parent company ( holding at least 10% of the capital for an uninterrupted period of one year) are now exempt from withholding tax in the source state.

General Rate : In all other cases, the general withholding tax rate has been reduced from 15% to 10%.

Income related to immovable property and capital gains

A specific provision was introduced to address situations involving investment vehicles exempt from taxation in one State where dividends are effectively funded by income derived from real estate property.

In addition, with respect to capital gains , the new Convention introduces a robust "look-through" rule to address the indirect transfer of real estate .

CapitalGains derived by a resident of one Contracting State from the alienation of in a company resident in the other State may be taxed in that other State where, at any time during the 365 days preceding the alienation , if more than 50% of the value derives, directly or indirectly, from property situated in that other State .

Interest

Interest arising in a Contracting State may not be taxed at a rate exceeding 5% of the gross amount of the interest where the beneficial owner is a bank resident in the other Contracting State . Under the previous Convention, the applicable rate was 10% .

Furthermore, interest paid by a Contracting State is taxable exclusively in the other Contracting State where the beneficial owner is a governmental entity , including political or administrative subdivisions, local authorities or the central bank of that other State.

Royalties

The 5% withholding tax rate on royalties is maintained. However, the new Convention now expressly refers to the beneficial owner of the royalties, rather than merely the resident, aligning the provision with modern treaty standards.

In addition, income derived from the use of industrial, commercial or scientific equipment has been expressly excluded from the definition of royalties .

Independent personal services

In line with the changes introduced to the OECD Model Convention, the specific article governing independent personal services has been eliminated. Income of this nature now falls under the general rules applicable to business profits .

Other income and trusts payments

While the general rule remains that income not expressly covered by the Convention is taxable only in the State of residence of the beneficial owner , a specific exception was introduced in respect of trust-related income .

This applies where payments are made by trustees or personal representatives administering estates who are resident in the United Kingdom to a resident of Portugal .

Final remarks and conclusions

This insight provides a general overview of the main changes introduced by the new Double Taxation Agreement between Portugal and the United Kingdom. While the Convention introduces greater clarity and modernisation, its practical application depends on the specific facts of each case , including the nature of the income, the residence status of the parties involved and the underlying legal and economic structure.

Accordingly, the application of the new treaty rules should always be assessed on a case-by-case basis , particularly in cross-border situations involving complex income streams or holding structures.

At LVP Advogados , we regularly assist individuals and companies in analysing cross-border income, applying double taxation agreements and structuring international activities in compliance with domestic and international tax rules. This insight does not replace individualised legal or tax advice , which remains essential in an increasingly complex international tax environment.

To request a consultation, please complete our contact form and we will contact you shortly.

Tax Planning and Legislative Developments: What to Watch in 2026

Tue, 03 Feb 2026 09:18:30 GMT

Tax Planning in Portugal 2026: Key Legislative Developments and Opportunities

Recent legislative measures are set to reshape corporate taxation , property income , and the application of special tax regimes in Portugal. For businesses, investors, and individuals alike, understanding these developments is essential to managing tax exposure and making informed structural and investment decisions.

Early consideration of these changes can support both compliance and tax efficiency under the current legal framework, helping taxpayers position themselves strategically for the year ahead.

With the beginning of a new year, it is the ideal moment for investors and taxpayers to review their tax situation.

Beyond compliance with annual tax obligations, the beginning of a new tax year is the ideal moment to review business structures and private investments from a tax planning perspective.

A clear understanding of why income has been taxed in a certain way can help taxpayers make more informed, strategic, and better-adjusted decisions in the coming years.

Below, we outline the key legislative developments and tax benefits that should be considered looking ahead.

Corporate Income Tax (IRC): Current Rules and Upcoming Changes

For the 2025 tax year (filing in 2026), the corporate income tax (IRC) rates in force for that year remain applicable.

Accordingly:

The standard IRC rate is 20% ; and
For small and medium-sized enterprises (SMEs), a reduced rate of 16% applies to the first €50,000 of taxable profit, with the standard rate applying to any excess.

However, significant legislative changes have been approved for the coming years, introducing a gradual reduction of the standard IRC rate , as follows:

19% for tax periods beginning on or after 1 January 2026;
18% for tax periods beginning on or after 1 January 2027;
17% for tax periods beginning on or after 1 January 2028.

In parallel, SMEs and Small Mid Caps will benefit from a reduced IRC rate of 15% on the first €50,000 of taxable profit , applicable to tax periods beginning on or after 1 January 2026 .

These changes reinforce the importance of reviewing corporate structures , profit allocation and investment strategies , particularly for businesses planning medium to long term operations in Portugal.

Property income: current rules and deductions

Rental income remains a focal point of tax policy. Currently, the framework distinguishes between property types:

Income derived from properties allocated to services is generally subject to an autonomous tax rate of 28% .
Residential rental income is generally taxed at 25% , although this rate may be reduced where leases are intended for the tenant’s permanent residence and have a duration of five years or more .

The 2026 Housing Reform (Renda Moderada)

Following recent parliamentary approval in early 2026, a new regime for "Moderate Rents" is set to change the market:

10% Tax Rate: A new autonomous rate of 10% is expected for residential contracts where the rent is considered "moderate" (typically capped at €2,300/month, depending on the municipality).
VAT Reduction: A 6% VAT rate for the construction or rehabilitation of properties intended for affordable rental or sale.

Tax incentives and special regimes to review

Taxpayers should also review whether they may benefit from existing tax incentives and special regimes , including:

Youth IRS (“IRS Jovem”)

This regime has undergone legislative changes, which will be reflected in the IRS return relating to 2025 income .

Taxpayers under the age of 35 may still benefit from relevant tax savings, as a portion of their employment and self-employment income may be exempt from taxation , depending on the number of tax returns previously submitted in Portugal.

Programa Regressar

Although traditionally designed to encourage the return of Portuguese citizens, this regime may also apply to individuals who were previously tax resident in Portugal and later left the country .

Where applicable, it may allow for a 50% exemption on employment or self-employment income , up to a limit of €250,000.

NHR and IFICI+ regimes

These regimes may grant significant tax benefits, including:

A 20% flat tax rate on income derived from certain qualifying professional activities ; and
Various exemptions applicable to specific categories of foreign-source income .

It is essential to review registration status, eligibility deadlines, and the nature of the professional activity carried out, as access to these regimes is subject to strict legal conditions.

The year 2026 presents both challenges and opportunities from a tax planning perspective. Legislative changes, combined with existing tax regimes, may significantly influence how income and investments are taxed .

A proactive review of income streams, property structures, and applicable tax regimes can help ensure that taxpayers remain compliant while positioning themselves efficiently under the current legal framework.

Whether you are considering relocating to Portugal or are already resident and wish to understand your tax exposure or require assistance with your IRS return, professional advice should be sought before making decisions or filing obligations.

If you would like to assess how these legislative developments apply to your specific situation, our Tax Team is available to provide tailored legal and tax advice .

To request a consultation, please complete our contact form and we will contact you shortly.

My Article 15 residence card is about to expire and my spouse is a UK citizen. What can I do?

Thu, 29 Jan 2026 16:04:10 GMT

Danielle Avidago | Lawyer

Living in Portugal with a UK spouse. What happens when your Residence Card expires?

For UK nationals living in Portugal, expiring residence documents don’t have to create uncertainty. Family members of UK citizens can secure lawful status under the Withdrawal Agreement by showing continuous residence and a family relationship established before Brexit. With the right preparation and guidance, it’s possible to maintain long-term residence, stay fully compliant, and protect your rights.

Brexit may feel like old news, mixed up with the traumas the pandemic left on the world around five years ago. This timeline, however, is no coincidence. It corresponds to the entire validity period of both the Certificate of Registration of EU Citizens and the Residence Card for Family Members of EU Citizens , also known as Article 15 .

This means that UK citizens who arrived in Portugal before Brexit, when the United Kingdom was still part of the European Union family, are now holding residence documents that are expired or about to expire .

For many UK citizens and their families living outside the UK , the forgotten legal consequences of Brexit are only now coming into sharp focus. Most UK citizens holding a CRUE requested, almost immediately, their residence card under the Withdrawal Agreement.

One of the most overlooked post-Brexit scenarios, however, concerns family members of UK nationals who never applied for residence status under the Withdrawal Agreement and who are currently still relying on an Article 15 residence card that is now approaching expiry. Many relied on pre-existing EU residence cards or received inconsistent information from the authorities.

The contradictory information provided by different AIMA services created a true-crime scenario of legal uncertainty. Some officers stated that once an applicant acquired the right of residence in Portugal under Article 15 of Law no. 37/2006 of 9 August, their right to permanent residence was already secured under Article 17 of that same diploma, provided the continuous residence requirement was met.

Other AIMA officers, however, stated that from the moment the Withdrawal Agreement entered into force, Law no. 37/2006 of 9 August was no longer applicable to UK citizens and their family members, and that all of them were required to transition their residence status to the new legal framework.

Both interpretations seemed plausible and aligned with the spirit of each regime. However, only one is correct and provides the legal certainty and long-term stability UK citizens and their families deserve.

The contradiction is now over. Family members of UK citizens currently holding an Article 15 residence card must apply for residence under the Withdrawal Agreement in order to regularise their immigration status in Portugal .

Because of this uncertainty, many family members of UK citizens never submitted an application under the Withdrawal Agreement alongside their British relatives. This situation is neither unusual nor problematic.

The guiding principle of the Withdrawal Agreement is “no one gets left behind” . This wording is not accidental. It reflects the European Union’s careful intention to protect acquired residence rights and ensure continuity of lawful stay , even after freedom of movement came to an end.

In practical terms, UK citizens and their family members may apply for residence under the Withdrawal Agreement at any time.

There are, however, conditions that must be met to ensure a smooth and successful application. It is essential to demonstrate that the UK citizen and or their family members were continuously residing in Portugal before and after Brexit .

If you are the kind of person who saves every grocery receipt, this is your moment to shine. In our experience, such documents are often one of the strongest ways to prove real and effective residence in Portugal .

If you are more of a minimalist, do not worry. Together, we can coordinate a tailored legal strategy to demonstrate continuous residence through alternative documentation, so you can keep enjoying your sangria by the beach while watching the pink and orange sunset.

Another condition concerns the family relationship that gave rise to the residence right . The applicant must demonstrate that the qualifying family relationship existed before Brexit.

This does not mean that the right is lost in cases of divorce or death of the UK citizen. It simply means that the family relationship must have begun prior to 31 December 2020.

Once the documentation is accepted by the designated Brexit officer , an appointment will be scheduled for the collection of new biometric data and verification of original documents. The outcome is the issuance of a residence card valid for ten years , safeguarding the right of residence in Portugal under the Withdrawal Agreement.

Brexit may no longer dominate headlines, but for many UK families, its legal story is still unfolding. Article 15 is not the end of that story, and ensuring that no one gets left behind remains one of our main goals.

Get in touch with us through our contact form , and we will handl e the rest.

IRS 2026: Key Deadlines, Compliance Obligations and Practical Considerations

Wed, 28 Jan 2026 15:05:46 GMT

IRS 2026 Tax Filing Guide: Key Deadlines, Compliance Rules, and Practical Tips for Taxpayers

As the 2026 IRS submission season approaches, investors and taxpayers should review 2025 income , upcoming deadlines , and reporting obligations . Early attention to key milestones and compliance requirements helps manage risk, optimize deductions, and ensure a smooth reporting process. A proactive approach enables informed decisions and positions investors to navigate the tax year with clarity and control.

With the beginning of a new year, it is the ideal moment for investors and taxpayers to review their tax situation.

On the one hand, this involves carrying out a general analysis of the income earned during 2025 and understanding its taxation. On the other hand, it is essential to identify applicable tax rates , eligible deductions, and expenses that can be leveraged to reduce the final tax burden.

The new year is also the appropriate time to reassess personal and professional structures ensuring that income and investments are organised in the most tax-efficient manner possible.

Invoice validation deadline: 2 March 2026

By 2 March 2026 , taxpayers must:

Validate all invoices through the e-Fatura Portal . This validation is essential to ensure that expenses are correctly classified and considered for tax deductions.

For self-employed individuals , this step is particularly relevant, as they must indicate whether expenses relate exclusively to their professional activity or, where applicable, are of a mixed or personal nature.

Failure to validate invoices may result in those expenses not being considered for tax deduction purposes, potentially leading to a higher tax liability.

Household updates deadline: 2 March 2026

Any changes to the household composition that occurred during 2025 - such as marriage, divorce, or the birth of children - must also be reported by 2 March 2026 .

This is particularly relevant in situations involving divorced parents , where changes to parental responsibility agreements may affect the percentage of deductions attributable to each parent.

If no updates are made, the Tax Authority will assume the household data registered in the previous year.

Review of deductible expenses: 16 to 31 March 2026

Between 16 and 31 March 2026 , after invoice validation, the Tax Authority will make available the amounts calculated for tax deduction purposes.

Taxpayers should carefully review this information and, if errors are identified, submit a formal claim before the end of March.

IRS or VAT allocation deadline: 31 March 2026

By 31 March 2026 , taxpayers may choose to allocate 1% of their IRS or VAT to a social, cultural, youth, or sports organisation.

This option does not increase the taxpayer’s tax burden and is selected directly through the Tax Authority’s online portal .

Submission of the IRS return: 1 April to 30 June 2026

The Portuguese personal income tax return for 2026 (relating to income earned in 2025) must be submitted between 1 April and 30 June 2026, exclusively online. While some taxpayers may benefit from the automatic IRS regime, others will be required to submit Form 3 together with the relevant annexes.

Although early submission may, in some cases, accelerate tax refunds, it is generally advisable to submit the return from mid-April onwards , once the pre-filled information available on the Portuguese Tax Authority’s platform has stabilised.

In this context, where foreign-source income is involved , we strongly recommend that the preparation of the IRS return begins between January and February . This allows sufficient time to properly analyse how such income should be treated for Portuguese tax purposes, how it should be reported, and, most importantly, to assess the expected tax outcome for the 2025 tax year .

This preliminary assessment is also essential to identify and discuss potential adjustments for 2026 . Having a clear understanding, at the beginning of the year, of how 2025 income will be declared in Portugal can play a key role in defining a forward-looking tax strategy , including possible adjustments to investment policies in light of the Portuguese tax framework.

Assessment notice and payment or refund

The Tax Authority has until 31 July 2026 to issue the tax assessment notice.
Any tax due must be paid by 31 August 2026 .
Refunds must also be processed by this date, provided the return was submitted within the legal deadline.

The IRS filing process involves multiple stages , each with its own deadlines and formal requirements. Failure to comply with any of these steps may result in the loss of deductions , delays in refunds , or unnecessary tax exposure.

Our team is fully prepared to assist throughout the entire process , from the analysis of all sources of income , to the preparation and submission of the IRS return , and follow-up with the Tax Authority until final payment or refund . Early planning and professional support remain key to ensuring compliance and optimising tax outcomes.

Get in touch with us through our contact form , and we will handle the rest.

Finished Your Studies in Portugal? Article 122 May Allow You to Stay and Work

Fri, 23 Jan 2026 15:22:40 GMT

Javier Mateo | Lawyer

International graduates and researchers in Portugal can remain in the country and enter the labour market under Article 122 (letters o) and p)) of Portuguese Immigration Law. This article explains eligibility criteria, the direct in-country process to convert a student or research residence permit into a work permit, key legal requirements, and when professional advice is essential to ensure a smooth transition into professional life in Portugal.

Finished Your Studies in Portugal? Learn How Article 122 Enables Graduates to Stay and Work Legally

Portuguese immigration law provides specific mechanisms that allow certain foreign nationals to remain in Portugal after completing their studies and to enter the labour market without leaving national territory . One of the most relevant legal bases for this transition is found in Article 122 , letters o) and p), of Law no. 23/2007, which is the focus of this insight.

While Article 122 covers a broader range of situations, letters o) and p) specifically address cases where lawful residence in Portugal was initially granted for educational purposes and the corresponding studies have been successfully completed. In these circumstances, the law allows a transition to a residence permit for professional activity to be carried out within Portugal, without the need for a consular visa application abroad.

Legal Rationale of Article 122, Letters o) and p)

Article 122 regulates the granting of residence permits for the exercise of professional activity in situations that do not follow the standard consular route. Letters o) and p) apply where the foreign national already holds, or has held, a lawful residence permit in Portugal for education and has complied with the purpose for which that permit was granted.

From a legal perspective, this mechanism does not constitute a new entry into Portuguese territory. Instead, it represents a change in the legal basis of stay , grounded in continuity of lawful residence and compliance with prior immigration conditions. The legislator thus recognises that educational residence may legitimately evolve into professional residence , subject to the applicable requirements.

Article 122, Letter o): Completion of Higher Education or Research

Letter o) applies to foreign nationals who have held a residence permit for higher education or for scientific research in Portugal and who have successfully completed their academic programme or research activity. This includes completion of Bachelor, Master and Doctoral degrees, as well as recognised research activities carried out at Portuguese institutions.

Following completion, the individual may apply in Portugal for a residence permit for the exercise of professional activity . Such applications are typically supported by an employment contract or a binding job offer . Certain forms of independent professional activity may also be considered, subject to prior legal assessment and verification of admissibility under immigration and professional regulations.

The application is submitted directly to AIMA and does not involve a Portuguese Consulate. Provided the legal conditions are met, the applicant remains in Portugal throughout the procedure.

Article 122, Letter p): Secondary Education and First Cycle Studies

Letter p) applies to foreign nationals who have held a residence permit for secondary education or for the first cycle of higher education and who have completed the corresponding studies in Portugal.

This provision is particularly relevant for individuals who entered Portugal at an earlier stage of their academic trajectory and who now seek lawful access to the labour market . As with letter o), the transition to a residence permit for professional activity may be requested directly in Portugal, without any requirement to return to the country of origin or to apply for a new visa at a Consulate.

The decisive legal elements remain the successful completion of studies and compliance with the conditions applicable to the intended professional activity .

Direct Application in Portugal and Absence of Consular Procedure

A defining feature of applications under Article 122, letters o) and p), is their procedural framework. These applications are processed within Portuguese territory and do not require departure from Portugal or consular intervention.

This constitutes an important exception to the general regime applicable to employment based residence permits . When correctly framed, it allows continuity of lawful residence and reduces the administrative and legal risks commonly associated with consular processing .

Technical Requirements and Legal Assessment

Despite the clarity of the legal framework, applications under Article 122 are technically demanding. AIMA will assess the applicant’s lawful residence history, proof of completion of studies or research, the existence and legal adequacy of the professional activity and compliance with tax and social security obligations where applicable.

Independent professional activity , in particular, requires careful prior legal assessment , as admissibility is not automatic and depends on the specific circumstances of each case.

Errors in legal qualification, timing or documentation may result in delays or refusals , even where the substantive conditions are met.

Who This Applies To

This framework is particularly relevant for international students who have completed higher education in Portugal, researchers concluding scientific activities, former secondary or first cycle students entering the Portuguese labour market and employers seeking to hire graduates who already reside lawfully in Portugal.

Who Should Seek Legal Advice

Legal advice is strongly recommended where residence permits are close to expir y , where professional arrangements are atypical, where there are gaps in residence or compliance history or where independent or combined professional activities are envisaged.

Each case requires individual legal assessment to ensure that the correct legal basis is applied and that procedural risks are minimised .

For further information or tailored legal assistance, please submit an enquiry through our contact form .

Employment Termination under Portuguese Law: What Employers Need to Know

Mon, 19 Jan 2026 15:27:09 GMT

Margarida Tempera | Lawyer

Employment termination in Portugal is highly regulated, with strict legal requirements and limited grounds available to employers. This guide provides a structured overview of the statutory termination routes, procedural obligations, and financial and legal risks, helping employers plan and execute compliant, predictable, and strategic terminations.

Employment Termination under Portuguese Law: What Employers Need to Know

Terminating an employment contract in Portugal is a legally sensitive operation that requires careful planning, strict compliance with statutory rules and a clear understanding of the limited grounds available to employers.

Portuguese labour law is firmly rooted in the principle of employment stability , meaning that termination is never a matter of convenience or discretion . Instead, the law establishes an exhaustive framework governing when and how an employment relationship may come to an end, with significant financial and legal consequences for employers who fail to respect these boundaries.

For foreign companies and international investors employing staff in Portugal, this framework often represents a substantial departure from more flexible systems and is a frequent source of unexpected risk .

Termination Modalities under the Portuguese Labour Code

The Portuguese Labour Code identifies a closed list of termination modalities , ranging from expiry of the contract to dismissal, resignation and termination by agreement. From an employer’s perspective, the relevant mechanisms are limited to:

Termination by mutual agreement
Dismissal for reasons attributable to the employee
Dismissal for objective business reasons

Each of these routes is subject to different requirements, levels of scrutiny and financial exposure, making the choice of the appropriate legal basis a decisive step in any termination strategy.

Termination by Mutual Agreement

Termination by mutual agreement is often the most predictable and commercially efficient solution . In this scenario, employer and employee jointly agree to bring the employment relationship to an end, defining the termination date and the financial terms of the separation. Portuguese law allows the parties considerable freedom to shape the content of the agreement, provided it is executed in writing and clearly reflects the employee’s informed consent.

While there is no statutory obligation to pay compensation in a mutual agreement, in practice employers frequently offer a negotiated amount in exchange for certainty, a waiver of claims and a smooth exit. This route is particularly attractive in cross-border contexts, as it avoids complex procedures, reduces litigation risk and allows the employer to manage timing and cost with greater control.

Nonetheless, even mutual agreements require careful legal drafting, as employees retain a statutory right to revoke the agreement within a short period unless it is formalised before a notary, and recent legal developments have reinforced judicial scrutiny over waivers of rights.

Mutual agreements offer flexibility but require careful drafting due to statutory revocation rights and increased judicial scrutiny.

Dismissal for Reasons Attributable to the Employee (Just Cause)

Where agreement is not possible, employers may only terminate unilaterally if a legally recognised ground exists. One such ground is dismissal for reasons attributable to the employee , commonly referred to as dismissal with just cause . This is reserved for situations of serious misconduct that make the continuation of the employment relationship objectively impossible.

Portuguese courts apply this concept restrictively , assessing not only the conduct itself but also its gravity, consequences, proportionality and the employee’s prior record. Even where misconduct appears evident, dismissal is never automatic . The employer must initiate and complete a formal disciplinary procedure, respecting strict deadlines, the employee’s right of defense and detailed reasoning in the final decision.

Any procedural defect, regardless of the seriousness of the conduct, is sufficient to invalidate the dismissal.

Although a lawful disciplinary dismissal does not require notice or severance pay, the risk of challenge is high, and unsuccessful attempts frequently result in reinstatement orders or substantial compensation. As such, this route should be approached with caution and only after a thorough legal assessment of both facts and evidence .

Dismissal for Objective Business Reasons

More frequently, employers seek to terminate employment for reasons unrelated to employee fault but linked to the needs of the business . Portuguese law recognises several objective grounds for dismissal, namely collective dismissal , dismissal due to the extinction of a job position and dismissal due to unsuitability . These mechanisms are designed to accommodate economic, structural and technological changes, but they are heavily regulated to prevent abuse and to safeguard employees against arbitrary decisions .

Collective Dismissal

Collective dismissal applies when an employer intends to terminate multiple employment contracts within a short period for objective business reasons, such as a reduction in activity , restructuring or t echnological transformation . This process is characterised by mandatory consultation with employee representatives, notification of labour authorities and strict procedural timelines.

Employers must justify the economic or organisational rationale, define transparent selection criteria and explore measures to mitigate the impact of the dismissals.

Each affected employee is entitled to advance notice and statutory severance pay, calculated by reference to salary and length of service. Failure to comply with any procedural step may render the entire process unlawful, regardless of the underlying business justification, exposing the employer to significant liability.

Dismissal Due to the Extinction of a Job Position

Where the termination concerns a single role or a limited number of positions below the collective threshold, dismissal due to the extinction of a job position may apply. This ground requires the genuine elimination of the role itself , rather than dissatisfaction with the individual occupying it.

The employer must demonstrate that the position has become unnecessary and that its functions will not continue to be performed by another worker. If multiple employees hold identical roles, legally defined selection criteria must be applied in a strict order, prioritising objective factors such as performance , qualifications and seniority . As with collective dismissal, this route entails notice obligations and mandatory severance pay , and the employer must document the entire process with precision.

Dismissal Due to Unsuitability

Dismissal due to unsuitability is the most complex and least commonly used objective ground. It applies where an employee is unable to adapt to significant changes in their job , typically following the introduction of new technologies or working methods.

Portuguese law requires employers to demonstrate that adequate training was provided, that a reasonable adaptation period was granted and that no alternative position exists within the organisation. This form of dismissal is only lawful if all statutory conditions are cumulatively met and if the termination does not serve as a disguised redundancy. Because of its technical nature and high evidentiary burden, this mechanism requires particularly careful legal handling .

Financial Exposure and Litigation Risk

Across all forms of employer-initiated termination for objective reasons, financial exposure is unavoidable . In addition to statutory severance pay, employers must settle all outstanding labor credits, including unused holiday, proportional allowances and any other accrued remuneration.

In the event of unlawful termination, courts may award back pay and compensation or order reinstatement, outcomes that can significantly disrupt business operations, particularly for foreign employers unfamiliar with the Portuguese judicial landscape.

Strategic Importance of Early Legal Assessment

Navigating termination of employment contracts in Portugal therefore demands more than a general understanding of labor law. It requires strategic decision-making , accurate classification of the legal ground , rigorous procedural compliance and careful financial planning . Early legal involvement is often decisive in preventing disputes and controlling costs, particularly in cases involving international staff, restructuring or sensitive exits.

Our practice regularly advises foreign companies and international investors on employment terminations in Portugal , assisting at every stage from strategic assessment to execution and negotiation. With the right legal guidance, employers can manage terminations in a way that is compliant, predictable and aligned with their commercial objectives.

Should you be considering the termination of an employment contract in Portugal, we would be pleased to support you in identifying the most appropriate legal path and ensuring a secure and effective outcome.

For further information or assistance, please submit an enquiry through our contact form .

The C-Suite Migration to Portugal: Why IFICI is a Strategy, Not Just a Tax Break

Fri, 16 Jan 2026 11:20:37 GMT

Francisca Abrantes | Tax Consultant

The IFICI tax regime in Portugal has fundamentally changed how founders, CEOs, and senior executives approach relocation to Portugal. Often described as “NHR 2.0,” IFICI is not merely an individual tax incentive but a legal framework that tests corporate substance, governance, and the alignment of executive decision-making within international groups. For C-suite relocations, the central question is no longer the headline tax rate, but whether the Portuguese structure can withstand scrutiny at group level. This article explains why IFICI-based relocation to Portugal must be designed as a strategic legal and corporate exercise—not a tax shortcut.

The C-Suite Migration to Portugal: Why the IFICI Tax Regime Is a Strategic Decision

The relocation of Founders, CEOs, and Senior Executives to Portugal has transcended simple HR logistics. With the implementation of the Incentivo Fiscal à Investigação Científica e Inovação (IFICI), often referred to as “NHR 2.0, international groups face a sophisticated legal landscape where individual tax optimization must be balanced against corporate tax integrity.

While the 20% flat tax rate is often the headline driver, the decisive issues lie in role classification, corporate substance and group governance.

C-Suite Eligibility Starts with Legal Role Classification - Not Job Titles

IFICI does not operate on the basis of job titles such as “CEO” or “Founder”. Eligibility depends strictly on how the activity is legally classified under Article 58-A of the EBF (Estatuto dos Benefícios Fiscais) - Portuguese Tax Benefits Regime).

A frequent misconception is that IFICI always requires a formal academic degree. That is incorrect.

Where an executive qualifies as a member of a corporate governing body , eligibility is assessed primarily by reference to the corporate role and the entity in which it is exercised, not academic credentials.

Academic requirements apply only to specific legal pathways and cannot be generalized.

For C-suite profiles, this classification choice is critical because it dictates the entire tax analysis.

IFICI for C-Suite Is a Test of Corporate Substance - Not Corporate Residence

When eligibility is anchored in a governance role within a Portuguese company, IFICI ceases to be an individual tax exercise. The regime implicitly tests whether the Portuguese entity has real and defensible substance.

The key questions become:

does the Portuguese company genuinely perform the functions attributed to it?
is its governance structure consistent with its role within the group?
is there alignment between decision-making, risk assumption and value creation?

The Real Risk: Misalignment at Group Level

Where senior executives operate from Portugal through a Portuguese entity, the primary risk is not corporate residence , but misallocation of decision-making and value within the group .

If strategic decisions for foreign subsidiaries are effectively taken in Portugal without clear delegation frameworks or documented governance abroad, challenges may arise in:

profit attribution
transfer pricing
the recognition of where key entrepreneurial functions are exercised

Substance Cannot Be Replaced by Formal Labels

Attempts to neutralise these risks through artificial arrangements, such as independent contractor labels or nominal decision layers, are rarely effective. Tax authorities consistently prioritise economic reality over contractual form .

For C-suite relocations, robust corporate substance and disciplined governance are the only sustainable mitigants.

Conclusion

Relocating a C-Level executive to Portugal is a sophisticated corporate restructuring exercise, not a simple HR move. The IFICI offers extraordinary rewards, but without a robust legal framework, the tax savings of the individual could be eclipsed by the tax liabilities of the corporation.

LVP Advogados advises founders and international groups on IFICI strategies that combine executive relocation with sound Portuguese substance and coherent group governance .

For tailored advice on the IFICI tax regime in Portugal and executive relocation strategies, contact our though this contact form .

Crypto-Assets in Portugal: Current tax Framework and Key Developments

Tue, 13 Jan 2026 14:51:09 GMT

António Pratas Nunes | Lawyer

The 2023 State Budget established a dedicated tax framework for crypto-assets in Portugal, clearly defining how crypto-asset income is taxed under the personal income tax system. This regime replaces prior administrative interpretation with statutory rules and sets out the applicable income categories, exemptions, tax deferrals and reporting obligations, aligning Portuguese crypto taxation with international standards.

Crypto-Assets in Portugal: Current tax Framework and Key Developments

The rapid growth of crypto-assets in recent years has prompted legislators across multiple jurisdictions to develop specific regulatory and tax frameworks aimed at addressing both transparency and legal certainty. Portugal followed this trend with the introduction, under the State Budget for 2023 , of a dedicated tax regime for crypto-assets, bringing an end to a largely interpretative approach that had previously relied on administrative guidance and case-by-case analysis, and providing clearer guidance on the tax treatment of these assets for personal income tax (IRS) purposes.

Definition of Crypto-Assets for Tax Purposes

For IRS purposes, a crypto-asset is defined as any digital representation of value or rights that can be transferred or stored electronically using distributed ledger technology or similar technology.

According to the legislator’s clarification, unique and non-fungible crypto-assets that are not interchangeable with other crypto-assets are excluded from this definition.

This definition largely mirrors the one adopted at EU level under the MiCA Regulation, although the tax and regulatory frameworks operate independently.

Tax Classification of Crypto-Asset Income

Under the current framework, income derived from crypto-assets may fall within three different IRS income categories - Categories B (business and professional income), E (investment income) or G (capital gains) - depending on the nature of the activity carried out and the form in which remuneration is obtained.

This classification is central to determining not only the applicable tax rate, but also whether taxation occurs immediately or is deferred, as well as whether any exemptions or exclusions may apply.

Correct classification is therefore decisive, as the same transaction may lead to materially different tax outcomes depending on its legal and factual characterization.

Category B – Business and Professional Income

The law now expressly qualifies activities related to the issuance of crypto-assets as business or professional activities for tax purposes. This includes not only mining activities, but also the validation of transactions through consensus mechanisms.

Compared to the pre-2023 framework, this represents a significant narrowing of scope. Previously, tax authorities could rely on the so-called “attraction principle” to bring certain crypto-related activities within Category B, particularly where such activities were carried out on a frequent or organised basis. The current regime limits Category B taxation to cases involving the issuance of crypto-assets, including mining or transaction validation.

Income falling within this category is taxed under the general IRS regime, subject to aggregation and progressive tax rates, in line with the treatment applicable to other business and professional activities.

Category E – Investment Income

The reform also addressed the treatment of certain forms of remuneration arising from crypto-asset transactions by expressly including them within the concept of investment income.

The inclusion of certain crypto-related remuneration under Category E does not, however, override the priority rules between IRS categories, meaning that Category E only applies residually where no other category is applicable.

Under the amended legal definition, investment income encompasses economic advantages of a financial nature, whether monetary or in kind, derived from movable assets, rights or legal situations, with the express exclusion of income taxable under other IRS categories. Within this context, the law specifically refers to any form of remuneration arising from transactions involving crypto-assets.

In practical terms, income may only be taxed under Category E where:

it is not taxable under another category, in particular Category B or Category G (capital gains); and
it corresponds to a form of remuneration linked to crypto-asset transactions.

Where such remuneration is received in the form of crypto-assets, taxation does not occur at that moment. In such cases, the crypto-assets received are attributed the acquisition value of the assets transferred, and taxation is deferred until an effective onerous disposal for cash or in kind (other than crypto-assets), at which point the income is taxed as a capital gain under Category G.

This tax deferral applies only insofar as the income is not received in cash or in kind (other than crypto-assets). It further requires that such income is earned by, or due from, taxpayers or entities that are resident, for tax purposes, in another Member State of the European Union or of the European Economic Area, or in a State or jurisdiction with which Portugal has in force a double taxation convention or a bilateral or multilateral agreement providing for the exchange of information for tax purposes.

As a rule, income taxable under Category E is subject to a 28% flat tax rate , although taxpayers may opt for aggregation.

Category G – Capital Gains

Capital gains taxation was also expressly extended to crypto-assets. Gains arising from the onerous disposal of crypto-assets are taxable under Category G, provided they do not qualify as business, professional, investment or property income.

One of the most relevant features of the regime is the exclusion from taxation of capital gains arising from the disposal of crypto-assets that do not qualify as securities , provided they have been held for a period of at least 365 days and provided that such gains do not qualify as income taxable under another IRS category. These transactions, while excluded from taxation, must still be reported through Annex G1 of the annual IRS return.

Crypto-assets acquired prior to 1 January 2023 are taken into account for the purposes of calculating the holding period, which is particularly relevant for long-term investors.

Where the consideration received upon disposal takes the form of crypto-assets, taxation is again deferred until an effective disposal for cash or in kind (other than crypto-assets).

When taxable, capital gains are calculated as the difference between the disposal value and the acquisition value, taking into account necessary and duly documented expenses related to the acquisition and disposal of the crypto-assets. The FIFO (First-In, First-Out) method applies for determining the Capital Gain.

Taxable gains are subject to a 28% autonomous tax rate , without prejudice to the option for aggregation. However, where crypto-assets qualify as securities and are held for less than 365 days, aggregation becomes mandatory if the taxpayer’s total taxable income reaches the highest IRS tax bracket.

Technical swaps to stable coins and the 365-day holding period (Administrative guidance – October 2025)

In October 2025, the Portuguese Tax Authorities issued binding administrative guidance clarifying the tax treatment of technical swaps from crypto-assets to stablecoins carried out solely to enable a subsequent conversion into fiat currency.

According to this guidance, where the conversion to a stablecoin is immediate, purely technical and required due to the absence of a direct trading pair with fiat currency, such swap does not constitute a taxable disposal for IRS purposes. In these cases, the relevant taxable event occurs only upon conversion into fiat currency.

Importantly, the Tax Authorities confirmed that the 365-day holding period for the purpose of the capital gains exclusion is assessed by reference to the original crypto-asset, and is not interrupted by a technical swap to a stablecoin, provided that the subsequent conversion into fiat occurs immediately thereafter.

This position remains subject to the geographic requirements applicable to the crypto-asset tax regime, notably the existence of EU/EEA residence or an applicable double tax treaty or exchange-of-information agreement.

Exit Tax and Change of Tax Residence

A change in tax residence may also have significant implications for crypto-asset holders. Where a taxpayer ceases to be considered a Portuguese tax resident, this change is treated, for tax purposes, as an onerous disposal of the crypto-assets held at that date.

As a result, unrealised gains may become subject to taxation under Category G .

This rule is particularly relevant for taxpayers holding significant crypto positions when planning a relocation, as it may trigger taxation on unrealised gains even in the absence of an actual disposal

Final Remarks

The exclusions and exemptions provided for under the Portuguese crypto-asset tax regime apply only to transactions involving residents of the European Union or the European Economic Area, or of a State or jurisdiction with which Portugal has concluded a double taxation treaty or an agreement providing for the exchange of information for tax purposes.

Transactions involving third jurisdictions may therefore lead to materially different tax outcomes and should be assessed on a case-by-case basis, particularly in light of reporting obligations and anti-abuse considerations.

In practice, the Portuguese Tax Authorities are expected to scrutinise cross-border crypto transactions closely, particularly where structures involve low-transparency jurisdictions or high transaction volumes.

Conclusions

The introduction of a specific tax framework for crypto-assets under the Portuguese State Budget for 2023 represents a decisive step towards greater legal certainty in this area. By expressly allocating crypto-asset income to existing IRS categories, the legislator reduced interpretative ambiguity and aligned the Portuguese system with emerging international standards.

The regime combines favourable features—such as the exclusion from taxation of long-term capital gains on non-security crypto-assets and the tax deferral applicable to crypto-to-crypto transactions—with increased reporting obligations and a more structured compliance framework.

At the same time, the practical application of the rules may raise complex classification issues, particularly in situations involving mixed activities, remuneration in crypto-assets, or cross-border transactions. In this context, a careful factual and legal analysis remains essential to ensure correct income classification and full compliance with Portuguese tax law.

Overall, Portugal continues to offer a structured and, in certain circumstances, competitive tax framework for crypto-asset investors, while progressively reinforcing transparency and alignment with international tax principles.

Our tax team regularly advises clients on the classification and taxation of crypto-assets in Portugal, including cross-border transactions, changes of tax residence and compliance with Personal Income reporting obligations.

For tailored tax advice, please contact our team through the contact form .

Operating in Portugal Through Equivalent Foreign Entities

Tue, 06 Jan 2026 15:08:43 GMT

Tomás Melo Ribeiro | Lawyer

Foreign investors and international groups may engage with the Portuguese market through the legal framework of equivalent foreign entities, which allows non-resident entities to participate in corporate, commercial, and operational activities without establishing a local subsidiary or branch, while complying with Portuguese corporate, tax, and regulatory requirements.

Foreign investors and international groups engaging with the Portuguese market often encounter the concept of an Equivalent Foreign Entity (Entidade Estrangeira Equiparada). While technical in nature, this legal mechanism plays a central role in enabling non-resident entities to participate in Portuguese corporate, commercial, and operational life in a structured and compliant manner.

This framework is particularly relevant in cross-border investment structures , international group operations , and situations where a presence in Portugal is required without the immediate establishment of a local subsidiary or branch .

Understanding the Concept

In Portugal, equivalent foreign entities are legal entities established outside Portuguese territory such as companies, associations, or other corporate forms that are recognised under Portuguese law for specific legal and regulatory purposes. Although these entities do not acquire Portuguese legal personality, they may nevertheless participate in Portuguese legal and commercial relationships, most notably as shareholders or partners in Portuguese companies .

Purpose and Role in Practice

Equivalent foreign entities are designed to facilitate foreign participation in Portugal while preserving strategic and operational flexibility. They allow foreign entities to engage with the Portuguese market without necessarily establishing a permanent commercial presence, provided that the applicable legal and tax requirements are met.

In practice, this mechanism is commonly used to hold participations in Portuguese companies, appoint representatives or managers for governance purposes, support corporate and tax structuring, and develop operational activities in Portugal in a controlled and proportionate way.

How Equivalent Foreign Entities Are Commonly Used

The use of equivalent foreign entities in Portugal typically falls into several recurring scenarios, each reflecting different commercial and operational objectives.

Single, Isolated Acts (Ato Isolado)

One of the most frequent applications concerns the execution of a single, clearly delimited legal act (ato isolado). This approach is used where a foreign entity needs to carry out a specific transaction in Portugal without any intention of pursuing ongoing commercial activity.

A common example is participation as a shareholder in a Portuguese company, either at the time of incorporation or through a subsequent acquisition of shares or quotas. In such cases, Portuguese law requires the foreign entity to be properly identified and registered for that specific purpose, ensuring compliance with corporate, tax, and anti-money laundering rules.

Registration under the ato isolado framework allows the foreign entity to subscribe share capital, exercise shareholder rights, and be formally recorded in the Commercial Registry , while avoiding the administrative and legal obligations associated with maintaining a permanent establishment in Portugal.

Temporary Activities in Portugal

Equivalent foreign entities are also frequently used where a foreign entity intends to carry out temporary activities in Portugal , typically for a period of less than one year. This scenario often arises in connection with defined-duration projects such as engineering works, consulting services, technical assistance, construction-related activities, or participation in public tenders and procurement procedures.

In these situations, the foreign entity does not seek to establish a branch or subsidiary, but still requires a legal framework that allows it to operate lawfully, enter into contracts, issue invoices, and comply with Portuguese tax obligations for the duration of the activity. Registration as an equivalent foreign entity provides legal certainty for both the foreign entity and its Portuguese counterparts, while preserving the temporary and limited nature of the presence.

Employment of Staff in Portugal

Another very common and increasingly relevant use of equivalent foreign entities concerns the hiring and maintenance of employees in Portugal , without the need to incorporate a local company or formally establish a branch.

In practice, many foreign companies require a local workforce to support their activities in Portugal, such as commercial representation, technical support, project management, research and development, or back-office functions, while keeping their core structure abroad. Registration as an equivalent foreign entity provides a legally recognised framework to employ staff locally, provided that Portuguese labour, tax, and social security rules are fully complied with.

Under this structure, the foreign entity may enter into employment contracts governed by Portuguese labour law, register as an employer with the Portuguese Social Security authorities, and comply with all employer-related obligations, including payroll processing, personal income tax withholding, and social security contributions. From an employment law perspective, employees benefit from the same statutory rights and protections as those employed by Portuguese companies.

This model is particularly attractive for international groups seeking to test the Portuguese market , centralise specific functions in Portugal, or support regional or EU-facing operations, while avoiding the administrative and structural complexity associated with setting up a local subsidiary. That said, careful analysis is required to ensure that the employment structure does not inadvertently trigger the creation of a permanent establishment for tax purposes, depending on the nature of the activities carried out by the employees and their level of autonomy.

Permanent Representation Without a Branch or Subsidiary

“A further relevant scenario concerns foreign entities that, due to their legal form or jurisdiction of origin, are not subject to registration as commercial companies in Portugal but nevertheless require a stable form of representation to interact with Portuguese entities or authorities.”

In such cases, registration as an equivalent foreign entity allows the appointment of a permanent representative in Portugal , enabling the foreign entity to enter into contracts, hold participations, and comply with regulatory and tax obligations, without formally constituting a branch or subsidiary.

Across all these scenarios, equivalent foreign entities serve as a practical tool for balancing legal recognition, operational flexibility, and regulatory compliance. They allow foreign investors to tailor their presence in Portugal - whether limited, temporary, or ongoing - while ensuring transparency, proper identification of beneficial owners, and alignment with Portuguese corporate and tax rules.

Registration and Ongoing Requirements

To act as a shareholder or partner in a Portuguese company, or to operate in Portugal under this framework, an equivalent foreign entity must be registered with the Portuguese Commercial Registry . This process typically involves submitting proof of the entity’s existence in its country of origin, together with its bylaws or articles of association, and filing the registration through a duly appointed legal representative.

Once approved, the entity is formally recorded and may exercise the rights associated with its role, including voting rights, participation in corporate governance, and receipt of distributions.

Where the equivalent foreign entity is established in a third country outside the European Union, Portuguese law also requires the appointment of a fiscal representative with a tax address in Portugal . This requirement reflects tax compliance and enforcement considerations, ensuring that the Portuguese Tax Authority has a local point of contact for notifications, communications, and the fulfilment of tax obligations. The fiscal representative acts as an intermediary between the foreign entity and the tax authorities, facilitating compliance and reducing enforcement risks.

Final Remarks

Equivalent foreign entities represent a practical and legally robust solution for non-resident entities seeking to engage with the Portuguese corporate and operational environment . They offer flexibility in terms of scope and duration, allowing for one-off transactions, temporary projects, local employment structures, or more stable forms of representation, depending on the investor’s strategic objectives.

Although they do not acquire Portuguese legal personality, proper registration ensures that equivalent foreign entities may exercise enforceable rights and assume obligations under Portuguese law. In practice, careful legal and tax planning is essential to ensure full compliance with Portuguese corporate, tax, labour, and anti-money laundering requirements. Particular attention should be given to documentation, notarisation, apostille formalities, and, where applicable, certified translations.

When properly structured, equivalent foreign entities allow investors to participate in Portuguese companies and operations efficiently and transparently, facilitating cross-border activity while keeping administrative and regulatory burdens proportionate.

LVP Advogados advises international clients on the structuring and registration of equivalent foreign entities in Portugal, including corporate participation, employment structures, and ongoing operations. Further information may be requested through our contact form .

Driving Licence Reform in the EU: What the New Rules Mean for Residents and Drivers

Fri, 02 Jan 2026 17:11:08 GMT

Cleuzina Cruz | Paralegal

Accessing and maintaining the right to drive within the European Union is a key practical issue for residents and increasingly mobile citizens. In response to growing cross-border mobility, technological innovation and road safety concerns, the European Union has adopted a new regulatory framework governing driving licences . These rules, which entered into force in November 2025, aim to modernise the system, harmonise procedures across Member States and strengthen enforcement mechanisms.

One of the most visible changes is the move towards digitalisation. Under the new framework, Member States are required to introduce an EU-wide digital driving licence , accessible through a secure digital identity wallet. This digital format is intended to facilitate cross-border recognition, reduce administrative burdens and simplify interactions with public authorities. Physical driving licences will, however, remain available for those who prefer or require them.

The revised rules place a strong emphasis on road safety, particularly for novice drivers. A mandatory probationary period of at least two years has been introduced for new drivers, during which stricter rules may apply regarding alcohol consumption, seat belt use and the transport of children. The legislation also allows Member States to introduce supervised driving schemes for 17-year-olds, enabling young drivers to gain experience before reaching the standard legal driving age.

Another significant development concerns the mutual recognition of driving disqualifications throughout the European Union. Serious traffic offences committed in one Member State , such as driving under the influence or excessive speeding, may now lead to driving bans that are enforceable across all EU countries . This measure addresses previous legal gaps that allowed drivers to evade sanctions by relocating or driving in another Member State.

The new rules also harmonise provisions on licence validity and medical fitness. Driving licences for cars and motorcycles will generally have a maximum validity of 15 years , with Member States retaining the option to require medical checks upon renewal, particularly for older drivers. Training and testing requirements have likewise been updated to reflect modern driving conditions, including greater awareness of vulnerable road users and the increasing use of advanced driver-assistance systems.

Although the legislation entered into force in November 2025, Member States have been granted a transitional period to adapt their national laws and administrative systems. As a result, the practical application of certain measures may vary temporarily between countries until full implementation is achieved.

At LVP Advogados, we assist clients in understanding how these new EU driving licence rules apply in Portugal, including licence exchanges, renewals and the recognition of foreign driving rights. Our team provides legal guidance to ensure compliance with both EU and national regulations during this transition period.

For tailored advice on how these changes may affect your specific situation, you may contact our team to assess the applicable requirements and next steps.

Portuguese Golden Visa: Strategic Investment Pathways Chosen by Our Clients

Fri, 26 Dec 2025 17:23:36 GMT

Luís Maria Branco | Lawyer

Despite the legislative changes introduced in recent years, the Portuguese Golden Visa remains a viable and attractive residency solution for non EU investors . Throughout the past year, we have continued to support Clients who have chosen this program as a strategic route to Portuguese residency, mobility within the Schengen Area, and long term planning in Europe.

The Golden Visa is a residence by investment program that allows third country nationals to obtain a Portuguese residence permit through a qualifying investment, with significantly reduced minimum stay requirements when compared to standard residence routes.

One of the key reasons why this program continues to attract international Clients is the balance it offers between flexibility, mobility, and quality of life. The Golden Visa is designed for Clients who may not wish to relocate to Portugal on a full time basis , while still securing lawful residence status. Under the applicable legal framework, the permit may be maintained with a reduced physical presence requirement, generally corresponding to a minimum stay of seven days per year on average, or fourteen days over each two year period, subject to compliance with the relevant rules.

It also allows Clients to keep immigration planning separate from tax planning, as holding a Portuguese residence permit does not, in itself, trigger Portuguese tax residence. Tax residency is assessed independently, based on the applicable legal criteria and the Client’s specific facts and patterns of stay.

In addition, Golden Visa holders benefit from freedom of movement within the Schengen Area , allowing stays of up to ninety days in any one hundred and eighty day period in other Schengen countries. The permit further grants the right to live, work, and study in Portugal, preserving long term options for both the main applicant and eligible family members.

Importantly, the Golden Visa continues to be particularly advantageous for families. Family members may apply simultaneously with the main applicant , which can significantly reduce uncertainty and avoid lengthy separation periods. This is especially relevant following the recent reform of the family reunification framework applicable to standard residence permits, which introduced a general requirement of two years of prior residence in Portugal, subject to statutory exceptions. This limitation does not apply under the Golden Visa regime and remains, for many Clients, a decisive factor when choosing the most appropriate pathway to Portugal.

Many Clients also take broader lifestyle considerations into account. Portugal is widely regarded as a safe country, with a mild climate, rich cultural heritage, strong gastronomy, and access to international schools. As residents, Golden Visa holders and eligible family members may also access public systems, including public healthcare and public education, subject to registration and compliance with the general rules applicable in each case.

Although real estate investments are no longer eligible, the program continues to offer alternative pathways that remain fully valid under the current legal framework.

Based on our experience over the past year, two options have clearly stood out .

1. Investment Funds

By a clear margin, this has been the most frequently chosen route by our Clients. One of the main reasons for this preference is that, unlike donation based options, investment funds allow Clients to retain economic exposure to their capital and, depending on the fund strategy and market conditions, potentially obtain a return on the investment.

Qualifying funds are professionally managed and operate within a regulated framework, which often appeals to Clients seeking a more structured and less operationally demanding solution. Over time, we have developed close working relationships with several fund managers active in the Portuguese Golden Visa space, allowing us to guide Clients towards suitable options, while always emphasising that the final investment decision rests with the Client and their financial and tax advisers.

2. Cultural or Artistic Donation

Less frequently selected, but still relevant in specific cases, is the cultural or artistic contribution route. From a legal perspective, this option is based on a capital transfer of at least two hundred and fifty thousand euros, applied to the support of artistic production or the recovery or maintenance of Portuguese national cultural heritage, through eligible public or private entities with public interest status. Where the contribution is made in a low density area, the minimum amount may be reduced by twenty percent, to two hundred thousand euros. While this route does not provide a financial return, some Clients value the opportunity to support cultural or public interest initiatives alongside their residency strategy.

It is important to emphasise that, despite ongoing public discussion around potential changes to Portuguese citizenship law and immigration legislation, the Golden Visa program remains open, and applications continue to be accepted under the current legal framework. It remains a valid route for Clients planning ahead, including the possibility of applying for permanent residence after five years , provided the applicable legal requirements are met. These include, among other conditions, demonstrating basic knowledge of the Portuguese language, typically fulfilled through a language test at the required level.

The same five year reference period is currently applicable to Clients considering Portuguese citizenship, although this timeframe is subject to public and legislative debate and may increase in the future, potentially to ten years, depending on legislative developments.

As with any immigration and investment decision, careful legal planning is essential. If you are considering a Golden Visa application, or would like advice on the most suitable route for you and your family, our team at LVP Advogados is ready to assist you throughout the process .

Buying Real Estate in Portugal: Why the Asset vs. Share Deal Question Comes Before the Property

Fri, 19 Dec 2025 11:09:45 GMT

Francisca Abrantes | Tax Consultant

Most real estate investors focus on the obvious questions: location, price, yield, and financing.

From a tax perspective, however, the most decisive choice is often made before the acquisition takes place , and many investors only realise this when they try to exit.

That choice is simple in appearance, but complex in consequence:

Should the property be acquired directly, or through a company?

And, more importantly:

Are you buying an asset, or are you building a structure that allows you to sell shares later on?

The Hidden Question Behind Every Acquisition

In Portugal, real estate divestment typically follows one of two paths:

An Asset Deal, where the property itself is sold; or
A Share Deal, where the shares of the company owning the property are transferred.

While this distinction is often treated as a negotiation point at exit, in reality it is a structural decision taken at acquisition .

If the property is acquired personally, the exit is locked into an asset deal.

If it is acquired through a company, the share deal becomes a potential, but not automatic, option.

This difference has profound tax consequences for both buyer and seller.

Asset Deal: Simple, Transparent and Often Tax Costly

In an asset deal, the transaction is straightforward: the property is sold directly.

From a buyer’s perspective, this is usually attractive. The buyer acquires the property at market value, benefits from a “clean break” with no historic liabilities, and may depreciate the asset for corporate tax purposes going forward.

From the seller’s perspective, however, the tax cost can be significant.

From the seller’s perspective, an asset deal often triggers immediate capital gains taxation, subject to the applicable personal or corporate tax rules.

While Portuguese tax law provides certain relief mechanisms, including reinvestment deferrals and specific exemptions, these are conditional, fact-dependent and not always available in an investment context. In practice, this frequently results in a higher and less flexible tax burden at exit when compared to a properly structured share deal.

In many cases, this leads to substantial tax leakage at exit.

Share Deal: Tax Efficient But Not Without Trade-Offs

A share deal changes the object of the transaction. The buyer acquires the company that owns the property, not the property itself.

For the seller, this can be extremely attractive. Under certain conditions, Portuguese tax law allows capital gains on the sale of shares to be exempt at corporate level.

However, what the seller gains, the buyer often prices in.

When acquiring shares, the buyer inherits the company’s historical accounting position. If the property was acquired years earlier at a lower value, the buyer also inherits a latent capital gain , which may crystallise upon a future sale.

As a result, share deals often involve:

Detailed tax modelling,
Price adjustments,
And careful allocation of historic tax risk.

The trade-off is complexity. Share deals require careful due diligence, robust corporate governance and disciplined structuring from day one.

But for investors with medium- to long-term horizons, that complexity is often precisely where value is created.

The Real Issue: Structuring for Exit Before You Enter

The core question is not whether asset deals or share deals are “better” in the abstract.

The real issue is this:

How do you intend to exit and how much tax optionality do you want when you do?

Too often, investors discover at divestment stage that:

The structure chosen at acquisition locked them into an inefficient tax outcome;
Opportunities for exemption or deferral are no longer available;
Restructuring is either impossible or prohibitively expensive.

By then, it is too late.

Why This Analysis Must Happen Upfront

A well-designed acquisition structure is about preserving strategic flexibility tomorrow .

Choosing between an asset deal and a share deal requires:

an understanding of the investor’s profile (individual vs corporate, resident vs non-resident);
clarity on holding period and exit strategy;
alignment between corporate, tax and transactional considerations.

This is a strategic decision with long-term consequences.

Final Thought

There is no universally “best” structure.

An asset deal may be the right answer for one investor. A share deal may be essential for another.

What matters is understanding, before you buy , how today’s structure affects tomorrow’s exit. This is a question of strategy.

If you are considering acquiring or divesting real estate in Portugal and wish to understand the associated tax implications, feel free to contact our team for tailored advice

D3 Visa - Portugal’s Smart Route for Global Talent and Their Families

Thu, 18 Dec 2025 13:43:49 GMT

Javier Mateo | Lawyer

Portugal’s D3 residence visa has long been positioned as a premium immigration route for highly qualified professionals . Designed for individuals carrying out highly qualified activities , whether under an employment relationship or on an independent basis, the D3 visa reflects Portugal’s strategic commitment to attracting global talent . Following the most recent reform of the Portuguese Immigration Law, which entered into force in October 2025, this residence pathway has become even more compelling, particularly from a family mobility perspective .

The D3 visa corresponds to the residence authorisation provided for under Article 90.º, no. 1 of Law no. 23/2007 . It applies to third country nationals who will perform an activity requiring specialised technical skills, a high level of qualification or professional experience of an exceptional nature. In practice, it covers senior executives, engineers, IT specialists, researchers, consultants, university lecturers and other professionals whose profiles are considered strategic for the Portuguese economy .

Under Regulatory Decree no. 84/2007, of 5 November, the residence permit associated with a D3 visa requires, in summary, a valid passport and D3 visa, proof of lawful entry into Portugal, evidence of a highly qualified activity under Article 90.º, no. 1 of Law no. 23/2007 (such as an employment or service contract), proof of relevant academic or professional qualifications, evidence of accommodation and means of subsistence where applicable, criminal record certificates duly legalised, authorisation to consult the Portuguese criminal record, tax and social security registration when required, and proof of professional registration where legally necessary.

Unlike more general residence routes, the D3 framework is built around qualification and added value. Applicants must demonstrate that they hold advanced academic qualifications or equivalent professional experience and that their activity in Portugal is genuinely highly qualified . This requirement is balanced by a more robust legal status, enhanced credibility before the authorities and increased predictability in the residence process.

The most significant recent development, however, lies not in the admission criteria but in what follows after residence is granted. Th e reform of Law no. 23/2007 has substantially reshaped the rules on family reunification, and D3 residence holders are now among the main beneficiaries of this shift .

As a general rule, set out in Article 98.º, no. 1 of Law no. 23/2007, a foreign national must hold a valid residence permit for at least two years before being entitled to apply for family reunification. This waiting period has traditionally represented a major obstacle for internationally mobile professionals, particularly those relocating with spouses and children or planning medium term settlement.

The legislator has now recognised that such a delay is incompatible with the realities of highly qualified migration. As a result, Article 98.º, no. 3 introduces an express exemption from the two year waiting period for certain categories of family members, including the family members of holders of residence permits granted under Articles 90.º, 90.º-A and 121.º-A of Law no. 23/2007.

Because the D3 visa is legally anchored in Article 90.º, no. 1, D3 residence holders fall within the scope of this exemption. In practical terms, this means that family reunification may be requested immediately , subject to compliance with the general legal requirements applicable to the family members concerned.

The exemption applies, in particular, to minor or incapacitated children who are dependent on the applicant, as well as to a spouse or partner who is also the parent or adoptive parent of a dependent minor or incapacitated child . For highly qualified professionals relocating to Portugal, this represents a decisive advantage. It allows families to plan relocation as a single project rather than in fragmented stages, reducing emotional strain and increasing stability.

From a strategic perspective, this reform aligns Portugal with best international practices in talent mobility. Highly qualified professionals rarely move alone. Career decisions at this level are deeply intertwined with family considerations, schooling, healthcare and long term residence planning. By removing the waiting period for family reunification in qualifying cases, P ortugal sends a clear message that it is not only open to talent but also to the families that come with it .

The impact is also relevant for employers and organisations operating in Portugal. The D3 visa, combined with early access to family reunification, strengthens Portugal’s position in international recruitment. It reduces resistance from candidates who might otherwise hesitate to relocate and enhances retention by fostering family stability from the outset.

From a legal and advisory standpoint, this change reinforces the importance of careful immigration strategy design . Choosing the D3 route, where the professional profile allows it, can now generate advantages that go well beyond the initial residence authorisation. It affects family planning, schooling decisions, tax structuring and long term residence and nationality strategies.

In short, the D3 visa has evolved from a strong residence option into a truly holistic mobility solution . With the October 2025 reform, highly qualified professionals gain not only a direct and structured path into the Portuguese labour market but also a family friendly legal framework that recognises mobility as a shared journey .

For global talent looking for a European base that values both expertise and family unity, the message is clear. Portugal, through the D3 visa, offers certainty, opportunity and stability.

If you meet the professional criteria and have been considering this move, the legal framework is now clearly aligned in your favour. Should you wish to explore this option with tailored legal support, our team is available to assist you and your family throughout your relocation to Portugal.

Portuguese Nationality Law Reform: What the Constitutional Court Declared Unconstitutional

Tue, 16 Dec 2025 18:58:59 GMT

The Portuguese Constitutional Court has now clarified which provisions of the proposed reform of the Nationality Law were declared unconstitutional, preventing the reform from entering into force in its current form.

Rather than assessing the reform as a whole, the Court focused on specific provisions of the parliamentary decree and concluded that several of them w ere incompatible with the Portuguese Constitution.

Key points declared unconstitutional by the Court:

1. Excessive restrictions on access to Portuguese nationality

The Court rejected provisions that significantly tightened the conditions for acquiring Portuguese nationality. It considered that these changes went beyond what is constitutionally acceptable and failed to respect fundamental principles such as proportionality.

Importantly, the Court stressed that reforms in this area must take into account the situation of individuals who are lawfully resident and integrated in Portugal, as well as their legitimate expectations under the existing legal framework.

2. Impact on situations already in progress

Another key issue concerned provisions that could affect residence or integration processes already underway.

The Court found that changing the rules in a way that could disrupt paths already started under the current law violated constitutional principles of legal certainty and the protection of legitimate expectations. In simple terms, the rules of the game cannot be changed midway for those who have relied on the law as it stands.

3. Loss of Portuguese nationality as a criminal consequence

The proposed reform also included a provision allowing the loss of Portuguese nationality as a result of certain criminal convictions within a defined period after nationality had been acquired.

The Constitutional Court declared this solution unconstitutional, holding that it breached fundamental principles such as proportionality and equality, and could not be accepted within the Portuguese constitutional framework.

What this means in practice

As a result of these findings, the proposed reform of the Nationality Law cannot be approved in its current form and has no legal effect.

There are no changes to the law at this stage. The current Portuguese Nationality Law remains fully in force, and all nationality applications continue to be submitted and assessed under the existing rules.

Parliament may decide in the future to revise the rejected provisions and present a new legislative proposal. Any new proposal would follow a new legislative process and may again be subject to constitutional review.

Our team will continue to monitor developments closely and will share further updates as soon as relevant information becomes available. Should you require clarification on how these developments may affect your situation, or wish to assess your eligibility under the existing rules, our team would be pleased to assist .

Portugal SNS Access for Foreign Nationals

Fri, 12 Dec 2025 13:30:35 GMT

Cleuzina Cruz | Paralegal

Accessing healthcare is one of the first practical concerns for anyone relocating to Portugal, whether for work, study, retirement, or family reasons. Portugal’s National Health Service (Serviço Nacional de Saúde, SNS) provides broad and universal coverage , but for newcomers, understanding how to enter the system is essential to ensure timely and stress-free access to care.

Foreign nationals who reside legally in Portugal are, as a rule, entitled to the same healthcare benefits as Portuguese citizens. This includes holders of residence permits, temporary residents, and EU or EEA nationals who register with the local authorities. To benefit from the SNS, residents must obtain a Número de Utente , the individual patient identifier required for scheduling appointments, accessing medical records, and benefiting from subsidised services. This number can be requested at the local health centre (centro de saúde) upon presentation of proof of residence, identification, and, when applicable, social security registration .

EU and EEA citizens enjoy simplified access through the European Health Insurance Card (EHIC), which covers medically necessary treatment during short-term stays. However, those intending to reside in Portugal for longer periods must complete local registration and obtain a Número de Utente to gain full access to SNS services. Non-EU nationals must generally present a valid residence permit and supporting documentation before being fully integrated into the healthcare system.

Portugal also guarantees essential medical care even for individuals who do not hold legal residency, particularly in emergency situations. Vulnerable groups such as children, pregnant women, and individuals with certain infectious diseases are entitled to necessary treatment under the country's public health obligations. Although administrative steps may be more demanding for non-residents, the SNS ensures access to urgent and essential healthcare.

Once registered, patients benefit from subsidised services. Consultations, diagnostic tests, and treatments usually involve modest co-payments, and foreign residents with a Número de Utente can register with a family doctor (médico de família), who coordinates preventive care and referrals to specialists. For those who already have private insurance, the SNS often works as a complementary system, particularly for services not covered by private plans.

While many health centres can provide some assistance in English, administrative procedures and official documents are typically in Portuguese . Some centres offer translation support or run migrant health offices designed to assist foreign nationals. It is also important to note that certain regions may face longer waiting times or shortages of family doctors, making early registration advisable.

For foreign nationals who understand the requirements, accessing healthcare in Portugal is straightforward. By securing a Número de Utente and completing the necessary formalities, newcomers can make full use of the SNS’s comprehensive coverage.

At LVP Advogados, we support both residents and non-residents in navigating the healthcare registration process, ensuring compliance with Portuguese regulations and timely access to medical care. If you are looking to obtain a Número de Utente and gain full access to Portugal’s National Health Service, please do not hesitate to contact our team . We would be pleased to guide and assist you throughout the entire process.

When wanderlust Turns into Paperwork: Understanding Residence Under Article 122.º j)

Thu, 11 Dec 2025 18:43:54 GMT

Danielle Avidago | Immigration Consultant

Have you ever traveled somewhere and with a lust of wonderment, while you sat silently in a beautiful and peaceful park bench of this new and exciting city you just discovered, though to yourself: “I could live here”? This feeling is more common than we think. Falling in love with a new city, the different and lighter air it carries, and the smiling and joyful people that unworriedly walk past you, living their lives in the place you now dream of calling home-sweet-home. When a third-country national visit any city in Portugal, this feeling is almost inevitable.

Some people simply follow their instinct and leave everything behind. They apply for a residence visa without thinking twice, grab a suitcase, and embark on a no-return adventure towards a new life in Portugal.

Most people, however, fear losing everything they built in their home countries only to discover that the city of their dreams may not be the best place for them to live. These people usually apply for a short stay visa to understand whether living in Portugal feels as good as dreaming about Portugal.

One year has passed and – surprise, surprise – you have never been happier! You have friends in this new city, the barker who serves you a “pastel de nata e um galão” everyday knows you by name, and you have started working in a great job. Life is good! Until you realize that you are in Portugal under a short stay visa that has long expired. What now? To go back to your home country – that no longer feels like home – and apply for a residence visa will cost the life you have already concurred under your short stay visa. You may lose your friends, the baker will forget your name, and the job you fought could be offered to someone else.

Does this mean you have to officially declare that your life in Portugal is over? Not necessarily.

Article 122.º of the Portuguese Immigration Law lists categories of third‑country nationals who may obtain a temporary residence permit in Portugal without having to come back to their home country and apply for a residence visa. Subparagraph j) covers a practical - and often overlooked - situation: people who have remained in Portugal after their right of residence expired and did not leave the country.

This provision was initially designed for applicants who either forgot or could not afford to renew their residence permit but still maintained all the legal requirements that would have allowed them to remain lawfully in Portugal.

Today, due to extended processing times both at Portuguese Consulates worldwide and within AIMA’s growing backlog, the application of Article 122.º j) has become increasingly relevant. In practice, AIMA has been accepting applications from people who meet the factual and documentary conditions to regularise their status through this route even after their right of residence has lapsed.

If the applicant fulfils the specific requirements, Article 122º j) can enable submission of an application for a temporary residence permit without the extra step of obtaining a visa abroad. That removes a procedural hurdle but does not guarantee automatic approval - AIMA still examines the applicant´s entire file.

As long as you can prove that you have been continuously living in Portugal through the right set of documents, have not committed any crimes during your stay and contributed to the Portuguese society´s growth, you should be eligible to apply for a permanent residence permit under article 122º j).

Think of Article 122.ºj) as a soft knock on the door of legal regularisation: it does not magically open the door, but it lets certain people request admission without having to queue up outside the embassy.

If this story feels a little too familiar and you wish to continue growing roots in the country that has already given you a sense of home, feel free to reach out to us . We will be delighted to assist you in applying for a temporary residence permit under the category that best fits your situation. Do not let paperwork stand between you and the life you dream of having.

Residential Lease Agreements in Portugal – Legal Framework and Practical Considerations

Sun, 30 Nov 2025 22:46:01 GMT

Tomás Melo Ribeiro | Lawyer

The Portuguese legal framework governing residential leases is rooted in principles of contractual autonomy, proportional protection of housing stability and legal certainty. While parties remain free to shape many aspects of their contractual relationship, the law imposes mandatory rules on lease duration, renewal, termination, communications and rent updates, establishing a balanced structure intended to safeguard both landlords and tenants. Understanding these provisions is essential to prevent disputes and ensure compliance with the Urban Lease Regime (Regime do Arrendamento Urbano – RAU) and the Civil Code.

Duration of Residential Leases

A. Fixed-Term Leases
Fixed-term residential leases are widely used in Portugal and are strictly regulated. The law requires that the initial duration be no shorter than one year and no longer than thirty years. Any contractual provision outside these limits is automatically adjusted to the statutory minimum or maximum, ensuring the enforceability of the agreement while preventing legally incompatible durations.

These limits do not apply to leases expressly concluded for non-permanent or temporary occupation. Typical examples include temporary professional relocation, academic or vocational training, internships, or other short-term needs. In such cases, the exceptional and temporary nature of the occupation must be clearly identified in the contract; otherwise, the lease may be recharacterised as permanent housing, with the corresponding legal constraints.

Fixed-term leases renew automatically unless renewal is contractually excluded. The renewal period generally mirrors the initial term, although shorter contracts may renew in three-year cycles by operation of law. This mechanism promotes continuity while allowing periodic reassessment of contractual terms.

Both parties may oppose automatic renewal. The statutory notice periods for landlords are as follows:

240 days for leases of six years or more.
120 days for leases from one to six years.
60 days for leases from six months to one year.
One-third of the contractual term for leases under six months.

Tenants benefit from shorter notice periods and may terminate the lease after one-third of the initial duration has elapsed, provided they give:

120 days’ notice for contracts of one year or more.
60 days’ notice for shorter terms.

If the landlord has already notified opposition to renewal, the tenant may terminate the agreement at any point before the end date by giving 30 days’ notice. These rules ensure predictability and prevent abrupt termination, preserving a fair balance between contractual stability and flexibility.

B. Indefinite-Duration Leases
Leases may also be concluded for an indefinite duration. This model offers tenants strong protection and housing stability. After six months of effective occupation, tenants may terminate the lease at any time, without having to justify their decision, provided they give:

120 days’ notice for leases of one year or more.
60 days’ notice for leases under one year.

Landlord’s Termination Rights in Indefinite-Term Leases

In contrast to tenants, landlords enjoy very limited rights to terminate indefinite-term residential leases. Termination is legally permissible only in the following situations:

When the property is required for the landlord’s or a first-degree descendant’s permanent residence.
When demolition or deep structural works are necessary, including renovations that are incompatible with continued occupation and do not result in an equivalent dwelling.
When the landlord opts for termination without cause, which requires giving the tenant at least five years’ written notice.

Outside these exhaustively listed situations, landlords cannot unilaterally terminate an indefinite-term residential lease. Any termination attempt that falls outside the statutory grounds risks being declared invalid.

Legal Requirements for Communications

The law establishes formal requirements for communications related to renewal, termination and rent updates. These rules ensure legal certainty and help prevent disputes grounded in defective notification.

Notices to tenants must be sent to the leased premises unless the tenant has previously indicated a different address in writing. Notices to landlords must be sent to the address identified in the contract or subsequently communicated.

A notice is deemed legally effective even if:

the addressee refuses delivery, or
it is received by someone other than the intended recipient at the legally designated address.

For family homes, notices issued by the landlord must be addressed to both spouses, while notices from tenants may be validly signed by either spouse. These formalities reflect the legislator’s goal of ensuring transparency and clarity in communications that affect the legal position of both parties.

Rent Updates

Leases may include their own mechanism for rent updates. In the absence of such a clause, landlords may apply the annual statutory update coefficient published by the National Statistics Institute (INE), provided at least one year has elapsed since the lease began or since the last update.

The coefficient is based on the Consumer Price Index (excluding housing). As an example, the 2025 coefficient of 1.0216 corresponds to a 2.16 percent increase. When rent has not been updated for three consecutive years, cumulative coefficients may be applied, although subject to a global cap (currently 11.1 percent), preventing disproportionate increases.

Special transitional rules remain in place for pre-1990 leases that have not transitioned to the Novo Regime do Arrendamento Urbano (NRAU). In those cases, rent updating requires a formal procedure initiated by the landlord, and tenants may oppose increases based on specific socioeconomic vulnerability criteria protected by law.

Conclusion

Residential lease agreements in Portugal are governed by a comprehensive and protective legal framework that balances contractual freedom with strong safeguards for tenants and legitimate expectations for landlords. Knowledge of the statutory rules governing duration, renewal, termination, rent updates and communication requirements is essential to avoid invalid acts, prevent disputes and ensure compliance with the Urban Lease Regime.

In a rental market that is increasingly dynamic and legally complex, precise drafting and specialised legal advice are key to securing stable, transparent and enforceable contractual relationships for both landlords and tenants.

A New Legal Era for Property Owners: Law n.º 67/2025 Strengthens Penalties for Illegal Occupations and Enables Immediate Eviction

Thu, 27 Nov 2025 18:04:03 GMT

The Portuguese Legislature has just enacted one of the most significant reforms in property-law enforcement in recent decades. With the publication of Law n.º 67/2025 on 24 November 2025, major amendments were introduced to Portuguese legislation, fundamentally altering how illegal occupations (“ocupações ilegais”) of both private and public properties are addressed by law enforcement and the courts. The new rules come into force on 25 November 2025.

Higher penalties for usurpation of property

Under the revised Article 215.º of the Penal Code, the mere invasion or occupation of a property without legal entitlement is now punishable by up to two years’ imprisonment or a fine of up to 240 days, where no violence, threat, or aggravating circumstance is involved.

If the occupation is carried out with violence or serious threat, or if the illegally occupied property is a private residential home, the penalty may rise to three years’ imprisonment (or a corresponding fine).

Where the occupier acts professionally or with intent to profit, using illegal occupation as a structured activity or business model, the penalty now ranges from one to four years. The law also expressly penalises attempts at illegal occupation, a new development for this offence.

These amendments reflect a clear shift: property usurpation is now treated as a criminal offence with substantial penal consequences.

Faster eviction and stronger procedural tools

The reform also introduced procedural mechanisms to expedite the restitution of property to its rightful owners. Under the revised Article 200.º of the Code of Criminal Procedure, a judge may order immediate restitution of the property during the investigation phase, provided there is strong evidence of illegal occupation and clear identification of the lawful owner. This substantially shortens the time properties remain unlawfully occupied.

Where the property belongs to the public housing stock, authorities must conduct a socio-economic assessment of the occupants first. Where applicable, social or housing support measures must be activated before eviction. If occupants voluntarily agree to leave, the complaint may even be withdrawn.

Why this reform matters now

Portugal has been facing severe pressure on the housing market and an increase in informal or irregular occupations of both private homes and public housing. Municipalities and private owners have long struggled with slow procedures, bureaucratic obstacles and limited enforcement tools.

By criminalising a broader range of illegal occupations, increasing penalties, and enabling swift restitution, the new law offers a more effective legal pathway for property owners, condominium associations, investors and public landlords.

Key points for occupants and landlords

A criminal complaint by the owner is required to trigger the criminal procedure.
Restitution can now be ordered early in the investigation phase.
Public housing cases require socio-economic assessment and activation of support programmes.
Illegal occupants may now face significant criminal penalties and quick eviction.

Practical implications for legal practice

Encourage clients to file complaints immediately once illegal occupation is identified and ownership is documented.
Prepare complete evidentiary packages for swift restitution.
Act quickly to maximise the possibility of early restitution.
For public-housing cases, coordinate with social services to ensure compliance with support obligations.

Law n.º 67/2025 marks a turning point in Portuguese property law and criminal enforcement. With tougher penalties and streamlined restitution procedures, property owners and investors now have real, effective instruments to reclaim illegally occupied properties far more quickly.

If you would like to discuss how the new law applies to a specific case , please contact us .

“I will complete 5 years of residency in Portugal in March 2026, what can I do?”— practical alternatives in light of the new nationality rules

Tue, 25 Nov 2025 14:13:04 GMT

Danielle Avidago | Immigration Consultant

Portugal’s longstanding five year route from legal residence to naturalization has shaped the long term plans of many foreign residents. Many chose Portugal rather than other EU countries precisely because the five year rule offered a relatively short pathway to European citizenship. That landscape is now changing.

In late October 2025 the Portuguese Parliament approved broad reforms that raise the ordinary residence threshold for naturalization to ten years for most nationalities, and to seven years for citizens of the EU and Portuguese-speaking (CPLP) countries. The approved-by-the-parliament changes also tightens integration tests and requires knowledge and compliance to the Portuguese culture and national symbols.

To save the day, the Socialist Party (PS) sent, on the 19 November 2025, the diploma to the Constitutional Court requesting a preventive review of its constitutionality. The Constitutional Court now has 25 days to issue its decision, which means the deadline runs until 15 December 2025. During this period, the President will not promulgate the law, and the reform cannot enter into force. Until the Court issues its ruling, the timeline remains uncertain.

This miraculously extended timeframe to apply for Portuguese citizenship may still not be enough for residents who fulfill 5 years of legal residency in early 2026. What options does these residents have while they wait to be eligible to apply for Portuguese citizenship under the new law? Below, we set out the main alternatives you should consider to to protect your legal position and preserve your options while awaiting the final outcome of the constitutional review:

1. Apply for Portuguese nationality now, if you are eligible

If you completed - or will very soon complete - 5 years of legal residency in Portuga l and have already taken an accredited Portuguese test or course, the time to submit your Portuguese citizenship application is now! Submitting a nationality application before the new law enters into force can be decisive. If you have not yet reached out to us to assess whether you are eligible – or if to apply right now is the best appropriate route for your specific case – we strongly recommend doing so at the earliest. Time has rarely been so critical.

2. Secure permanent residence permit

Permanent residence remains a distinct and robust option. Under Portuguese and EU rules, after five years of lawful residence you can apply for Portuguese permanent residence, granting you additional 5 years of legal residence. If you also have already taken an accredited Portuguese course or test in hopes of applying for Portuguese citizenship in the eyes of the current law, this alternative is a great way of using such certificate and proving your knowledge to Portuguese. The permanent residence route is widely recommended for clients who value certainty and mobility but do not (yet) meet the naturalization timelines.

3. Apply for the EU long-term resident status

The EU long-term resident status is recommended for our clients who wish to explore Europe in a more permanent and relaxed way, granting much of the practical security of citizenship such as right to live, work and travel in all Schengen countries. You may also show off your newly acquired Portuguese knowledge in this alternative, as A2 knowledge of the Portuguese language is also a requirement .

4. Other Portuguese citizenship application routes

In your 5 years of legal residency in Portugal, you may have found love in a Portuguese citizen´s heart and become eligible to apply for Portuguese citizenship based on being married to a Portuguese citizen for over 3 years or being in a recognized Civil Union for over 3 years with a Portuguese citizen. Where applicable, the family route to nationality remains an important alternative.

If during your time here, you have also found Portuguese roots through a grandparent or even a great-grandparent – if the changes to the nationality law enter in force as it has been approved by the Parliament – this may also be a citizenship path to consider.

To conclude , we recommend verifying if you fulfill the minimum requirements to apply for Portuguese citizenship now : 5 years of legal residency completed, valid residence permit, and A2 knowledge of Portuguese; or, being married or in a civil union with a Portuguese citizen for over 3 years. If not, life in Portugal is not yet over. You can apply for permanent residence, or for the EU long term residence status, or keep renewing your residence permit until you are eligible to apply for Portuguese citizenship under the new law.

These steps preserve present rights and give you flexibility in a rapidly changing environment. We can assist you conducting an eligibility audit, assemble the nationality or permanent-residence dossier, and advise on interacting with AIMA and the civil registry to minimize procedural delay. We can prepare a tailored action plan based on your exact dates of residence, and personal circumstances.

Your timely Portuguese citizenship application and/or a safe and complete permanent residence application may simply be one email away! Please feel free to reach out for tailored legal support .

Eviction in Portugal Made Simple: What Tenants Can Do When They Believe the Landlord Is Wrong

Mon, 24 Nov 2025 12:11:45 GMT

Margarida Tempera | Lawyer

Have you just received a registered letter with acknowledgment of receipt or notification telling you that you are about to be evicted? You are not alone: many tenants feel an immediate sense of panic and assume they must leave right away. Yet a notice of eviction does not always mean you have to surrender your home. Eviction can be triggered by several situations, from unpaid rent or persistent delays to the end of a fixed‑term lease or the landlord’s decision not to renew the contract, or even a dispute over essential works. In some cases, tenants withhold rent because the property has serious defects, or landlords fail to follow the correct procedures before seeking eviction.

This article is aimed at tenants (arrendatários) who have been notified of a special eviction procedure (procedimento especial de despejo) and want to understand their rights. It explains in straightforward terms how the process works, how to respond to a notice, the steps to oppose an eviction and the key deadlines to respect. Although eviction proceedings are designed to be fast, there are legal avenues to contest them when the landlord’s claims are unfounded, or the procedure has not been correctly followed.

Under the Portuguese law the landlord may ask the Balcão do Arrendatário e do Senhorio (BAS) to issue an enforceable title when a lease ends or when there is a serious breach by the tenant. Common grounds include the non‑payment of rent, expiry of the agreed term, the landlord’s decision not to renew the contract or the tenant’s opposition to essential works. To use this special procedure, the landlord must provide a written lease, demonstrate that the tenant was notified by registered letter with acknowledgment of receipt, and show evidence that the lease was duly registered for tax purposes, among other required documents.

Once the BAS accepts the application it sends the tenant a registered letter with acknowledgment of receipt informing them of the landlord’s request. At that moment the clock starts ticking you have only fifteen days to respond. Within this single 15‑day window you must choose whether to leave the property, to pay what is owed and settle the matter, or to file a formal opposition. Doing nothing is the worst option because the BAS will convert the landlord’s request into an enforceable order and you will be required to hand over the property within 30 days once the order becomes final; after that, you will be given a deadline to remove your belongings.

If you decide to contest the eviction, you must lodge a written opposition with the BAS within the same 15‑day period. Portuguese law requires tenants to be represented by a lawyer at this stage; without proper representation the BAS will not accept your opposition and the eviction will proceed. The opposition should set out the reasons why the eviction is not justified, for example, that the rent has been paid, that you withheld it because the property has defects, or that the termination notice did not comply with legal requirements, and it must be accompanied by supporting documents.

When filing an opposition, you will also need to pay a court fee and, in most cases, deposit the rent and charges claimed by the landlord. The deposit (known as a caução ) is not a payment of the debt but a guarantee that the funds will be available if the landlord’s claim succeeds. Failure to include proof of payment of both the fee and the deposit means your opposition will be deemed not filed and the eviction will proceed. The only exception is for tenants who have been granted legal aid; in those cases, the deposit requirement may be waived, although courts differ on how this rule is applied. If you cannot afford the fee and deposit, you should apply for legal aid through the Social Security system as soon as possible.

Once a valid opposition is lodged, the BAS will forward the case to the competent civil court. The judge will examine whether the lease termination is valid and, if rent arrears exist, whether they are owed. If the court agrees with your opposition, the eviction will be dismissed and the lease will remain in force, unless another valid legal ground for termination exists under Portuguese law, meaning that the contractual relationship continues to operate normally until a lawful cause of cessation is demonstrated. In either situation the deposit you lodged will be released, returned to the landlord if you lose, or back to you if you succeed.

Throughout the process, legal advice is essential. Opposing an eviction is a technical exercise with strict deadlines and failing to respect the 15‑day limit or to pay the required fees can cause your opposition to be dismissed automatically. A qualified lawyer will assess whether the landlord’s notice of termination is valid, whether the arrears have been correctly calculated and whether there are procedural errors that could defeat the eviction. Legal aid may be available if you cannot afford representation. Even if you plan to negotiate with your landlord, early advice can prevent costly mistakes.

In short, the special eviction procedure is designed to be fast, but it does not remove your right to defend yourself. When you receive a BAS notification, mark the fifteen‑day deadline, seek legal advice, gather proof of payment if necessary and prepare to lodge the required fee and deposit. Bear in mind that some evictions fail because the landlord did not comply with the legal steps or because the alleged breach is unfounded. Acting promptly and with proper guidance can either stop the eviction altogether or at least buy you valuable time to reorganize your life.

If you are facing an eviction procedure or have doubts about the validity of a notice you received, LVP Advogados can provide informed, practical guidance. If you wish to discuss your case or obtain personalised guidance, you may reach out to our team .

Stuck in Your AIMA Process? Legal Options To Accelerate Your Case in Portugal

Fri, 21 Nov 2025 16:31:43 GMT

Javier Mateo | Lawyer

Margarida Tempera | Lawyer

If your immigration process in Portugal has been pending for months or even years without any update, and you feel increasingly uncertain, anxious or simply stuck, you are far from alone. Many applicants comply with every legal requirement, submit all documents, attend appointments and pay the fees, only to face prolonged administrative silence that disrupts their personal and professional plans.

What most people do not realize is that this silence is not an inevitable part of the system, as Portuguese law provides a specific judicial mechanism that allows applicants to challenge excessive delay and compel the authorities to issue a decision .

This text explains, in clear and accessible terms, what this mechanism is, when it can be used, the deadlines that must be respected and what alternatives exist if too much time has already passed.

Excessive delay has become a structural feature of immigration procedures, with individuals often feeling powerless as weeks turn into months and, in many cases, years. Although it is understandable that people assume nothing can be done until the administration “gets to their file”, this assumption is incorrect. Portuguese administrative law recognizes that silence can cause serious harm and therefore provides tools to prevent authorities from indefinitely postponing decisions. When the legally prescribed decision deadline is exceeded, the law allows the individual to trigger judicial intervention to restore legality and compel the authority to act.

The key instrument in this context is the administrative action compelling the practice of a legally due act, set out in Article 66.º, in connection with Article 37.º (1)(b) of the Code of Procedure in the Administrative Courts (CPTA), which enables the administrative court to order the authority to issue the decision that it is legally obliged to take.

Importantly, the purpose of this action is not to influence the substance of the decision , that is to say, whether the residence permit is granted or denied, but to ensure that the administration fulfils its duty to decide, rather than allowing silence to obstruct rights . It is therefore a remedy against inaction, not a second opportunity to argue the merits of your application.

It is also important to distinguish this mechanism from the urgent subpoena set out in Article 109.º-A of the same Code. While Article 66.º addresses unlawful administrative silence after a missed decision deadline, Article 109.º-A is a separate and exceptional mechanism designed for situations where fundamental rights are at stake, and in which urgent judicial intervention is necessary to avoid serious and irreparable harm. Both instruments aim to restore legality, but they operate independently and under different assumptions.

Despite historically Portuguese administrative courts avoided compelling the public administration to act, for fear of violating the separation of powers, the changes in the legislation shifted this paradigm: today, judges may intervene whenever the law imposes a clear duty to act, and the administration unjustifiably fails to comply. This does not mean that the court replaces the authority in matters involving discretionary evaluation, but rather that it may set a binding deadline and require the decision to be issued within the parameters defined by law.

It is also important to understand that the effect of this action depends on the nature of the act. If the act has strictly binding content, meaning the law leaves no discretion because all requirements are met, the court may ultimately substitute the missing act through its ruling. If the act involves administrative discretion, the court cannot decide the content on behalf of the authority, but it can impose a binding deadline and parameters to ensure that a decision is finally issued. In both situations, the purpose is the same: preventing the administration from paralyzing rights through inaction.

For applicants considering this mechanism, it is essential to understand how Article 66.º CPTA operates in practice. The first requirement is that the authority must have exceeded the legal deadline for issuing the decision. For many residence permit applications, this deadline is often around ninety days, although it is only an indicative reference and varies depending on the specific procedure. Once the deadline has passed, the applicant must send a written request asking the authority to decide. Only if the authority remains silent following this request does the right to judicial intervention arises. This requirement preserves the principle of dialogue between the individual and the administration and provides the authority with a final opportunity to fulfil its duties voluntarily before judicial escalation.

A crucial dimension of this mechanism, and one that is often overlooked, is that the right to bring the action expires. Under Article 69, the right to compel the practice of the legally due act must be exercised within one year after the legal decision deadline expires. This one year period begins on the day immediately following the expiry of the legal deadline for deciding, which is the moment when tacit refusal legally occurs. After that period, the right is extinguished, regardless of the merit of the underlying application. This is especially relevant for applicants who have been waiting “for years”: unfortunately, in many such cases the time limit to litigate has already passed, not because the administration acted lawfully, but because the passage of time eliminated the possibility of judicial enforcement under Articles 66.º CPTA, requiring a different legal assessment of the case.

If the action is filed in time and upheld, the court may order the authority to issue the pending decision within a fixed period. If the administration continues to delay, the CPTA includes enforcement tools, such as financial penalties for continued non-compliance, and, in situations involving strictly binding acts, the judge may ultimately substitute the missing act. These measures reinforce the idea that a judicial decision cannot remain theoretical; it must have practical consequences that restore legality and protect the individual’s rights.

Although this remedy has proven effective in immigration cases, particular caution is required when dealing with Portuguese nationality procedures. Citizenship follows its own normative framework and engages constitutional rights of a different nature. In many situations involving urgency, the mechanism applicable to citizenship is not Article 66.º but rather the subpoena for the protection of rights, freedoms and guarantees set out in Article 109.º-A of the Code. Delay in citizenship processes, therefore, must be assessed separately and through the judicial pathways that are specifically designed for that legal context.

Taken together, the appropriate legal response to administrative delay depends on several factors: the duration of the delay, whether the applicant is still within the strict one-year period established by Article 69.º CPTA, and whether the matter concerns immigration or citizenship.

For recent delays within the time limit, Article 66.º CPTA may offer an effective means of unlocking a long-awaited decision. For delays extending beyond one year, this mechanism may no longer be available, and alternative legal strategies must be explored.

At LVP Advogados, we assist clients in evaluating whether Article 66.º CPTA is still available in their specific situation, preparing the necessary preliminary requests to the administration, and, when justified, initiating judicial proceedings before the Administrative Courts. If the statutory period has already expired or if the matter concerns citizenship rather than residence, we identify and pursue the legal mechanisms that remain available.

If your case has been pending far beyond the legal timeframe and you would like to know whether judicial intervention is still possible, or which options remain available, you are welcome to contact us for individualized and comprehensive legal support.

Portugal’s Nationality Law Faces Constitutional Review After Preventive Requests Submitted to the Constitutional Court

Thu, 20 Nov 2025 15:50:00 GMT

Portugal’s ongoing reform of its Nationality Law has entered a decisive phase after the Socialist Party (PS) formally submitted two preventive constitutional review requests to the Constitutional Court (Tribunal Constitucional – TC). The challenge suspends any decision by the President of the Republic and places the future of the legislative package under urgent judicial scrutiny.

The requests, filed on 19 November, were distributed by lot to Judge Dora Neto (regarding the provisions on loss of nationality) and to the Court’s Vice-President, João Carlos Loureiro (regarding the broader amendments to the Nationality Law). Under the Constitution, the Court now has 25 consecutive days to issue a ruling.

What Is Being Challenged?

The PS argues that several provisions approved by the parliamentary majority (PSD, Chega, IL, CDS-PP and JPP) violate fundamental constitutional principles, including:

Equality before the law
Proportionality in restrictions of fundamental rights
Protection of legitimate expectations and legal certainty
Determination and clarity of criminal consequences
Prohibition of automatic effects of criminal convictions
Compliance with Portugal’s international obligations

Key Provisions Under Judicial Review

1. New Administrative Impossibilities: Recognition of Statelessness

The reform introduces new rules for the naturalisation of stateless individuals. The PS argues that these provisions are inoperable , as Portugal does not currently have an administrative procedure to formally recognise stateless status—making the new rule effectively impossible to apply.

2. Vague Opposition Clause Based on “Rejection of the National Community”

A new clause permits the State to oppose nationality based on behaviours deemed to demonstrate rejection of the national community. The PS considers the wording overly indeterminate , potentially infringing freedom of expression.

3. Stricter Criminal Threshold for Naturalisation

The minimum prison sentence that bars naturalisation is reduced from three to two years , now extended also to nationality acquired through marriage or civil union.
For the PS, this represents a disproportionate restriction not aligned with constitutional standards for limiting rights.

4. Loss of Derived Nationality for Offences by Third Parties

The reform allows loss of nationality derived from parentage in cases involving illicit acts committed by third parties, a mechanism the PS says contradicts core principles of the sanctioning system.

5. Absence of a Transitional Regime

Perhaps the most impactful concern relates to the lack of transitional provisions .
According to the PS, this creates significant legal uncertainty for thousands of migrants who structured their lives and expectations under the previous five-year residency rule.

6. Elimination of Residence-Time Counting During AIMA Delays

The reform removes the rule that allowed applicants to count the time spent waiting for residence cards toward the legal-residence period.

Given that many applicants have waited up to three years for documentation due to administrative delays, the PS argues this change penalises individuals for failures of the State , which contradicts the principle of legitimate expectations.

Second Request: Loss of Nationality as a Criminal Penalty

The PS submitted a separate request concerning the new provision that allows the loss of nationality as an accessory penalty for crimes punishable with prison sentences of four years or more.

According to the request:

The measure introduces two categories of Portuguese citizens : those of origin and those naturalised.
Only naturalised individuals who have held Portuguese nationality for less than ten years could lose it.
The PS argues this creates an unconstitutional disparity , violating equality and universality of citizenship.
Furthermore, the definitive removal of nationality is characterised as a perpetual penalty , which the Constitution expressly forbids.

Political and Institutional Implications

The submission of the preventive review has immediate legal effects:

The President of the Republic must suspend any decision until the Constitutional Court rules.
If the Court identifies unconstitutionality, the President is obliged to veto the legislation.
If the Court validates the diploma, the President may still exercise a political veto , although this is less likely given the two-thirds parliamentary approval threshold.

President Marcelo Rebelo de Sousa has publicly confirmed that he is awaiting the Court’s decision before taking any further steps.

Practical Impact for Applicants and Residents

While the Court deliberates, the legislative reform remains on hold , but expectations are high given the potential consequences:

Applicants preparing naturalisation requests may face longer residency requirements (7 years for CPLP nationals, 10 years for the general regime).
People who relied on the State’s administrative time-counting rules now risk losing several years of accumulated residence .
The creation of a loss-of-nationality penalty represents a paradigm shift in how Portuguese citizenship is conceptualised.

These issues have already generated widespread uncertainty among immigrant communities and long-term residents who were close to meeting the previous criteria.

What Happens Next?

The Constitutional Court has until mid-December to issue its ruling.

Three broad scenarios are possible:

Partial or total unconstitutionality : the Parliament will be required to amend the affected provisions.
Full validation: the President must then decide whether to promulgate or politically veto.
Interpretative ruling: the Court may validate the law but require specific interpretative limits.

Whatever the outcome, the Court’s decision will shape Portugal’s nationality landscape for the coming decade.

At LVP Advogados, we continue to monitor the legislative process closely. The developments now before the Constitutional Court will have material implications for many of our clients, particularly concerning:

residency time requirements,
transitional protection,
access to nationality by minors,
and the stability of rights for naturalised citizens.

If you have questions about how this review may affect your situation or upcoming nationality application, our team is available to provide tailored guidance .

IFICI+ (NHR 2.0): Eligibility of Board Members in Startups and Recognised Companies

Wed, 19 Nov 2025 15:19:07 GMT

António Pratas Nunes | Lawyer

The IFICI+ regime (commonly referred to as NHR 2.0) was introduced under the 2024 State Budget Law, replacing the former Non-Habitual Resident (NHR) regime. While it follows the same overarching logic of attracting international talent and investment to Portugal, IFICI+ introduces a more targeted framework, focusing specifically on qualified activities, innovation, technology, and productive economic investment.

In general, the regime applies to individuals who:

Become tax residents in Portugal, and
Have not been tax resident in Portugal in any of the previous five years .

Eligibility depends on the individual performing certain qualified activities , including:

Teaching and Scientific Research : Employment or research positions within entities integrated in the national science and technology system.
Qualified Employment and Board Positions : Within companies benefiting from contractual investment incentives under the Portuguese Investment Tax Code.
Highly Qualified Professions , carried out in:
Companies benefiting from investment support regimes; or
Industrial or service companies with at least 50% export turnover .
Board Members and Qualified positions in companies recognized by AICEP or IAPMEI as relevant to the Portuguese economy;
R&D Personnel whose costs qualify for tax incentives under the R&D Investment Tax Regime.
Board Members and Qualified positions in Certified Startups ;
Tax residents in Madeira or the Azores , under region-specific rules.

If eligible, the taxpayer may elect to be taxed at a 20% flat rate on net employment or self-employment income (Categories A and B) derived from the qualified activity.

The benefit applies for 10 consecutive years , starting in the year the individual becomes tax resident in Portugal.

Additionally, a key feature remains from the previous NHR system:

Certain types of foreign-sourced income (employment, self-employment, capital income, rental income and certain capital gains) may be exempt from taxation in Portugal, while still being considered for determining the effective tax rate applicable to remaining income (exemption with progression).

As we will briefly outline, this is a regime with broad potential applications. In this insight, however, we will focus on just two specific scenarios:

Board Members and Qualified positions in companies recognized by AICEP or IAPMEI as relevant to the Portuguese economy;
Board Members and Qualified positions in Certified Startups

Board Members and Qualified Roles in entities recognised by AICEP or IAPMEI

To operationalize which companies may qualify under the IFICI+ regime, IAPMEI – the Portuguese Agency for Competitiveness and Innovation issued guidance clarifying:

Which roles may be considered qualified positions within the meaning of the regime; and
Which companies may be regarded as relevant to the Portuguese economy for the purposes of eligibility.

This clarification is aligned with the policy objectives underlying the regime:

attracting productive investment , and
reducing regional economic asymmetries .

The legal purpose here is to attract productive investment and reduce regional asymmetries . In practice, IAPMEI mapped sectors with the potential to drive investment and growth. Where the company’s main CAE falls within those sectors, the IFICI+ route under article d) can be explored.

Eligible sectors (by CAE scope) include:

Extractive industries — divisions 05 to 09
Manufacturing — divisions 10 to 33
Electricity, gas, steam, hot/cold water and chilled air — division 35
Construction — division 42
Accommodation and food services — classes 5511 and 5512
Information and communication — divisions 58 to 63
Financial and insurance activities — classes 6420 and 6630
Professional, scientific and technical activities — class 7010 and divisions 71 to 72
Administrative and support service activities — class 8211
Education — class 8542
Human health and social work activities — division 86 (except subclasses 86905 and 86906)

Once the sectoral fit is established, the taxpayer must still meet the corporate requirement.

Under Portuguese company law, board members (“membros de órgãos sociais”) typically cover:

Deliberative body (General Meeting): shareholders (S.A.) or quota-holders (Lda.) who decide the essential matters of corporate life.
Executive body (Management/Administration): managers, management board or executive board who represent and run the company.
Supervisory body (Audit/Control): audit committee, sole auditor, supervisory board, general and supervisory board, or statutory auditor (ROC), where applicable.

The same logic applies to Startups : if the entity is duly certified as a Startup, then board members may also test IFICI+ eligibility.

This is a complex and fact-specific regime . Eligibility must be assessed both at the company level (sectoral relevance, certification status and effective economic activity) and at the individual level (role performed and remuneration structure).

Where the requirements are met, IFICI+ provides a competitive and stable tax framework , supporting the relocation of strategic talent to companies that contribute to innovation and productive investment in Portugal. Proper structuring at the outset is essential to secure the intended benefits and ensure ongoing compliance.

If you are assessing whether the IFICI+ regime may apply to your circumstances, our team is available to provide personalised guidance. Please feel free to contact us .

Incorporating in Portugal: What Founders Should Know About Share Capital

Tue, 18 Nov 2025 16:27:13 GMT

Tomás Melo Ribeiro | Lawyer

For any entrepreneur or corporation establishing a presence in Portugal, the decision on share capital ("Capital Social") is a foundational one. While recent legal reforms have created significant flexibility, particularly for limited liability companies, the amount of capital subscribed is far more than a legal formality. It is a strategic lever that impacts everything from market perception and creditor relations to operational viability.

This article explores the legal framework for share capital in Portugal and provides a strategic perspective on defining the right amount for your new venture.

What is Share Capital?

At its core, share capital represents the initial investment made into the company. Technically, there is a difference in terminology between a Sociedade Anónima (SA) and a Sociedade por Quotas (Lda): in an Lda, the holders of the social participations are referred to as partners (sócios), whereas in an SA they are called shareholders (acionistas). However, for the sake of uniformity throughout this insight, we will refer to them as shareholders.

Share capital constitutes the company’s initial equity and is recorded on the liability side of the balance sheet.

Legally, share capital serves two primary functions:

Guarantee Function: It acts as a primary buffer for the company's creditors. The capital is, in principle, "locked" within the company) and cannot be returned to shareholders except through stringent legal procedures.
Operational Function: It provides the company with the initial funds (or assets, in the case of non-cash contributions) required to commence operations, cover setup costs, and achieve initial milestones before it generates self-sustaining revenue.

This value is divided into participation units: quotas (quotas) for an Lda or shares (ações) for an SA.

Legal Requirements by Company Type

The Portuguese Commercial Companies Code (Código das Sociedades Comerciais - "CSC") dictates the minimum requirements, which differ significantly by company type.

1. Sociedade por Quotas (Lda) - Private Limited Company

This is the most common corporate form in Portugal, prized for its flexibility. Following major legal reforms, the previous €5,000 minimum was abolished.

Minimum Capital: The law now allows for a minimum of €1.00 per quota . For a single-member company (Sociedade Unipessoal por Quotas - SUQ), the minimum capital can therefore be €1.00. For a multi-member Lda, the minimum would be €2.00 (one €1.00 quota per shareholder).
Payment (Realização): While the capital must be subscribed, the law offers flexibility for its payment (discussed below).

2. Sociedade Anónima (SA) - Public Limited Company

The SA is designed for larger operations, often involving a wider shareholder base or preparation for public listing. Its requirements are, accordingly, more robust.

Minimum Capital: The minimum share capital for an SA is €50,000 .
Payment (Realização): At least 30% of the value of cash contributions must be paid up upon incorporation. The remainder must be paid within the period defined in the articles of association, not exceeding five years. For contributions in kind, they must be fully paid up at the time of incorporation.

Beyond the Minimum: Defining the Adequate Capital

Herein lies the most critical strategic decision. While incorporating an Lda with €1.00 is legally possible, it is often commercially inadvisable. An "adequate" share capital should be determined by business needs, not legal minimums.

Key factors to consider:

Market Credibility: A company with a share capital of €1.00 or €100.00 signals low commitment and financial fragility. This can be a significant disadvantage when dealing with suppliers (who may demand pre-payment), banks (when seeking credit lines), and international partners (who may view the company as non-substantial).
Initial Funding (Cash Flow): The share capital should, ideally, be sufficient to cover the company's initial operational expenses—rent, salaries, professional fees, and equipment—until the business becomes cash-flow positive.
Director Liability & Insolvency: If a company is incorporated with manifestly insufficient capital to even begin its intended operations, it can face immediate insolvency. This can, in certain circumstances, open the door to director liability. The Portuguese Insolvency Code (Código da Insolvência e da Recuperação de Empresas - "CIRE") provides for liability where insolvency was created or aggravated by "gross negligence" (culpa grave), and running a business with no capital could be argued as such.
Financing: A robust share capital demonstrates shareholder commitment and improves the company's debt-to-equity ratio, making it a more attractive proposition for bank financing and private investment.

Key Legal Aspects to Consider

Beyond the minimum amounts, the nature and protection of the capital are governed by strict rules.

a) Types of Contributions (Entradas)

Share capital can be formed through:

Contributions in Cash (Entradas em Dinheiro): This is the most common form. The funds must be deposited in a bank account opened in the company's name before the final deed of incorporation.
Contributions in Kind (Entradas em Espécie): These are non-cash assets, such as real estate, machinery, intellectual property, or software. Contributions in kind may include not only assets subject to attachment but also assets capable of monetary valuation that are not subject to attachment. These may consist of real estate (ownership, usufruct, or use and enjoyment), registered movable assets such as vehicles, ships, or aircraft, and other movable assets including machinery, inventory, equipment, computers, and documents. Credits or claims, including loans to the company, guarantees such as mortgages or pledges, commercial or industrial businesses (either full or temporary transfer), and shareholdings in other companies can also be contributed in kind.
Valuation: As per Article 28 of the CSC , contributions in kind must be subject to a report by an independent statutory auditor (Revisor Oficial de Contas - ROC) to verify the asset's existence and value. This report is a crucial part of the incorporation documents. The auditor who prepared the report required under the preceding paragraph may not, for a period of two years from the date of registration of the company agreement, hold any office or perform any professional function in that company or in companies that are under its control or form part of its group.

b) Payment Obligations (Realização do Capital)

Lda: The payment of cash contributions in an Lda can be deferred (postponed) by the articles of association, though it is generally advisable to pay it up. If deferred, the partners remain debtors to the company for the outstanding amount.
SA: As noted, cash contributions must be at least 30% paid up, and contributions in kind must be 100% paid up.

c) The Principle of Intangibility & Loss of Capital

The law protects the share capital for the benefit of creditors. Directors cannot simply return capital to shareholders. Furthermore, directors have a specific duty to monitor the company's equity.

Distribution of Assets: Distributions to partners (e.g., dividends) are only permitted from distributable profits and free reserves, as defined by Article 32 of the CSC .
Loss of Half the Capital: This is a critical legal threshold. As per Article 35 of the CSC , if a general meeting determines that the company's net equity (Net Assets) has fallen below 50% of the share capital , the management has a duty to call a General Shareholders' Meeting. The shareholders must then decide whether to:

Dissolve the company; or
Remedy the imbalance by performing a capital decrease (to cover losses), followed by a capital increase, or simply a capital increase.

Failure to act on this provision can be a source of director liability.

Conclusion: A Strategic Foundation

The choice of share capital is one of the first and most significant strategic decisions an entrepreneur will make. While the Portuguese legal system offers remarkable flexibility for Ldas, this flexibility places the onus on founders and directors to act responsibly.

We advise clients to view share capital not as a legal hurdle, but as the financial foundation of their enterprise. A well-capitalised company is better positioned for growth, more resilient to challenges, and viewed as a more credible partner in the market. Balancing the legal minimums with a realistic assessment of the company’s business plan is the key to setting the stage for long-term success.

If you require tailored legal guidance on incorporating a company in Portugal or structuring its share capital, please contact our team .

Opening a Bank Account in Portugal: What Foreigners Should Know Before Arriving

Wed, 12 Nov 2025 16:25:06 GMT

Cleuzina Cruz | Paralegal

Opening a bank account is one of the first practical steps for foreigners moving to Portugal, whether for work, study or retirement. The process is generally straightforward, but it often involves more bureaucracy than newcomers expect. Understanding the requirements in advance helps avoid unnecessary frustration and delays .

The Portuguese Tax Identification Number (NIF) is essential for almost every formal transaction in Portugal, including opening a bank account, signing a lease or purchasing property. You can apply for a NIF in person at a Finanças office or remotely through a tax representative, which is particularly useful for non-residents planning to relocate soon.

In addition to the NIF, most banks require a valid passport or residence permit, proof of address in Portugal or abroad, and proof of income such as an employment contract, payslips or recent bank statements. Documents issued outside the European Union may need to be translated and legalised, so preparing everything in advance helps ensure a smoother process.

Portugal’s banking sector follows strict anti–money laundering (AML) and Know Your Customer (KYC) regulations . Banks must verify the source of funds for every new account, and some applicants may face additional scrutiny, particularly those from countries under international sanctions or identified as higher risk. Providing clear documentation and being transparent about the purpose of the account usually helps avoid unnecessary delays.

Although many bank employees speak English, most official documentation remains in Portuguese. Choosing a bank with English-speaking staff, such as Millennium BCP, Santander or Novo Banco, can make the process easier. Some digital banks like N26, Wise and Revolut also offer English interfaces and simplified onboarding for international clients.

Foreigners can open either resident or non-resident accounts. The main difference lies in access to services: non-resident accounts often have more limited features, such as restrictions on credit, loans or online banking tools. Once you become a Portuguese resident, it is advisable to update your account status to access the full range of financial services.

Opening a bank account in Portugal is not complicated, but it requires organisation, patience and local knowledge. At LVP Advogados, we assist both residents and non-residents in setting up Portuguese bank accounts efficiently and in full compliance with local regulations.

If you are planning to relocate to Portugal or need assistance with your banking arrangements, contact us .

Reform of the Portuguese Nationality Law: Understanding the New Rules

Mon, 10 Nov 2025 16:05:10 GMT

Joana Loureiro Veríssimo | Lawyer

The reform of the Portuguese Nationality Law (Law no. 37/81, of October 3) represents one of the most significant updates to the nationality regime in recent decades. The proposal has been approved by the Portuguese Parliament and is now awaiting promulgation by the President of the Republic. It will enter into force the day after publication .

Once in effect, the reform will reshape the framework for the attribution, acquisition and loss of nationality, introducing new requirements, reinforcing integration criteria and increasing administrative transparency. The goal is to align nationality rules with Portugal’s contemporary social and migratory realities while ensuring a closer link between citizenship and genuine, long-term ties to the country.

Children of Foreign Nationals Born in Portugal

One of the most relevant changes concerns children born in Portugal to foreign parents. Under the current law, nationality can be attributed if at least one parent has resided in Portugal for one year, even without a residence permit. Under the new law, at least one parent must have legally resided in Portugal for five years at the time of the child’s birth and must hold a valid residence permit and identification .

Nationality by descent from Portuguese citizens will also depend on fulfilling the integration requirements that apply to naturalization, such as proficiency in the Portuguese language, the absence of criminal convictions and respect for democratic values. The reform thus makes nationality by birth and descent more selective, emphasising lawful residence, long-term integration and a real connection to the national community.

Marriage and Civil Partnerships

The basic rule for acquiring nationality through marriage remains unchanged: nationality may be granted after three years of marriage to a Portuguese citizen. Civil partnerships, previously referred to as de facto unions, must now be judicially recognised , as parish declarations are no longer sufficient.

Applicants must not fall under disqualifying categories such as serious criminal convictions, terrorism or international sanctions. The reform reinforces that nationality should only be granted to applicants with genuine, law-abiding ties to Portugal.

Adoption Clarified

Individuals adopted by Portuguese citizens now acquire nationality through a formal declaration rather than automatically. This clarification ensures consistency in registry practice and greater uniformity in the application of the law.

Naturalization: Extended Residence and Integration Requirements

The reform introduces stricter criteria for naturalization. The minimum residence period increases from five years to seven years for citizens of EU and CPLP countries and to ten years for all other nationals .

Applicants must demonstrate knowledge of the Portuguese language, culture and national symbols, an understanding of fundamental rights and duties, a formal declaration of adherence to the principles of the democratic rule of law and proof of economic self-sufficiency.

The disqualifying grounds are expanded to include convictions for crimes punishable by at least two years’ imprisonment, the application of international sanctions and any conduct incompatible with the values of the Portuguese Constitution.

At the same time, the reform revokes certain exceptional routes, including the previous path for descendants of Sephardic Jews and other provisions that allowed for dispensations from the general requirements. Nevertheless, nationality remains accessible to minors, stateless persons and former Portuguese nationals who never acquired another nationality.

Loss and Opposition to Nationality

The procedure for renouncing nationality becomes simpler. Dual nationals may now renounce Portuguese nationality by express declaration, without additional conditions.

Opposition to nationality acquisition by the Public Prosecutor’s Office remains possible but is now more focused . It can occur in cases of disqualification, such as criminal convictions, international sanctions or threats to national security, and must be brought within two years after the registration of nationality.

In long-term marriages or partnerships, or where Portuguese children are involved, opposition will only apply in those disqualifying situations. These changes aim to provide greater legal certainty and protection for stable families and long-term residents.

Consolidation of Nationality and Legal Certainty

The reform protects individuals who have held Portuguese nationality in good faith for more than ten years. Even if administrative errors are later discovered, these individuals retain their nationality. The ten-year period is counted from the registration of birth, the nationality registration or the issuance of the first Portuguese identity document.

However, this safeguard does not apply to cases of manifest fraud or false statements. The reform therefore balances protection of trust with accountability, strengthening confidence in the nationality system.

Biometric Data and Security

The reform introduces mandatory collection of biometric data, including facial images, fingerprints and height. These data may be cross-referenced with national databases such as the Citizen Card system and will be deleted five years after a rejection or following a final judicial decision. This measure enhances identity verification and prevents document fraud while remaining compliant with data protection rules.

Parentage and Residence Calculation

Parentage established after the age of majority will only affect nationality if confirmed by a final court decision, and the request must be submitted within three years of that decision.

For residence calculations, the reform allows the aggregation of continuous or interrupted periods of legal residence within certain limits: six years for stateless persons, nine years for EU or CPLP citizens and twelve years for all other nationals. The previous rule that counted the period between the residence permit application and its approval has been revoked, meaning only periods of residence already granted will count towards naturalization .

Procedural and Registration Changes

The reform clarifies that nationality only produces legal effects upon registration, confirming the constitutive nature of the act. The Institute of Registries and Notaries (IRN) will play a central role in maintaining and verifying the national database of nationality records.

Provisions allowing suspension of procedures are repealed, as the new disqualifying conditions are now part of the substantive requirements for acquisition and opposition.

Transitional Provisions

The new law will not apply retroactively. All applications submitted before the date of entry into force will continue to be processed under the previous legal framework, while new applications will follow the reformed rules.

Conclusion: A Stricter and More Transparent Regime

This reform represents a major shift in Portuguese nationality law. It strengthens the link between nationality and integration, narrows exceptional pathways and imposes clearer, more demanding standards for residence and conduct.

At the same time, it reinforces legal certainty for those who have legitimately acquired Portuguese nationality and modernises administrative procedures through digitalisation and biometric verification.

Portugal’s new nationality law thus seeks to balance openness and integrity, ensuring that citizenship continues to reflect both inclusion and responsibility within the democratic rule of law. For tailored guidance on how the new Nationality Law may affect your case, please contact our team .

Lease Agreements in Portugal: Legal Principles and Practical Implications

Fri, 07 Nov 2025 14:41:44 GMT

Tomás Melo Ribeiro | Lawyer

Leasing in Portugal is a flexible and effective solution for both individuals seeking housing and businesses in need of commercial or industrial premises. The Portuguese rental market is well regulated and transparent, allowing the parties to define contractual terms with a high degree of freedom while maintaining a fair balance of rights and obligations between landlords and tenants. This combination of legal structure and adaptability makes leasing a practical and secure option, suitable for the diverse needs of the Portuguese real estate market.

In Portugal, lease agreements are primarily governed by the Civil Code and the Urban Lease Regime (NRAU), which establish the legal framework for residential and non-residential leases. These regimes seek to combine contractual freedom with the protection of each party’s legitimate interests, ensuring legal certainty and stability in the rental market.

Types of Leases

Lease agreements may serve residential or non-residential purposes. Residential leases are primarily intended for habitation, while non-residential leases include commercial, industrial, professional, or other non-housing uses. A particularly versatile arrangement is the lease with an option to purchase, which allows tenants to experience the property before committing to a purchase, postpone investment while arranging financing, and secure a fixed purchase price that protects against future market fluctuations. For landlords, this structure ensures continuous rental income during the option period, the potential receipt of a non-refundable option premium, and the opportunity for a direct future sale without intermediaries.

Essential Contractual Elements

All lease agreements must include certain mandatory clauses, such as the identification of the parties, a detailed description of the property, the purpose of the lease, the contract duration, and the rent amount with payment terms. Beyond these essentials, it is advisable to include clauses defining mechanisms for rent updates, the allocation of maintenance and repair responsibilities, expenses borne by the tenant, termination and renewal rules, and any restrictions on subletting or assignment. These provisions help prevent misunderstandings and potential disputes, ensuring transparency and legal certainty for both parties.

Rights and Obligations

Lease agreements in Portugal generally establish a balanced set of obligations for landlords and tenants to ensure proper use, maintenance, and preservation of the property, thereby avoiding conflicts. Landlords must deliver the property in good condition and suitable for its intended purpose, ensuring that it complies with all legal safety, hygiene, and habitability standards. They are also responsible for carrying out any structural or major repairs when necessary and for maintaining essential systems such as electricity, water, heating, and sanitation so that the property remains functional throughout the lease. Landlords must respect the tenant’s right to quiet enjoyment, allowing the property to be used without undue interference, and must provide all documentation required for legal or tax purposes, including proof of property tax payment and relevant technical certificates.

Tenants must pay rent punctually and cover all additional charges agreed in the lease, such as condominium fees or utilities. They must use the property exclusively for the purpose established in the agreement and maintain it in good condition, carrying out minor repairs and ensuring that any deterioration remains within normal wear and tear. Tenants may not sublet or assign the lease without the landlord’s consent and must allow reasonable access to the property for inspections or necessary repairs, with prior notice. These obligations are not mere formalities. They ensure that both parties understand and respect their respective duties, fostering cooperation, preventing conflicts, and creating a stable and legally secure leasing relationship in Portugal.

Duration and Termination

Lease agreements in Portugal may be concluded for a fixed term or, less commonly, for an indefinite period. In fixed-term contracts, tenants may terminate the lease once one third of the initial or renewed period has elapsed, provided that prior written notice is given. When the lease duration is equal to or longer than one year, tenants must give at least 120 days’ notice, while leases shorter than one year require a minimum of 60 days’ notice. Both parties may also oppose automatic renewal, with notice periods varying according to the contract length.

Landlords must give at least 240 days’ notice for leases of six years or more require at least 240 days’ notice before the end of the term. When the duration is between one and six years, 120 days’ notice is sufficient, and for leases shorter than one year but longer than six months, the required notice is 60 days. For very short-term leases of less than six months, the notice period must correspond to one third of the total lease term. For tenants, the deadlines are generally shorter but follow the same proportional logic: leases lasting six years or more require 120 days’ notice, those between one and six years require 90 days, and leases shorter than one year but longer than six months require 60 days’ notice. In leases lasting less than six months, the notice period must again equal one third of the total term agreed. This legal framework provides balance and predictability to the Portuguese rental market, ensuring that both parties have sufficient time to plan future arrangements while maintaining contractual fairness and stability.

Due Diligence and Tax Considerations

Before signing a lease, thorough due diligence is strongly recommended. This should include confirming ownership or authorization to lease, verifying the legal capacity of the parties, and reviewing relevant property documentation such as the energy certificate, use license, and tax records. It is also advisable to confirm compliance with registration obligations before the Tax Authority, as all leases must be declared for tax purposes. Rental income is subject to taxation under the Portuguese IRS or IRC regimes, depending on whether the landlord is an individual or a company.

Security Deposits and Guarantees

In practice, landlords frequently request a security deposit equivalent to one or two months’ rent. While the law does not impose a specific limit, the amount must remain reasonable and proportionate to the contractual risk. In some cases, landlords may also request additional guarantees, such as a guarantor (fiador) or a bank guarantee, to strengthen payment security and reduce default risk.

Non-Compliance and Enforcement

In situations of non-compliance, such as non-payment of rent, unauthorized use of the property, or breach of contract terms, the landlord may terminate the lease and initiate eviction proceedings. Recent legal reforms have streamlined this process through the national eviction procedure, known as Balcão Nacional do Arrendamento, which allows for a faster and more efficient resolution of cases.

Proper due diligence and careful contract drafting ensure compliance with Portuguese law, prevent disputes, and protect the interests of both landlords and tenants throughout the contractual relationship. A well-structured lease, supported by good legal advice, provides the clarity and confidence necessary for a long-term, secure, and successful tenancy in Portugal.

If you are considering a lease in Portugal and wish to ensure that everything is properly structured, our team at LVP Advogados will be glad to assist you .

Received a Notification to Leave Portugal? Here’s What to Do Next

Thu, 06 Nov 2025 10:25:00 GMT

Javier Mateo | Lawyer

Over the past months, an increasing number of foreign residents in Portugal have received notifications from AIMA (Agência para a Integração, Migrações e Asilo) requiring them to leave the country within a short period of time. These notifications may come as a surprise, especially for those awaiting a residence renewal or still in the process of regularisation. Understanding what this notice means and how to respond is crucial to avoid serious legal consequences and to preserve your ability to return to Portugal in the future.

European Normative Framework

As with most immigration matters, it is essential to understand the European framework that shapes the Portuguese regime. The cornerstone is Directive 2008/115/CE (the Return Directive), which sets EU-wide standards for the return of third-country nationals staying irregularly in Member States. It requires that, whenever possible, individuals be given the chance to depart voluntarily within a set period, while safeguarding fundamental rights, including family life and children’s rights.

Portugal implemented these principles through Law no. 23/2007, which governs the entry, stay, exit, and removal of foreign nationals. This law reflects the European emphasis on voluntary departure, allowing individuals to regularise their situation before coercive measures are applied. Understanding how this mechanism works, and how to respond to a notification, is essential to protecting one’s legal status and future opportunities.

The Portuguese Normative Framework

Article 138 of Law no. 23/2007 governs the procedure for voluntary departure from Portuguese territory. It provides that a foreign national who has entered or remained in Portugal irregularly, or whose residence permit has been cancelled, may be notified to leave voluntarily within a period of 10 to 20 days. The competent authority, usually the Agência para a Integração, Migrações e Asilo (AIMA, I.P.), or in some cases the police, determines the exact timeframe.

This period may be extended if justified by personal circumstances. For example, having children enrolled in school, strong family or social ties in Portugal, or other humanitarian reasons can support a request for more time. Conversely, where there is a risk of flight, evidence of fraud, or a threat to public order or national security, the authority may order immediate departure. In such cases, the foreign national must leave by the first available and appropriate means of travel.

The law provides that the notification must be made in writing, indicating the legal basis and the date from which the period for voluntary departure starts to run. If the foreign national has ongoing legal proceedings, such as an appeal or renewal request with suspensive effect, the departure deadline may be suspended until the matter is resolved.

Why Complying with a Voluntary Departure Order Matters

A fundamental but often overlooked aspect of Article 138 is that voluntary compliance prevents the imposition of an entry ban. In other words, if you leave Portugal within the timeframe indicated in the notification, your departure is considered lawful and does not trigger any prohibition on re-entry into Portugal or other Schengen States.

This distinction is critical. Failure to comply with the voluntary departure order may lead to coercive removal under Article 145 of the same law, which can carry an entry ban of up to five years. Such a ban can severely restrict future mobility, including applications for short-stay visas, family reunification, or residence permits.

By contrast, complying voluntarily protects your record and your ability to travel or return legally in the future. For anyone who may wish to come back to Portugal, whether for work, study, or family reasons, voluntary departure is the best way to safeguard future opportunities.

What to Do if You Receive a Notification

If you receive a notification to leave Portugal voluntarily, the first step is to read it carefully. Identify the deadline given and confirm whether your case refers to voluntary departure or immediate departure. The notice should indicate the legal basis, the competent authority, and the starting date of the departure period.

Next, review your current legal status. Confirm whether your residence permit has been cancelled, expired, or whether you have overstayed your visa. Each scenario may have slightly different procedural implications. If there are ongoing legal proceedings, for instance, an appeal or a renewal request pending, seek clarification immediately before making any travel decisions.

If you believe there are legitimate grounds for an extension of the departure deadline, you can request it. The law explicitly allows for flexibility where family, humanitarian, or social circumstances justify it. Such requests should be supported by documents, such as school certificates for children, medical reports, or proof of cohabitation or family dependency.

It is also important to plan your departure logistics. You must leave the country within the established time limit, using an appropriate and verifiable means of transport. Keep travel receipts, boarding passes, and any communication with the authorities as evidence of compliance. These records may later be essential to confirm that your departure was voluntary.

Whenever possible, seek legal assistance early. A lawyer specialised in immigration law can review the notification, verify its validity, and advise whether an extension or challenge is appropriate. Legal counsel can also ensure that all procedural safeguards are respected, particularly if the order appears disproportionate or if there are family or humanitarian factors that merit reconsideration.

Above all, do not ignore the notification. Inaction can result in coercive removal and, as a consequence, a long-term prohibition on entry into Portuguese or Schengen territory. Acting within the legal timeframe not only prevents this outcome but also demonstrates cooperation and good faith, critical factors if you later apply for a new visa or residence permit.

Practical Considerations

Voluntary departure should not be viewed as a definitive break with Portugal. On the contrary, it often represents the most prudent legal path, allowing you to preserve your ability to return lawfully in the future. Once you have left, you may later apply for a short-stay visa or another residence permit without the procedural barriers that accompany coercive removals.

Make sure your departure is properly registered at the border, as this official record will confirm compliance and prevent future misunderstandings. Keep a personal file containing the notification, your extension requests if any, and proof of travel. Such documentation may be crucial if immigration authorities later need to verify that your previous exit was voluntary and lawful.

Receiving a notification to leave Portuguese territory can be unsettling, but it is also an opportunity to regularise your situation in a way that preserves your rights. Voluntary departure under Article 138 is not a sanction, it is a chance to leave on your own terms, avoid an entry ban, and keep open the possibility of future return.

By acting promptly, seeking appropriate legal advice, and complying within the legal deadline, you ensure that your record remains clean and your mobility intact. For anyone who may wish to return to Portugal one day, voluntary compliance is the safest and smartest way back.

If you have received such a notification and require individualised legal advice regarding your options, the LVP Advogados team is available to assist. Contact us for tailored guidance on your case and support in protecting your rights under Portuguese immigration law

Family Reunification in Portugal: Everything You Need to Know About the New Rules

Fri, 31 Oct 2025 11:28:39 GMT

Luís Maria Branco | Lawyer

Portugal’s immigration framework continues to evolve in response to both social realities and administrative challenges. The country has long recognised the importance of family unity as a cornerstone of its migration policy, ensuring that foreign residents can live with their loved ones while integrating into Portuguese society.

With the entry into force of Law No. 61/2025 on 23 October 2025, the rules governing family reunification have been substantially revised. The new framework strengthens the legal foundation for family life in Portugal while introducing additional requirements related to residence periods and integration measures.

Under the amended Article 98(1) of the Immigration Law (Law No. 23/2007, of 4 July), the right to family reunification is now granted to immediate relatives of a foreign national who has held a valid residence permit for at least two years, whether the family relationship was established before or after the resident’s arrival in Portugal. This confirms that the right to family life extends beyond formal timing and focuses on the genuine existence of family ties.

Who Qualifies as a Family Member

The scope of eligible relatives remains wide, including spouses or civil partners, minor or legally incapacitated dependants such as adopted children, and adult dependent children who are single and studying in Portugal. Adult dependent children studying abroad may also qualify when the resident holds a residence permit under Article 90-A of the Immigration Law, which applies to investors under the so-called Golden Visa regime . The category of dependent parents of the applicant or of the spouse or civil partner, as well as minor siblings under legal guardianship recognised by Portuguese authorities, remains unchanged, reflecting the legislator’s intention to protect family networks that extend beyond the nuclear family.

Exemptions to the Two-Year Requirement

Article 98(2) introduces the first exception to the general two-year residence period. It allows a reduction to fifteen months for couples who can prove that they lived together for at least eighteen months immediately before the resident arrived in Portugal. This provision enables earlier reunification in relationships that were already established before migration.

Article 98(3) sets out a broader list of exemptions in which the residence-time requirement does not apply at all. These include minors or legally incapacitated dependants of the resident, spouses or partners who share a minor or legally incapacitated dependent with the resident, and family members of residents holding permits issued under Articles 90, 90-A and 121-A of the Immigration Law. Article 90 covers residence for highly qualified professionals or researchers, Article 90-A regulates residence for investors under the Golden Visa programme, and Article 121-A refers to holders of the EU Blue Card for highly qualified employment within the European Union.

Article 98(4) grants discretionary power to the Minister for Migration to waive or further reduce the residence period in exceptional and well-justified cases. This decision must consider the strength of family ties and the degree of integration in Portugal, applying the general principles of human dignity and proportionality.

Integration and Living Conditions

The new regime also reinforces integration as a continuing obligation. Under Article 101(3) and (4), family members who obtain residence through reunification must attend Portuguese-language and civic-values training, and minors are required to be enrolled in compulsory education. The renewal of residence permits depends on compliance with these requirements, as well as on proof of sufficient means of subsistence without reliance on social support, and on adequate accommodation, whether owned or rented, suitable for a comparable family in the same region and compliant with general safety and health standards to be detailed in regulation. These measures aim to ensure that family unity is accompanied by active participation in Portuguese civic and social life. Humanitarian exemptions remain possible in duly justified cases.

Procedural Changes and Transitional Measures

Articles 104 and 105 introduce clearer expectations for applicants and for AIMA, the Agency for Integration, Migration and Asylum. Applications should be decided within nine months, extendable only once in complex cases, and AIMA must organise its appointments and scheduling system transparently and predictably.

A transitional rule in Article 6(2) of Law No. 61/2025, valid until 22 April 2026, allows family members who are already in Portugal and entered legally to apply for residence permits under the updated Article 98, facilitating regularisation for families already established in the country.

Article 103(2) further clarifies that a sponsor may request residence for family members listed in Article 98(3) who are already in Portugal, provided they entered and remain legally at the date of the request. This ensures that, for these categories, applications can be submitted within Portugal rather than through a consulate abroad.

Practical Considerations

The legislative text of the reform under Law No. 61/2025 is not perfectly drafted, and certain provisions may lend themselves to different interpretations. This may create some uncertainty at the application stage while administrative guidance is still being developed. The two-year waiting period will feel burdensome for many families, though it appears intended to safeguard the genuineness of family ties and to promote early integration. Authorities will need to ensure that the new rules are applied with flexibility and proportionality to avoid disproportionate outcomes. Applicants should assess whether an exemption applies, whether the fifteen-month rule may be used, or whether an exceptional waiver could be justified in their individual circumstances. Close attention to forthcoming regulations and to AIMA’s administrative practice will be essential.

At LVP Advogados, we assist clients in preparing and submitting family reunification applications, advising on eligibility, documentation and procedural strategy. We also monitor implementation practices at AIMA and related administrative bodies to ensure that each case benefits from the most up-to-date interpretation of the law. Suppose you or a family member is considering applying for residence through family reunification. In that case, our team can provide a clear assessment of your options and guide you through the process from start to finish .

Permanent Residence in Portugal After Brexit: What Changes for UK Citizens?

Thu, 30 Oct 2025 14:55:44 GMT

Danielle Avidago | Immigration Consultant

There are essentially two kinds of residents in Portugal: third-country citizens whose right to residency is covered by Law 23/2007 of 4 July, bearing a temporary residence permit; and EU citizens and their family members whose right to residency in Portugal is regulated by Law 37/2006 of 9 August, originated in EU Directive 2004/38/EC, bearing a Certificate of Registration of EU Citizens.

What was once a two-way division among residents in Portugal became a three-way split when the UK left the EU on 31 January 2020, following Brexit.

With Brexit in force, many UK nationals and their family members who were living outside of the UK under the EU citizens regime would, from day to night, find themselves in a limbo situation: they no longer were EU citizens, not being able to legitimately bear their CRUE, and not having the legal grounds to bear a temporary residence permit.

However, both parties agreed on a transition period from 1 February 2020 to 31 December 2020. Aiming to create a legal regime for UK citizens residing in different EU countries as EU citizens, the EU and the UK concluded the Withdrawal Agreement.

In practical terms, UK nationals who established residence in Portugal before 31 December 2020 were protected by the EU–UK Withdrawal Agreement. That Agreement preserves the substance of the rights those persons already enjoyed — including rights to continue living, working and studying in the host Member State — and requires national procedures to regularise their status under the Agreement. Portugal implemented national arrangements to replace the CRUEs, or permanent residence permits, with a Withdrawal Agreement residence permit confirming the holder’s protected status and even created a specific department that is still operative to this day to handle these cases: the Brexit Line.

This specific Brexit regularisation route, including a dedicated portal process, email address and telephone contact, aimed to convert prior municipal registration certificates, CRUEs, into a new WA residence permit. The Portuguese authorities publicised deadlines and a transition process to obtain the new title.

The new residence permit was issued with a five-year validity, documenting the holder’s protected status during that period. These five years of legal residency are counted from the residence permit request, and not from the issuance of their first CRUE, allowing these residents to continue living in Portugal and proceeding with their daily lives as before.

The EU rules on absences and continuity (for example, the allowance for certain temporary absences not to break the five years) remain the controlling standard for EU nationals and are applied to WA beneficiaries insofar as the Agreement protects acquired rights.

What many of these UK nationals wonder is what happens when their current Withdrawal Agreement residence card expires. Are they allowed to renew it? Should they request a permanent residence permit as EU citizens or as third-country citizens? Can they request a permanent residence permit from the moment they complete five years of legal residency in Portugal , or only when their current residence permit expires?

UK citizens who bear a CRUE and are now holders of a residence permit under Article 50.º of the WA can request the respective permanent residence permit from the moment they fulfil five years of legal residency under Article 15.º of the WA. This means that for these applicants, the provisions stated in Law 37/2006 of 9 August, or Law 23/2007 of 4 July, are not applicable. The legal diploma that is still applicable to them is the Withdrawal Agreement, upholding UK citizens’ rights throughout their lives as residents of a host Member State.

The Withdrawal Agreement created an intermediate regime for those UK citizens and their family members residents in Portugal until 31 December 2020 to protect their residency rights: when applying for the permanent residence permit, valid for 10 years, UK citizens and their family members do not have to prove knowledge of the Portuguese language, and the applicable government fees are the same as EU citizens applying for their permanent residence permit.

To conclude, the Withdrawal Agreement still safeguards the acquired rights of UK citizens and their family members as residents of a host Member State when the UK was still part of the European Union. One of these acquired rights was the guaranteed right of permanent residency, with an exemption from proving A2 Portuguese knowledge, and more favourable government fees.

Following the motto “no one gets left behind”, the Withdrawal Agreement was created with the intention of protecting the residency rights of UK citizens and their family members, whether they wished to live in a Member State for 5 years, 10 years, or a lifetime. And we shall be delighted to assist you in guaranteeing the right to live in Portugal for a lifetime!

Portugal’s New Job Seeker Visa: Opening Doors for Highly Qualified Professionals

Wed, 29 Oct 2025 17:26:19 GMT

Javier Mateo | Lawyer

Portugal continues to consolidate its position as one of Europe’s most appealing destinations for international professionals and investors. Combining economic stability, lifestyle quality, and a growing innovation ecosystem, the country is now taking another step toward attracting global talent through the creation of a specific visa for highly qualified workers.

The Job Seeker Visa for Highly Qualified Professionals, established under Article 57-A of Law No. 23/2007, of 4 July, as amended by Law No. 61/2025, of 22 October, enables foreign nationals with advanced qualifications to enter Portugal for the purpose of seeking employment corresponding to their skill level. This measure is part of the government’s broader strategy to address labour shortages in key sectors while ensuring that immigration channels remain selective and structured.

This insight explains the key legal features of the visa, from eligibility and procedure to the next steps once the applicant is in Portugal.

Purpose and Basic Eligibility

The Job Seeker Visa allows citizens of countries outside the European Union, the European Economic Area, and Switzerland to enter Portugal to look for qualified employment opportunities. Applicants must demonstrate their qualifications, financial means, travel documents, and a genuine intention to find a job compatible with their academic or professional background.

The main conditions include proof of higher education or relevant professional certification qualifying the applicant for positions of high complexity or technical demand, evidence of sufficient resources to support themselves throughout their stay, valid health insurance covering medical and repatriation expenses , and a record of good conduct. In addition to the specific eligibility criteria of Article 57-A, applicants must also comply with the general requirements applicable to all residence visas, pursuant to Article 52 of Law No. 23/2007, namely not being subject to an entry ban or listed for refusal of entry in the Schengen Information System or equivalent EU databases.

The specific list of professions and qualification levels considered “highly qualified” will be determined by future government regulations, which are expected to align with the European Union’s Blue Card framework and Portugal’s National Qualifications Catalogue.

Procedure and Application

The visa application must be submitted through the Portuguese consulate in the applicant’s country of residence, following a procedure designed to confirm that all professional, financial, and personal requirements set out by law are duly met.

Before applying, candidates must submit an Expression of Intent to the IEFP, the Portuguese Employment Service, confirming their intention to seek qualified employment in Portugal. The Portuguese authorities are expected to review this requirement shortly, and it may consequently be subject to modification.

Once all documents are prepared and submitted, consular services typically decide within 60 days. If approved, the visa is issued for a period of 120 days, permitting entry into Portugal and an appointment with AIMA (Agência para a Integração, Migrações e Asilo) for residence regularisation.

Visa Validity and Strategic Outlook

The Job Seeker Visa remains valid for 120 days, during which the holder may stay in Portugal and actively seek employment. If the applicant secures a position compatible with their qualifications, they may then apply for a Residence Permit for Highly Qualified Activity under Article 77 of Law No. 23/2007.

This second stage requires evidence of an employment contract or a binding job offer, proof of sufficient income and accommodation, and compliance with tax and social security obligations. The visa often includes a pre-scheduled appointment with AIMA, allowing for a smoother transition from temporary stay to residence status, and it may be extended for a further period of 60 days, subject to duly justified circumstances.

If no job is found within the validity period and the residence permit process has not begun, the visa expires, and the holder must leave Portugal. A new application for the same purpose can only be made one year after the expiry of the previous visa.

Strategic Significance

Article 57-A introduces a flexible and forward-looking pathway into the Portuguese labour market. Previously, foreign professionals needed to obtain an employment contract before entering the country, which limited access to emerging opportunities. The new visa reverses this logic by enabling highly qualified individuals to come first, understand the local market, and pursue suitable positions directly.

For Portuguese employers , this mechanism simplifies recruitment by giving them access to a pool of legally present and pre-vetted international talent. For applicants, it represents a safe and structured opportunity to explore Portugal’s professional landscape before committing to long-term relocation.

Given that the application involves coordination between several authorities, including the Ministry of Foreign Affairs, the IEFP, and AIMA, legal guidance is strongly advised to ensure full compliance and to optimise timing between the job search and residence permit application.

Conclusion

The Job Seeker Visa for Highly Qualified Professionals is a significant milestone in Portugal’s immigration policy. It balances openness to global expertise with a clear procedural framework, reinforcing Portugal’s reputation as an innovative, stable, and welcoming European country.

For qualified professionals seeking a new start in a dynamic environment, and for companies eager to attract specialised talent, this visa may well become one of the most effective and strategic instruments in the Portuguese immigration system.

Those considering applying are encouraged to plan ahead, gather complete documentation, and seek professional assistance to navigate the procedural details confidently and efficiently. For personalised advice, contact LVP Advogados’ Immigration and Employment Law team .

Taxation of ETFs, Shares, Bonds and Crypto Assets in Portugal

Tue, 28 Oct 2025 13:19:56 GMT

António Pratas Nunes | Lawyer

In recent years, Portugal has consolidated its position as an attractive destination for international investors — combining a high quality of life and favourable residency regimes with a tax framework that, while evolving, continues to offer relevant opportunities for efficient investment structuring.

As investment products diversify and digital assets gain relevance, understanding how different categories of income are taxed has become essential for both resident and non-resident investors.

This insight provides a practical overview of the Portuguese tax treatment applicable to income derived from Exchange-Traded Funds (ETFs), shares, bonds and crypto assets , highlighting the key distinctions between capital income and capital gains , the applicable tax rates , and the implications for residents under the general and preferential (IFICI+ / NHR) regimes .

1. Capital Income (Category E – “ Rendimentos de Capitais ”)

As a preliminary note, capital income comprises all returns and other economic benefits , of any kind or designation, whether monetary or in kind , arising directly or indirectly from movable assets, rights or legal relationships , as well as from their modification, transfer or cessation — except for gains and other income taxed under different categories.

In practice, the following are typically classified as Category E income :

Interest , such as income from deposits, loans or bonds.
Dividends from Portuguese or foreign companies .
Royalties when not received by the original author or rights holder.
Income derived from ETFs or investment funds when distributed to investors.
Returns from derivative contracts , such as swaps.
Crypto income .

Capital income is generally characterised as passive income — it arises by virtue of owning an asset, rather than through an active economic activity.

2. Capital Gains (Category G – “ Incrementos Patrimoniais ”)

Capital gains correspond to profits realised upon the sale, redemption or exchange of assets , including shares, fund units, bonds and crypto assets. They are considered occasional or fortuitous gains , distinct from regular business income.

Examples include:

Sale of shares or ETF units.
Redemption of bonds before maturity.
Disposal of crypto assets.
Transfers of other assets not related to a business activity.

The fundamental distinction between capital income and capital gains is that capital income arises from holding , while capital gains arise from disposing — a key factor in determining taxation, applicable rates and exemption rules.

3. Taxation of Capital Income and Capital Gains

3.1. Capital Income (Category E)

Capital income — such as interest, dividends, royalties and other passive distributions — is generally subject to a flat tax rate of 28% in Portugal.

Taxpayers may opt for aggregation (“ englobamento ”) , subjecting the income to progressive rates up to 53%.

This can be beneficial for taxpayers with lower overall income , or where certain income items (e.g. dividends ) are only partially included in the taxable base. Each case should be assessed individually to understand the benefits that each type of investment may offer.

If the income originates from a blacklisted jurisdiction, an aggravated rate of 35% applies .

For foreign-source capital income and considering Portugal’s extensive Double Taxation Treaty (DTT) network , withholding tax in the source country may usually occur at limited to reduced rates (5%–15%) .

3.2. Capital Gains (Category G – Movable Assets)

Capital gains derived from movable assets — such as shares, bonds, ETFs, fund units or crypto assets — are generally subject to a flat tax rate of 28% in Portugal.

The applicable treatment depends on the holding period and the origin of the income :

Short-term gains (held < 365 days) : If total income exceeds €83 696 , the gain is taxed at progressive rates up to 53% ; otherwise, the flat 28% applies.
Long-term gains (held > 365 days) : Taxed at 28% flat .
Aggregation option : An option to consider for taxpayers with low income.
In case of a capital loss in a specific year, the regime allows the loss to be carried forward for five years if the income is aggregated in that period.

Crypto Assets

An important exception applies to crypto assets:

When crypto assets are held for more than 365 days before being sold , the resulting gain is exempt from taxation .

Nevertheless, taxpayers remain legally required to report such transactions in their annual tax return.

Shares and Company Participations

Two specific tax incentives apply to shares and participations in companies :

Disposal of participations in micro or small companies : Where the legal requirements are met, only 50% of the capital gain is considered for taxation and is subject to the 28% rate .

Disposal of securities admitted to trading on a regulated market or of units in open-ended collective investment undertakings : In certain cases, part of the gain may be excluded from taxation depending on the holding period of the asset:

10% exclusion if held for more than 2 years and less than 5 years.
20% exclusion if held for more than 5 years and less than 8 years.
30% exclusion if held for 8 years or more.

Blacklisted jurisdictions : Gains from securities or funds located in blacklisted jurisdictions are taxed at 35% .

Exemption under the NHR and IFICI+ regimes

NHR Regime:

Foreign-source capital income is exempt in Portugal if it may be taxed in the other country under an applicable DTT , or, in the absence of one , under the OECD Model Tax Convention , provided that the income does not originate from a blacklisted jurisdiction .

In practice, most treaties grant taxing rights to the country of residence, so this exemption is rarely applicable and acceptable to the tax authorities.

IFICI+ Regime:

The exemption method also applies to foreign-source capital income, without requiring that the income be taxable abroad. Exempt foreign income must still be included for rate-determination purposes .

However, if derived from a blacklisted jurisdiction , the exemption does not apply , and the income is taxed at 35% .

Final Remarks

Portugal’s tax framework remains relatively competitive and transparent in the European context.

However, frequent legislative changes — such as the transition from NHR to IFICI+ and the new taxation rules for digital assets — underline the need for careful and informed planning.

Understanding whether a return qualifies as capital income or capital gain , the applicable holding period , and the interaction with double taxation treaties is essential for ensuring compliance and tax efficiency.

If you would like further clarification on the taxation of ETFs, shares, bonds, or crypto assets in Portugal, please contact our team for tailored legal guidance.

Working with Portuguese Freelancers: Tax and Legal Implications for Foreign Companies

Wed, 22 Oct 2025 15:29:00 GMT

António Pratas Nunes | Lawyer

Margarida Tempera | Lawyer

Engaging Portuguese freelancers can be an attractive solution for foreign companies wishing to access skilled talent without establishing a local entity, yet it is also an area that demands careful attention to the Portuguese legal and tax framework . Under Portuguese law, freelancers are categorised as independent service providers rather than employees, which places them outside the scope of the Labour Code provisions that regulate dependent employment relationships. However, the line between independent contractor and employee is not determined by the title given to the arrangement but by the actual substance of the relationship.

The existence of subordination, which means that the individual performs work under the authority, direction and supervision of another party, is decisive in characterising an employment relationship. Portuguese courts and the labour inspectorate may requalify a service agreement as an employment contract if the freelancer works under fixed schedules, uses the company’s equipment, or is integrated into the organisational structure in a manner consistent with subordination. In such cases, the company could be exposed to retroactive employment liabilities, including payment of holiday and Christmas allowances, severance rights, social security contributions, interest, and administrative penalties. For foreign businesses, this risk underlines the importance of structuring freelance contracts carefully so that they reflect genuine independence.

When the relationship is correctly framed as independent contracting, the freelancer assumes responsibility for compliance with Portuguese tax and social security obligations. From an income tax perspective, income earned by freelancers falls under Category B of the Portuguese Personal Income Tax Code, meaning that such income is treated as business or professional income.

Freelancers must report their income annually in their Portuguese tax returns and pay income tax according to the progressive rates in force. In practice, unless withholding applies, it is the freelancer who makes advance payments and ensures compliance with tax obligations.

As a rule, Portuguese entities contracting freelancers may be required to withhold tax at a rate of twenty-three per cent, subject to exemptions for lower income levels. When services are provided to a foreign company with no permanent establishment in Portugal, there is generally no withholding, and the freelancer is responsible for declaring and paying the corresponding income tax. This follows the general principle that Portuguese residents are taxed on worldwide income, meaning that income from foreign clients remains taxable in Portugal. Double taxation treaties should also be reviewed, as they may allocate taxing rights and allow a tax credit in Portugal for any foreign tax paid, provided legal requirements are met.

For value-added tax (VAT), Portuguese law follows the EU principle that the place of supply of services to business clients is where the client is established. Thus, when a Portuguese freelancer provides services to an EU or non-EU company, the transaction is generally not subject to Portuguese VAT, and the foreign client accounts for VAT under the reverse charge mechanism. The freelancer must still issue an invoice in accordance with Portuguese rules, indicating the relevant VAT exemption or reverse charge reference.

Freelancers in Portugal are also subject to social security contributions. They must register with the Portuguese social security system and file quarterly income declarations. Contributions are calculated on seventy per cent of gross income, at a rate of twenty-one-point four per cent. A twelve-month exemption applies at the start of activity, though voluntary contributions can be made during this period to secure coverage. Once contributions become due, payments are made monthly. Non-compliance can lead to fines, interest, and enforcement proceedings. The foreign client has no responsibility for these contributions unless the relationship is reclassified as employment.

Once contributions become due, payments are generally made monthly. Failure to comply with these obligations exposes the freelancer to fines, interest, and enforcement action. The foreign company, however, does not assume responsibility for social security contributions in a genuine freelance arrangement, unless the relationship is reclassified as employment.

In practical terms, foreign companies working with Portuguese freelancers should adopt several safeguards. Contracts should clearly define the relationship as one of independent service provision, emphasising autonomy in the organisation of work, freedom to determine schedules, and the use of the freelancer’s own equipment and resources. Exclusivity clauses or obligations that closely mirror those of employees should be avoided. The contract should also set out the remuneration method in a manner consistent with independent contracting, typically linked to deliverables rather than fixed monthly salaries.

From a tax perspective, companies should ensure that freelancers issue proper invoices under Portuguese rules, correctly indicating their VAT position. When payments are made to freelancers who are residents in Portugal, companies should also consider the possible application of withholding tax and request evidence of the freelancer’s fiscal status. If a double taxation treaty applies, the appropriate forms should be completed to avoid unnecessary withholding abroad or to ensure relief is available. It is advisable for foreign businesses to seek confirmation from freelancers that they are duly registered with the Portuguese tax authority and social security, and to keep copies of relevant documentation to demonstrate due diligence.

Ultimately, working with Portuguese freelancers offers flexibility and access to highly qualified professionals but requires careful navigation of the Portuguese tax and legal framework. While the freelancer is responsible for compliance with income tax, VAT and social security, the foreign company must take steps to ensure the contractual relationship is structured to withstand scrutiny and that no inadvertent obligations arise. By properly documenting the terms, respecting the boundaries between employment and independent contracting, and remaining attentive to cross-border tax and social security rules, companies can secure the benefits of flexible collaboration while minimising the risk of requalification, double taxation, or unexpected liabilities in Portugal.

For tailored advice on your specific situation, don't hesitate to get in touch .

Service Contracts with Portuguese Companies: Legal and Tax Implications for Foreign Businesses

Tue, 21 Oct 2025 14:54:49 GMT

Margarida Tempera | Lawyer

António Pratas Nunes | Lawyer

Foreign companies engaging service providers in Portugal must distinguish clearly between independent contractors and employees. Under Portuguese law, truly independent service providers fall under the general Civil Code regime , while employees are protected by the Labour Code.

While the Labour Code defines an employment contract as one in which “a natural person undertakes, through retribution, to provide their activity to another person, within the organisation and under their authority”, the Civil Code ( Código Civil ) defines service provision contract as “an agreement whereby one party commits to provide to the other a certain result of their intellectual or manual work, with or without remuneration”. In short, a Portuguese labour contract involves personal subordination and integration into the employer’s business, whereas a civil services contract is about delivering specified results.

This said, foreign businesses should ensure that their agreements with Portuguese parties reflect these distinctions, since mischaracterising an actual employment relationship as an independent service contract may trigger serious legal consequences.

In practice, the key test is one of subordination and control. Portuguese authorities look beyond the contract label to the true nature of the relationship. If the service provider must follow detailed instructions, work set hours, use the company’s facilities, and is economically dependent on the client, the arrangement may be deemed a disguised employment. As noted in Portuguese case law and guidance, “ the existence of subordination…is decisive in characterising an employment relationship ”. The Labour Code definition emphasises that employment is a relationship under “the authority” of the employer, and so foreigners must avoid any real control over how a contractor organises their work. For example, requiring a contractor to attend a fixed schedule in the client’s office or use the client’s equipment would suggest an employment relationship. The written contract should therefore emphasise the independence of the service provider (e.g. stating that they control their own time and methods and avoid clauses such as exclusivity or fixed working hours) that mimic employment. In all cases, the substance of the working arrangement is decisive: Portuguese courts will requalify an “independent contractor” agreement into an employment contract if the provider works under direction and integration into the business.

Portuguese law even contains a statutory presumption of employment under the Labour Code, providing that if certain characteristics are present, the relationship is presumed to be one of employment. If a person performs the services at a location determined by the beneficiary or using the beneficiary’s equipment, among other factors, an employment contract is legally presumed. In practice, if two or more of these factors coexist (for example, working at the client’s premises with client-owned tools under a fixed schedule), Portuguese authorities will treat the service provider as an employee unless the employer proves otherwise. The burden of proof thus falls on the foreign company to demonstrate true independence. This presumption underscores the risk of simple misclassification- employers cannot rely on a self-styled “service contract” to avoid the protections of the Labour Code.

The consequences of misclassification can be severe. If a court or labour inspection finds that a contractor was effectively an employee, the foreign company may incur extensive retroactive liabilities. Under Portuguese labour law, employees enjoy numerous benefits and protections that cannot be contracted away. These include statutory paid holiday (at least 22 working days per year), a guaranteed holiday bonus (usually a 14th-month salary) and Christmas bonus (a 13th-month salary), paid sick leave, maternity/paternity leave, minimum wage guarantees and notice and severance rights on termination. An employer who mislabels an employee as a contractor must typically pay all owed wages, holiday pay, and Christmas allowances as if the person had been an employee from the start, as in the event of suspected misclassification, the Working Conditions Authority ( Autoridade para as Condições do Trabalho (ACT)) may intervene and initiate an inspection. Portuguese law even imposes heavy fines and penalties on companies that under-declare payroll by using false receipts. Social security contributions must be paid retroactively on all such payments (since the company would have had to withhold and pay contributions for an employee), and the company may face administrative sanctions. In short, the company becomes responsible for all statutory credits of the worker. As one practical guide notes, requalification can lead to “retroactive employment liabilities, including payment of holiday and Christmas allowances, severance rights, social security contributions, interest and administrative penalties”. These obligations, along with mandatory employment benefits, make the misclassification of an employee as a contractor a costly mistake in Portugal.

It is important to note that the Portuguese Labour Code also recognises a special category of economically dependent workers , defining them as a self-employed person who renders most of their services to one beneficiary and entitling them to certain protections similar to employees. Such dependent contractors may organise collectively and may even fall under collective bargaining regimes applicable to employees in the same sector, as long as they prove economic dependency. Thus, even a “sole trader” providing services to a single Portuguese firm may gain partial labour-law status if they lack alternative customers, and the client should be aware of this when dealing with long-term service contracts.

Given the risks of misclassification, foreign businesses should carefully structure their service contracts. The contract should explicitly state that the parties intend an independent contracting relationship and incorporate various clauses to demonstrate autonomy. For instance, it is advisable to emphasise the contractor’s freedom over the organisation of their own work, specifying that they set their own hours and methods and are not supervised like an employee. Contracts should avoid clauses requiring exclusivity (so the contractor can work for others) and should make clear that the provider supplies and uses their own tools or equipment. Remuneration provisions should be based on deliverables or services rendered (for example, payment per project or per invoice) rather than a fixed monthly salary. It is also wise to include express statements that no employment relationship is intended, although such “disclaimer” clauses are not conclusive on their own. Other standard terms as scope of work, confidentiality, intellectual property rights and limits on subcontracting, should also be covered. The contract should clearly allocate responsibilities for taxes and compliance (noting, for example, that the contractor is responsible for their own tax and social contributions as a self-employed person). Finally, termination provisions are important: either provide for notice periods or termination triggers or explicitly allow either party to end the contract on reasonable notice, to avoid uncertainty and mirror the flexibility of civil contracts. Well-drafted service agreements, tailored to Portuguese law, help to demonstrate that the relationship is genuinely independent and not subject to the strictures of employment law.

The tax and social-security implications should not be overlooked, although these are secondary to the labour issues. In principle, a truly independent contractor must handle their own tax affairs in Portugal. A Portuguese service provider will invoice the foreign client and pay personal income tax under Category B (trade and professional income). If the foreign business has no Portuguese presence (no permanent establishment), generally there is no Portuguese income-tax withholding obligation – the contractor declares and pays tax themselves. (By contrast, a Portuguese client paying for such services would normally withhold 23% on professional fees, unless a lower rate applies.) Value-added tax (VAT) also follows EU rules: services provided to a foreign business are usually taxable where the client is established, so Portuguese VAT is not charged – the foreign company self-accounts under the reverse-charge mechanism. The Portuguese contractor must issue a proper invoice referencing the reverse charge and comply with local invoicing rules. Foreign businesses should be mindful of any tax treaty provisions: although Portuguese residents pay tax on worldwide income, relief under double-taxation treaties may apply if cross-border withholding or taxation arises. In practice, the key tax concern for foreign companies is ensuring invoices from Portuguese providers are valid and understanding whether any withholding or VAT rules apply to payments (with guidance from the contractor on their registration and status).

Ultimately, the interplay of Portuguese labour and tax law means that foreign companies must navigate these relationships carefully. A foreign company contracting with a Portuguese individual or entity should treat the arrangement first and foremost as commercial (governed by contract and the Civil Code), but should structure it so that no element of employment sneaks in. This involves respecting autonomy, avoiding control, and documenting the arrangement clearly.

In case of doubt, foreign companies would be well advised to seek Portuguese legal advice . By explicitly defining the contractor’s independence, respecting Portuguese labour protections, and complying with invoicing and withholding requirements, a foreign business can reap the benefits of hiring Portuguese talent (or firms) without inadvertently creating an employment relationship.

Born in Portugal: When Children of Foreign Parents Qualify for Portuguese Nationality

Thu, 16 Oct 2025 12:00:02 GMT

Luís Maria Branco | Lawyer

Portugal has a large global presence and a long history of migration. Not only do many Portuguese move abroad seeking new opportunities, but Portugal’s former overseas territories and the country’s attractions - climate, safety, relaxed lifestyle, varied visa options and a dynamic economy - have drawn many foreign nationals to settle in the country: some only temporarily (for work, volunteering, sport or study) , while others choose to make their lives here long-term, whether to retire or to pursue the country’s professional, academic and lifestyle opportunities.

Some families arrive with full residence permits; others live here temporarily on visas or even before regularising their status. Because the route to citizenship by residence normally requires several years of legal stay and can take time to complete, children are frequently born in Portugal while their parents’ immigration situation is still being resolved.

That raises a practical question: can a child born in Portugal to foreign parents -whether those parents held legal residence at the time or not - acquire Portuguese nationality, and if so, under what conditions?

Birth in Portugal does not automatically equal Portuguese nationality: the decisive question is what was true about the parents on the day the child was born. Under Article 1(1)(f) of the Nationality Law (Lei n.º 37/81), as shaped by the recent organic-law reforms and implemented by the Nationality Regulation (DL No. 237-A/2006), a child born on Portuguese soil acquires nationality at birth only where two conditions are satisfied at the date of birth - the parents were in Portugal but not “at the service of their State” (the diplomatic/service exclusion), and at least one parent had legal residence in Portugal or had been present in Portugal for at least a continuous year. Those are factual tests: what matters is the parental situation at birth, not the child’s later age or current residence abroad.

Practically, many eligible cases fail to manifest on first inspection because older birth entries simply omit the parental facts now required by law. The procedural remedy is an updated annotation of the birth entry ( averbamento ) requested at a Civil Registry Office ( Conservatória do Registo Civil ). IRN’s ( Instituto dos Registos e do Notariado ) guidance OT 07/CD/2021 explains the registries’ approach: the applicant files a written request identifying the birth entry and supplies contemporaneous proof that the parental criteria were met on the birth date.

Proof that the child was born in Portugal is a straightforward process, which begins with securing the proper documentation attesting this fact from the Civil Registry Office where the birth was recorded. This documentation will be the basis of any subsequent request to correct or update the civil register.

Regarding the parents’ status at the time of the child’s birth, two factual routes can give rise to Portuguese nationality under Article 1(1)(f): either at least one parent had lawful residence in Portugal on the relevant date, or at least one parent had been physically present in Portugal continuously for one year immediately before the birth. To be clear, both situations may lead to recognition of nationality, although the evidential approach differs depending on the different scenarios. It is also important to note that the nationality regime is currently under parliamentary review , and there is a proposal to extend the present one-year presence requirement to three years; that proposal has not been enacted, and the analysis above reflects the law in force.

If one parent was legally resident in Portugal at the date of the birth, the applicant must prove that fact with evidence showing the parent’s lawful status at that time, with documents that, under the law then in force, established legal residence. Crucially, an application may be made many years later: it is the parent’s status on the birth date that matters, even if the particular type of authorisation is no longer issued today.

If, by contrast, a parent did not hold formal legal residence at the time of the birth, the case depends on assembling a convincing chronological bundle of contemporaneous documents that demonstrate continuous presence for at least one year prior to the birth. In this case, registries will look for a chain of dated evidence - using documents such as rental agreements, utility bills, bank statements, etc. - to show physical presence, together with a short chronology tying each item to 12 months before birth.

To avoid any confusion, if the parents did not have legal residence at the time of the birth, it is still possible to apply for nationality, but the applicant must prove that at least one parent had been physically present in Portugal for the year immediately preceding the birth, using contemporaneous evidence. Official records carry the most weight, but where such records are unavailable, a carefully drafted declaration on honour by the parent may bridge gaps, which will always remain subject to the authorities’ discretion.

The second element is the service-of-State exclusion: parents may have been in Portugal “at the service of their State.” In practical terms, this means parents who were acting in an official, governmental capacity for a foreign State - for example, accredited diplomats and consular officers, embassy or consular staff with diplomatic status, certain military or defence personnel posted abroad, officials seconded by a foreign government, or other people exercising sovereign public functions on behalf of their State. By contrast, private-sector employees, independent contractors or ordinary residents working for foreign companies are not typically regarded as “at the service of their State.” If a parent falls within the exclusion, the Article 1(1)(f) route is closed.

The clearest way to resolve the issue is an administrative confirmation from the competent authority (AIMA - Agência para a Integração Migrações e Asilo or the relevant ministry) that the parent was not serving a foreign State on the birth date, but such certificates can be difficult to obtain, and local practice varies.

It is also important to highlight that in the case of applicants who are minors, registries sometimes proceed without formal proof - but ultimately, the director of the Civil Registry Office ( Conservador ) assesses the file as a whole and will decide how to treat the service-of-State question in the context of the available evidence.

If the Conservador is satisfied, the IRN will enter an averbamento updating the civil register; that annotation confirms the applicant’s entitlement to Portuguese nationality and enables them to apply for a citizen card and passport .

There are important practical caveats. If the original registration file contains a parental declaration expressly refusing Portuguese nationality for the child, the averbamento route will generally be closed, and other legal avenues will need to be considered. Old documentary records are frequently missing or incomplete, and registries commonly request further documents and may take weeks or months to decide.

In short, being born in Portugal can confer nationality at birth - but only where the parental facts on the birth date satisfy Article 1(1)(f). Where the civil register does not reflect those facts, a carefully prepared averbamento request, grounded in dated documentary proof (and, where necessary, a declaration on honour), is the pragmatic route to correcting the entry and securing recognition of the entitlement.

At LVP Advogados, we monitor legislative and registry practice closely. We can prepare and submit the averbamento, manage any procedural follow-up, and advise on alternative pathways (for example, naturalisation by residence) where appropriate. If you think your case may qualify or would like a confidential assessment, contact our team, and we will review the file and advise on the most realistic next steps.

Portugal’s Proposed Amendments to the Immigration Law: What You Need to Know

Wed, 15 Oct 2025 14:59:22 GMT

Joana Loureiro Veríssimo | Lawyer

Recently, the Portuguese Parliament approved a government bill proposing significant changes to the Immigration Act, aiming to reform and tighten Portugal’s immigration framework . While still pending promulgation by the President, this new legislation signals a major shift from the more flexible policies of recent years towards stricter and more regulated migration controls.

Key Changes and Their Impact

End of the Expression of Interest Mechanism : The bill abolishes the current system, allowing third-country nationals already in Portugal to apply for residence permits without a visa (the so-called “expression of interest”). This removes an important and accessible pathway to legal residence for many migrants.

New Visa for Qualified Job Seekers : A new temporary visa category will be introduced, exclusively targeting holders of specialised technical skills. This visa allows a maximum stay of 120 days to find employment in Portugal. Failure to secure a job within this period requires leaving the country and waiting one year before reapplying.

Stricter Family Reunification Rules : Only those holding a valid residence permit for at least two years may apply for family reunification, provided they can demonstrate:

Ongoing cohabitation or financial dependency with a family member.
Even if the family relationship was established after arriving in Portugal.

Exemptions from the two-year rule are granted for:

Minor children or dependent incapacitated individuals.
Spouses who are parents of a minor dependent child.

In addition, family members will be required to:

Provide proof of adequate housing and financial means.
Participate in Portuguese language and civic integration programmes.
Show compliance with these obligations when renewing their residence permits.

Exceptions to these integration requirements may be granted for humanitarian reasons at the discretion of the Ministry.

Entrepreneur Residence Route Reinforced : The law clarifies and strengthens the entrepreneur residence permit, now focused on third-country nationals developing innovative projects within certified incubators, emphasising innovation-driven migration rather than traditional investment schemes.

Limited Judicial Remedies : The bill introduces judicial oversight over the immigration agency’s (AIMA) delays or inaction, but judges must balance requests with the agency’s workload and resources, which may limit the effectiveness of court interventions.

Bilateral Agreements for Strategic Worker Mobility : The government will promote bilateral agreements with third countries to facilitate legal mobility of workers in key sectors, ensuring recruitment channels, training, and Portuguese language instruction before entry.

Deadlines and Transition Periods : Pending residence applications under the old rules must be finalised by 31 December 2025, or they will expire. Additionally, existing residence permit holders have a 180-day window to convert their permits into other categories, such as highly qualified or cultural activity visas.

What This Means for Migrants and Employers

While the government frames this reform as a step towards efficiency and control, it represents a significant tightening of immigration policies, reducing some pathways to legal residence and introducing more rigid conditions, especially for family reunification and job seekers. Sectors dependent on lower-skilled workers, such as hospitality and agriculture, may face labour shortages as the new job seeker visa focuses only on highly skilled professionals.

Furthermore, although judicial oversight is introduced, practical challenges remain due to administrative capacity constraints, potentially limiting migrants’ access to effective legal recourse.

On the positive side, Portugal is signalling a strategic shift towards attracting innovation-driven entrepreneurs, which could boost the country’s position as a hub for start-ups and technological development .

Overall, this proposed law marks a clear transition from an open and flexible immigration model to a more restrictive and visa-dependent regime. For migrants, businesses, and legal practitioners, understanding these changes is crucial to navigating the new legal landscape effectively.

If you would like more information about the recent changes to the Portuguese Immigration Act, please don’t hesitate to contact us. We’ll be glad to assist you.

Tax Updates: State Budget Proposal for 2026 and New Measures Also Planned for 2026

Mon, 13 Oct 2025 09:02:49 GMT

António Pratas Nunes | Lawyer

On 9 October 2025 , the Minister of Finance presented to the Portuguese Parliament the State Budget Proposal for 2026 .

This is a budget of continuity — without major structural reforms — but one that reinforces the Government’s ongoing strategy of gradually reducing taxation and supporting household income and business competitiveness .

One of the key highlights of the proposal is the increase of the national minimum wage by €50 , bringing it to €920 per month in 2026 , with the goal of reaching €1,100 by the end of the legislature . This measure forms part of the Government’s broader policy of income convergence and seeks to offset the impact of inflation on lower wages.

From a macroeconomic perspective, the Government forecasts economic growth above 2% in 2026 , the maintenance of a budget surplus , and a reduction of public debt to below 90% of GDP — a milestone not achieved for more than 16 years. These projections were disclosed by the Ministry of Finance during the presentation of the budget proposal and confirmed by the Minister of Finance, in the official press conference held on the same day.

Corporate Tax (IRC) Measures

In what concerns corporate taxation, the State Budget Proposal for 2026 continues the Government’s commitment to gradually easing the tax burden on businesses .

However, the reduction of the corporate income tax (IRC) rate — from 20% to 19% in 2026 , and from 16% to 15% on the first €50,000 of taxable income for SMEs and small mid-cap companies — has not yet been formally included in the draft budget law.

These measures remain part of the Government’s political and fiscal roadmap and will therefore require separate legislative approval .

This forms part of a multi-year plan to reduce the corporate income tax rate by one percentage point per year , aiming to reach a general rate of 17% by 2028 , thereby bringing Portugal closer to the European average corporate tax level.

Until the nominal reduction takes effect, the Budget maintains the tax incentive for wage valuation , allowing companies to deduct 200% of the eligible costs associated with salary increases as tax-deductible expenses. The required average annual salary increase for 2026 is set at 4.6% , compared to 4.7% in 2025 , representing a slight easing of the eligibility threshold.

This incentive is designed to promote competitiveness and reward companies that invest in stable employment and the improvement of employee compensation.

Additionally, the proposal extends the reduced autonomous taxation regime for plug-in hybrid and natural gas vehicles , now including vehicles approved under the new EU environmental standard Euro 6e-bis , with CO₂ emissions below 80g/km . This alignment with European environmental benchmarks seeks to promote the renewal of the corporate vehicle fleet and encourage a gradual transition to cleaner energy sources.

Personal Income Tax (IRS) Measures

The 2026 State Budget Proposal introduces a 3.5% update to personal income tax brackets and a 0.3 percentage-point reduction in marginal rates from the 2nd to the 5th bracket , aiming to mitigate the impact of inflation on employment income.

In addition, the minimum subsistence threshold rises by 5.75% , from €12,180 to €12,880 , ensuring greater protection for low-income taxpayers and preserving the progressivity of the system

Personal Income Tax 2025 – Current Rates

Personal Income Tax 2026 – Proposed Rates (updated by 3.5%)

Productivity and Performance Bonuses, Profit-Sharing and Balance-Sheet Gratifications

The proposal maintains the IRS exemption regime for bonuses and profit-sharing , under terms identical to those in force in 2025.

Accordingly, amounts paid or made available in 2026 by employers to employees or members of statutory bodies, on a voluntary and non-regular basis , as productivity or performance bonuses, profit-sharing, or balance-sheet gratifications, are exempt from IRS up to 6% of the employee’s annual base salary.

These amounts will also be excluded from the Social Security contribution base , provided that, in 2026, the employer has implemented a qualifying salary increase , meaning an average annual wage rise of at least 4.6% (compared to 4.7% in 2025) .

The employer must make express reference to this condition in the annual income statement issued to the employee for IRS reporting purposes.

Minimum Subsistence Threshold

The minimum subsistence threshold (“mínimo de existência”) defines the minimum level of annual income exempt from personal income tax , ensuring that each taxpayer retains sufficient income to meet basic living needs.

For 2026, the reference amount is updated by 5.75%, from €12,180 to €12,880, with the minimum subsistence threshold equal to the higher of €12,880 and 1.5 × 14 × the IAS (Indexante dos Apoios Sociais).

This adjustment reflects the growth in the national minimum wage and aims to reinforce progressivity and fairness in the tax system by preventing low-income earners from entering the taxable base.

These changes reflect both technical corrections and social policy objectives .

Together with the modest rate reductions and the maintenance of bonus-related exemptions, the update of the minimum subsistence threshold strengthens income protection for lower earners and maintains effective progressivity across all brackets.

Housing and Youth Measures

The 2026 State Budget Proposal maintains a strong focus on housing policy , combining technical updates to property taxation with new fiscal incentives aimed at promoting affordable housing and long-term rental contracts.

Although not all measures have been formally included in the budget law, the Government has already announced a set of policies designed to encourage moderate rents and support young buyers entering the housing market.

Measures Included in the 2026 Budget Proposal

The proposal updates all Property Transfer Tax (IMT) brackets by 2% , in line with the expected inflation rate for 2026.

The full IMT exemption for primary residences increases from €104,261 to €106,346, while the special exemption for young buyers (up to age 35) rises from €324,058 to €330,539.

Although the IMT rate structure r emains unchanged, these adjustments slightly expand the number of properties qualifying for partial or total exemption — particularly in medium-value urban areas, where price growth has been most significant.

IMT 2025 – Primary Residence (in force)

IMT 2026 – Proposed Budget (values updated by 2%)

IMT Jovem – Youth Property Transfer Tax (comparative 2025 vs 2026)

IMT Jovem 2025 (in force)

IMT 2026 – Proposed Budget (values updated by 2%)

Additional Housing Measures Announced by the Council of Ministers for 2026

In addition to the measures formally included in the State Budget, the Government announced a complementary fiscal and regulatory package in the housing sector , to be implemented progressively from 2026 onwards.

Among the most significant measures is the reduction of the VAT rate to 6% , applicable to the construction of residential properties for sale up to €648,000 , as well as to the rental of properties with monthly rents up to €2,300 .

If approved, this measure will remain in force until 2029 , with the aim of reducing construction costs and increasing the supply of housing in the mid-price segment .

The Council of Ministers also approved a higher IMT rate for non-resident property acquisitions , with an exemption for Portuguese emigrants , and an AIMI (Additional Municipal Property Tax) exemption for properties rented at up to €2,300 per month , further encouraging the use of residential property for rental purposes.

In terms of personal income tax, the Government has proposed a reduction of the IRS rate on rental income , from 25% to 10% , applicable to long-term rental contracts at moderate rent levels , defined as rents up to €2,300 per month . This significant reduction is designed to reward landlords who offer affordable housing and encourage the conclusion of long-term tenancy agreements .

For tenants, the deductible amount of rent expenses in IRS will increase from €800 to €900 in 2026 , and to €1,000 in 2027 , directly reducing the income tax payable on housing costs. The deduction will apply to rents paid in 2026 and will be declared in the 2027 tax return .

Taken together, these measures — still subject to legislative approval and subsequent regulation — aim to address the imbalance between housing supply and demand , while promoting rent moderation, contractual security, and the mobilisation of residential property for affordable leasing .

The State Budget for 2026 mainly focuses on technical IMT adjustments and the youth exemption , while the Council of Ministers’ measures introduce a qualitative change in housing policy , centred on tax reductions for moderate rents , higher tenant deductions , and the removal of charges on affordable housing .

Their actual impact will depend on legislative approval and regulatory implementation throughout 2026 .

Conclusion

The 2026 State Budget reflects a pragmatic approach: maintaining fiscal discipline while gradually implementing targeted tax reliefs for households and businesses.

Although the core budget introduces only limited technical adjustments — notably in IMT and income tax brackets — the complementary measures announced by the Council of Ministers reveal a more ambitious political agenda: one focused on housing accessibility , income growth , and corporate competitiveness .

The true scope of these reforms will depend on parliamentary approval and implementation throughout 2026 , as Portugal continues its effort to balance economic growth with fiscal responsibility.

LVP Advogados will continue to monitor the ongoing parliamentary discussions and any amendments to the State Budget Proposal until the final vote at the end of November, providing timely updates on measures that may affect individuals, businesses and investors in Portugal.

For further information or tailored legal assistance regarding the 2026 State Budget measures, please contact our team .

Changing the Type of Residence Permit in Portugal: Is It Possible?

Wed, 08 Oct 2025 16:25:29 GMT

Javier Mateo | Lawyer

Life evolves, and so do the circumstances of foreign nationals living in Portugal . Students graduate, professionals are offered new jobs, researchers launch businesses, and younger family members seek greater autonomy. A natural question arises: is it possible to change the legal basis of an existing residence permit, for example, moving from a student permit to a work permit, or from family reunification to independent activity? And what about changing between specific types of residence permits?

The answer lies in the structure of the Immigration Act (Law 23/2007 of 4 July) and its Regulation (Decree-Regulatory 84/2007 of 5 November). These instruments define the categories of residence permits and establish the rules for their renewal and substitution. They also reveal that change is indeed possible when the legal framework is applied carefully.

Article 78 of Law 23/2007 is the cornerstone of the renewal process. It requires that renewals be requested before expiry and that applicants demonstrate sufficient means of subsistence, adequate accommodation, health insurance where applicable, and compliance with tax and social security obligations. Article 78 secures continuity of lawful stay during renewal and grants applicants the right to a hearing before refusal. Traditionally, this provision has been read as a mechanism to extend the same residence category. A work permit renews as a work permit, a student permit as a student permit, and so on. Yet the structure of the Act suggests something more. Article 78 operates in tandem with other provisions that expressly permit change. When the general renewal conditions are met and when the specific requirements of a new category are also satisfied, a change of purpose can lawfully be achieved.

Several provisions illustrate this interaction. Article 90 allows a shift from employed work in a highly qualified activity to self-employment in the same field of highly qualified professions. Article 122 waives the need for a new visa when the applicant already resides legally in Portugal, a rule of enormous importance for graduates who find employment or researchers who establish companies. AIMA also generally acknowledges that family members admitted under reunification may obtain an autonomous residence permit, which subsequently allows them to apply for other categories, including employment or entrepreneurship.

Articles 88 and 89 cover subordinate professional activity, freelancers and entrepreneurs. Article 90 regulates highly qualified professions, teaching or research. Articles 91 to 93 deal with education and internships, Article 98 with family reunification , and Article 90-A with investment purposes. Each of these has its own requirements, and the law generally assumes that permits remain tied to their original basis, including when they are renewed.

And yet, the Act provides a flexible framework. For example, a student who graduates may, if properly documented, move into employment or independent activity. A researcher may shift to entrepreneurship. A trainee or volunteer may become a worker once the programme ends. A family member may gain autonomy and later apply for a permit under another category. Even those on employment, independent activity, or passive income permits may, when qualified, transition to highly skilled activity or others. None of these changes is automatic, but when the general requirements of Article 78 are fulfilled and the substantive conditions of the new category are proven, the law recognises the possibility of lawful change.

In practice, the Agency for Integration, Migration and Asylum (AIMA) tend to apply the law cautiously. Renewals are expected to preserve the same category, and many applications are assessed strictly against the original basis. However, AIMA also relies on Article 78 to accept changes when applicants demonstrate compliance with both the renewal obligations and the specific requirements of the new permit. Article 78 is crucial here because it not only secures continuity of stay but also provides the procedural framework within which residents may present evidence of eligibility for a different category. The hearing before refusal is particularly valuable, allowing applicants to explain discrepancies or to supply documents that show compliance with the new requirements.

Practical examples illustrate how this works. Holders of a D7 permit based on passive income are legally allowed to work or establish a business in Portugal. At renewal, AIMA will check whether passive income remains substantial, in line with Article 78(2). If at the same time the holder can present proof of employment or entrepreneurial activity, the change to a work or independent permit can be lawfully requested. Similarly, students who complete their studies and secure employment may transition to an employment permit, provided they meet both the general and specific requirements.

The Portuguese residence system is therefore neither rigid nor arbitrary. Article 78 of Law 23/2007 provides the backbone for stability and fairness in renewals, but it also functions as the procedural channel through which lawful changes can be requested. When combined with the provisions that expressly permit change, such as Articles 90 and 122, it creates a framework that accommodates life’s natural transitions. The principle is straightforward: the applicant must comply with the general renewal requirements and, in addition, must satisfy the substantive criteria of the new category.

The Portuguese residence regime reflects an adaptability that corresponds to the evolving circumstances of foreign nationals. Academic residence may give way to employment, research activity may develop into entrepreneurship, family reunification may progress toward individual autonomy, and employment may advance into highly qualified activity. Where the general renewal requirements are observed and the specific conditions of the new category are fulfilled, a change of the legal basis of residence is not only feasible but consistent with the continuity of lawful stay in Portugal.

For tailored advice on your specific circumstances, our team will be pleased to assist.

Company Directors in Portugal: Key Duties and Liabilities

Fri, 03 Oct 2025 16:44:05 GMT

Pedro Mofreita | Legal Assistant

Author's note:

During my Summer Internship at LVP, I had the chance to explore different areas of Portuguese corporate law. One subject that particularly caught my attention was the role and responsibilities of company directors. Now that I continue my path at the firm as a Legal Assistant, I would like to share some of the key points I studied and discussed during that time.

The duties of company directors in Portugal are not limited to obligations towards the company itself. They also extend to its creditors, shareholders and even third parties.

First and foremost, it is important to distinguish between the management of private limited companies (sociedades por quotas – arts. 197 and following of the Portuguese Company Code – Código das Sociedades Comerciais - CSC) and public limited companies (sociedades anónimas – arts. 271 and following of the CSC). The former are managed by one or more managers ( gerentes ), while the latter are managed by a board of directors ( conselho de administração ).

Some of these duties may appear to be in tension with each other. On the one hand, directors must manage the company prudently and carefully, always acting in its best interest. On the other hand, profit generation, the ultimate objective of a company, inevitably involves taking risks.

An unavoidable duty is that of management, which entails overseeing and promoting the company’s business. Equally important is the duty of legality, inherent to the management function, which requires ensuring the company complies with its legal obligations and upholds its rights.

Relevant Legal Duties of Directors

The law provides for a wide range of specific obligations, among which the following stand out:

Duty to attend meetings of the management body (arts. 393, No. 1 and 410 – CSC);
Duty to prepare the management report, annual accounts and other financial documents (art. 65 – CSC);
Duty to present financial statements to the supervisory body and statutory auditor (arts. 65, No. 1; 451, No. 1 and 453, No. 1 – CSC);
Duty of non-competition and avoidance of conflicts of interest (arts. 254 and 398, No. 3 to 5 – CSC);
Duty to convene a general meeting in the event of a loss of half of the share capital (art. 35, No. 1 – CSC);
Duty not to implement shareholder resolutions that entail unlawful distribution of assets (art. 31, No. 2 to 4 – CSC);
Duty to register approved mergers with the Commercial Registry (art. 111 – CSC);
Duty not to act beyond the company’s corporate object (art. 192, No. 2 – CSC);
Duty to file for insolvency when legally required (art. 18 - Insolvency and Corporate Recovery Code – Código da Insolvência e da Recuperação de Empresas - CIRE);
In public limited companies (SAs):

Duty not to conduct business with the company (art. 397 – CSC);
Duty to disclose to the company any holdings of shares or bonds and related transactions (art. 447 – CSC);
Duty to maintain confidentiality regarding non-public information that could influence securities value (art. 449 – CSC).

Fundamental Duties of Directors – Care and Loyalty

Among all duties, two stand out as fundamental: the duty of care and the duty of loyalty:

The duty of care (art. 64, No 1, a) – CSC) requires directors to act diligently, prudently, and in the company’s best interest. They must make informed decisions, monitor the company’s structure and strategy, and calculate potential risks. A director acting on an informed basis, without personal interest, and guided by rational business judgment may invoke the business judgment rule as a defence mechanism against liability (art. 72, No. 2 – CSC);
The duty of loyalty (art. 64, no 1, b) – CSC) requires directors to act in good faith, prioritising the interests of the company while also considering shareholders, employees, clients and creditors. It includes the duty of non-competition and the obligation to maintain confidentiality. Disloyal management occurs when directors pursue personal gain at the expense of the company or its stakeholders.

Directors’ obligations may also arise from the articles of association, contracts, or shareholder and management resolutions.

Liability and Final Considerations

Failure to comply with these duties can have serious consequences. Directors may be held personally liable for damages caused to the company, shareholders, creditors or even third parties, and in some cases may face criminal liability.

The duties of company directors are vast and demanding, but they are essential to ensure sound and responsible corporate governance. For directors, investors and shareholders alike, understanding these obligations is crucial to protecting companies, reassuring stakeholders and promoting a fair and competitive corporate environment.

If you would like to understand how directors’ duties and liabilities under Portuguese corporate law may affect your company or your role as a manager , please do not hesitate to contact us .

How to Prove Accommodation in Portugal: The 2025 AIMA Rules Explained

Wed, 01 Oct 2025 16:35:57 GMT

Luís Maria Branco | Lawyer

Portugal continues to refine its immigration framework, with the most recent changes focusing on accommodation requirements for visa and residence applications. These adjustments reflect the efforts of the Agency for Integration, Migration and Asylum (AIMA), the national immigration authority, to increase security and ensure that the documents submitted accurately represent the applicant’s living situation.

Until recently, proof of accommodation was relatively straightforward. A rental agreement with a minimum one-year term, even if it included a break clause or a property deed, was sufficient. Alternatively, applicants could rely on an address certificate issued by the local Parish Council (Junta de Freguesia), a Fiscal Residence Certificate from the Portuguese Tax Authority (Finanças), or, in the case of visa applications, a term of responsibility (termo de responsabilidade) provided by a family member or friend, with a recognised signature.

For tenants, the new scheme requires the presentation of both a lease agreement and proof that it has been registered with the Finanças. In addition, they are required to sign a declaration confirming their tenancy, which is available online or can be provided at the AIMA appointment itself, where it may be signed in person.

Registering the lease with Finanças is a straightforward process carried out through the Tax Authority’s online portal. It has long been a legal duty of the landlord to register lease agreements with the Tax Authority by the end of the month following the start of the tenancy. For example, if a lease begins in January, it must be registered by the end of February. Where there is more than one landlord, a single communication is sufficient, provided that all landlords are identified and their respective shares indicated. A practical point worth noting is that when the tenant is a foreign national, the online portal requires the indication of a passport number rather than a Portuguese taxpayer number (NIF). This has caused some confusion, as most foreign tenants already hold a Portuguese NIF before entering into the lease; nonetheless, it is possible to complete the registration by inserting the passport number.

As of 1 August 2025 , however, a significant change applies: tenants themselves have been granted the right to declare their lease agreements directly to the Tax Authority whenever the landlord fails to comply with this obligation. This mechanism, set out in Article 60(4) of the Stamp Duty Code, introduced through the amendments made by Law No. 56/2023 and regulated by Ministerial Order No. 106/2025/1, known as the Comunicação do Locatário ou Sublocatário (CLS), was implemented to protect tenants and reduce informality in the rental market.

Through the CLS, tenants can upload the signed contract, provide details of the landlord and the property, and submit supporting documents such as rent payment receipts. Once submitted, the Tax Authority issues a digital certificate that is valid for tax and legal purposes.

An important consequence, however, is that once a lease is registered, stamp duty (imposto do selo) becomes payable, calculated at 10% of one month’s rent. The legal obligation to pay this tax always rests with the landlord, and it is not transferred to the tenant, even when the tenant initiates the registration due to the landlord’s failure to comply with this duty. For AIMA, however, the decisive factor is that the lease is duly registered with the Tax Authority, irrespective of whether the stamp duty has been settled. Applicants should be aware that without such registration, residence applications will not be accepted, even if a signed rental agreement is presented.

For property owners, proof of ownership must now be established through the updated land registry certificate (certidão do registo predial) issued by the Land Registry (Conservatória do Registo Predial), rather than relying solely on the property deed. This certificate can be obtained online, typically on the same day, for €15, and is generally valid for six months.

Stricter requirements apply in cases where the rental agreement has not been registered with the Tax Authority. In such situations, the landlord must provide a declaration confirming the rental arrangement, accompanied by the property’s land registry certificate. As AIMA does not provide a standard form for this purpose, the declaration must instead be drafted separately, usually with the assistance of a lawyer or notary. Crucially, the landlord’s signature on it must be formally recognised by a notary, lawyer, or solicitor. Without this recognition, the declaration is not valid and will not be accepted by AIMA, jeopardising the application. It should also be noted that these requirements may vary between different AIMA offices and consulates, as part of them stem not only from the law but also from administrative practice. For this reason, it is highly advisable to confirm the specific requirements in advance - and our team is well placed to guide applicants through these nuances and ensure full compliance.

These new requirements apply to both residence permit applications and renewals in Portugal, as well as to visa applications at consulates abroad. In the latter case, the term of responsibility - by which the host declares they accept responsibility for the applicant’s stay in Portugal, including accommodation, removal costs if required, and compliance with Portuguese law - is still valid, but the signature must be formally recognised by a notary, lawyer, or solicitor in the sponsor’s legal area of residence. Additionally, the host must provide proof of accommodation, either through the property deed accompanied by an updated land registry certificate, or through a lease agreement in the host’s name duly registered with the Tax Authority, as applicable.

The aim is clear: to reduce ambiguity and ensure that accommodation claims reflect real, verifiable living conditions. Applicants should therefore confirm that their rental contracts are properly registered, that ownership details are up to date in the Land Registry, and that all required declarations and signatures are in order before submitting their application.

Whether applying for a visa abroad, requesting a residence permit in Portugal , or renewing an existing title, early preparation is essential to avoid delays or rejections caused by missing or invalid documentation. In particular, applicants should note that without a registered lease or valid land registry certificate, AIMA will refuse the residence application, regardless of whether a signed contract exists.

At LVP Advogados, we closely monitor legislative changes and practical updates, drawing on our daily experience with the authorities to remain fully informed . Our team is ready to provide tailored legal support, guide you through every step of the process , and ensure your application proceeds smoothly under the new requirements.

Hiring Employees in Portugal as a Foreign Company

Tue, 30 Sep 2025 12:25:37 GMT

Margarida Tempera | Lawyer

Tomás Melo Ribeiro | Lawyer

Portugal’s skilled workforce and attractive labour market are increasingly appealing to international businesses. For many foreign companies, however, the idea of setting up a subsidiary or branch office in Portugal can feel like an unnecessary first step when the main goal is simply to hire one or more employees to work primarily from Portugal, often on a remote basis.

The good news is that Portuguese law provides a straightforward solution. A foreign company can employ staff in Portugal without incorporating a local subsidiary . By registering as a foreign employer with the Portuguese authorities, the company obtains a Portuguese tax identification number (NIPC) and a Social Security number. This allows it to place employees on payroll under its own name and to comply with all statutory obligations for income tax withholding, social security contributions, and employment reporting, without the cost or complexity of creating a Portuguese company.

The registration procedure is relatively straightforward but must be handled carefully. A certificate or official document proving the company’s legal existence in its country of origin must be submitted. This document must be up to date, valid, and issued by the competent registry authority, either bearing the handwritten signature of the competent officer or in a format that allows verification of the electronic signature. If the foreign entity is established outside the European Union, it must also appoint a fiscal representative in Portugal , who will act as liaison with the Portuguese Tax Authority and ensure the timely filing of tax returns and compliance with administrative requirements.

It is important to note that once registered, a foreign employer is subject to the same obligations as a Portuguese company . Portuguese labour law is comprehensive and protective of employees. Even if an employment contract applies foreign law, Portuguese mandatory provisions will override conflicting terms where the work is performed in Portugal. This means that minimum wage, maximum working hours, holiday entitlements, and dismissal rules will always follow the Portuguese Labour Code .

For this reason, it is advisable to use a compliant Portuguese employment contract , or at least a bilingual version , to ensure clarity and enforceability in local courts. Contracts should specify the job role, remuneration, working hours (up to 40 per week), annual holiday entitlement (at least 22 working days), and any additional benefits or conditions. Although Portuguese law permits certain types of contracts of less than six months to be made verbally (Article 110º, nº 1 of the Portuguese Labour Code), a written contract is strongly recommended to avoid disputes and to ensure that all mandatory terms are properly documented. Open-ended (permanent) contracts are the default under Portuguese law, although fixed-term contracts are permitted in certain circumstances.

When budgeting for remuneration, employers should also account for statutory entitlements such as the “13th” and “14th month” salaries, usually paid in summer and December as holiday and Christmas allowances. In practice, this means that the annual salary is divided into 14 instalments rather than 12. Employers are further required to observe limits on overtime and to pay the applicable premium rates for any additional hours worked.

Compliance with payroll obligations is another essential aspect of hiring locally . Employees must be registered with Portuguese Social Security before starting work, with the employer contributing 23.75% of gross salary each month. Employee contributions (11%) are withheld at source and remitted together with the employer’s share. Employers must also withhold income tax (IRS) according to progressive tax tables and transfer the amounts to the Tax Authority. Payslips must be issued monthly, detailing gross pay, deductions, and net pay, and records must be kept available for inspection by the labour authorities.

Failing to meet these obligations can have serious consequences. The Portuguese Labour Inspectorate ( ACT – Autoridade para as Condições de Trabalho ) actively monitors compliance and may impose fines, suspend activities, or embargo operations if violations are found. Employees can also bring claims in court, and Portuguese courts generally side with employees if procedures are not properly followed . Unlike in some jurisdictions, “at-will” termination does not exist in Portugal: dismissals must be based on lawful grounds and follow strict procedures.

A common pitfall for foreign companies is to engage local workers as “independent contractors” to avoid payroll registration . While contracting arrangements are permitted, they must reflect genuine independence. If, in practice, the contractor works fixed hours under company supervision and utilises company resources, the relationship may be reclassified as an employment arrangement. In such cases, the company may become liable for retroactive contributions, penalties, and employee rights, including holidays, overtime, and dismissal protection.

Registering as a foreign employer is often the most efficient way to access Portuguese talent without creating a permanent establishment. It is particularly suitable for companies hiring a small team, retaining a key individual, or testing the market before establishing a local subsidiary. Establishing compliance at an early stage provides vital protection against disputes, reputational damage, and potential financial liabilities.

Labour and tax rules are periodically updated (for example, the minimum wage is reviewed annually), so monitoring legal developments is essential. Having local legal support from the outset ensures that contracts, registrations, and payroll remain compliant and that you are kept informed of any changes affecting your obligations.

Expanding into Portugal offers exciting opportunities, and with the right legal framework in place, foreign companies can focus on building motivated teams while enjoying the advantages of the Portuguese market. Our team is experienced in guiding international businesses through each step of this process, from registration and contract drafting to ongoing compliance, ensuring a smooth and secure path to hiring in Portugal.

If you would like tailored advice or assistance with your company’s plans, please do not hesitate to contact us .

Navigating Trust Structures under Portuguese Tax Law

Mon, 29 Sep 2025 15:35:17 GMT

António Pratas Nunes | Lawyer

It is important to note that trusts are not legally recognised under Portuguese law . Consequently, their tax treatment and the way taxpayers relate to and derive income from them have raised several questions.

What is a Trust?

Given the practical difficulties and the absence of a domestic legal definition, we must look to international sources for guidance.

Here, Article 2 of the 1985 Hague Convention on the Law Applicable to Trusts and on their Recognition – a convention never ratified by Portugal – provides a useful reference, defining the term “trust” as a legal relationship created by the settlor, who places assets under the control of a trustee for the benefit of a third party.

Essentially, a trust is a legal relationship where:

A person (the settlor)
Transfers ownership of certain assets (legal ownership) to one or more persons (trustee(s)),
Who holds such assets in trust,
For the benefit of third parties (the beneficiaries), who hold the beneficial ownership.

Having defined the figure and identified the key players, we can now consider some notes on taxation.

Taxation of the Settlor

In the absence of specific rules under Portuguese law regarding income from trusts, if the settlor receives income from such instruments, two situations may arise:

Passive income : where the settlor is, in substance, also a beneficial owner of the trust. In this case, income derived from the trust’s activity should be classified as Category E (capital income) . Assuming the settlor is resident in Portugal, the general flat rate of 28% will normally apply.
Revocation or termination : if the trust is revoked or extinguished, and the settlor recovers assets initially contributed, the taxation should fall under the rules on capital gains , calculated by reference to the gain realised compared to the original contribution.

Taxation of the Trustee

For the trustee, the analysis is more complex. The trustee’s mission is to administer the trust assets, hold them, and keep them under control.

The trustee may be remunerated for this activity. Such remuneration will be taxed as Category A (employment income) or Category B (self-employment income), in the case of individuals, or under Corporate Income Tax (IRC) if the trustee is a company.
Importantly, if the trustee’s activity is exercised abroad, Portuguese taxation only applies if the trustee (individual or corporate) is resident or established in Portugal and carries out the activity here.

Taxation of the Beneficiary

For the beneficiary, the relevant moment is the distribution of income by the trust. If such income is not derived from a professional activity of the beneficiary, but merely from their status as beneficiary, it should be classified as Category E (capital income) .

In the case of revocation or termination of the Trust, where value is allocated to the beneficiary who is not also the settlor, such income is generally exempt from the IRS. However, Stamp Duty may apply if the assets held by the trust are based in Portugal.

A final and important consideration : There may be situations where profits or income of the trust are imputed to Portuguese resident taxpayers (even if not distributed), when such income arises from entities located in a jurisdiction with a privileged tax regime (as listed by decree or identified by other legal mechanisms).

This is a complex but highly relevant topic for individuals considering relocation to Portugal, especially when they wish to benefit from favourable tax regimes such as IFICI+ or the former Non-Habitual Resident regime .

If you would like to explore how Portuguese tax rules may affect your trust or succession planning, please do not hesitate to contact us .

Dismissal and Termination of Contracts in Portugal: What Employees Need to Know

Fri, 26 Sep 2025 16:42:35 GMT

Margarida Tempera | Lawyer

Portuguese law treats the ending of a job with great seriousness, and employees in Portugal have important protections and processes to ensure any dismissal is lawful and fair. Under the Portuguese Labour Code , an employer may not simply terminate a contract without a valid reason; in fact, the law requires “just cause” for dismissal and forbids firing someone for political or ideological reasons . In practice, this means an employer must either point to an objective business reason or to the employee’s own misconduct.

When considering the different ways in which an employment relationship may come to an end under Portuguese law, it is important to distinguish between those situations that arise automatically, those that result from agreement, and those that derive from unilateral decisions. A contract may lapse upon the expiry of its fixed term, or it may be brought to an end by mutual revocation agreed between the parties. Termination may also occur through dismissal, which can take place for disciplinary reasons where the employee’s conduct justifies it, or for objective reasons such as collective redundancy, the elimination of the job position, or situations of professional inadequacy where the employee is no longer able to perform the role. In addition, the employee may decide to terminate the contract, either through termination with just cause where the employer’s behaviour makes the continuation of the relationship impossible (in this case, the employee has the right to receive compensation), or through resignation without cause, provided that the legal notice period is observed.

Dismissals are therefore classified broadly as either for objective reasons (such as redundancy or unsuitability) or for disciplinary reasons (a serious breach of duties), and each type has its own rules. Both are strictly regulated to protect employees , and the employer must follow formal procedures to notify, consult and in some cases negotiate with the employee or their representatives before actually ending the contract.

A disciplinary dismissal (despedimento por justa causa) is a termination due to the worker’s own conduct. Examples of justifying behaviour include insubordination, damage to company property, dishonesty or other serious misconduct that makes the employment relationship untenable. For instance, if an employee repeatedly disobeys lawful instructions or commits theft at work, the employer could have grounds to dismiss them; however, even in these cases, the employer cannot act unilaterally or secretly; a detailed disciplinary procedure is required. The employer must inform the employee in writing of the allegation (often called a “note of fault”), giving a full description of the facts and the intention to dismiss. The employee then has the right to respond, produce evidence or witnesses, and defend themselves within set time limits (10 working days). A works council or union representative may also be involved at certain stages. Only after this process can a final decision be made to dismiss. Importantly, because such misconduct is attributable to the employee, no notice period is required, and no severance pay is automatically owed when a disciplinary dismissal is carried out lawfully. The dismissal takes effect as soon as the employee is notified. In other words, if the disciplinary dismissal is justified and all procedures are followed, the employee leaves immediately without the usual notice and without a statutory payout.

By contrast, an objective dismissal arises from business needs or job unsuitability, being the most common form of redundancy or the abolition of a job position (for example, if a department closes or a company is reorganised for economic reasons). Portuguese law calls these “objective reasons” such as market, technological or structural changes in the business. Another category is unsuitability (inadaptação, in Portuguese), where an employee cannot adapt to new job requirements or fails to meet agreed performance targets despite training and adjustments. This unsuitability procedure is complex, but in simple terms, the law allows an employer to dismiss for these reasons provided strict conditions are met: the employer must notify the employee in writing of the precise reasons and any new conditions, allow an adaptation or training period, and consult with the worker before proceeding.

Whether for redundancy or unsuitability, the employer must give the employee advance notice. The length of notice depends on how long the employee has worked for the company: it starts at 15 days’ notice for employees with up to one year of service, rising to 30 days for one to five years, 60 days for five to ten years, and 75 days for ten years or more. During this notice period, the employee is still on the payroll and entitled to full pay. Also, objective dismissals require the employer to pay severance compensation based on the employee’s salary and length of service. Under current law, severance compensation is calculated by reference to the employee’s basic pay and length of service. For employment contracts entered into on or after 1 October 2013, the standard formula is 14 working days of basic salary and seniority allowances for each full year of service. For contracts entered into before that date, transitional rules apply, meaning that different formulas coexist depending on the period of service accrued, but as of today, the applicable rate for new service is 14 working days per year.

If a dismissal process affects multiple employees (known as a collective dismissal or redundancy plan), even more formal procedures apply, including consultation with employee representatives and notification to labour authorities.

Throughout the dismissal process, Portuguese law confers a number of rights on the employee. An employee must be informed of their rights and allowed to be heard, for example, by responding to the employer’s allegations in a disciplinary case.

In redundancy or job-termination procedures, employees (and their representatives) are entitled to a consultation phase where the employer must explain the business reasons, explore alternatives to dismissal, and negotiate terms or support measures. In many cases, a labour law lawyer , a union or even a government labour inspector will be involved to oversee that the rules are followed. Specific groups enjoy extra protection : for instance, women who are pregnant or on maternity leave, new mothers, and fathers on paternity leave cannot be dismissed without a special prior opinion from the equality authorities or a court decision confirming a valid reason. Likewise, an elected employee representative usually cannot be fired except for very serious reasons, and the employer must notify the representative’s union when any dismissal procedure begins. These safeguards mean that an employer cannot simply dispose of staff on a whim; they must respect formal steps and be able to justify the action.

If an employer fails to observe the law, the employee has remedies. In Portugal, any dismissal without proper justification or procedure is considered unlawful or unfair. When a dismissal is declared unlawful (for example, by a labour court finding the employer had no valid cause or skipped the required process), the employee may be entitled to either reinstatement or compensation.

Reinstatement means returning to the job under the same conditions, effectively undoing the dismissal; in practice, this can be rare if the relationship has irretrievably broken down, but it remains a legal option. If reinstatement is not chosen, the law provides for monetary compensation. On top of that, the employee is entitled to payment of all wages lost from the time of dismissal until the court’s decision. In any case, if the dismissal was for an objective reason (like redundancy) but found to be procedurally flawed or unjustified on the merits, the result is similar: the employer must either reinstate or pay indemnity as if it were a wrongful termination.

In other words, the law puts the risk on the employer to follow the rules. And the law explicitly forbids dismissals made for discriminatory or improper reasons (for example, based on race, sex, religion, sexual orientation, union activity or similar grounds).

Notice and severance aside, Portuguese law also limits how terminations can be negotiated or handled by mutual agreement. Although an employer and employee may choose to end a contract by mutual consent at any time (often involving a negotiated settlement), even these “separation agreements” must be in writing and observe legal formalities.

Employees also have the right to bring an employment contract to an end without the need to invoke just cause, provided that they notify the employer in writing and with the legally required period of notice. As a general rule, this period is thirty days where the employee has up to two years of service and sixty days where the employment relationship has lasted for more than two years, although in the case of employees holding positions of administration, management, representation or similar responsibility, the employment contract or a collective bargaining instrument may lawfully extend this period up to a maximum of six months. In the context of fixed-term contracts, resignation is permissible by giving at least thirty days’ notice when the contract has a duration of six months or more, or fifteen days if it is of a shorter duration, while in contracts of indefinite duration but with an uncertain term, the length of notice is calculated by reference to the period of employment already elapsed. It should further be noted that an employee who has been formally recognised as a victim of domestic violence is exempt from complying with any notice period, reflecting the protective stance of Portuguese labour law in this regard.

With all these detailed rules, it is clear that dismissals in Portugal are a legal minefield, and even well-meaning employers can slip up. For employees, the key takeaway is to know that you have rights at every step: you should receive written notice of any dismissal meeting or decision, a clear explanation of the reasons, and the chance to comment on those reasons before the decision is final. You should also know what, if any, compensation or notice pay you are entitled to if your contract is ended. If any of these steps are missing or the reasons seem dubious, you have the right to question the dismissal in court. Finally, it’s worth noting that employment law can be technical.

The general principles are as follows: disciplinary dismissals require clear evidence of serious misconduct and a fair internal process, but no advance notice and no statutory payout; if lawful and objective dismissals (like redundancy or unsuitability) require careful justification of business need and advance notice of 15-75 days. In all cases, certain employees (pregnant women, etc.) have extra protections. If an employer makes a mistake or acts without a valid reason, the dismissal can be overturned, and the employee may get compensation or even get their job back.

Understanding these rules can be challenging. A qualified lawyer can clarify whether the proposed dismissal is lawful , ensure that all notices and calculations are correct, and represent the employee’s interests if there is a dispute . In a situation as important as losing one’s job, sound legal advice can make a real difference in protecting your rights and, if necessary, challenging an unfair dismissal.

Permanent Residence in Portugal: Say Goodbye to Endless Renewals of Your Residence Permit

Thu, 25 Sep 2025 15:16:16 GMT

Javier Mateo | Lawyer

For many foreigners who choose Portugal as their new home, or as a life project for themselves and their families, the first years are marked by a cycle of temporary residence permits. Every two years or so, there is paperwork, waiting for appointments, collecting documents, and the uncertainty of whether everything will go smoothly. While this is a natural stage of immigration, it can also become stressful and time-consuming.

That is precisely where permanent residence comes in. Once you qualify, usually after five years of legal residence, you can finally put an end to repeated renewals and enjoy a much more stable legal status. This permanent residence permit is provided for in Articles 76 and 80 of Law 23/2007, and it is an open door to a smoother life in Portugal. You do not need to wait until your last temporary card expires under Article 80(1)(a) of Law 23/2007; you qualify as soon as you reach the five-year threshold of legal residency .

The most obvious advantage is stability. With a permanent residence permit, you are no longer bound by the recurring deadlines of temporary permits: instead of renewing every couple of years, you hold a card valid for five years. Renewal of permanent residence is then required every five years (or whenever identification details change), but you are exempt from resubmitting documents already integrated into AIMA’s electronic workflow. Moreover, under Article 82(6) and (7) of Law 23/2007, if AIMA does not issue a decision on the renewal application within 60 days after submission, the renewal is deemed tacitly approved, and the applicant is entitled to the new card. Although tacit approval applies only to renewals and not to the first grant of permanent residence, it is reassuring to know that future renewals follow clearer and more favourable rules.

This means no more rushing to schedule appointments, less anxiety about delays, and no more uncertainty about whether you have submitted the right documents. For families, this is especially valuable: it allows parents to focus on their children’s education and integration, rather than worrying about bureaucracy.

Permanent residency also gives you more freedom and flexibility. Unlike temporary permits, which require stricter attention to absences from Portugal, permanent residence allows for longer stays abroad. Under Article 85(2)(b) of Law 23/2007, holders of a permanent residence permit may remain outside Portugal for up to 24 consecutive months or, within three years, 30 intermittent months. This means you can spend extended periods abroad without automatically losing your status. However, if these limits are not respected, AIMA may initiate the administrative cancellation of the permit. For many international professionals, this flexibility is a true game-changer.

Another major advantage is that permanent residents enjoy almost the same rights as Portuguese citizens, including work, social security, healthcare, and education. The main exceptions are voting in national elections and holding certain public offices. In daily life, however, their rights are virtually identical.

A Portuguese permanent residence card also simplifies travel within Europe and the Schengen Area. While it does not grant full EU free movement rights, it strengthens your position with other EU authorities, universities, and employers. Over time, it can also serve as a pathway to long-term EU residence status, offering broader mobility rights across the Union.

It is also an extra layer of legal protection. For many people, permanent residence serves as a safe bridge toward Portuguese citizenship . With the ongoing legislative changes to the Nationality Law, however, the path to citizenship is becoming less predictable, and timelines and rules might change soon . This is why permanent residence is so valuable: once you obtain it, you remain compliant with future residency requirements for citizenship, even if they become stricter. It shields you from uncertainty and serves as a bridge to a stable future in Portugal.

In other words, even if the road to nationality becomes longer or more complex, permanent residence ensures that you can live, work, and thrive in Portugal without interruption, and that your place here is protected. It is important to keep in mind, however, that citizenship and permanent residence are distinct legal statuses, and permanent residence does not, by itself, guarantee nationality.

Permanent residence also provides a haven of economic and professional stability for yourself and your family. It enhances your credibility with banks, employers, and institutions. When you apply for a mortgage, sign long-term contracts, or seek professional opportunities, permanent residence demonstrates your long-term commitment to Portugal. Employers, banks, landlords, and investors all value stability, and your permanent residence can make a tangible difference in their eyes. Moreover, as permanent residence extends to your family members, spouses, children, and, in some cases, dependent parents, they too benefit from a more solid legal framework for daily life, making integration smoother and more secure.

Beyond the legal aspects, there is a human dimension: immigration is stressful, and constant renewals are draining. Permanent residence brings peace of mind, a sense of belonging, and the freedom to focus on your goals, family, and happiness.

In conclusion, permanent residence in Portugal is more than a bureaucratic step: it is a gateway to stability and freedom. After five years of legal residence, it offers the security to build your future without the burden of constant renewals or shifting laws. For anyone planning to build a lasting future in Portugal, applying for permanent residence is one of the most important and rewarding steps. Contact us. Our legal team is available to help you.

Legal Obligations of Hiring a Housekeeper in Portugal

Mon, 22 Sep 2025 15:21:48 GMT

Margarida Tempera | Lawyer

In Portugal, hiring a housekeeper, whether through a business or as a private household employer, comes with a web of legal responsibilities that are easy to overlook.

Domestic work often takes place behind closed doors, but it is by no means outside the reach of labour law. In fact, Portuguese labour law is comprehensive and employee-centred, extending robust protections to housekeepers and imposing numerous obligations on their employers. Ensuring full compliance isn’t just a bureaucratic formality; it is essential to avoid legal pitfalls and to uphold a fair working relationship from the very start.

In recent years, Portugal has doubled down on ensuring domestic employees (such as housekeepers, nannies or caretakers) enjoy treatment on par with other workers. A special legal regime for domestic service contracts has existed since 1992 (Decree-Law 235/92), and in 2023, the “Decent Work Agenda” reforms (Law 13/2023) updated this regime to further harmonise domestic workers’ rights with the general Labour Code.

Under Portuguese law, a housekeeper is not just a casual helper but an employee in the eyes of the law, entitled to full labour protections. If an individual works under your authority, direction and supervision in exchange for pay, that arrangement legally constitutes an employment relationship, and it makes no difference that the work occurs in a private home or that you might think of the person as “like family”; the presence of subordination and remuneration means labour legislation applies fully.

Because domestic workers are employees (not “friends” or informal helpers), they are covered by the Portuguese Labour Code, the Social Security system and even occupational safety regulations. One immediate consequence is that the employment relationship must be formalised in line with the law, typically through a proper contract.

As seasoned employment lawyers often stress, an employment contract is not a mere formality but a legal necessity that defines the rights and obligations of both parties. In Portugal, the contract forms the backbone of the working relationship and must strictly adhere to Labour Code provisions. Properly documenting the terms protects you as the employer by providing clarity and predictability, and it also fosters trust by reassuring the housekeeper of their lawful entitlements. In other words, the contract is the foundation of a stable, professional arrangement, and making sure it’s done right is in everyone’s interest.

One practical question is whether the contract needs to be in writing. Portuguese law does allow open-ended (permanent) employment to be agreed verbally in some cases, but in practice, you should always put the terms in writing for a housekeeper’s role. In fact, many situations make a written contract obligatory, for example, if you engage the housekeeper on a fixed-term basis or if the worker is a foreign national, a formal written contract is mandatory. Even when hiring a local person for an indefinite period, providing written documentation of the key terms is essential to avoid ambiguity and meet legal information duties, as failing to document a special arrangement properly can lead to unfavourable legal presumptions. For instance, if you initially agree on part-time hours but don’t put that in writing, the law will presume the employment is full-time, which could unexpectedly inflate your obligations. In short, a written contract is the gold standard and often a legal requirement for domestic employment in Portugal .

A well-structured written contract for a housekeeper should capture all the essential terms of the job, clearly identify both the employer and the employee and state the address of the workplace (for instance, your home), along with the start date of employment. If the arrangement is not permanent, say you only need help temporarily, then the contract must specify the end date and the objective reason for that term; under Article 5 of Decree-Law 235/92, a fixed-term contract for domestic service is permitted when the work is temporary or transitional (in which case the general Labor Code rules apply, with a maximum of two years, extendable to four with renewals), or, if agreed solely by the parties without such justification, its duration including renewals cannot exceed one year, with failure to meet these requirements rendering the term clause null. The contract should also describe the housekeeper’s duties and expected work schedule, including the normal daily or weekly working hours and rest breaks, so both parties know when work will be performed. Because domestic roles can vary from cleaning and cooking to caregiving, spelling out the tasks and the degree of autonomy the worker will have in carrying them out helps prevent misunderstandings.

Crucially, the contract must set out the pay and benefits the housekeeper will receive. At a minimum, wages must meet the national legal minimum (for example, €870 gross per month in 2025 for full-time work in Portugal), and if you provide any in-kind benefits like meals or lodging, their monetary value can count toward the salary only up to a legal limit (such in-kind benefits may not exceed 50% of total remuneration). The contract should specify how and when wages are paid (e.g. monthly via bank transfer) and include any agreed overtime rates for work beyond the normal hours. It is also wise to confirm the statutory time-off entitlements in writing: housekeepers are entitled to paid annual leave and must receive the traditional holiday and Christmas bonuses, each roughly equivalent to an extra month’s pay. Finally, the contract can outline the notice period either party must give to terminate the employment and any severance terms applicable. Even domestic staff enjoy protections against abrupt dismissal, so defining notice periods (which in Portugal scale with tenure) helps ensure any parting of ways is handled lawfully and respectfully.

Of course, once you have a signed contract in place, your obligations don’t end there since several administrative duties must be fulfilled to keep the employment compliant. You are required to register the housekeeper with the Portuguese social security system before they start working, and thereafter to remit the required contributions every month. Failure to register the worker or to pay the correct contributions exposes you to fines, interest charges and the possibility of inspections by the authorities.

In addition, you must obtain mandatory work accident insurance for your housekeeper from day one. This insurance covers any injuries or accidents that occur in the course of work, for example, if the housekeeper slips and hurts herself while cleaning, the policy will pay for medical treatment and wage replacement during her recovery. If you neglect to carry work-injury insurance, you essentially assume full liability for any such incidents, a risk that can lead to substantial civil liability and even criminal consequences in severe cases. Simply put, registering your employee and securing insurance are not optional steps but fundamental legal requirements alongside the contract.

Furthermore, to these registration and insurance steps, you must also ensure the housekeeper’s day-to-day working conditions meet the legal standards for working time, rest and time off. Domestic employees generally should not work more than 40 hours per week, and they are entitled to at least 11 consecutive hours of rest each day and at least one full day off in every seven days. Any additional hours beyond the agreed schedule count as overtime, which must be compensated at the statutorily required premium rates, typically an extra 25% pay for the first overtime hour and higher rates for further hours or work during weekends and holidays. Work on public holidays is either to be avoided or to be specially rewarded: if a housekeeper does have to work on an official holiday, the law grants them a paid day off on another date (or equivalent pay in lieu) to compensate. These rules ensure that even in a private home, the employee’s health and well-being are protected by adequate rest periods and fair compensation for any long or unusual hours. Just as you would in a business setting, you need to schedule your housekeeper’s work in compliance with these limits and allow their earned days of paid leave each year to be taken in full.

For an employer, the risks of not formalising a housekeeper’s employment properly are significant. If you were to hire someone “off the books” without a contract or fail to register them for social security, you would be violating the law and exposing yourself to serious liability. Labour authorities in Portugal are empowered to investigate cases of unregistered work or sham arrangements, and if they determine that an employment relationship exists, they can retroactively enforce all the obligations you should have met. That could mean you are ordered to pay the worker any unpaid entitlements (e.g. back wages, holiday and Christmas bonuses, and even compensation for unlawful dismissal if you ended the arrangement without just cause), along with all owed social security contributions, plus interest and substantial fines. Similarly, if someone is mislabelled as an “independent contractor” when in reality they work under your direction as an employee, the authorities or courts can requalify the arrangement as a formal employment contract with retroactive effect. The law will then treat it as if a proper open-ended contract had existed all along, which may include recognising the worker’s full seniority and rights from day one. For example, using a fixed-term agreement without a valid justification (or failing to put a fixed term in writing) will cause the law to deem the housekeeper a permanent employee, with all the dismissal protection that permanent status carries. In a nutshell, attempting to bypass the formal contract or other obligations can backfire disastrously, the worker can claim, and the state can enforce everything they are legally owed, leaving the non-compliant employer facing an expensive reckoning.

In summary, taking the time to properly formalise your housekeeper’s employment is both a legal imperative and a sound investment in a stable working relationship. A written contract and compliance with labour laws provide predictability and legal security for both you and the worker, creating a solid foundation built on clarity and mutual respect.

By adhering to the rules on contracts, working conditions and social contributions, you not only avoid fines and disputes but also demonstrate your commitment to fair and lawful employment, something that fosters loyalty and trust. Ultimately, doing things “by the book” protects your household or business and ensures your housekeeper is treated with the dignity and benefits that Portuguese law guarantees to every employee.

If you need help drafting a legal employment contract for your housekeeper, nanny, or any other employee, our legal team is available to assist you .

Amendments to the Portuguese Blacklist of Tax Havens: Exclusion of Hong Kong, Liechtenstein, and Uruguay

Fri, 19 Sep 2025 11:53:35 GMT

António Pratas Nunes | Lawyer

On 5 September 2025, Ministerial Order No. 292/2025/1 was published, introducing amendments to the list of countries, territories, or regions considered by the Portuguese authorities as having “regimes fiscais claramente mais favoráveis” – commonly referred to as the blacklist of tax havens . This list was first established by Ministerial Order No. 150/2004, dated 13 February, and has since been amended several times.

Through this latest change, three jurisdictions were excluded: Hong Kong, Liechtenstein, and Uruguay . The Order entered into force on 6 September 2025, but its effects will only apply to income and transactions occurring as from 1 January 2026 .

The Portuguese blacklist was created as a tool to combat international tax evasion and fraud. Jurisdictions included have long been subject to aggravated tax measures designed both to penalise Portuguese residents investing there and to discourage inbound investment in Portugal by individuals and companies resident or established in those jurisdictions.

From 2026, Hong Kong, Liechtenstein, and Uruguay will no longer be subject to these measures, which implies important changes in several areas:

Personal and Corporate Income Tax (IRS and IRC) : capital income (dividends, interest, royalties) paid by entities in these jurisdictions will no longer be subject to the aggravated 35% withholding rate but instead taxed at the standard rates.
IFICI+ (Incentive for Scientific Research and Innovation) : for taxpayers covered by this regime, income paid by entities located in blacklisted jurisdictions was subject to a 35% rate. Following the exclusion, the general rules apply; income from categories A, B, E, F, and G obtained in these jurisdictions will benefit from the exemption method, subject to mandatory aggregation for the determination of the progressive rate applicable to the remaining income.
Non-Habitual Residents (NHR) : foreign-source income obtained in these jurisdictions could not previously benefit from the exemption method in the absence of a double taxation treaty and was therefore subject to aggravated taxation. From 2026, such income will qualify for the standard exemption regime available under the NHR framework.
Controlled Foreign Companies (CFC) rules : profits or income earned by non-resident entities located in these jurisdictions were attributed to Portuguese tax residents (individuals or companies) holding, directly or indirectly, at least 25% of the voting rights, capital, or income rights, and could therefore be taxed in Portugal. This automatic attribution, which led to taxation in Portugal, will no longer apply.
Real Estate (IMI and IMT) :

IMI (Property Tax) : the aggravated 7.5% rate applicable to urban properties owned by entities resident in blacklisted jurisdictions will cease to apply; instead, the standard rates of 0.3%–0.45% will apply.
IMT (Property Transfer Tax) : acquisitions of real estate by entities from these jurisdictions will no longer be taxed at the special 10% rate; instead, the standard progressive rates of 0%–7.5% will apply.

The exclusion of Hong Kong, Liechtenstein, and Uruguay reflects the recognition by the Portuguese authorities of these jurisdictions’ alignment with international tax transparency standards. From 2026 onwards, aggravated taxation and compliance burdens will be removed, and investors , real estate developers, and companies will face the same treatment as those linked to other jurisdictions.

Taxpayers and investors with structures involving these jurisdictions should review their existing arrangements to ensure alignment with the new rules and to take advantage of the relief now available.

At LVP Advogados, we regularly assist clients with investment structures and tax planning. If you are considering new investments or have existing arrangements that may be affected by recent regulatory changes, our team can assess your situation and help you optimise your tax position .

Employment Contracts in Portugal: Legal Requirements and Strategic Considerations for Employers

Tue, 09 Sep 2025 13:45:37 GMT

Margarida Tempera | Lawyer

When expanding into Portugal or reinforcing existing operations, ensuring that a compliant and carefully drafted contract underpins each employment relationship is not simply a formality; it is a legal requirement that protects the business and fosters trust with employees.

The Portuguese Labour Code and related legislation outline detailed rules regarding the form and content of contracts, the types of contracts available, and the procedures that must be followed throughout the employment cycle. A proper contract ensures clarity, predictability and compliance, avoiding the financial and reputational risks associated with informal agreements.

Although open-ended contracts (contratos sem termo) do not require written form, it is good practice to reduce all employment relationships to writing.

In many situations, the law expressly requires a written contract . This includes fixed-term and uncertain-term contracts, part-time work, intermittent work, temporary agency work, teleworking agreements, and contracts with foreign employees, all of which must be in writing. Moreover, employers are required to furnish written details concerning the essential terms of the employment relationship, irrespective of the contract type. Failure to observe the written-form requirement results in the contract being treated as open-ended, and in the case of part-time arrangements, it is presumed to be full-time.

A well-drafted employment contract should clearly identify the parties, outline the role and duties, specify the workplace, include remuneration (including benefits and allowances), define working hours, stipulate the duration and probationary period, and specify any applicable collective agreements. While allowances such as meal vouchers are not universally mandatory, they are customary and play an important role in remuneration packages.

Clear contractual terms help to prevent misunderstandings and establish the framework for day-to-day management.

Portuguese law offers several types of contracts, each serving different business needs:

Open-ended contracts are the default and provide the highest degree of stability and protection for both the employee and the employer.
Fixed-term contracts, which may be used to meet objective and temporary needs such as replacing an absent employee or delivering a specific project, must specify an end date and may be renewed up to three times. In general, their maximum duration is two years.
Uncertain-term contracts are used where the exact endpoint cannot be anticipated; they are subject to a maximum duration of four years, after which the relationship becomes permanent if the need persists.
Part-time contracts must be in writing and clearly define the weekly work schedule; otherwise, the law presumes a full-time relationship.
Contracts of very short duration are intended for exceptional, short-term needs in any sector. They may not exceed 35 days per contract and 70 days per year, are non-renewable, and are subject to simplified formalities.

Beyond choosing the appropriate contract, employers must comply with several administrative obligations, which include registering the employee with the Portuguese social security system before the start of work, taking out occupational accident insurance, and, in some cases, notifying the Authority for Working Conditions (Autoridade para as Condições do Trabalho - ACT).

Working time is strictly regulated. The normal working week is limited to 40 hours, usually spread over five days. Overtime is permitted only within defined limits and must be compensated at higher rates: 25% for the first hour, 37.5% for subsequent hours on working days, and 50% on weekly rest days or public holidays. Employees are entitled to daily and weekly rest periods, as well as paid annual leave of 22 working days. However, in the first year of employment, the employee accrues two working days per month, up to a maximum of 20 days. Non-compliance can lead to fines and compensation claims.

The Labour Code also contains detailed rules on termination. Dismissal requires a lawful ground, such as disciplinary misconduct, redundancy or unsuitability, and must follow prescribed procedures involving consultation, notice and, where appropriate, severance payments. Unlawful dismissal may result in reinstatement or significant compensation.

Properly drafted contracts, including appropriate probationary periods (typically 90 days for most open-ended contracts, 15 or 30 days for fixed-term contracts, 180 days for roles of high complexity, trust or responsibility, and up to 240 days for management and executive roles), can provide flexibility at the start of the employment relationship.

Modern employment practices, including teleworking and cross-border work, must also be addressed. Teleworking requires a written agreement that specifies working hours, the equipment provided, and the allocation of responsibilities. Importantly, employers are obliged to cover all additional and proven costs arising from teleworking.

When employees work both in Portugal and abroad, European Union rules on social security coordination and conflict of laws must be considered to avoid double contributions or gaps in coverage.

Employers must withhold income tax and social security contributions from salaries and make their own contributions. Non-compliance carries heavy penalties and, in some cases, personal liability for directors.

Routine inspections by the ACT and potential claims by employees, such as conversion of fixed-term contracts into open-ended contracts or claims for unpaid allowances and unlawful dismissal, underscore the importance of getting it right from the outset.

In summary, employment contracts in Portugal are not merely administrative documents but essential legal instruments that define rights and obligations, carrying significant consequences if not properly drafted.

For businesses entering or operating in the Portuguese market, careful selection of the contract type, meticulous attention to form and content, and strict compliance with employment, social security and tax requirements are critical.

Engaging experienced legal counsel can help ensure that contracts are robust, compliant, and tailored to the business's needs, thereby reducing risk and laying the foundation for productive employment relationships.

Article 123: Portugal’s Exceptional Mechanism for Residence

Mon, 08 Sep 2025 13:43:10 GMT

Luís Maria Branco | Lawyer

Portugal continues to attract global attention, both from tourists and from those seeking to establish long-term residence. To respond to this demand and the diversity of situations in which people may wish to settle, Portuguese immigration law has progressively expanded its range of residence permits and visas. A good example is Article 122 of Law no. 23/2007, of 4 July, which, when first introduced, covered only two situations and today includes seventeen. Yet the law recognises that not all circumstances can be foreseen, and that in some cases moving to Portugal may be a matter of real necessity. For these situations, the legislator created a safeguard mechanism – a true “escape valve” – ensuring that individuals in exceptional cases are not left without a solution. This is the role of Article 123 .

This provision establishes an exceptional and subsidiary regime for granting residence permits in extraordinary cases not covered by Article 122 and where the asylum or subsidiary protection system does not apply. It ensures that individuals who fall outside ordinary categories are not left without legal protection in Portugal. A temporary residence permit under Article 123 may only be granted for reasons of national interest, for humanitarian grounds, or for public interest connected to activities of recognised relevance in the scientific, cultural, sporting, economic or social fields . Within the humanitarian category, the law expressly includes the situation of foreign children and young people placed in care institutions following child protection proceedings.

Experience showed that when first introduced, Article 123 was widely invoked, often with little foundation, simply as a way to prolong residence in Portugal. To limit misuse, the legislator clarified that this mechanism cannot be initiated by the individual but must instead be triggered by the Administration itself, either through a proposal by the board of AIMA or on the initiative of the Government member responsible for migration. Courts have consistently underlined this point. In a 2015 decision, the Central Administrative Court of North held that Article 123 is of an official nature, initiated exclusively by the Administration, and cannot be set in motion by private request. Allowing individuals to do so would, in the words of the court, “empty the exceptional regime of its meaning by treating extraordinary situations as if they were ordinary.”

The application of Article 123 depends largely on administrative discretion and on broad legal concepts such as “national interest” or “humanitarian grounds”. In 2016, the same court stressed that the definition and application of these concepts belong primarily to the Administration, with judicial review limited to correcting manifest or gross errors, in line with the principle of separation of powers. Portuguese jurisprudence has also clarified the limits of the regime. In 2013, the Central Administrative Court of North dismissed the argument that visa delays affecting professional football players amounted to extraordinary circumstances. While professional sports may be relevant in the public interest, short registration deadlines and administrative delays were not considered exceptional. By contrast, in 2012, the Court of Appeal of Guimarães confirmed that residence could be granted on humanitarian grounds where systematic violations of human rights existed in the applicant’s country of origin. The court clarified, however, that purely economic motives – such as the search for better work opportunities – while legitimate, do not amount to humanitarian reasons under this provision.

In practice, Article 123 is a narrow and highly discretionary instrument. Over time, administrative practice has recognised that integration into the Portuguese labour market for over a year may constitute a humanitarian ground for granting residence, even for individuals who initially entered without the correct visa. At the same time, the courts have consistently emphasised that the article cannot serve as a substitute for ordinary immigration channels. Its role is to ensure that vulnerable individuals, or those whose presence is justified by compelling national or public interest, are not excluded from legal residence simply because their situation does not fit neatly into existing categories. It is rarely used, but when it applies, it can be decisive.

At LVP Advogados, we regularly advise foreign citizens whose circumstances may justify residence under Article 123. Suppose you believe your case involves exceptional humanitarian considerations, national interest, or activities of recognised public relevance. In that case, our team can assess your situation and guide you through the options available under Portuguese immigration law .

Buying Property in Portugal: What Every Investor Should Know

Tue, 02 Sep 2025 14:34:58 GMT

Tomás Melo Ribeiro | Lawyer

Buying real estate in Portugal is both a lifestyle choice and a financial investment. Whether the goal is relocation, a holiday home, or a long-term investment, the purchase must be handled with legal precision. A structured approach ensures that the transaction is valid, compliant with Portuguese law , and protected from unforeseen complications. From the first stage of legal due diligence to the execution of the final deed, every step plays a crucial role in safeguarding the buyer’s interests.

1. Legal Due Diligence

The cornerstone of a safe acquisition is a comprehensive legal due diligence. This stage is not a simple review of papers, but a careful legal and factual analysis designed to reveal any risk before the buyer commits.

The review typically includes confirming that the seller is the rightful owner and has full authority to sell. It involves checking whether the property is affected by encumbrances, pending disputes, or rights of third parties. Compliance with planning and construction rules must also be verified to ensure that the property matches what is legally authorised.

Equally important is the assessment of the physical reality. The legal record should correspond to the property on the ground, and any alterations or works must be properly regularised. Fiscal aspects such as municipal property taxes, condominium charges, and other obligations also form part of this stage.

Due diligence is, therefore, the buyer’s opportunity to obtain clarity. If irregularities are identified, they can be addressed before moving forward, either through corrective actions or contractual protections. This careful preparation creates the foundation for a secure transaction.

2. Promissory Contract of Purchase and Sale (Contrato-Promessa de Compra e Venda – CPCV)

Once due diligence provides a satisfactory picture, the parties usually enter into a Promissory Contract of Purchase and Sale (Contrato-Promessa de Compra e Venda – CPCV). This agreement is much more than a preliminary step. It secures the buyer’s right to acquire the property and regulates the obligations of both sides until closing.

A well-drafted CPCV should reflect the results of due diligence and include safeguards tailored to the property in question. Conditions may be established that must be fulfilled before completion, such as the resolution of identified issues or the confirmation of financing. The contract can also include remedies in case of non-compliance, offering the buyer legal security if the seller fails to perform.

By structuring this stage carefully, the buyer reduces uncertainty and ensures that the property will be delivered in the condition and legal situation expected. This makes the CPCV one of the most strategic moments in the entire acquisition process.

3. Final Deed of Purchase and Sale (Escritura Pública de Compra e Venda) or Authenticated Private Document (Documento Particular Autenticado)

The transaction is usually concluded with the Final Deed of Purchase and Sale (Escritura Pública de Compra e Venda), which formally transfers ownership. Traditionally, this deed is signed before a notary or registrar, followed by the registration of the buyer’s title at the Land Registry and the payment of applicable taxes, such as the municipal transfer tax (IMT) and stamp duty.

However, Portuguese law also allows the transaction to be formalised through an Authenticated Private Document (Documento Particular Autenticado – DPA). This document, when authenticated by a lawyer, solicitor, or notary, has the same legal force as a public deed and is fully valid for registration purposes. In many cases, it is faster and may be more cost-effective, while ensuring the same legal protection.

Recent reforms, such as the Simplex Urbanístico, have simplified certain municipal requirements at closing. While this reduces bureaucracy, it also shifts greater responsibility onto the parties. Buyers and their legal advisors must be even more attentive to verifying compliance in advance, since not all checks that were once mandatory at closing are now required. In practice, this places even more weight on the quality of the due diligence and the protections negotiated at the CPCV stage.

Conclusion

Purchasing property in Portugal should never be approached as a purely administrative task. It is a layered legal process that requires foresight, negotiation, and technical expertise. The combination of thorough due diligence, a carefully structured Promissory Contract of Purchase and Sale (Contrato-Promessa de Compra e Venda), and the precise execution of either a Final Deed of Purchase and Sale (Escritura Pública de Compra e Venda) or an Authenticated Private Document (Documento Particular Autenticado) ensures that the buyer’s investment is both secure and transparent.

With experienced legal counsel guiding the process , investors can enter the Portuguese real estate market with confidence. Proper preparation not only eliminates risks but also allows buyers to focus on the opportunities that Portugal offers, knowing that their investment rests on a solid legal foundation.

Temporary Stay Visa for Medical Treatment in Portugal: What You Need to Know Before You Go

Mon, 01 Sep 2025 15:35:20 GMT

Danielle Avidago | Immigration Consultant

Portugal is widely known for its pleasant weather and breathtaking diverse views: from mountains to beaches within short hours, and from snowy to breezy within a few months. However, what also attracts foreigners to our beautiful country is its functioning health service.

Portugal has emerged as a recognised destination for high-quality healthcare in Europe, offering advanced medical facilities, competitive costs, and an increasingly international outlook in its public and private health sectors.

From renowned cancer treatment centres and advanced medical care to a well-functioning public health system, Portugal offers more than just an escape from cold or foggy weather. For many, it represents hope, a path toward better health and longer life expectancy, which currently approaches 80 years.

The quality of life and efficient healthcare you seek cannot be accessed with only a tourist visa. To have the health treatment you deserve, you first need to apply for a temporary stay visa . And the temporary stay visa that better suits your intentions in Portugal is the temporary stay visa for medical reasons .

This very special kind of temporary stay visa can be found in Article 54º No. 1 a) of Law 23/2007, 4th July, better known as Portuguese Immigration Law . The visa is issued by Portuguese consular authorities abroad and allows the holder to stay in Portugal for a period exceeding 90 days but less than one year. It is renewable if the treatment requires a longer period, subject to medical justification and compliance with visa conditions.

To obtain a temporary stay visa for medical treatment, the applicant must demonstrate a medical necessity and that he was accepted by a Portuguese medical institution to proceed with the intended treatment.

Portugal also understands the importance of going through this delicate phase of a person’s life beside the family members who love and support us. Being accompanied by a beloved family member is essential for the patient’s mental health, accelerating the healing process of the physical illness he is suffering from.

Having this link between mental and physical health in consideration, Portuguese immigration law also allows the issuance of temporary stay visas to family members accompanying a patient undergoing treatment . This special temporary stay visa can be found in article 54º No. 1 g) of the Immigration Law, and it is particularly relevant for minors, elderly patients, or individuals whose condition requires ongoing family support.

The accompanying family members must prove the specific family relationship in question and that they can financially cover the family member’s expenses.

It should be noted that the accompanying visa is dependent on the main applicant’s visa. If the patient’s visa is cancelled or expires, the accompanying family member’s visa will also terminate.

Applications must be filed at the Portuguese consulate with jurisdiction over the applicant’s country of residence. Kindly note that processing times vary depending on the consular post, but applicants should anticipate several weeks and plan accordingly. In urgent cases involving humanitarian or emergency medical situations, applications may be expedited.

It is important to know that although holders of a temporary stay visa for medical treatment are authorised to remain in Portugal for the duration of the treatment programme, several restrictions apply.

There is no automatic right to work, as this visa does not entitle the holder to take up employment in Portugal. Its sole purpose is medical treatment. The visa is valid for the duration of the treatment, up to a maximum of one year, and may be renewed only with proper justification. In fact, one of its major advantages is that it does not require the applicant to move to Portugal or leave behind their job and home. Holders may freely circulate within the Schengen Area for short stays, but the place of treatment must remain in Portugal.

The Temporary Stay Visa for Medical Treatment reflects Portugal’s humanitarian and practical approach to immigration law, allowing foreign citizens access to the country’s healthcare system while maintaining clear safeguards. Importantly, the inclusion of family members ensures that patients can benefit not only from medical expertise but also from the essential support of loved ones.

Legal guidance is invaluable in preparing a strong, compliant application, particularly in cases involving complex medical needs or multiple family members. By ensuring proper documentation, careful timing, and full compliance with the legal framework, patients and their families can focus on what matters most: recovery and well-being.

Can I Get Portuguese Citizenship if Born in Portugal to Foreign Parents?

Tue, 26 Aug 2025 16:23:05 GMT

Joana Loureiro Veríssimo | Lawyer

Many adults born in Portugal to foreign parents may be unaware that they have a legal right to acquire Portuguese nationality, even if they never applied for it as children.

Over the past decade, Portugal has reformed its nationality laws to become more inclusive, particularly regarding individuals born on Portuguese soil. Today, it is possible for adults in this situation to obtain Portuguese citizenship under specific legal provisions, based on their birth in Portugal and the legal or factual residence of their parents at the time of their birth.

The legal foundation for this right is found in Article 1, No. 1, subparagraph f) of the P ortuguese Nationality Law (Law No. 37/81 of 3 October, as amended) . According to this provision, individuals born in Portuguese territory to foreign parents who were not serving their home state are considered Portuguese at birth as long as, at the time of their birth, at least one parent was legally residing in Portugal or had been residing in the country, regardless of the type of residence, for at least one year . Furthermore, the applicant must not have declared that they do not wish to be Portuguese.

This means that even if the parents were not Portuguese citizens, and even if the individual is now an adult, they may still acquire Portuguese nationality by origin if these conditions were met at the time of their birth. The law does not require that the application be made during childhood. Once these objective requirements are fulfilled, the nationality may be recognised at any time.

One of the most important elements in this process is proving that at least one parent resided in Portugal for a minimum period of one year before the applicant’s birth. This residence may be legal (e.g., through a residence permit ) or factual (even without formal documentation), if it can be effectively demonstrated.

It is important to note that this requirement to prove factual residence applies mainly in cases where the parent did not hold legal residence status. If the parent had legal residence, this is typically sufficient, and no further evidence of factual residence is needed. The law is flexible in this regard and accepts a variety of documents to demonstrate the necessary period of residence when required.

These documents must demonstrate that the parent resided in Portugal for at least one year before the applicant's birth . It is not necessary to prove current residence, knowledge of the Portuguese language , or any connection to the national community beyond the objective facts at the time of birth.

Applicants must submit their request to the Central Registry Office (Conservatória dos Registos Centrais) in Portugal, or through a Portuguese consulate if they are living abroad.

This distinction is crucial: nationality acquired under Article 1, No. 1, subparagraph f) is considered nationality by origin, meaning the person is Portuguese from birth , even if the recognition occurs later in life. Therefore, there is no age limit to apply. Adults who meet the requirements may assert this right at any time.

Acquiring Portuguese nationality brings several benefits. It grants access to a Portuguese passport , full civil and political rights , and access to the national health and education systems. Perhaps most significantly, it allows the holder to live, work, and study anywhere in the European Union , and to transmit Portuguese nationality to their children , offering long-term legal and personal advantages.

Despite the relatively straightforward legal framework, some applicants may face challenges in gathering sufficient documentation, particularly when dealing with older records or informal residence situations. In such cases, it is advisable to consult with a lawyer specialised in nationality and immigration law , who can assist in identifying valid forms of evidence, compiling the proper documentation, and navigating the procedures with the Portuguese authorities.

In conclusion, if you were born in Portugal to foreign parents who were not working for their home state, and at least one of them had resided in Portugal for at least one year, legally or otherwise, before your birth, you likely have a strong legal basis to obtain Portuguese nationality .

The process is accessible, objective, and grounded in clear legal criteria. If you meet the conditions, it is your right to be recognised as Portuguese from birth, and it is never too late to make that right a reality. Contact us if you require legal support .

Transcription of Marriages Celebrated Abroad into the Portuguese Legal Order

Mon, 25 Aug 2025 14:43:29 GMT

Margarida Tempera | Lawyer

Marriage is one of the most significant acts of personal status, producing a wide range of legal consequences that affect family life, inheritance rights , property relations and social benefits.

For Portuguese citizens who marry abroad , it is important to be aware that the marriage, although valid in the country where it was celebrated, only acquires full legal effect in Portugal once it has been transcribed into the Portuguese Legal Order.

This requirement does not call into question the validity of the marriage itself but reflects a fundamental principle of Portuguese law: civil status acts that occur outside the country must be incorporated into the Portuguese legal order to ensure they can be recognised and enforced.

Without transcription, the marriage is invisible to the Portuguese administration, which can create considerable uncertainty when spouses need to exercise their rights.

The legal basis for this obligation can be found in the Civil Code and the Civil Registry Code, which establish that marriage is a civil status act subject to mandatory registration. The rules are clear: whenever at least one of the spouses is Portuguese, the marriage must be formally transcribed.

This ensures that, in Portugal, the marital status of citizens reflects reality, giving certainty both to the couple and to third parties who may need to rely on it.

The consequences of neglecting this step can be significant, as a surviving spouse who has not ensured transcription may encounter obstacles in asserting inheritance rights under Portuguese succession law .

Access to certain tax benefits, social security entitlements or health care rights may also be compromised when the marriage is not properly registered, as, in practice, a marriage celebrated abroad but not transcribed is often treated as if it did not exist within the Portuguese legal framework.

Transcription also plays a crucial role in safeguarding the principle of publicity of civil status acts, which is one of the cornerstones of the registry system. This principle ensures that the personal and family status of citizens can be known and relied upon by third parties, thereby promoting legal certainty and protecting legitimate expectations. By integrating the marriage into the Portuguese Legal Order, couples not only protect their own rights but also reinforce the legal security of transactions and relations with others.

In addition, the transcription is vital for determining and making opposable the matrimonial property regime chosen by the spouses or, in its absence, the regime applicable by law.

Under the Portuguese Civil Code, the regime of property is determined at the moment of marriage; however, to be fully recognised and enforceable in Portugal, it must be reflected in the national registry. This is particularly relevant when the couple has assets in Portugal or when one of the spouses wishes to enter into contracts that presuppose clarity regarding property rights.

Although the process of transcription is mandatory, the law does not impose automatic deadlines, which sometimes leads couples to postpone the matter, which makes it common for the issue to only arise years later, when a practical need makes the absence of transcription evident. Unfortunately, by that stage, the lack of registration can complicate or delay the exercise of rights, especially in sensitive moments such as succession, divorce or acquisition of property.

Taking timely action to regularise the situation prevents these difficulties and provides peace of mind.

From a constitutional perspective, the importance of transcription is closely linked to the protection of family life and human dignity, as our Constitution recognises the family as a fundamental element of society, entitled to legal protection. Ensuring that marriages celebrated abroad are validly recognised in Portugal is part of that protection, since it allows spouses and families to rely on the full effect of their legal bond without unnecessary obstacles or doubts.

What couples often underestimate is the complexity that may arise in this type of procedure. Even though it is, in essence, an administrative act, the assessment of the marriage by the Portuguese authorities must ensure that it complies with the substantive requirements of Portuguese law. Prohibitions relating to age, kinship or the prohibition of bigamy are examples of rules that apply to Portuguese citizens wherever they marry. Where doubts or irregularities arise, they must be carefully addressed to avoid the risk of refusal or delay in the process.

It is also worth noting that the legal effects of transcription extend beyond the spouses themselves. Children born within the marriage, inheritance situations involving wider family, and even the spouses’ position before tax and social security authorities are all dependent on the correct registration of the marital bond. Without transcription, the administrative and legal system in Portugal cannot provide the appropriate recognition and protection.

For all these reasons, while the obligation to transcribe a marriage celebrated abroad may appear to be a mere formality, in practice it is a decisive step in ensuring legal certainty and protecting family rights.

Importantly, couples do not need to be physically present in Portugal to ensure their marriage is transcribed. The law allows this process to be conducted by legal representatives acting on their behalf. This means that, even while residing abroad, it is possible to secure full recognition of the marriage in Portugal through proper legal representation , avoiding unnecessary travel and ensuring that every step is carried out with accuracy and diligence.

Couples who married abroad and who have or intend to establish connections with Portugal should not postpone this step, as the transcription of the marriage into the Portuguese civil registry is not simply an option but a legal necessity with tangible consequences for their lives and for the protection of their families.

Ensuring that the process is correctly carried out means securing peace of mind, clarity of rights and legal certainty, all of which can be achieved safely with professional support .

Non-Profit Entities and Corporate Taxation in Portugal: What You Need to Know

Fri, 22 Aug 2025 15:24:31 GMT

António Pratas Nunes | Lawyer

Tomás Melo Ribeiro | Lawyer

In Portugal, non-profit entities — such as foundations and associations — benefit from a distinct corporate tax regime, recognising their pursuit of public interest goals rather than profit.

Entities not primarily engaged in commercial, industrial, or agricultural activities are taxed on their global income, which includes all income relevant to the IRS (Personal Income Tax categories) and gratuitously obtained capital gains, such as donations, inheritances, or endowments.

While the tax base differs from that of profit-driven companies, the applicable tax rates remain the same:

16% on the first €50,000 of taxable income
20% on the remaining amount

Exemptions under Public Utility and Solidarity Status

Certain legal persons may benefit from IRC exemptions, namely:

Private Social Solidarity Institutions (IPSS) and their legal equivalents (PCUPs)
Entities with public utility status pursuing cultural, scientific, or social goals

For entities with public utility status, exemption from corporate tax (IRC) is not automatic: it must be formally recognised by the Minister of Finance , through an official order published in the Diário da República , which defines the scope of the exemption based on the organisation’s purpose and activities.

It is important to note that the IRC exemption does not apply to all types of income.

Even when eligible for exemption, the following types of income are explicitly excluded:

Business income from activities outside the statutory scope;
Income from bearer securities not registered or deposited in accordance with the law.

Conditions for Maintaining Exemption

To retain exemption status, entities must comply with strict requirements, including:

Conducting activities predominantly within their exempt statutory scope;
Allocating at least 50% of net income to statutory purposes within four years;
Ensuring board members hold no direct or indirect economic interest in the entity’s returns.

Cultural, Recreational, and Sports Associations

Associations legally dedicated to cultural, recreational, or sporting activities may also qualify for IRC exemption, but only for income directly resulting from these activities.

Income is not considered directly derived from statutory activities if it comes from commercial, industrial, or agricultural operations, even when linked to the core purpose. This includes:

Advertising revenue;
Rights related to broadcasting or other transmission;
Rental income from real estate;
Income from financial investments;
Revenue from bingo games.

To qualify for the exemption, these associations must:

Refrain from distributing profits, ensuring management has no economic interest in generated income;
Keep complete accounting records for all activities, available for tax authority review, particularly for verifying the condition stated above.

Additionally, under the Tax Benefits Code, the income of sports, cultural, and recreational associations is exempt from corporate tax (IRC) as long as their total gross taxable income (not already exempt under IRC rules) does not exceed €7,500.

Moreover, amounts invested by sports clubs in new infrastructure, when not funded by public subsidies, may be deducted from their taxable income up to 50%, with any excess carried forward for deduction over the following two tax years.

Other Relevant Exemptions

The following types of income are not subject to IRC, provided the entity does not primarily pursue a commercial, industrial, or agricultural activity:

Membership fees paid in accordance with the organisation’s by-laws;
Subsidies are explicitly intended to fund statutory purposes.

Furthermore, gratuitously obtained capital gains are considered tax-exempt, provided they are directly and immediately applied to the organisation’s statutory objectives.

Entities that receive only non-taxable income under these rules are not required to file a corporate tax return.

Associations and Foundations in Portugal: Key Differences in Incorporation

In Portugal, creating an association is relatively straightforward and accessible to both individuals and legal entities. Associations can be established at any time, even “on the spot” through the Associação na Hora service. Applicants must provide specific documents:

Individuals : Identification document and Portuguese taxpayer number (NIF) ;
Legal entities : Additional corporate documents, including statutes and minutes of governing body resolutions.

This simplified procedure allows founders to choose a pre-approved set of statutes, establish the association immediately, and proceed directly with tax registration and accounting arrangements.

An association must have at least three founders, and its statutes should define its objectives, governance bodies, membership rules, and procedures for dissolution .

Registration with the Commercial Registry or the National Registry of Legal Entities (RNPC) is required to obtain a corporate identification number (NIPC). Depending on its scope of activity, additional licences may be necessary, such as in education, healthcare, or social assistance. Once registered, the association can open a bank account in its own name.

The governance structure typically includes three main bodies:

General Assembly : Composed of members, approves accounts, elects management, and amends statutes;
Board of Directors : Manages day-to-day activities and executes the decisions of the General Assembly;
Fiscal Council : Oversees financial compliance and issues opinions on accounts.

Associations must ensure transparency by keeping proper accounting records, filing annual accounts, and, in some cases, undergoing external audits. For tax purposes, they may benefit from Corporate Income Tax exemptions if their income derives mainly from statutory activities rather than unrelated commercial activities.

The incorporation of a foundation is more complex and asset-based. It requires the dedication of a minimum endowment, usually €250,000, to a specific public or social purpose. Unlike associations, which are people-driven and flexible, foundations are asset-driven and require government recognition before registration.

The process involves submitting a formal request to the Presidency of the Council of Ministers, along with statutes, proof of allocated assets, and justification of the foundation’s relevance. Only after recognition, published in the Diário da República, can the foundation be registered and acquire legal personality.

Foundations are subject to ongoing state supervision, stricter reporting obligations, and patrimonial requirements, which provide greater institutional stability and credibility, particularly when public utility status is obtained.

Final Remarks

The Portuguese corporate tax framework recognises the distinct role of non-profit entities by offering targeted exemptions. However, eligibility depends on strict statutory compliance, and not all income streams qualify. A careful assessment of both the organisation’s status and the nature of its income is therefore essential.

Whether you are setting up a new non-profit or seeking reassurance that your organisation complies with all applicable legal and tax requirements, our Corporate and Tax team is available to provide tailored support .

AIMA: Immigrants Entering Portugal by Land Must Register with the PSP

Thu, 21 Aug 2025 11:44:26 GMT

Foreign nationals who enter Portugal by land are required to submit an entry declaration to the PSP-Polícia de Segurança Pública (Public Security Police) within three days, as already stipulated under Portuguese law. Until recently, proof of entry was generally accepted in the form of a passport stamp or through registration via the accommodation form (SIBA). This practice, however, has now changed.

Following the proposed reforms to the Portuguese Nationality and Immigration Laws — which were partially declared unconstitutional by the Constitutional Court and later vetoed by the Portuguese President of the Republic, Marcelo Rebelo de Sousa, — the Agency for Integration, Migration and Asylum (AIMA) has begun enforcing the law strictly, applying its provisions to the letter and leaving no room for discretionary flexibility.

The requirement to file the entry declaration within three days of entering Portuguese territory is laid down in Article 77 of Law No. 23/2007 of 4 June (the Foreigners’ Law).

In practice, both AIMA and its predecessor SEF previously showed tolerance by accepting alternative forms of proof, such as a passport stamp from another Schengen country, an airline or bus ticket to Portugal, or proof of accommodation registration (hotel, hostel, or Airbnb) as substitutes for the PSP entry declaration in the residence permit process.

It should also be noted that the parliamentary vote on the broader reforms to nationality and immigration law, particularly regarding Portuguese citizenship , has been postponed until September 2025 . At LVP Advogados, we will continue to monitor developments closely and provide timely updates to our clients and readers.

Risks for Foreign Nationals

This stricter approach by AIMA may cause serious difficulties for foreign nationals living in Portugal, especially for those left in limbo after the suspension of the Manifestação de Interesse (Expression of Interest) process. The Portuguese government has introduced a transitional regime , but it only applies to individuals who paid social security contributions in Portugal during the 12 months before the suspension.

The main concern is that individuals who cannot demonstrate such contributions and who instead seek to regularise their situation by filing an entry declaration at the PSP may unexpectedly be issued with a voluntary departure order from Portuguese territory.

Given these risks, it is crucial to be aware of the current legislation and, where appropriate, to consult an immigration lawyer experienced in Portuguese law who can clarify your rights and obligations.

If you require legal guidance on this matter, our team is available to assist.

How long can you stay abroad without losing your residence permit in Portugal?

Thu, 14 Aug 2025 23:06:04 GMT

Sara Sbai Oliveira | Immigration Consultant

Holding a residence permit in Portugal is not simply a legal formality, it is a status that carries rights, but also obligations. One of the most important obligations is to maintain Portugal as your primary place of residence, a concept commonly referred to as minimum stay requirements. The general rules regarding minimum stay requirements in Portugal are set out in Law 23/2007 of 4th of July, the Foreigners Law .

A frequent question amongst clients is whether their residence permit will be cancelled if they are absent from Portugal for certain periods of time . While a residence permit reflects an individual’s ties to Portugal, including their residence, tax obligations, employment or family connections, it is understandable that, at times, they might need to leave the country for certain periods of time, sometimes extended periods of time.

For most resident permits , the rule is that the holder must not be absent from Portugal for more than six consecutive months, or eight non-consecutive months , within the validity period of the permit. Temporary resident permits are valid for a period of 24 months, meaning that within a 24-month period, the holder may be absent for 6 consecutive or 8 non-consecutive months. Or, in other words, the holder must spend 16 or 18 months during the validity of the residence. If the holder of the permit does not comply with this rule, there is a possibility that their residence permit might not be renewed and, thus, cancelled, as set out in the law.

For permanent resident permit holders, they may be absent from Portuguese territory for up to 24 consecutive months or, within a period of three years, a total of 30 non-consecutive months.

Absences are counted either as uninterrupted periods abroad (consecutive) or by adding together shorter absences (non-consecutive). Regarding non-consecutive absences, these are counted by adding together all shorter absences that the residence permit holder has had during the entirety validity of the residence. For example, a holder that has been absent for the entirety of April 2025 and then the entirety of June 2025, these are 2 non-consecutive months of absences.

Nonetheless, the law foresees exceptions to these limits . Holders may be absent for a longer period than that mentioned above; however, it must be strictly for professional reasons, education or training, medical reasons, or urgent family matters. In such cases, it is paramount that this is formally communicated to AIMA before exiting Portuguese territory, or after, in exceptional circumstances.

If the holder does not communicate to AIMA and has no formal proof, there is a risk of cancellation of their residence permit according to what is established Article 85 of the Foreigners law. The holder of the residence permit must possess formal records for each absence, such as official letters from their workplace justifying the absence, or any medical certificates, for example.

Differences in minimum stay requirements for other types of residence permits

Not all residence permits in Portugal are subject to the same minimum stay requirements , such as the Golden Visa residence permits, EU Blue Card holders, and as stated previously permanent residence permit holders, as well as CRUE holders and their family members.

Golden Visa residence permits holders are only required to stay for a 14-day period during the entire validity of the residence. The two-year Golden Visa residence permit requires at least 14 nights spent in Portugal during each two-year period, which is typically interpreted as seven nights per year. For residence permits that are converted into immigrant entrepreneur permits , now issued with a three-year validity, the law does not specify a minimum stay. However, based on current practice, it is assumed that the same rule applies: seven nights per year, or 21 nights over three years

EU Blue Card holders may be absent for up to 12 consecutive months, provided that this absence is linked to employment or research in another Member State.

For Family Members of European Union Citizens , commonly known as Article 15 and for CRUE (Certificate of Registration as a Citizen of the European Union) holders, no single absence from Portugal may exceed 6 consecutive months during the 5-year residency period. Absences of up to 12 consecutive months may be allowed in cases of duly justified reasons such as pregnancy, childbirth, serious illness, military service, studies, vocational training, or temporary work assignments in another EU Member State or third country.

Failure to comply with the minimum stay requirements can lead to non-renewal and the cancellation of the residence permit. Therefore, it is essential that residence permit holders check and maintain a record of their absences carefully.

Understanding how the rules apply to your specific permit type and keeping detailed records of travel is essential, however, we recommend seeking legal support regarding your specific case to ensure compliance with these strict rules.

Start-ups in Portugal: Legal Foundations for Scalable Innovation

Wed, 13 Aug 2025 14:33:27 GMT

Margarida Resende | Summer Law Student Intern

In an economic context increasingly shaped by innovation, digital transformation, and technological efficiency, the concept of the start-up has steadily established itself as a distinctive business structure, marked by its agile and innovative response to the demands of a constantly evolving global market.

From both an economic and social perspective, it is characterised as a young entity with high growth potential, focused on the creative resolution of specific problems through scalable business models, often anchored in technology and the disruption of traditional paradigms.

However, beyond its social or economic conception, it is the legal qualification of a start-up that truly determines its access to the various legal and tax incentive mechanisms available under Portuguese law. In this regard, Law no. 21/2023 of 25 May introduced a specific legal framework applicable to start-ups and scale-ups, clarifying the requirements and procedures necessary to obtain official status.

According to Article 2 of Law no. 21/2023, a start-up is defined as a legal entity that cumulatively meets the following criteria:

it was incorporated less than 10 years ago, employs fewer than 250 people ;
has an annual turnover of less than 50 million euros ;
was not created through the transformation or spin-off of an existing company;
is not majority-owned by a large enterprise ;
has its registered office or effective presence in Portugal , employing at least 25 people in the country.

In addition to these requirements, the company must also demonstrate that it falls within one of three additional profiles: being recognised by the National Innovation Agency (ANI - Agência Nacional de Inovação) as an innovative company, having secured venture capital funding (or investment from certified business angels), or having received investment from the Portuguese Development Bank (Banco Português de Fomento).

Even if the formal criteria for automatic certification are not fully met, the company may still obtain start-up status if Start-up Portugal recognises, based on appropriate justification, that its business model is innovative or demonstrates high growth and scalability potential.

Pursuant to Article 5 of Law no. 21/2023, start-up status is granted through a prior electronic notification submitted to Start-up Portugal via the Public Services Portal of the Portuguese Republic (Gov.pt). This procedure results in the issuance of a digital certificate, valid for all legal purposes, and the company’s registration in a public list of officially recognised start-ups. The granting of this status provides access to a wide range of incentives - fiscal, labour-related, and contractual - designed to promote innovation, attract investment, and support the recruitment of qualified talent.

Particularly noteworthy is the Tax Incentive for Scientific Research and Innovation (IFICI) , set out in Article 58-A of the Tax Benefits Code (EBF), which allows employees and board members of certified start-ups to be taxed under the Personal Income Tax (IRS) at a reduced rate of 20% on net income from categories A and B. The regime can be applied for a period of 10 consecutive years and may also grant exemptions in certain cases. For foreign investors or residents who take on management or supervisory roles, such as directors or board members, this regime offers a means of optimising their personal tax burden associated with active participation in the company.

In addition to the reduced tax rate, the IFICI can be combined with exemptions on foreign-sourced income , making it particularly attractive for international profiles. Certification of the start-up, carried out by Start-up Portugal, is a mandatory requirement for accessing the regime.

Additionally, start-ups may benefit from other relevant tax regimes such as SIFIDE (the System of Tax Incentives for Business R&D), contractual tax benefits for productive investment under the Investment Tax Code, as well as funding and technical support under the Portugal 2030 framework and programmes managed by ANI and the Portuguese Development Bank (Banco Português de Fomento).

The creation of a start-up must be based on an idea that is both economically viable and legally feasible, meaning that even during the exploratory phase, it is essential to protect intangible assets through industrial property registration, non-disclosure agreements (NDAs), and preliminary validation of the business model via MVPs - Minimum Viable Products, interviews, and market analysis.

Once the exploratory phase is complete, the formal incorporation of the company follows . Portugal currently offers simplified and efficient solutions, such as the “Empresa na Hora” regime (literally “Company in an Hour”), which allows for the incorporation of a limited liability company (Lda.), public limited company (S.A.), or single-member company at one-stop shops, using pre-approved articles of association. The choice of legal form (Lda., S.A. or single-member company) should be based on the type of activity, number of founders, governance strategy, and appetite for investment . Defining the corporate purpose , drafting the articles of association, and allocating initial capital are structural decisions that can have a lasting impact on the project's trajectory, and mistakes at this stage may significantly affect the company’s ability to scale, attract investors, or implement variable remuneration mechanisms.

Financing plays a critical role in the development trajectory of a start-up: in the early stages, it is common to rely on sources such as personal capital, bootstrapping, support from personal networks, business angels, or microcredit schemes. As the project evolves and consolidates its business model, access to more structured forms of financing becomes possible, namely through venture capital firms (VCs), institutional support such as that provided by the Portuguese Development Bank, and public or EU-level instruments, including incentive programmes and European funds. Legal support is essential in structuring financing instruments, protecting the founders, and defining key contractual clauses such as exit mechanisms, anti-dilution provisions, and lock-up agreements.

Following incorporation and capitalisation, the next stage is development and consolidation; it is at this point that many start-ups turn to incubators, accelerators, or innovation hubs . These structures offer more than just physical space, as they provide access to specialised mentoring, training, networking opportunities, and, in some cases, direct connections to investment funds. As such, choosing an incubator should be a careful and strategic decision, aligned with the actual needs of the project.

Finally, the relationship between founders and investors must be managed with predictability, transparency, and balance . As the start-up grows, new challenges arise:

How should internal governance be structured?
What decision-making and control mechanisms should be put in place?
How can talent be rewarded without diluting capital?
How should a potential exit, through sale, merger, or IPO, be prepared?

The legal framework must evolve in parallel, with flexible shareholders' agreements, well-defined side agreements, and mutual protection clauses . At this stage, the role of the lawyer is essential, not merely as a technical drafter, but as a facilitator bridging strategic vision and legal viability.

Creating and developing a start-up in Portugal is an ambitious yet increasingly achievable challenge: the ecosystem is dynamic, the tools are available, and the legal framework is solid. Still, between the idea and successful scaling lies a complex path where every decision, whether corporate , tax-related, or contractual, can shape the future of the project. Experience shows that start-ups which adopt a structured, multidisciplinary, and legally supported approach from the outset are also those that most effectively earn the trust of the market and investors .

Whether you are launching, certifying, or scaling your start-up in Portugal, we are here to assist you with the legal guidance and support needed to successfully structure your venture and support sustainable growth.

Margarida Resende is a third-year law student with a special interest in tax and corporate law, whom we were proud to welcome to our team for a summer internship. During her time with us, Margarida gained practical experience across most of LVP Advogados’ practice areas and, given her interests, was particularly involved in our start-up business area under the guidance of Tomás Melo Ribeiro and António Pratas Nunes , Corporate and Tax lawyers. We wish Margarida every success as she continues her studies and look forward to seeing her achieve great things in her legal career.

What to Do When Your Family Reunification Visa (D6) Is Still Pending in Portugal

Fri, 08 Aug 2025 10:41:48 GMT

Margarida Tempera | Lawyer

The D6 visa, formally known as the residence permit for family reunification under Portuguese immigration law, is one of the most important tools for preserving family unity and dignity.

According to Article 98 of Law No. 23/2007 of 4 July , this residence permit enables foreign nationals legally residing in Portugal to bring close family members to live with them, whether these relatives are abroad or already in Portuguese territory.

Under the law, foreign residents holding valid residence permits are entitled to be joined by certain family members, including spouses, civil partners, minor or dependent children, and ascendants in the first degree. This right applies when the family member is outside the country or has already entered Portugal legally and cohabits or depends on the sponsor.

While the legal right to family reunification is established, delays in administrative decision-making continue to undermine its effectiveness, as when months pass without any response from the competent authority, applicants often find themselves in a state of legal and personal uncertainty. Fortunately, Portuguese law provides a specific judicial remedy for such situations, allowing individuals to request a court order compelling the Administration to issue a timely decision.

The application for family reunification must be submitted to the Portuguese Agency for Integration, Migration and Asylum (AIMA), and the process includes providing documentation proving the relationship, legal entry, cohabitation or dependency, as well as proof of housing and means of subsistence.

Once the applicant collected the respective biometric data before AIMA, the competent authority is legally required to issue a decision within a maximum of 90 days , following Article 82, No. 5 of Law No. 23/2007 and this timeframe is not merely indicative but constitutes a legal obligation imposed on the Administration to ensure predictability and legal certainty in matters directly affecting family life and residency rights.

However, in practice, many applicants do not receive a decision within this period, despite having complied with all formalities and submitted the required documentation. This inaction can have serious consequences for the individuals concerned, since without a valid residence title, applicants may be unable to renew their passports at consulates, travel to visit family members abroad without risking re-entry restrictions, access healthcare, open bank accounts, sign service contracts, or regularise their tax and social security status in Portugal. These limitations interfere with basic rights and expose the individual to prolonged instability.

In such cases, Portuguese administrative law allows the affected person to initiate a legal action known as Subpoena for the Protection of Rights, Freedoms, and Guarantees , provided for in Article 109 of the Code of Procedure in Administrative Courts . This mechanism can be used not only when the residence card has not yet been issued, but also in situations where no appointment for biometric data collection has been scheduled within a reasonable time.

This special judicial mechanism enables the applicant to obtain a court decision ordering the public authority to fulfil its legal duty to decide on the pending application or to schedule an appointment to collect the biometric data before AIMA and may be filed when the delay is unreasonable and the matter at stake involves fundamental rights, such as the right to family unity, legal certainty, health, personal dignity or free development of personality.

To initiate this procedure, it is necessary to demonstrate that:

A valid application for family reunification has been submitted.
All supporting documentation has been provided.
The legal deadline has expired, and
The ongoing administrative silence is harming rights recognised under the Portuguese Constitution or European fundamental rights instruments.

This judicial mechanism is distinct from an ordinary administrative lawsuit and from precautionary measures, as it is designed to obtain a final, not provisional, decision and is intended specifically for cases in which the urgency of the matter justifies immediate intervention by the court to ensure effective protection of rights.

In contrast to traditional litigation, the subpoena is resolved on an urgent basis and often without the need for a lengthy evidentiary phase, provided that the documentation is complete and that the delay is evident.

The Portuguese Constitution recognises the right of all individuals to good administration, to legal certainty, and the protection of family life and human dignity. The absence of an administrative decision within the legally established timeframe violates these constitutional principles, particularly when it affects persons who have entered the country legally, are cohabiting with their families, and have complied in full with the obligations imposed by immigration law. The delay must be seen not as a mere bureaucratic lapse, but as a breach of legal obligations with concrete consequences.

Moreover, the law does not grant the Administration discretionary power to indefinitely postpone decision-making, as the exercise of discretionary power must be within the limits of reasonableness and legality.

Where the legal requirements for family reunification are fulfilled and no formal obstacles exist, there is no legal justification for silence or prolonged inaction.

But remember, the subpoena does not require the applicant to seek compensatory damages or a declaration of rights, its only purpose is to ensure that a decision is made, which reflects the preventive nature of the mechanism: rather than litigating the content of the decision, the focus is on enforcing the duty of the Administration to respond and thus preserve the applicant’s legal position, being a remedy suited to urgent and sensitive matters where the absence of a decision is itself a source of harm.

In the context of family reunification, this harm is both legal and human, as prolonged uncertainty destabilises families, hinders integration, and leaves individuals exposed to a precarious existence without the protection and predictability that a residence permit provides.

It also undermines the effectiveness of immigration law and the credibility of public institutions.

Individuals who have submitted a request for family reunification and completed the respective biometric data collection before AIMA and are still awaiting a decision beyond the 90-day legal deadline should be aware that they are not required to wait indefinitely, since Portuguese law provides a legal path to demand accountability and resolution.

A legislative amendment restricting family reunification has recently been approved by the Portuguese Parliament.

According to the proposed revision, only foreign nationals who have held a valid residence permit for at least three years would be entitled to request family reunification with extended relatives; however, this amendment has not yet entered into force, as it is currently pending review by the Constitutional Court. As such, it does not affect pending applications, and the legal framework currently in force remains governed by Article 98 of Law No. 23/2007, of 4 July , which imposes no time restriction on the sponsor.

With proper legal support, it is possible to file a request before the competent administrative court, asking for a mandatory decision to be issued, thereby restoring legal certainty and allowing the applicant to enjoy their rights fully and without delay.

For those facing excessive delays in family reunification requests, seeking legal assistance is a prudent and effective step. The use of Subpoena for the Protection of Rights, Freedoms, and Guarantees is not only a right, but a powerful legal tool to prevent further harm and ensure that the principles of justice, legality and good administration are upheld.

Need specialised legal advice? Get in touch with u s

CRUE: Legalisation of citizens of the European Union in Portugal

Mon, 04 Aug 2025 16:13:23 GMT

Sara Sbai Oliveira | Immigration Consultant

Portugal remains a preferred destination for many EU citizens who intend to live, work, retire, or study here. If you are a European Union citizen planning to reside in Portugal for more than three months, you must register your residence by requesting a Certificado de Registo de Cidadão da União Europeia (CRUE).

The right of EU citizens to reside in different member states is enshrined in EU law and is a fundamental right granted to all EU citizens. However, in Portugal, this right must be formalised through a specific process: obtaining the CRUE .

This article outlines the legal basis and practical steps for EU citizens to obtain the CRUE in Portugal, providing essential guidance for individuals who intend to apply and regularise their status in the country.

The legal foundation for this process lies in the Treaty on the Functioning of the European Union (TFEU) and Directive 2004/38/EC, which establish the right of EU citizens and their family members to move and reside freely within the EU. In Portugal, this directive is transposed into national law by Law 37/2006 of 9 August. According to Article 7 of Directive 2004/38/EC and Law 37/2006, EU citizens may reside in Portugal for more than three months if they are employed, self-sufficient with adequate income and health insurance , or enrolled in a recognised study program.

Requesting the CRUE is a mandatory procedure for EU nationals residing in Portugal for over 90 days. The certificate formally confirms their legal residence status under Portuguese law and grants them residency rights. It is important to note that the application should be submitted within 30 days after the initial 90-day period of residence.

To apply for the CRUE , individuals must submit a formal request at their local Câmara Municipal (City Hall), presenting documents that demonstrate compliance with the legal conditions established by EU and Portuguese law . If all conditions are met, the Câmara Municipal will issue the CRUE , which is valid for five years of legal residence in Portugal .

Upon expiry, the renewal of the CRUE is managed by AIMA ( Agência para as Migrações, Integração e Asilo ), which oversees matters related to migration, integration, and asylum.

The CRUE offers several benefits. After five years of continuous legal residence, holders may become eligible to apply for Portuguese citizenship or permanent residency, subject to additional requirements such as passing a Portuguese language test or completing a certified language course .

Regarding family members of EU citizens, Portuguese law allows dependent relatives of a resident EU citizen to apply for a Portugal Residency Card, commonly referred to as the "Article 15" card . This document entitles them to live in the country and enjoy visa-free travel throughout the EU.

Obtaining the CRUE is not merely a formality; it is a vital step in legalising residence in Portugal for EU citizens. While EU law grants the fundamental right to reside, Portugal applies specific procedural requirements that must be met through careful preparation and submission of the necessary documentation.

If you require legal support in obtaining your CRUE, our legal team is available to assist you with every step of the process.

Is It Worth Reuniting Golden Visa Children?

Mon, 28 Jul 2025 16:19:00 GMT

Joana Loureiro Veríssimo | Lawyer

Why Bringing Your Children Under the ARI Scheme Is a Strategic Move for Citizenship and Family Security.

Portugal’s Golden Visa programme , officially known as the Autorização de Residência para Atividade de Investimento (ARI), is widely regarded as one of the most flexible and advantageous residence-by-investment programmes in Europe. It not only offers foreign investors the right to reside in Portugal but also opens a clear path to permanent residency and, eventually, citizenship. While most investors are aware that they can include immediate family members in their application, later reunited through family reunification, one critical legal detail is often overlooked: under Portuguese nationality law, minor children can only apply for citizenship once at least one parent has acquired Portuguese nationality.

This single clause significantly alters the long-term planning strategy for families pursuing the Golden Visa. It means that including or reuniting children under the ARI programme is not just a matter of convenience; it is often essential if the goal is to secure European citizenship for the entire family within a predictable and streamlined timeframe. According to Portuguese law , foreign nationals are eligible to apply for citizenship after five years of legal residence, provided they fulfil certain requirements, such as proving basic knowledge of the Portuguese language and demonstrating integration into the national community. However, these rules become more complex when it comes to children.

Minor children, even those who have resided in Portugal for several years, cannot independently apply for citizenship unless one of their parents has already become a Portuguese citizen. If neither parent obtains Portuguese citizenship before the child turns 18, the child must wait until adulthood to apply under the general naturalisation rules. These rules are typically stricter and may involve longer processing times and more rigorous documentation. Therefore, reuniting children under the ARI programme early on is not simply an administrative choice; it’s a long-term strategic decision that can help avoid legal and logistical complications in the future.

By reuniting children early under the Golden Visa (ARI) programme, families ensure that their children begin accumulating a documented history of legal residence in Portugal. This history plays a vital role when the time comes to apply for citizenship, as the child must still demonstrate an effective connection to the Portuguese community. This connection is far easier to prove when the child has held a valid residency permit for over five years. Without this legal residency background, the child may face difficulties meeting the citizenship criteria, even if a parent has already naturalised.

The importance of this legal connection is often underestimated, but it becomes a central issue during the nationality application process. In this context, holding a valid residence permit from an early age becomes one of the most reliable and straightforward ways to demonstrate integration. It positions the child to benefit from the simplified citizenship procedure available to minor children of naturalised citizens.

Aside from long-term citizenship goals, there are immediate and tangible benefits to including children in the Golden Visa scheme. Children who hold residence permits can enrol in public or private schools in Portugal, often benefiting from reduced tuition fees compared to foreign students without legal status. They also gain access to Portugal’s public healthcare system, which is known for being efficient and affordable. Additionally, a residence permit grants visa-free travel throughout the Schengen Area, making it easier for children to participate in school exchanges, family vacations, or academic programmes across Europe.

Moreover, once naturalised, Portuguese citizens enjoy full rights as European Union citizens, including the freedom to live, work, and study in any EU member state. Children who are included in the process early can access these same benefits sooner, without needing to restart or duplicate efforts later in life. This creates a much smoother and more advantageous path to European citizenship and all the opportunities it brings.

Under current Portuguese law, family reunification is allowed for minor children under the age of 18, as well as for dependent children up to 25 years old, provided they are unmarried and in full-time education. However, these legal provisions are subject to age limits, and once a child surpasses those thresholds, they must apply for residence through a separate legal route, such as a student visa or work permit. These paths typically involve more bureaucracy and fewer long-term guarantees.

Of course, there are costs involved in regrouping family members under the Golden Visa scheme. These include government application fees, legal assistance, and possibly restructuring the initial investment to accommodate additional dependents. Yet, these expenses are generally modest when compared to the financial and procedural burdens of applying for separate visas later, facing delays in naturalisation eligibility, or losing access to public services, such as education and healthcare. Furthermore, with increasing unpredictability in immigration laws across Europe, securing your family’s legal status as early as possible is a wise and protective move.

In summary, including your children in the Golden Visa process from the beginning is not simply an administrative detail; it is a strategic legal decision that shapes their future. It creates a direct and efficient path to citizenship, accelerates integration, and opens access to rights and services that can significantly enhance their quality of life. More importantly, it places children in a strong legal position to benefit from everything the European Union has to offer, from education and healthcare to professional and personal mobility.

At a time when global migration pathways are becoming more competitive and legal frameworks increasingly strict, taking early action to include your children under the ARI programme is an investment not only in their future but in your family’s long-term security and stability in Europe.

Contact LVP Advogados—we are here to help!

The Right to Stay: Article 15 Residence Cards for Family Members of EU Citizens – Including Civil Partners

Thu, 24 Jul 2025 16:11:33 GMT

Luís Maria Branco | Lawyer

Portugal continues to stand out as one of the most accessible and welcoming EU countries for foreign nationals seeking residency. Among the many immigration pathways available, Article 15 of Law no. 37/2006, of 9 August provides an important route for non-EU family members of EU – as well as citizens of Iceland, Liechtenstein, Norway, Switzerland (member and partner states of the European Free Trade Association, the “EFTA”) and Andorra – to live in Portugal, benefiting from the right of residence and visa-free travel across the Schengen Area.

This legal framework transposes the EU Free Movement Directive (Directive 2004/38/EC) and upholds the principle that EU citizens have the right to be accompanied by their close family members, even if those family members are not themselves EU or EFTA nationals. This includes spouses, children, dependent relatives , and, importantly, partners in a civil union . In Portugal, these rights are also granted to the families of Portuguese citizens , provided the Portuguese national resides in the country.

A key feature of Article 15 is its recognition of civil partnerships (uniões de facto) , which allows couples who are not married to benefit from the same rights as spouses, provided they can prove that their relationship is stable and lasting. This typically involves demonstrating at least two years of continuous cohabitation , although exceptions may apply, particularly in cases involving shared children or other compelling circumstances. This inclusive approach opens the door to many non-EU nationals in long-term relationships with EU, EFTA or Portuguese citizens who might otherwise be excluded in jurisdictions that recognize only formal marriage. Each application is reviewed individually, and the strength of the supporting documentation plays a key role. In practice, Portuguese immigration authorities are generally receptive to well-prepared applications that demonstrate a genuine, committed partnership – making this route a viable and important option for many couples who, for personal or legal reasons, have chosen not to marry but live as a family unit.

Once in Portugal, the EU or EFTA citizen must initiate the process by registering their presence with local authorities and obtaining a CRUE certificate (Certificado de Registo de Cidadão da União). This confirms their residence in Portugal and is a prerequisite for the family member’s application. For Portuguese citizens, no CRUE is needed – their residence is presumed if they hold a valid citizen card and live in Portugal.

After this, the non-EU family member can submit the application for the residence card under Article 15 to AIMA, the Portuguese immigration authority. The request must be made in person, and once submitted, the individual is allowed to remain legally in Portugal while the process is underway. Processing times can vary, but applicants are typically permitted to stay until the residence card is issued.

Although individuals in a civil partnership may still apply for legal residency through other visa routes – such as the D7 (for passive income), D2 (for entrepreneurship), or D1 (for employment) – applying under Article 15 offers several significant advantages. Most notably, the process is simpler, faster and more cost-effective.

Unlike D visas, which require obtaining a visa from a Portuguese consulate before entering the country, those applying under Article 15 can usually enter Portugal as visitors and remain while the application is pending. This allows families and couples to stay together, avoiding lengthy separations and travel restrictions – a particularly relevant point given the backlogs at many consulates.

The financial requirements are also much more accessible. While D visas require proof of specific income levels, savings or business activity, Article 15 is based on the right to family unity and does not impose a fixed income threshold. Additionally, there is no requirement to present a criminal record, which is often difficult to obtain in some jurisdictions.

The government fee is also much lower. The current fee for the Article 15 residence card is just €33, paid once at the time of issuance. This contrasts with the D visa process, which typically involves paying once at the consulate and again in Portugal, making Article 15 a much more affordable alternative.

Another advantage is the five-year validity of the initial residence card, offering long-term stability without the need for frequent renewals. After this period, the holder may qualify for permanent residence and may also become eligible to apply for Portuguese citizenship.

It is important to note that, under current law, individuals who hold a residence permit under Article 15 may apply for citizenship after five years of legal residence. However, this rule is currently under discussion. The Portuguese Parliament is debating a proposal to extend the minimum residence period to seven years for CPLP nationals and ten years for all other applicants, including family members of EU and Portuguese citizens. The final vote is expected in September 2025, and if the law is approved, it could significantly impact naturalisation timelines. For this reason, those who are already eligible under the current five-year rule are strongly encouraged to apply as soon as possible.

Portugal remains one of the most inclusive and pragmatic countries in the EU when it comes to protecting family unity – including civil partners. However, applicants must be mindful of delays at AIMA and ensure their application is complete and well-documented. Advance legal guidance can be essential to a smooth and successful process.

At LVP Advogados, we regularly assist Portuguese, EU and EFTA citizens – as well as their non-EU family members – with Article 15 residence card applications. If you’re unsure whether you qualify, or want advice tailored to your situation, our team is here to help.

Contact us! We’re here to help you.

Legal Update - Portugal Restructures Border Control: New Immigration Unit Formed Within Public Security Police

Thu, 24 Jul 2025 14:47:56 GMT

Following the promulgation of Law no. 55-C/2025 of 22 July, the Portuguese government has formally established the Unidade Nacional de Estrangeiros e Fronteiras (UNEF) , the National Unit for Foreigners and Borders, within the Public Security Police (PSP). The measure was signed into law by the President of the Republic on 17 July 2025 and marks another significant step in the restructuring of immigration and border control in Portugal, following the dissolution of the former Immigration and Borders Service (SEF) on 29 October 2023.

This reform centralises responsibilities for airport border control and foreign nationals’ oversight within a new, specialised PSP division . It also results in the extinction of existing flexible and core units previously responsible for these matters.

Under the new law, UNEF is tasked with a broad range of responsibilities , including:

Monitoring and controlling airport border crossings, including the issuance of visas at border posts;
Overseeing the presence of foreign nationals within the PSP’s jurisdiction;
Processing coercive removal, expulsion, readmission, and voluntary return procedures;
Managing centres for temporary installation or detention of foreign nationals, and equivalent facilities.
Ensuring the security and policing of airports and aerodromes, including the resolution of tactical incidents;
Cooperating with national and international security forces on border-related matters;
Coordinating certified PSP training in the area of foreigners and borders;
Representing Portugal in EU and international institutions on issues related to border control and foreign nationals;
Supporting consular missions in high-risk countries through security liaison officers.

The unit is structured into central, regional, and local divisions and will operate under the leadership of the Deputy National Director of the PSP.

The law enters into force 30 days after its publication , meaning the UNEF is expected to begin formal operations in late August 2025. A transitional period will follow, including the issuance of necessary regulations and the implementation of operational structures.

For individuals and businesses dealing with immigration procedures in Portugal, particularly those involving airport entry, visas, and foreign national compliance matters, the UNEF will now serve as the main contact point within the PSP.

At LVP Advogados , we continue to monitor upcoming regulatory developments and procedural changes arising from this reorganisation. Should you require legal advice on this matter, please do not hesitate to contact our team .

Golden Visa Vs Immigrant Entrepreneur: Understanding how this difference affects your residency

Fri, 18 Jul 2025 15:29:57 GMT

Danielle Avidago | Immigration Consultant

The Golden Visa programme was created in 2012 with the main purpose of attracting investment to our country in exchange for a Portuguese passport being granted at the end of a 5-year period. Back then, the list of eligible investment routes was pretty generous. Article 90-A of Law no. 23/2007 (introduced by Law no. 29/2012) allowed multiple types of investments, including:

The purchase of real estate worth €500,000 or more.
The acquisition and renovation of properties over 30 years old or located in urban rehabilitation areas (with a minimum investment of €350,000).
A capital transfer of at least €1,000,000 (later raised to €1.5 million).
The creation of at least 10 jobs in Portugal.
The incorporation of a Portuguese company with a share capital of €1 million (later €1.5 million).

But let’s be honest. The apple of the Golden Visa programme’s eye was always real estate. An upscale property with a private pool, a four-bedroom house, a colossal mansion… You name it! In fact, back in the day, you could combine multiple properties to meet the minimum investment amount. Think two garages and two flats.

However, with the entry into force of Law no. 56/2023, widely known as the More Housing Programme, on 7 October 2023, the apple fell from its ageing tree. In a political effort to address the housing crisis, Portugal eliminated real estate investments (residential or commercial), property rehabilitation, capital transfers and company incorporation as valid Golden Visa routes.

Politics, we get it. But what happens to the investors who chose one of these paths while they were still legal, obtained their first residence card, and are now facing renewal? Do they renew under the Golden Visa regime (Article 90-A)? That’s no longer possible. Do they apply under the standard D-type residence permit? That makes even less sense.

So what’s the solution? Welcome to your new label: Immigrant Entrepreneur.

With this Law no. 56/2023, a new category of residence permit was created under Article 89. If you invested €500,000 in real estate or followed any other investment route that no longer exists under the Golden Visa scheme, and your application was approved before the cutoff, you are now considered an Immigrant Entrepreneur . Your status is protected, but your future renewals will no longer be processed under Article 90-A.

Here’s what that means in practice.

Residence permit validity - Golden Visa residence cards were initially valid for two years and had to be renewed accordingly. Immigrant Entrepreneur permits are valid for three years starting from the second card. That means fewer appointments with AIMA and less time spent refreshing your inbox for that elusive booking link.
Minimum physical presence requirements - The classic Golden Visa required at least 14 nights in Portugal over each two years. Immigrant Entrepreneurs are expected to spend 21 nights over each three years, averaging seven nights per year. In both cases, proof of presence is essential. Save those hotel receipts, flight confirmations, rental contracts and utility bills.
Renewal costs - This one’s easy. Under the Golden Visa regime, applicants paid €618.60 in renewal fees plus €3,089.70 in processing fees. That’s more than €3,700 per person. Under the Immigrant Entrepreneur regime, the total is just €181.50 per applicant. No gold label, but certainly a lighter burden.
Do you have to keep your investment? Golden Visa investors signed a declaration of honour committing to maintain their qualifying investment for five years. But with political debates aiming to extend the minimum residence period for citizenship from five to ten years, there’s a big question mark. Will investors be asked to hold on to their investments for even longer? For now, the five-year rule still applies. Immigrant Entrepreneurs, on the other hand, are not required to maintain a fixed investment over time. The permit is linked to the business plan originally submitted, but the law does not require the same financial commitment to be sustained after approval.

In the evolving landscape of Portuguese immigration policy, the distinction between a Golden Visa resident and an Immigrant Entrepreneur is no longer just a matter of investment category - it is a reflection of shifting legislative priorities and administrative pragmatism. What began as a highly structured path for capital inflow has gradually morphed into a hybrid model where legacy investors find themselves reclassified.

Understanding your classification is no longer optional - it is essential to ensuring compliance, planning renewals, and ultimately, securing long-term residence or citizenship. As the legal framework continues to evolve, so are the expectations of those navigating it. Should you wish to better classify your residence permit type and understand your next immigration steps, remember that we are just an email away!

Contact LVP Advogados—we are here to help!

Short-term residential leases in Portugal: A legal alternative to Alojamento Local?

Thu, 17 Jul 2025 14:19:15 GMT

Tomás Melo Ribeiro | Lawyer

In recent years, growing regulatory pressure on the Alojamento Local (AL) regime, particularly in Lisbon, Porto and other high-density urban areas, has led property owners to explore alternative ways of legally renting out their properties . Among these alternatives, short-term residential lease agreements have gained relevance as a means to secure rental income without being subject to the stricter rules applicable to tourist accommodation.

Under Portuguese law, short-term leases are a valid contractual model for meeting temporary housing needs, provided they meet specific legal and factual requirements . According to Article 1095(2) of the Civil Code, leases with a duration of less than six months (or up to one year in specific situations, such as temporary professional, academic or training assignments) are permitted and subject to less rigid formality than long-term contracts. Unlike AL, which requires prior registration with the local municipality, is regulated under Decree-Law no. 128/2014 and is subject to zoning restrictions, a short-term lease does not require municipal licensing . However, it must be formalised in writing, registered with the Portuguese Tax Authority through Form 2, and the income must be declared under Category F (property income) for IRS purposes. This makes the short-term lease a simpler and lighter instrument from an administrative and tax perspective, but only when used properly and for its intended purpose.

The key legal distinction lies in the purpose and nature of the stay. Alojamento Local refers to the provision of short-term accommodation for tourists or other non-residents, often including services such as cleaning, linen changes, or guest reception . These features are central to classifying an activity as AL. If such services are offered, or if the lease is clearly aimed at tourists , even without formal AL registration, the authorities may treat the activity as undeclared AL. To avoid this, landlords must ensure that the tenant has a legitimate reason for temporary residence, such as work relocation, study, training, home renovation or waiting to move into a permanent residence. The lease agreement must clearly describe the temporary and non-touristic purpose of the stay, and no hospitality-style services should be offered . Supporting evidence of the lease and related tax documentation must be available if requested by the authorities.

With many municipalities in Portugal currently suspending the issuance of new AL licences, short-term leases have emerged as a practical and lawful alternative for property owners who wish to continue monetising their assets. By offering furnished accommodation under fixed-term agreements, landlords are able to sidestep the current AL moratorium while still attracting professionals, digital nomads, and other tenants with temporary housing needs. Even in municipalities that may eventually lift the AL restrictions, short-term leases remain strategically useful. In low season periods, when tourist demand declines, landlords can adapt by targeting new profiles, such as telecommuters, researchers and foreign students, who seek flexible and comfortable residential solutions.

Although the law does not impose an express limit on how many short-term leases may be signed per property per year, repeated or consecutive contracts, especially with multiple unrelated tenants, may be subject to analysis by the relevant authorities . Some municipal and tax authorities have taken the view that this practice constitutes disguised tourist accommodation, which may result in fines, reclassification of the property as AL, and retroactive tax obligations. Therefore, this model should be used occasionally, with a justified purpose and proper documentation. It is not a substitute for AL licensing and should never be used as a systematic workaround to avoid legal requirements.

In the current legal and regulatory context, a carefully drafted and properly registered short-term lease can be a valuable instrument . It offers flexibility, legal protection, and tax compliance for both landlords and tenants. However, professional legal advice is highly recommended to structure this type of rental in line with applicable law and municipal practice. Used correctly, short-term residential leases provide a legitimate and lower-risk alternative to Alojamento Local and may play an increasingly important role in the evolving Portuguese rental market.

Contact LVP Advogados—we are here to help!

Legal Update — Portugal Approves Major Changes to Immigration Law

Wed, 16 Jul 2025 16:00:51 GMT

On 16 July 2025, the Portuguese Parliament approved the final version of Proposal No. 3/XVII/1.ª , introducing substantial amendments to Law no. 23/2007 , which governs the entry, stay, and residence of foreign nationals in Portugal.

This reform brings an end to the regularisation mechanism based on manifestação de interesse (expression of interest), imposes new limitations on job-seeker visas and family reunification, and sets a definitive deadline for pending transitional cases.

Key Measures Approved

Revocation of the “expression of interest” pathway
The mechanism that allowed undocumented migrants to regularise their status based on proof of employment and Social Security contributions has been definitively eliminated.

Transitional deadline set for pending cases
Foreign nationals who were registered with Social Security and working as of 3 June 2024 will still be allowed to apply for a residence permit — but must do so by 31 December 2025 , after which the transitional regime will lapse.

Stricter requirements for job-seeker visas
This visa type is now limited to individuals with highly qualified skills, to be defined by ministerial ordinance. If the applicant fails to start employment within the 120-day period, they must leave Portugal and may only reapply after one year.

Family reunification conditional on two years of legal residence
Foreign nationals will only be allowed to apply for family reunification after completing two years of legal residence in Portugal, with exceptions maintained for minor children already residing in the country.

Specific regime for vulnerable minors
Children and young people placed under institutional protection will no longer fall under the general humanitarian residence category and will benefit instead from a visa-exempt residence regime tailored to their situation.

New time limits for decisions on residence applications
The immigration authority (AIMA) must decide on residence applications within 9 months , with a single possible extension in cases of exceptional complexity.

Entry into force
The law enters into force on the day following its publication in the Official Gazette. It will apply to procedures initiated from that date onward.

At LVP Advogados , we are closely monitoring the legislative developments affecting immigration in Portugal. We continue to assist individuals, families and companies in navigating this evolving legal landscape with clarity, rigour and strategic guidance.

Should you require legal advice on how these changes may affect your case or future plans in Portugal, please do not hesitate to contact our team .

Portuguese Nationality Law Reform Postponed Until September

Fri, 11 Jul 2025 12:15:07 GMT

The Portuguese Parliament has decided to postpone the vote on the proposed amendments to the Nationality Law until September 2025. The decision was taken in a meeting of the Committee on Constitutional Affairs, Rights, Freedoms and Guarantees, following pressure from several political parties who requested more time to assess the implications of the proposed reform. The delay allows for additional hearings with legal experts, immigrant associations and civil society representatives before a final vote is held in plenary session.

The proposed reform introduces significant changes to the current legal framework for acquiring Portuguese nationality. Among the most impactful measures is the extension of the minimum legal residence period required before applying for naturalisation. Under the new proposal, this period would increase from the current five years to seven years for nationals of CPLP countries (Community of Portuguese Language Countries), and to ten years for applicants from all other countries.

Another major change concerns the introduction of mechanisms to revoke Portuguese nationality . According to the proposal, naturalised citizens who are convicted of serious crimes — defined as those resulting in prison sentences of five years or more , within ten years of acquiring nationality — could see their Portuguese citizenship revoked by a court decision, based on a proposal from the Public Prosecutor’s Office.

In addition, the reform would tighten the requirements for acquiring original Portuguese nationality through birth in Portugal. For children born in Portuguese territory to foreign parents, it would become mandatory that at least one parent has been residing legally in Portugal for a minimum of three years , instead of the current two years.

Although the government initially intended to approve these changes before the summer recess, political consensus has not yet been reached. Left-wing parties have raised concerns regarding the constitutionality of retroactive revocation of nationality and the potential impact on the rights of long-term residents and immigrant communities in Portugal. In response, the parliamentary committee agreed to postpone the process and schedule a new round of expert hearings in early September. A final vote on the reform is now expected to take place later that month.

Until then, the current version of the Nationality Law remains in force , including the five-year legal residence requirement for naturalisation. Applicants who meet this requirement and wish to apply under the current rules may still do so in the coming weeks.

Need specialised legal advice? Get in touch with our qualified lawyers.

Work and Reside in Portugal with the EU Blue Card

Fri, 11 Jul 2025 10:24:07 GMT

Sara Sbai Oliveira | Immigration Consultant

The EU Blue Card Directive of the European Parliament and the Council (2021/1883) was transposed into Portuguese law by Law No. 53/2023 of 31 August, introducing significant changes to the previous regime and creating more attractive conditions for highly qualified third-country nationals seeking to live and work in the European Union. In Portugal, the EU Blue Card enables eligible individuals to obtain a residence permit specifically tailored for highly qualified employment, offering greater mobility, enhanced rights, and a clearer path toward permanent residence.

Under the current rules, third-country nationals who hold a valid visa or residence permit in Portugal and who have secured a work contract for a highly qualified position may apply directly for an EU Blue Card . It is also possible to convert an EU Blue Card issued by another Member State into a Portuguese Blue Card, provided the applicant has resided legally in that Member State for at least two years. This intra-EU mobility framework reflects the harmonised vision of the Directive, facilitating the movement of skilled professionals within the Union.

To apply in Portugal, the applicant must reside legally in the country and present an employment contract compatible with a highly qualified activity, with a minimum duration of six months. The contract must offer an annual salary equivalent to at least 1.5 times the national gross average wage. In cases where the applicant’s profession falls within a sector officially recognised as having a shortage of national workers, the salary threshold may be reduced to 1.2 times the national average. While the law no longer requires proof of higher education in all cases, documentation evidencing relevant academic qualifications or professional experience may still be necessary, particularly when the profession in question is regulated or subject to special licensing requirements.

The Blue Card regime offers several advantages compared to standard residence permits. In addition to facilitating entry and residence for the principal applicant, it provides simplified procedures for family reunification. Spouses, registered partners and dependent children may accompany or join the Blue Card holder in Portugal, and they enjoy full access to education, work and social services under equal terms. Furthermore, once the Blue Card holder has resided legally in Portugal for at least 12 months, they may move to another Member State with their family, provided they comply with that country’s national requirements for Blue Card holders.

The initial EU Blue Card issued in Portugal is valid for two years and may be renewed for successive periods of three years. If the employment contract has a shorter term, the residence card will be valid for the duration of the contract plus an additional three months. The renewal application must be submitted at least 30 days before the expiry of the card. During the first 12 months of legal residence, the Blue Card holder is restricted to working in the activity and for the employer that justified the issuance of the card. After this initial period, they may change employers or sectors without prior authorisation, as long as the new employment remains within the scope of a highly qualified activity.

Holders of the EU Blue Card benefit from equal treatment with Portuguese nationals in terms of working conditions, including wages, working hours, leave entitlements, and occupational health and safety. They are also entitled to access the national social security system, healthcare, education, vocational training, housing, and other public services. Additionally, Blue Card holders are allowed to reside anywhere in Portugal and to travel freely within the Schengen Area without requiring a separate visa.

Importantly, time spent in Portugal under the EU Blue Card counts towards the legal residence requirement for obtaining long-term EU resident status or Portuguese citizenship . Individuals who meet the general legal conditions — including minimum residence periods, language proficiency and integration criteria — may later apply for permanent residence or naturalisation under Portuguese nationality law.

With the recent legislative changes in Portugal and the alignment of national law with the EU Blue Card Directive, this residence regime is now one of the most advantageous options available to non-EU professionals. It is particularly suited to individuals working in technology, finance, engineering, medicine, research, academia or other strategic sectors where there is a recognised need for international talent. By offering improved legal certainty, enhanced mobility and more inclusive family rights, the Blue Card supports both the individual goals of foreign professionals and the broader European objective of attracting and retaining qualified workers.

If you are currently living in Portugal and believe you meet the legal criteria to apply for an EU Blue Card — or if you already hold a Blue Card issued by another Member State and wish to transfer your residence to Portugal — our team is available to advise and assist you throughout the application or conversion process.

Contact LVP Advogados—we are here to help!

Paid for a Service in Portugal but Did Not Get What You Were Promised? Here Is What You Can Do

Tue, 08 Jul 2025 15:16:56 GMT

Margarida Tempera | Lawyer

Engaging a contractor, supplier or service provider in Portugal is often expected to be a simple matter of agreement and trust, where clear terms are set and performance is delivered accordingly; however, when this trust is broken due to a failure to fulfil contractual obligations, the situation becomes not only financially damaging but legally complex, particularly for international clients who may be unfamiliar with local procedures. Portuguese law offers effective remedies, but navigating them requires a proper understanding of contractual principles, evidence requirements and the appropriate procedural steps that must be taken to seek redress.

Under the Portuguese Civil Code, the principle of pacta sunt servanda establishes that contracts freely entered into must be honoured in good faith, and where a party fails to perform their obligations, the other party may be entitled to seek compensation, specific performance, or, in certain cases, termination of the agreement. While this legal protection exists in theory, in practice the outcome will depend on the clarity of the agreement, the nature of the default and the ability to prove that a service was promised, paid for and ultimately not delivered as agreed.

A recurring issue in these situations is the absence of a written contract or a clear description of what was to be delivered, which is not uncommon in cases involving smaller service providers, especially in the real estate or renovation; nonetheless, Portuguese courts accept a wide range of evidence, including email correspondence, payment receipts, text messages and even witness statements, all of which can be used to demonstrate that a valid agreement existed and was breached. What matters is not only that a breach occurred, but that it was material, meaning it had a serious and unjustified impact on the value or outcome of the service provided, as assessed considering the legitimate expectations of the party who fulfilled their side of the agreement.

In many cases, before any legal action can be brought, Portuguese law requires that the defaulting party be formally notified of the breach through a written notice, setting out the facts of the case, identifying the specific obligations that were breached, and granting a reasonable period for correction or compensation. While this step is not universally mandatory, it is often required in order to constitute the defaulting party in mora (delay), except where the law, the contract or the nature of the obligation exempts such requirement. Although the failure to issue this notice does not necessarily render legal proceedings inadmissible or procedurally defective, it may hinder certain legal effects, such as the right to terminate the contract based on delay or to claim default interest from an earlier date. The letter must be clear, objective, as it often prompts the other party to enter negotiations or settlement discussions, thereby avoiding escalation to the courts.

Should the defaulting party fail to respond or reject liability, the next step is to initiate legal proceedings, either for damages or to compel performance, depending on the specific circumstances and whether the breach was total, partial or capable of remediation. Civil litigation in Portugal is generally well structured, but clients should be aware that even in the most efficient jurisdictions, the process can take several months, and for this reason interim measures, such as injunctions to prevent the disposal of assets or to preserve evidence, may be necessary where there is a serious risk of irreparable harm or further losses.

Alternative dispute resolution, including mediation and arbitration, is increasingly common in Portugal and can be an efficient and cost-effective way to resolve disputes, particularly where the parties are open to maintaining a business relationship or where court litigation would be too time-consuming or adversarial. Where it is possible, these methods are often quicker and more flexible.

At LVP Advogados, we assist clients from a wide range of countries who have encountered non-performance of services in Portugal, and we regularly act in cases we regularly act in cases involving breach of contract, defective service provision and unjust enrichment, ensuring that our clients’ rights are protected and enforced through every available legal avenue. If you have paid for a service and not received what was promised, it is essential to act quickly, consider issuing a formal legal notice and evaluate your position with the assistance of a qualified lawyer, as early action can significantly increase your chances of a successful resolution.

Each case must be evaluated on its own merits, taking into account the evidence available, the conduct of the parties and the legal and commercial consequences of proceeding or settling, and we are available to provide tailored advice to help you determine the most effective and proportionate course of action. Should you wish to review your case to enforce your rights or obtain compensation, our team is ready to support you with clear and strategic representation.

Need specialised legal advice? Get in touch with our qualified lawyers.

Portuguese Nationality: How Community Ties Can Boost Your Application

Mon, 07 Jul 2025 15:02:49 GMT

Danielle Avidago | Immigration Consultant

When an individual considers securing European citizenship, one country often stands out: Portugal . Thanks to its welcoming policies, historical openness, and strong global community networks, Portugal has become a preferred choice for many . While legal pathways such as marriage , descent, or Sephardic Jewish ancestry are commonly discussed, there is a crucial requirement that often catches applicants by surprise: the need to demonstrate an effective connection to the Portuguese community.

But what does it mean to be “connected” to the Portuguese community? How can applicants prove it? And do all applicants need to demonstrate this connection?

Beyond bloodlines and legal ties

Portuguese nationality law recognises that simply having a Portuguese spouse or grandparent may not, by itself, be sufficient. The law requires proof that the applicant has built or maintained a meaningful relationship with Portuguese society. This concept of effective connection (ligação efetiva à comunidade Portuguesa) plays a central role in several nationality applications, particularly for spouses of Portuguese citizens, descendants of Sephardic Jews , and individuals who have resided in Portugal for extended periods, along with their children.

In contrast, if you have a Portuguese parent who is a citizen by origin or birth in Portugal, no connection to the Portuguese community is required.

Language as a gateway

One of the most widely accepted and often essential proofs of connection is A2-level proficiency in the Portuguese language. This can be demonstrated by taking and passing the CAPLE exam (Centro de Avaliação de Português Língua Estrangeira), officially recognised by the Portuguese authorities, or by completing an accredited Portuguese language course from a certified institution.

Moreover, suppose the applicant is a national of a Portuguese-speaking country and married to or living in a non-short-term union with a Portuguese citizen. In that case, the Public Prosecutor’s Office will often presume the existence of a connection to the national community.

Physical presence in Portugal

Another strong indicator of effective connection is physical presence in the country. Applicants who currently reside legally in Portugal for at least five years , have lived in Portugal in the past, attended school or university in Portugal, or own property in Portugal are generally regarded as having established tangible personal, educational, or financial ties with the country.

Even occasional or recurring visits to Portugal may support a claim of connection, particularly when combined with other forms of engagement.

Administrative and community involvement

Applicants can further strengthen their case by demonstrating ties with Portuguese institutions or communities. Examples include holding and using a Portuguese NIF (tax identification number), participating in Portuguese cultural associations or community centres, attending Portuguese-language classes or religious services, and supporting or being a member of Portuguese sports, social, or charitable organisations.

These actions show not only a legal basis for the application but also a genuine cultural and social investment.

When is connection mandatory?

It is important to clarify that demonstrating an effective connection to the Portuguese community is not always required for the application to be accepted by the Central Registry Office (IRN). However, in some cases, it is essential to prevent opposition from the Public Prosecutor’s Office, particularly in nationality applications based on marriage or long-term residence.

According to our experience, if there is no evident connection, the Public Prosecutor’s Office is likely to oppose the acquisition of nationality. This may result in a court case and delay or even prevent the approval of your application.

Important Note : With the upcoming proposals to change the Portuguese Nationality Law and Immigration Law, some alterations concerning the above details may occur. But we guarantee you that we are on top of these changes and will keep you informed.

Conclusion

Portugal’s approach to nationality reflects its broader cultural values of openness, identity, and social cohesion. While meeting the legal requirements is essential, the emphasis on effective connection shows that nationality is more than just a legal status; it is about belonging.

For prospective applicants, preparation must go beyond paperwork. It involves real engagement with the Portuguese language, culture, and society, whether through life in Portugal or through active involvement in the global Portuguese diaspora.

Legal advice can play a crucial role in identifying and documenting the best forms of connection in each case. As nationality procedures become more rigorous, a well-informed strategy and the support of an experienced legal team can make all the difference.

Contact LVP Advogados—we are here to help!

Residence Permits: Validity Officially Extended Until 15 October 2025

Tue, 01 Jul 2025 11:55:21 GMT

Decree-Law No. 85-B/2025 entered into force today, 1 July 2025, extending the validity of residence permits for foreign nationals residing in Portuguese territory.

Specifically, all foreigners residing in Portugal whose residence permits expired between 22 February 2020 and yesterday, 30 June 2025, now retain validity until 15 October 2025.

All foreign residents in Portugal should be aware of the new rules introduced by the Portuguese government under Decree-Law No. 85-B/2025. This decree-law applies exclusively within Portugal and in the foreign resident's country of origin.

All foreign nationals residing in Portugal whose residence permits have expired are required to renew them. To do so, they must register on an online platform created by AIMA . Once registered, they will receive an email notification regarding the renewal process. A fee, set by the Portuguese government, will apply.

Those whose passports and biometric data are current can complete the process online via AIMA's website. Those who do not meet these criteria must attend in person to provide biometric data and present all required documentation for residence permit renewal.

It is essential that, upon receiving the receipted invoice for the AIMA fee, payment is made promptly. The process will only commence once payment has been confirmed. Failure to pay will be interpreted by AIMA as withdrawal from the residence permit renewal process.

The fees charged by AIMA vary considerably depending on the type of residence permit. For example, the current fee for a Portuguese Golden Visa is €4,050.30.

As the defined time window—which runs until 15 October—is relatively short, Decree-Law No. 85-B/2025 sets out the following in Article 2, paragraph 2:

After 15 October 2025, documents concerning residence permits will be accepted upon presentation by the holder of proof of payment for the renewal request, issued by AIMA. This proof is valid for 180 days from the date of issue.

This means that individuals who do not receive a response from AIMA by 15 October, but have already paid the applicable fees, will still benefit from an extension of document validity for a further 180 days.

To ensure that all required documents are current, appointments are scheduled in advance, and the process is properly organised, it is advisable to engage a specialised immigration lawyer. Their expertise can significantly increase the likelihood of a successful outcome in immigration cases .

Are you in the process of renewing your residence permit? Contact us—we are here to support you throughout your residency application.

The Hidden Visa Dealbreaker: How a Past Conviction Can Block Your Entry to Portugal

Fri, 27 Jun 2025 11:03:01 GMT

Luís Maria Branco | Lawyer

When applying for a temporary stay or residence visa in Portugal , one of the key requirements is the submission of a recent criminal record certificate. This certificate must be issued by the applicant’s country of nationality and, in certain cases, by any country where the applicant has legally resided for more than one year.

This requirement is not merely procedural. It serves a critical legal function: ensuring that individuals who pose a threat to public order, internal security, or national integrity are not granted the right to enter or remain in Portugal. The relevant legal provision is found in Article 52(3) of the Foreigners Law (Law no. 23/2007, as amended by Law no. 9/2025), which expressly provides:

“A residence or temporary stay visa shall be refused to nationals of third countries who have been convicted of a crime that, under Portuguese law , is punishable by a custodial sentence of more than one year, even if that sentence was not served or was suspended.”

This means that what matters is not the actual sentence imposed abroad, but how the offence would be classified and punished under Portuguese criminal law . Even if the conviction resulted in no jail time, or if the sentence was suspended or pardoned, the application must be refused if the underlying crime would carry a sentence longer than one year in Portugal.

For example, a conviction for theft, fraud, or certain driving offences might appear minor in the country where it occurred. Still, if that offence is punishable under Portuguese law with a prison sentence exceeding one year, it becomes a mandatory ground for refusal.

This rule applies regardless of the judicial outcome in foreign countries. Suspended sentences, pardons, amnesties, or even enforcement evasion are irrelevant if the offence itself meets the legal threshold in Portugal.

It is also important to highlight that Portugal requires applicants to submit criminal record certificates from any country of legal residence where they lived for more than one year, not just their country of nationality. This reflects the legislator’s intent to ensure a full and accurate assessment of the applicant’s criminal history.

Conclusion

Portugal applies a strict approach when assessing criminal records in visa applications . A conviction that might not be significant in another country may still trigger a mandatory refusal if, under Portuguese law, the offence carries a potential sentence of more than one year in prison.

For this reason, it is essential to assess not just what appears on a criminal record certificate, but how that information is interpreted in light of Portuguese law.

At LVP Advogados , we regularly assist clients in navigating visa applications where criminal records are involved. If you have any doubts about how a past conviction may affect your application, we strongly recommend seeking legal advice before submitting your request.

Contact us! We’re here to help you.

Have a Portuguese Grandparent? You May Qualify for Citizenship

Thu, 26 Jun 2025 12:37:31 GMT

Joana Loureiro Veríssimo | Lawyer

Portuguese nationality law offers several pathways for individuals with ties to Portugal to acquire citizenship, and one of the most relevant and accessible is through descent, particularly for grandchildren of Portuguese nationals. This route has gained considerable interest among individuals whose families emigrated from Portugal in past generations. For many, obtaining Portuguese nationality represents not only a reconnection with their heritage but also access to the rights and benefits associated with European Union citizenship.

Under the current Portuguese Nationality Law (Law no. 37/81, as amended), grandchildren of Portuguese citizens may apply for nationality, provided they meet certain legal requirements. The legal basis for this route is Article 1(1)(d), which allows individuals born abroad with at least one Portuguese grandparent to acquire Portuguese nationality, provided they can prove the family link and demonstrate an effective connection to the Portuguese community. In the context of grandchildren, this effective connection is primarily assessed through knowledge of the Portuguese language .

To be eligible, the applicant must establish that at least one grandparent held Portuguese nationality and had not lost it. This is typically demonstrated through civil registration documents, such as the applicant’s full birth certificate, the birth certificate of the parent (if the child is a Portuguese grandchild), and the birth certificate of the Portuguese grandparent. These documents must establish the lineage linking the applicant to the Portuguese grandparent.

However, proving ancestry alone is not sufficient. One of the central requirements is the demonstration of an effective connection to the Portuguese community. In the case of grandchildren, the law presumes this connection when the applicant has sufficient knowledge of the Portuguese language, currently set at A2 level or higher under the Common European Framework of Reference for Languages (CEFR).

This language requirement is set out in Decree-Law No. 237-A of 14 December 2006, Article 25, paragraph 2, and may be fulfilled by one of the following means:

A school certificate from a recognised institution in Portugal confirming successful completion of Portuguese as a subject for at least two academic years.
Certificate of successful completion of a Portuguese language exam taken at a public school in Portugal or abroad at a Camões-accredited institution, with regulation and oversight established by joint ministerial order.
A CIPLE certificate (Certificado Inicial de Português Língua Estrangeira), issued by CAPLE, the Centre for Evaluation of Portuguese as a Foreign Language at the University of Lisbon.
Certificate of A2 level or higher under the CEFR, issued by a public school, IEFP centre, or accredited protocol centre, per Order No. 1262/2009 of 15 October, as amended.
A certificate of completion of an A2-level Portuguese language course, with a minimum of 150 hours, offered by a certified institution in Portugal, Order No. 1262/2009 of 15 October, as amended.
Certificate confirming at least 100 hours of Portuguese language training within the educational component of a dual certification under the National Qualifications Catalogue, under Article 9 of Decree-Law No. 396/2007, as amended.

Applications may be submitted in person at the Central Registry Office in Lisbon, by post, through the Portuguese consulate with jurisdiction over the applicant’s residence, or online by a Portuguese lawyer via the Ministry of Justice’s secure digital platform. This last option is useful for applicants residing abroad, as it allows for efficient and monitored communication with the authorities.

Once the application is submitted and formally registered, the Instituto dos Registos e do Notariado (IRN) will review the documentation to confirm whether all legal conditions are met. If approved, the process concludes with the registration of the applicant’s birth in the Portuguese civil registry. This act formally grants Portuguese nationality. A Portuguese birth certificate is then issued, which serves as proof of citizenship and enables the applicant to request a Portuguese identity card (Cartão de Cidadão) and passport.

While the process is generally straightforward for those who meet all the requirements and can gather the necessary documentation, some applicants may face challenges such as missing civil records, complex family histories, or difficulties obtaining properly legalised or apostilled documents from foreign jurisdictions.

Given the legal and procedural complexity, it is strongly advisable to seek the assistance of a qualified lawyer experienced in nationality law and well-versed in the Portuguese civil registration system. Professional legal support can help ensure that the documentation is complete and correctly prepared, that the procedural requirements are fulfilled, and that the application is submitted in full compliance with the law.

In conclusion, applying for Portuguese citizenship through a grandparent remains one of the most accessible legal routes to acquiring nationality and the rights it brings, including freedom of movement within the European Union. For those who meet the requirements, this process offers a meaningful way to reconnect with their heritage while securing the benefits of Portuguese citizenship.

If you have Portuguese ancestry and are considering applying for Portuguese citizenship, feel free to contact us; our dedicated team is ready to help.

Residency in Portugal Through Your Child: A Simplified Legal Pathway Under Article 122(k)

Wed, 25 Jun 2025 15:49:35 GMT

Sara Sbai Oliveira | Immigration Consultant

Under the Portuguese Foreigners Law (Law no. 23/2007 of July 4), Article 122, paragraph 1, subparagraph k, establishes a simplified legal pathway for foreign parents of minors who either hold a valid Portuguese residence permit or have Portuguese nationality , and over whom they effectively exercise parental responsibilities. This provision allows eligible parents to apply for a residence permit in Portugal without being required to previously obtain a visa from a Portuguese Consulate in their country of origin.

This procedure falls under Article 122, titled “Authorisation of residence in special situations”. To qualify under this provision, several conditions must be met. The child must be under 18 years of age. The child must either have Portuguese nationality or hold a valid Portuguese residence permit . The applicant must demonstrate that they effectively exercise parental responsibilities, which entail living with the child, providing financial support, and ensuring the child’s care and education, as applicable, depending on the child’s age and schooling stage.

The application is formally submitted to the Agency for Integration, Migration and Asylum (AIMA). Applicants must present supporting documentation for both themselves and the child. After the appointment, AIMA has a legal deadline of 90 days to issue a decision and grant the residence permit.

The initial residence permit is valid for two years and can be renewed for successive periods of three years, provided the eligibility conditions are maintained. It is important to note that Article 122(k) only applies to the initial concession of the residence permit. For instance, the residence permit cannot be renewed under this article once the child reaches the age of 18. However, after five years of legal residency , the applicant may apply for permanent residency and, if other legal conditions are met, for Portuguese citizenship.

The applicant must provide strong evidence that the minor resides with them and is financially dependent on them, thus proving the effective exercise of parental responsibilities. In cases involving divorced or separated parents , or situations where one parent resides abroad, the applicant must submit appropriate documentation clarifying who effectively exercises parental responsibilities. In certain cases, formal documents such as custody agreements or court orders may be required.

If you are a parent in this situation, legal guidance is often advisable to ensure the proper submission of documentation and to navigate the procedure with AIMA. Our firm is available to assist you throughout the process, from gathering documentation and requesting the AIMA appointment to supporting you until you receive your residence permit.

If you believe you may qualify under Article 122(k), do not hesitate to contact us for tailored legal advice on your eligibility and next steps.

Major Reform of Portuguese Nationality and Immigration Laws – June 2025

Tue, 24 Jun 2025 12:12:35 GMT

At the Council of Ministers meeting held on 23 June 2025, the Portuguese Government announced a broad package of legislative reforms targeting the Nationality Law , the Immigration Law , and the structure of immigration enforcement. These proposals are framed as a response to structural and demographic challenges and aim to ensure firm yet humanistic regulation of nationality and migration in Portugal.

1. Stricter Requirements for Portuguese Nationality

A draft law to amend the Nationality Law was presented. The proposed changes are substantial and include:

Naturalisation by residence will require:

7 years of legal residence for citizens from Portuguese-speaking countries and 10 years for all others.
The residence period is to be counted from the issuance of the first residence permit.
Proof of knowledge of the Portuguese language, national culture, and the rights and duties associated with Portuguese citizenship, demonstrated through official tests.
Applications will no longer be admissible for individuals with criminal records for crimes punishable by imprisonment, regardless of the sentence applied.

Attribution of nationality at birth to children of foreign nationals will be conditioned on:

At least one parent has 3 years of legal residence in Portugal; and
An express declaration by the parents requesting Portuguese nationality for the child.

Nationality based on Sephardic Jewish descent will be abolished for new applicants.

Acquisition through ancestry will be limited to the third generation (great-grandchildren), subject to proof of an effective connection to the Portuguese community.

Loss of nationality may be imposed as an accessory penalty in cases involving naturalised citizens (within 10 years), who are convicted of serious crimes with effective prison sentences of 5 years or more. This will be determined by a court decision on a case-by-case basis, based on proportionality.

2. Reform of the Immigration Law

A separate draft law seeks to regulate key migration channels, with emphasis on family reunification, CPLP residence, and job-seeker visas:

The job-seeker visa will now be available only for highly qualified professionals, with technical qualifications and eligible professions defined by ordinance.

Family reunification will require:

At least 2 years of legal residence in Portugal.
In-country applications are allowed only for minors; other family members must apply via consular channels.
Proof of adequate housing, financial means (excluding public assistance), and integration efforts such as language learning and school attendance.
The possibility of refusal based on public order, health, or security concerns.

CPLP residence permits:

A residence visa will become mandatory.
It will no longer be possible to obtain a residence permit based on a tourist visa or visa exemption.
Security clearance by the UCFE (Internal Security Unit) will be required.
The Government aims to avoid creating a “Manifestação de Interesse 2.0.”

Administrative reforms:

AIMA will be authorised to plan appointment schedules according to its operational capacity.
The tacit approval rule for residency processes will be eliminated.

3. Creation of UNEF – National Unit for Foreigners and Borders

A new police unit, UNEF, will be established within the PSP (Public Security Police), assuming exclusive competence over:

Border control.
In-country inspections related to foreign nationals.
Execution of deportation and removal orders.

This is not a reinstatement of SEF (the former border agency), nor a transformation of AIMA into a police body.

4. Final Extension of Expired Residence Permits

Residence permits valid until 30 June 2025 will be automatically extended until 15 October 2025.

From 1 July 2025, renewal requests can be submitted to AIMA through a new contact platform.
Applicants who pay the renewal fee will receive a temporary six-month certificate confirming their legal status until the new card is issued.

Important Note : These proposals are not yet in force and remain subject to parliamentary debate and potential amendments. While the Government has not addressed the Golden Visa regime in this announcement, further legislative developments may follow.

For tailored advice regarding nationality or residency applications in light of these proposed changes, please contact our Immigration Team.

Hiring Employees in Portugal: Why Employment Contracts Must Be Done Right from the Start

Fri, 06 Jun 2025 14:51:01 GMT

Margarida Tempera | Lawyer

Hiring employees in Portugal requires far more than agreeing on a monthly salary or defining day-to-day responsibilities, as Portuguese labour law is comprehensive, employee-centred, and under constant development.

It imposes numerous obligations on employers, many of which are not always intuitive to those unfamiliar with the national legal framework.

For companies operating in Portugal , whether newly established or already in expansion, correctly structuring the employment relationship from the very beginning is not simply recommended; it is imperative to avoid legal exposure and reputational damage. At the heart of this structure lies the employment contract, a binding legal instrument that defines and governs the relationship between employer and employee, and which must comply strictly with the provisions of the Portuguese Labour Code.

In Portuguese law, an employment relationship is characterised by the existence of subordination, meaning that if a person performs work under the authority, direction, and supervision of another, in exchange for remuneration, then an employment relationship may legally exist, regardless of the name or structure the parties intended to give it. This principle has significant consequences and means that if a company engages someone as an independent contractor or service provider, but the nature of the relationship reveals the typical traits of subordination, labour authorities or the courts may requalify the relationship as an employment contract, with retroactive effect.

The consequences of such reclassification may include mandatory payment of outstanding salaries, holiday and Christmas bonuses, compensation for unlawful dismissal, retroactive social security contributions, interest, and administrative penalties. Therefore, the stakes of misclassification are extremely high.

Portuguese law provides for several types of employment contracts, each designed for different circumstances.

Open-ended or permanent contracts are the general rule and should be used whenever the employment is expected to be continuous. These contracts offer greater job stability to employees, but also make termination more procedurally complex and subject to stricter conditions.

Fixed-term contracts, on the other hand, are only allowed in specific situations, such as to replace a temporarily absent employee, to address a short-term increase in activity, or to perform a task with a foreseeable end. The law requires that the reason justifying the fixed term be clearly stated in the written contract, and if this justification is missing or insufficient, or if the maximum legal duration is exceeded, the contract will automatically be converted into an open-ended one.

The same logic applies to contracts of uncertain duration, which may only be used in cases where the employer knows the employment will be temporary but cannot determine its exact length in advance.

Other contractual modalities, such as part-time employment, telework, and very short-term contracts, also exist and may be useful depending on the business model. Each of these categories has its legal limitations and requirements and should never be implemented without first assessing their compliance with the law and their suitability for the employer’s operational needs.

A valid employment contract in Portugal must contain essential elements including the identification of the parties, the start date, the job title and description, the place of work, the normal working hours, the base remuneration and, when applicable, the term and justification for temporary contracts, as omitting these elements may lead to administrative fines, legal uncertainty, or disputes down the line.

The Labour Code also imposes certain obligations on the employer from the very first day of employment. Before the employee starts work, the employer must register them with the Portuguese Social Security system. Failing to register employees or to make accurate and timely payments exposes companies to fines, interest, and the possibility of inspections by the competent authorities.

Equally important is the obligation to obtain mandatory work accident insurance from a certified insurance provider. This insurance must cover all occupational accidents and work-related illnesses and must be in place from the first day of work. Employers who fail to provide this coverage assume the entire risk and cost of any accidents or occupational claims, with potential civil and even criminal consequences.

Although not always legally mandatory, the meal allowance or “subsídio de refeição” is widely regarded as a standard benefit in Portugal and is frequently included in collective bargaining agreements or internal policies. It may be paid in cash or meal vouchers and enjoys partial tax exemption up to legally defined thresholds. Employers who do not offer this benefit may find it harder to attract and retain qualified candidates, particularly in competitive sectors.

In addition, employers must comply with mandatory holiday and bonus entitlements. All employees are entitled to 22 business days of paid holiday each year, along with a holiday bonus and a Christmas bonus, each equivalent to one month’s base salary. These benefits are non-negotiable and must be granted in full, irrespective of any agreement to the contrary.

Failure to comply with any of the above obligations can expose the company to significant risks. For instance, using fixed-term contracts without justification, or misclassifying workers as contractors, may result in litigation, compensation, requalification of the contractual relationship , and substantial liabilities.

In this context, having specialised legal advice is not a luxury but a necessity. Employment contracts must be carefully designed to reflect the operational needs of the business while fully respecting the applicable legal framework.

A qualified lawyer can ensure that the right contractual model is selected, that the proper justification is included, and that all formalities are fulfilled. Legal advice is also critical for drafting enforceable clauses on confidentiality, intellectual property, probation periods, and non-compete obligations.

For foreign investors or businesses entering the Portuguese market, these rules may appear dense and difficult to navigate. However, with the right legal support, companies can ensure their employment practices are compliant, efficient, and tailored to the realities of the Portuguese legal system. Preventing legal problems at the hiring stage is always more effective than resolving disputes later. An employment contract is not merely a formality, it is the foundation of a legal relationship that, when well structured, promotes stability, predictability, and legal security for both parties.

Need specialised legal advice? Get in touch with our qualified lawyers.

To Say, or Not to Say, “I Do”: When Am I Obliged to Register My Marriage in Portugal?

Wed, 04 Jun 2025 16:11:03 GMT

Danielle Avidago | Immigration Consultant

In this globalised world we live in, it is not uncommon for one Portuguese Jew to get married to a Ukrainian Orthodox in an aphrodisiac beach in the Dominican Republic, have Christian children in Australia, and retire in Portugal . With this private international law mess, one might wonder: in which of these countries am I obliged to register my marriage? Portugal? Ukraine? Australia? All of them?!

Well, I cannot speak for other legal jurisdictions, but I can detail in which scenarios you are obliged by law to register your marriage in Portugal, and in which you are not:

Who is legally required to register their marriage in Portugal, and under what circumstances?

I am a Portuguese citizen who married a Ukrainian citizen in the Dominican Republic. Do I have to register my marriage in Portugal?

Yes, you are obliged by law to register your marriage in Portugal. Every citizen is obliged to update Portugal on their civil status, permanent residence, vital status, and other aspects that identify and protect the citizen in question. Updating your civil status early ensures clarity for future generations, simplifying legal processes that may affect your children later.

I am an Indian citizen who married a Canadian citizen in Jamaica and wish to live in Portugal. Do I have to register my marriage in Portugal?

No, only Portuguese citizens or those who married a Portuguese citizen are obliged to register their marriage in Portugal . A duly legalised version of your marriage certificate will be enough to apply for a residence visa and permit, so you can start your beautiful new chapter together in Portugal.

I am an American citizen who married a Portuguese citizen in New York, wishing to move to Portugal with our children, to apply for a residence permit as a family member of a Portuguese citizen. Do we have to register our marriage in Portugal?

Yes, because you married a Portuguese citizen, and the Portuguese legal system needs to be informed of this status change so that it can provide residency status for you and your children as the spouse and child of a Portuguese citizen. Registering your marriage in Portugal as early as possible, even before moving, will make life much easier for you and your family.

I am a Mexican citizen who married a Portuguese citize n 6 years ago, and I wish to apply for Portuguese citizenship . Do we have to register our marriage?”

Yes, to apply for Portuguese citizenship for marriage, you are obliged to register your marriage in Portugal . A duly legalised version of your marriage certificate will not suffice for the intended purpose.

I am an English citizen who has been legally living and working in Portugal for over a year with my Moroccan wife. We now need to provide our tax return to the Portuguese tax authority, and I wish to do so together, as a married couple, and not as separate individuals. Do I have to register our marriage in Portugal?

No, for tax purposes , you do not need to register your marriage in Portugal. You can simply declare to Finanças that you are married and immediately start benefiting from that specific regime. A duly legalised version of your marriage certificate shall suffice.

To summarise, if you are a Portuguese citizen who got married abroad, you are legally required to register your marriage. Whether you plan to return to Portugal someday or remain elsewhere, notifying your home country of this significant milestone early on will help ensure a smoother future for you and your children.

On the other hand, if you are not a Portuguese citizen, nor have you married a Portuguese citizen, you are not obliged to register your marriage in Portugal. It is possible, however, to request the Civil Registry Office of the foreigner's area of residence to register their marriage if a “ legitimate interest ” can be proven. A legitimate interest in the eyes of the IRN simply means a concrete reason where the registry of marriage will impact the desired procedure. The Civil Registry may, however, refuse to register the marriage if they do not consider that a real, legitimate interest is behind the request.

Foreigners may, of course, get married in Portugal when they complete at least 30 days residing in a fixed location in Portugal. But to get married elsewhere and register the marriage in Portugal is not a necessary action for most people´s daily life, nor is it obligatory by law.

Do you see yourself in any of the above situations? Or perhaps you have a unique case that requires clarification to determine the best course of action? Rest assured, we would be delighted to guide you in deciding whether saying 'I do' in Portugal is the right step for you.

Contact LVP Advogados—we are here to help!

IRS 2024: What Foreign Residents and Non-Residents in Portugal Need to Know Before 30 June

Fri, 30 May 2025 11:58:52 GMT

Diogo Pedro | Lawyer

The deadline to submit the Portuguese Personal Income Tax return (IRS) for income earned in 2024 is 30 June 2025 . Whether you live in Portugal or earn income here through real estate or investments, it’s important to confirm whether you are required to file and what that involves.

In some situations, particularly when declaring foreign income and applying for a tax credit under an international double taxation treaty, you may not yet have access to all the required documentation, such as the final foreign tax return or official confirmation of tax paid abroad, by the 30 June deadline.

Where this applies, taxpayers may request an extension by submitting IRS Form 49 . This request must be filed no later than 30 June and, once accepted, extends the deadline to submit the IRS Model 3 until 31 December of the same year.

Who Is Required to Submit an IRS Return?

If you are considered a tax resident in Portugal , you must declare your worldwide income, including employment income, investment returns, rental income, pensions, and more, regardless of where the earnings were generated.

Non-residents are required to declare only Portuguese-sourced income that has not already been subject to final or autonomous withholding tax . This typically includes rental income from Portuguese property and, in some situations, interest and dividends , depending on the withholding treatment applied.

How to Submit the IRS Declaration

The IRS return must be submitted online via the Tax Authority’s Portal das Finanças . You’ll need a Portuguese taxpayer number (NIF) and login credentials. If you’re working with a certified accountant or legal representative, they may handle the submission on your behalf.

Consequences of Late or Missing Submissions

Failing to submit your tax return by the deadline may lead to penalties, starting at €150 , as well as interest charges on any tax due. Even for non-residents with limited income, the obligation to file still applies if the income was not previously taxed at source.

What Can Be Deducted on the IRS Return?

If you are a tax resident , a range of expenses may reduce your taxable income. These include:

Health-related expenses
Education costs
General household expenses
Rent paid on your permanent residence
Mortgage interest (in specific cases)

Non-residents are generally not entitled to these deductions, as they apply only to the global income of residents.

Is Joint Taxation an Option?

Yes. Married couples or those in a legal partnership may choose to be taxed jointly. This may lower the overall tax burden, particularly when income is unevenly distributed between spouses. The option must be selected during submission, and the financial outcome should be reviewed in advance.

When Do I Need to Pay Any Tax Due?

If your return results in additional tax to be paid, the deadline for payment is 31 August 2024 . The Tax Authority will issue a payment reference once your return has been processed.

Can I Correct My Return if I Make a Mistake?

Yes. You can submit a corrected return ( declaração de substituição ) via the same online platform. If submitted within 30 days of the original declaration, no penalties typically apply. After that, late interest or fines may be assessed.

How Can I Track the Status of My IRS Return?

You can check the progress of your return on the Portal das Finanças under “IRS” > “Consultar Declaração.” This area provides updates on whether the return has been accepted, processed, and whether a refund has been issued.

When Can I Expect a Refund, if Applicable?

If you are entitled to a refund, it is usually issued within 12 weeks of submission. The exact timeline may vary depending on when you file and how complex your tax situation is.

If you are unsure about your IRS obligations or would like assistance in preparing your declaration, our Tax team is here to help . We assist both residents and non-residents in managing their tax obligations in Portugal with accuracy and efficiency.

To ensure timely submission, we recommend contacting us well before the 30 June deadline.

Company Dissolution in Portugal: A Step-by-Step Overview

Thu, 29 May 2025 16:43:11 GMT

Tomás Melo Ribeiro | Lawyer

The dissolution of a company in Portugal marks the beginning of the liquidation process, which is a legal procedure. Although the company ceases its business activities, it continues to exist as a legal entity until the liquidation is concluded and formally registered. Dissolution can occur by decision of the shareholders and may follow different legal paths, depending on the company's circumstances.

There are several types of dissolution available to shareholders, including:

Immediate Extinction : The company is immediately extinguished after the approval of the shareholders' decision and the filing of the required documentation.
Dissolution and Liquidation : A two-step process involving an initial decision to dissolve, followed by the winding-up and closure of the business.
Dissolution with Asset Distribution : Similar to the standard dissolution process, but with a formal allocation of assets among shareholders.
Dissolution with Global Transfer of Assets : This involves transferring all company assets in a single act and proceeding with dissolution.

The dissolution process begins with a resolution approved by the general assembly, typically requiring a qualified majority of three-fourths of the share capital. If the company owns real estate, a public deed must be executed at a Notary's Office. Otherwise, a notarised deed is not required, and the minutes of the general meeting approving the dissolution will suffice.

Once the dissolution is decided, the company formally enters into liquidation. From this point forward, the following steps must be taken:

Within 15 days , the Tax Authority (Autoridade Tributária) must be informed of the dissolution and the liquidator's appointment.
Within 10 days thereafter , the same notification must be submitted to Social Security.
Within 2 months , the commercial registration of the dissolution must be filed. This can be submitted online via the Empresa Online platform or through a Commercial Registry Office.

If assets such as real estate are to be divided among shareholders, a public deed of partition must be executed and recorded at the Land Registry Office (Conservatória do Registo Predial).

Once liquidation begins, the company must:

Sell its assets and collect any outstanding debts.
Pay off creditors and any remaining liabilities.
Prepare and approve the final accounts and liquidation balance sheet.
Distribute the remaining assets among shareholders according to their shareholding.

This process must be completed within two years , extendable by one additional year upon shareholders' resolution.

Upon completion of the liquidation, a final meeting must be held to approve the accounts and closure. A formal act of closure is drawn up and must be registered with the Commercial Registry Office. Only then is the company considered legally extinguished .

Subsequently, the cessation of activity must be declared to the Tax Authority within 15 days, and to Social Security by the 10th day of the following month. These declarations can be submitted online via the Tax Portal and Segurança Social Direta platform, respectively.

It is important to note that if these formalities are not fulfilled, the company may continue to be considered active for tax and social security purposes, potentially incurring penalties . Furthermore, shareholders may be held personally liable if any obligations remain unresolved or if the process contains irregularities.

In conclusion, while the dissolution and liquidation of a company in Portugal involve several administrative and legal formalities , ensuring each step is handled correctly is key to achieving a smooth and compliant closure.

At LVP Advogados , we assist clients throughout the entire process, from the initial shareholders’ resolution to final deregistration, ensuring that all obligations are met and the winding-up is completed with legal certainty.

If you are considering dissolving a company or need advice on the appropriate procedure, feel free to contact us.

Evicting a Non-Paying Tenant in Portugal: What Landlords Need to Know

Wed, 28 May 2025 16:38:24 GMT

Margarida Tempera | Lawyer

One of the most challenging situations faced by landlords in Portugal, particularly those residing abroad or unfamiliar with the local legal landscape , is dealing with tenants who fail to pay rent. While Portugal offers a number of legal protections to tenants , landlords are also provided with clear legal remedies to regain possession of their property and recover unpaid rents. Whether or not there is a formal written and registered lease agreement, the law provides procedures to remove a tenant and secure overdue payments. Understanding these mechanisms is essential for anyone letting property in Portugal , especially those who rely on rental income as part of their financial planning or property investment strategy.

Where there is a valid written lease agreement that has been properly registered with the Portuguese Tax Authority, landlords benefit from a simplified and expedited eviction process. This is known as the Procedimento Especial de Despejo (Special Eviction Procedure), and it allows landlords to evict tenants quickly through a procedural means, rather than a full court action. This special eviction procedure was introduced more than 10 years ago to streamline landlord-tenant disputes and reduce the burden on civil courts. It enables landlords to initiate eviction proceedings online via the Balcão Nacional do Arrendamento (BNA), an electronic judicial secretariat with the power to process special eviction procedures throughout Portuguese territory.

To use this mechanism, the landlord must prove that there is a valid lease contract, for which stamp duty has been paid or for which income has been declared for IRS or IRC purposes, that the tenant has defaulted on rent payments, that the amounts in debt where notified to the tenant, and that proper prior notification of the breach has been given to the tenant. This typically takes the form of a formal letter or registered notice informing the tenant of the unpaid rent and demanding payment within a set period. If the tenant fails to regularise the situation within that period, the landlord may proceed to submit a requirement for eviction to the BNA. This application must include evidence of the lease agreement, proof of the tenant’s breach, and documentation confirming that notice was properly given.

Once submitted, the BNA notifies the tenant and provides them an opportunity to oppose the eviction within fifteen days. If the tenant opposes to the eviction, the case does not continue at the BNA, as it is referred to the competent judicial court of the property area, if the tenant does not contest the request, or if their opposition is found to be unfounded, the BNA will issue an enforceable order authorising the eviction. This can then be handed to a judicial enforcement agent who will carry out the physical eviction, ensuring that the landlord regains possession of the property. This entire process, if uncontested, may be concluded in as little as two to three months, making it significantly faster and more cost-effective than ordinary judicial proceedings. Importantly, this process also allows landlords to request payment of overdue rents and legal interest, potentially recovering outstanding amounts alongside regaining the property.

However, in some situations, the landlord may not have a written contract, or the contract may not have been registered with the Tax Authority. This is often the case where properties are let informally, or where the landlord is unaware of the legal requirement to declare the tenancy for tax purposes. In these cases, the Procedimento Especial de Despejo cannot be used, and the landlord must instead initiate an ordinary judicial eviction process known as a declaratory action.

While more time-consuming, this action still provides a reliable legal route for landlords to evict non-paying tenants. The process begins with the filing of a lawsuit in the local civil court , setting out the facts of the tenancy, the tenant’s breach, and the landlord’s right to repossession. The landlord must demonstrate that the property was occupied under an agreement to pay rent, even if that agreement was verbal or informal. Supporting evidence may include bank transfers, email correspondence, witness testimony or any other material indicating that the tenant was residing in the property under an obligation to pay rent.

The court will then serve the tenant with notice of the claim, and the tenant will be allowed to contest the action. If the tenant fails to respond, the court will issue a judgment ordering the tenant to vacate the premises. This judgment may also include an order for payment of outstanding rent and interest. Once the judgment is final, the landlord may request enforcement through a judicial enforcement agent, who will serve notice on the tenant and arrange for the eviction if they fail to vacate voluntarily.

Although this procedure may take several months, it is still an effective and legally sound mechanism for landlords to regain possession of their properties. In particularly urgent situations, such as where the tenant has abandoned the property or where the non-payment has been ongoing for several months, landlords may also request interim measures from the court, including precautionary eviction orders or seizure of the tenant’s assets to secure payment of the debt.

Regardless of whether the eviction is carried out through the BNA or the civil courts, landlords must comply strictly with the procedural requirements laid down by Portuguese law. Attempting to remove a tenant by force, changing locks or cutting utilities without legal authorisation constitutes a criminal offence and may result in serious legal consequences for the landlord. Legal eviction is the only proper and safe route to resolving tenancy issues.

In all cases, landlords are also entitled to claim the outstanding rents as a separate or combined claim within the eviction procedure. This may include not only the unpaid rent itself but also interest and legal costs. Portuguese law allows interest to accrue on unpaid rent from the moment it becomes due, typically at a statutory rate, unless a different rate was agreed in the contract.

The best course of action will always depend on the specific facts of each case, including whether a written lease exists, whether it was registered, the period of non-payment, and the tenant’s behaviour. For this reason, it is strongly recommended that landlords seek legal advice as soon as rent arrears begin to accumulate. Early intervention can make a substantial difference in the speed and success of the eviction process.

In addition, foreign landlords should ensure that all lease agreements are properly drafted and registered in accordance with Portuguese law. A legally compliant lease not only facilitates the recovery of rent and possession in the event of default but also strengthens the landlord’s position in any legal dispute. A lawyer can assist in drafting or reviewing lease agreements, registering them with the Tax Authority, issuing proper notices of default and initiating eviction proceedings when necessary.

The rental of property in Portugal, whether for long-term residents or as part of a buy-to-let investment strategy, can be a rewarding and profitable venture. However, it is not without risk. Understanding your legal rights and obligations as a landlord and having access to swift and reliable legal remedies when tenants fail to pay are crucial to safeguarding your investment. Where difficulties arise, seeking experienced legal support ensures not only compliance with local regulations but also the most efficient path to resolution.

If you are a landlord experiencing problems with unpaid rent, whether or not you have a registered lease agreement, our legal team is available to assist you at every stage of the eviction process, from initial assessment through to full recovery of possession and outstanding payments.

Applying for Portuguese Nationality: What to Expect and How Lawyers Can Help

Tue, 27 May 2025 14:53:52 GMT

Joana Loureiro Veríssimo | Lawyer

Portuguese nationality is a right that can be acquired through various means: birth, marriage, parentage, length of residence , or Sephardic Jewish ancestry. Regardless of the route, the process involves specific steps and timelines that may vary depending on the complexity of the case. Acquiring Portuguese nationality offers numerous benefits, including the right to live, work, and study in any European Union country. The process can be intricate, but understanding the steps involved and the role of legal professionals can significantly streamline the journey.

The process for obtaining Portuguese nationality is managed by the Instituto dos Registos e Notariado (IRN) , or the Institute of Registries and Notaries. Applications may be submitted in person or, since 1 December 2023, exclusively online, through a lawyer. The typical procedure involves several key stages, such as:

Preparation and submission of the application : This stage involves carefully gathering and organising all necessary documentation. This may include documents such as birth and marriage certificates, proof of continuous residence, criminal background checks from both the home country and the country of residence, and, in certain cases, evidence of Sephardic Jewish ancestry. It is essential to ensure that all foreign documents are properly apostilled or legalised according to Portuguese requirements. Incomplete or improperly authenticated documentation can cause significant delays. Attention to detail at this stage can have a major impact on the smooth progression of the application.
Application review : Once submitted, the application undergoes detailed analysis by the IRN. While the legal timeframe for this phase is officially 90 days, applicants should be prepared for delays, as the process may take anywhere from 9 to 12 months. The actual duration depends on several factors, including the type of application, its complexity, and the IRN's current workload. During this period, additional information or documents may be requested, potentially extending the review time.
Decision and registration : If approved, the applicant will be granted nationality, which will then be officially registered. However, this final step is not immediate. It can take an additional 6 to 8 months to complete the registration. This phase includes the formal entry of the nationality in official records and the issuance of the relevant documents. Applicants should be aware that even after a positive decision, administrative backlogs may cause further delays.

In this context, selecting a lawyer who specialises in nationality law provides clear advantages. The lawyer offers legal expertise, helping to identify the most suitable route according to the applicant’s specific circumstances and ensuring full compliance with all requirements. They also assist in preparing and verifying all documentation, making sure that foreign documents are correctly apostilled or legalised. Another key benefit is the ongoing monitoring of the application's progress. The lawyer communicates with the IRN when necessary and keeps the applicant informed at each step. In exceptional cases, where delays could cause serious and irreversible harm, it is possible to request expedited processing. However, such requests are rarely granted and must be properly justified.

Processing times vary depending on the type and complexity of the case. Based on recent trends, the average timelines are as follows:

Minor children : 3 to 5 months.
Adult children : 8 to 12 months.
Spouses or common-law partners of Portuguese citizens : 25 to 30 months.
Grandchildren of Portuguese citizens : 25 to 30 months.
Applicants with five years of legal residence : approximately 19 months.
Applicants with Sephardic Jewish ancestry : 25 to 30 months.

Applicants of Sephardic Jewish descent should note that, following recent legal amendments, this route is now subject to more restrictive conditions, including the need to demonstrate an effective and lasting connection to Portugal.

There have also been important legislative changes to the Portuguese Nationality Law aimed at simplifying and accelerating the process. One of the most relevant amendments allows the time elapsed since the submission of a temporary residence permit application to count towards the required period of residence for nationality purposes, provided the permit is ultimately granted. This measure helps mitigate the impact of delays in the processing of residence permits.

Furthermore, since 14 June 2023, it has become possible to apply for Portuguese nationality online for nearly all categories provided by law. These online applications must be submitted through a lawyer , ensuring that applicants receive qualified legal assistance throughout the entire process.

Conclusion

Obtaining Portuguese nationality is a legal pathway to citizenship that opens access to numerous rights and opportunities within the European Union. While the process may be lengthy and complex, the support of a specialised lawyer ensures efficiency, compliance, and peace of mind.

If you are considering applying for Portuguese nationality, it is highly advisable to consult with an experienced lawyer who can offer tailored guidance and oversee every step of the procedure.

Our team of legal professionals is ready to assist you. With in-depth knowledge and a personalised approach, we will handle your application with care and precision, guiding you confidently through the process.

Recovering Payment for Supplied Materials: What Creditors Can Do Under Portuguese Law

Thu, 22 May 2025 15:31:26 GMT

Margarida Tempera | Lawyer

In commercial transactions, particularly within the construction , manufacturing and supply sectors, it is regrettably common for suppliers to experience non-payment despite having fulfilled their contractual obligations by delivering materials.

This situation is especially burdensome for suppliers who, having already incurred costs related to the purchase, transport and sometimes installation of the goods, are left without the agreed remuneration. For companies that depend on stable and predictable cash flow, this generates financial strain and can compromise operational continuity and long-term viability.

Portuguese law provides a fast, cost-effective and accessible solution through the injunction procedure, established by Decree-Law no. 269/98 of 1 September. This mechanism was designed to streamline enforcement in uncontested claims, reduce court congestion and allow judicial resources to focus on more substantial matters.

In response, the legislator created an accessible, extrajudicial alternative capable of facilitating the recovery of uncontested debts with minimal delay and reduced costs, while allowing judicial resources to be reserved for more complex or socially relevant disputes.

The injunction procedure enables a creditor to obtain an enforceable title without initiating a full declaratory lawsuit. With this title, the creditor may immediately begin enforcement proceedings to recover the outstanding amount, which can include the seizure of bank accounts, wages or other assets.

This procedure can be used to recover debts that are clearly defined, already due, and supported by written proof. The maximum amount of debt for recovering through this procedure is €15,000. Nevertheless, when the debt results from a commercial transaction between professionals (not involving consumers), there is no upper limit.

To initiate the process, the creditor must submit a request, including the identification details of both parties, a concise description of the contractual relationship and the amount owed. The request may be submitted in electronic format, at the Balcão Nacional de Injunções (BNI), by completing and sending an electronic form available for the lawyers and solicitors in the CITIUS computer system, which is Portugal’s centralised court information system or, in paper format, by delivery to the competent court registry, which is responsible for entering the data contained in the request into the computer system, sending it, electronically, to the BNI.

Within 5 days, the court secretary notifies the debtor, by registered letter with acknowledgement of receipt, to pay the claimant the amount requested, plus the court fee paid by the creditor, within 15 days, or to file an opposition to the claim.

If the debtor, once correctly notified, fails to either pay or file an opposition within the prescribed time limits of fifteen days, and the requested amount does not exceed fifteen thousand euros, the court registry will affix an enforceability clause to the request, which includes the imposition of legal interest and procedural costs. Interest typically accrues at a statutory rate of around four per cent per annum unless otherwise agreed.

Failure to oppose the claim within the legal timeframe precludes the debtor from later raising defences that could have been presented at that stage, and the creditor may proceed directly to execution. In practice, this process is often concluded within 30 to 45 days if uncontested.

This transforms the application into an enforceable instrument with the same legal weight as a final court judgment.

This instrument provides the legal foundation for initiating enforcement proceedings, including asset seizure, without further judicial deliberation.

That said, when the debt is acknowledged, it is strongly recommended that the debtor engage with the creditor to arrange payment, ideally through a written agreement. Payment plans may be negotiated, but should always be documented in writing to prevent future disputes.

Should the debtor file an opposition, the case is referred to a court, continuing as a standard declaratory action under civil procedure rules, converted into a special judicial procedure designed specifically for the enforcement of monetary obligations arising from contracts, provided that the amount claimed does not exceed fifteen thousand euros. This procedure is streamlined in comparison to ordinary civil litigation , as the hearing may proceed even in the justified absence of the parties or their legal representatives, and the fact that the claim is already formalised before the court often encourages settlement or payment.

To further incentivise use of the system, the legislator reduced court fees and eliminated unnecessary formal requirements.

The injunction procedure is particularly well suited to situations in which suppliers have delivered goods or materials, but payment has not been received despite clear contractual terms. When supported by written evidence such as invoices, delivery notes or correspondence confirming the transaction, the procedure offers a cost-effective and expeditious solution to recovering debts while reinforcing the principle of contractual accountability.

Debt recovery mechanisms should not rely solely on the capacity of a judicial system already under pressure. The Portuguese injunction procedure offers a practical, proportionate and legally sound alternative that promotes legal certainty and supports the stability of commercial relationships. In supplying materials or services, businesses have the right to expect timely and full payment. Where this does not occur, the law provides a swift and accessible route to redress.

Need legal support to recover payments? Contact us. We will defend your rights throughout the entire legal process and ensure you receive what you are owed.

How to Acquire Portuguese Nationality: The Main Legal Routes

Tue, 20 May 2025 16:39:51 GMT

Sara Sbai Oliveira | Immigration Consultant

Portuguese Nationality Law No. 37/81, of 3 October, sets out several legal pathways to Portuguese citizenship : attribution and acquisition. This article focuses exclusively on acquisition , meaning situations in which a person becomes Portuguese after birth, following an administrative request and fulfilling legal requirements. Attribution routes, which apply to individuals who are Portuguese from birth, are not addressed here.

Below is a structured overview of the main acquisition pathways currently available under Portuguese law, following the most recent legislative reforms.

Article 2 – By effect of a parent acquiring nationality

Minors or incapacitated individuals may acquire Portuguese nationality if one of their parents becomes Portuguese.
Both parents must declare their will to register the minor as Portuguese.

Article 3 – By marriage or civil partnership

Foreign nationals married to a Portuguese citizen for more than three years.
Foreign nationals in a civil partnership (união de facto) of more than three years, formally recognised by a Portuguese civil court.

Article 4 – Reacquisition after loss during incapacity

Individuals who lost their nationality due to a declaration made while incapacitated.
Must prove that the incapacity was temporary.

Article 5 – By adoption

Individuals adopted by a Portuguese citizen may acquire nationality.

Article 6 – By naturalisation

There are several legally defined situations under this article:

Foreign nationals of legal age who have resided legally in Portugal for at least five years
Minors aged 16 or older, born in Portugal to foreign parents, if:

One parent has resided in Portugal (regardless of legal title) for the five years before the request.
One parent holds a valid residence permit.
The minor has completed pre-school, basic, secondary or vocational education in Portugal.

Children under 18 under the care of a Portuguese public institution under protection measures.
Former Portuguese citizens who lost their nationality and never acquired another nationality.
Individuals born in Portugal to foreign parents who were residing in Portugal at the time of birth (regardless of status), and who have lived in Portugal for at least five years.
Individuals who have rendered or are called to render relevant services to the Portuguese State.
Members of Portuguese-origin communities from Timor, the former African colonies or Goa.
Descendants of original Portuguese citizens.
Descendants of Portuguese Sephardic Jews , provided they:

Prove a tradition of belonging to a Sephardic community.
Have resided in Portugal for at least three years.

Ascendants of Portuguese citizens, if:

They have lived in Portugal for at least five years (regardless of title) .
The parental relationship existed at the time of the Portuguese citizen’s birth.

Individuals who lost nationality for having resided in Portugal for less than five years on 25 April 1974 , provided they did not serve a foreign State and remained in Portugal.
Women who lost Portuguese nationality due to marriage to a foreign citizen.
Individuals who lost their nationality by voluntarily acquiring another nationality.

As described, there are multiple legal routes to acquire Portuguese nationality - whether through residence, family relationships , historical or cultural ties, or service to the Portuguese State. Each route has its own legal and procedural requirements.

Given the complexity of the process and the strict conditions imposed by the competent authorities (namely the Instituto dos Registos e Notariado – IRN ), we strongly recommend that applicants seek legal assistance.

Our team offers specialised support throughout the entire application process, including eligibility assessment, collection of required documents, retrieval of birth and marriage certificates, preparation and submission of the request, communication with the authorities and assistance with the payment of governmental fees.

If you believe you meet the legal requirements to acquire Portuguese nationality and would like to be represented by a team with solid experience in this area, please do not hesitate to contact us.

Portugal Elections 2025: Examining the Official Results

Mon, 19 May 2025 15:25:36 GMT

The 2025 Portuguese general elections took place yesterday, with the Democratic Alliance (AD) securing victory. This right-wing coalition, comprising the Social Democratic Party (PSD) and the People's Party (CDS), secured 32.7% of the vote, translating to 89 parliamentary seats. This represents an improvement from their 2024 performance , when they achieved 29.52% and 79 seats.

Despite this electoral success, the AD falls short of the 116-seat requirement for an absolute majority in Parliament, meaning that effective governance will depend on cross-party collaboration.

Second place is currently contested between two parties, each holding 58 seats:

The Socialist Party (PS) received 23.4% of votes, marking a significant decline from last year's 28.63% and resulting in the loss of 20 seats. Following this disappointing outcome, party leader Pedro Nuno Santos resigned on election night.
CHEGA , a far-right party, secured 22.6% of votes, achieving the highest percentage ever recorded by a third political force in Portuguese electoral history and gaining eight additional seats.

The final allocation of the four remaining parliamentary seats, determined by overseas voting, will establish whether CHEGA or PS becomes Portugal's second-largest political force.

Several smaller parties secured parliamentary representation:

Liberal Initiative (IL) : 5.5% of votes, gaining nine seats (one more than in 2024).
LIVRE : 4.2% of votes, securing six seats (an increase of four), representing the only left-wing party to experience growth.
Unitary Democratic Coalition (CDU) : 3% of votes, resulting in three seats (one fewer than in 2024).
Left Bloc (BE) : 2% of votes, winning just one seat (down from five in 2024).
People-Animals-Nature (PAN) : 1.4% of votes, maintaining their single seat.
Together for the People (JPP) : A newcomer to Parliament, primarily active in Madeira, secured one seat with 0.3% of votes.

A positive development in these elections was the reduction in abstention rates, which, whilst still substantial at 35.62%, indicates growing political engagement amongst Portuguese citizens .

The election results reveal a fragmented political landscape with no party holding a parliamentary majority. Governance will require negotiation and potential coalition-building between parties. The rise of CHEGA as a significant political force, potentially becoming the second-largest party pending overseas votes, marks a substantial shift in Portuguese politics.

At LVP Advogados , we continue to monitor political developments and assess their potential legal and economic implications.

Should you have any enquiries regarding Portugal or the implications of these election results, please do not hesitate to contact us.

Interested in Portuguese politics? Here is an insightful article:

Portugal’s Path to Democracy

Divorce and Parental Responsibilities: A Legal Overview When Minors Are Involved

Thu, 15 May 2025 13:55:18 GMT

Joana Torres Fernandes | Partner

This overview aims to assist individuals considering divorce or already in the process of separating and having children. Proper legal guidance is key to ensuring that parental responsibilities are exercised in a manner that provides stability and clarity for both parents and, most importantly, protects the rights and interests of the child.

In Portugal, divorce proceedings involving minors require particular attention to matters that go well beyond the dissolution of the marital bond. One of the key legal components in such cases is the regulation of parental responsibilities (responsabilidades parentais), which encompasses the rights and duties of both parents concerning the upbringing, care and overall well-being of their children. Portuguese law recognises the importance of both parents maintaining an active role in the child’s life, even after the end of the marital relationship. As a rule, parental responsibilities are exercised jointly by both parents, except in cases where the court determines otherwise based on the best interests of the child (superior interesse da criança). This includes decisions concerning education, healthcare and the determination of the child’s habitual residence.

When a divorce involves minors, it is mandatory to establish a clear legal framework that governs the exercise of parental responsibilities. This includes defining the child’s living arrangements, such as whether there will be alternating residence or primary residence with one parent, the visitation schedule applicable to the non-resident parent, and the financial obligations of each parent with respect to child maintenance (prestação de alimentos). The agreement or decision must also clarify how major decisions concerning the child will be made and whether those decisions will continue to be taken jointly or, in specific cases, by only one of the parents.

In Portugal, there are two types of divorce: divorce by mutual consent (divórcio por mútuo consentimento), which is an administrative procedure handled by the Civil Registry Office when both spouses agree on the divorce and all related matters, including parental responsibilities; and divorce without the consent of one of the spouses (divórcio sem consentimento de um dos cônjuges), which is a judicial procedure that takes place in court and may involve disputes regarding the reasons for the divorce or the regulation of responsibilities towards children. In either case, whenever children are involved, the regulation of parental responsibilities must be analysed by the Public Prosecutor’s Office (Ministério Público), even in mutual consent divorces.

In situations where the parents reach a mutual understanding, they may submit an agreement regulating these matters, which will be subject to assessment by the Public Prosecutor’s Office. The agreement will only be approved if it is considered to safeguard the best interests of the child. In the absence of agreement, or cases involving conflict or potential harm to the child, the court will intervene and define the terms of the regulation, always guided by that principle.

The regulation of parental responsibilities is required not only in the context of divorce but also in cases of legal separation, annulment or when the parents were never married. The law makes no distinction between marital and non-marital children in this regard. What matters is the child’s protection and access to a stable and safe environment, supported by both parents to the extent possible.

It is also important to note that the law provides for different types of parental responsibility arrangements. The most common model is joint parental responsibility (responsabilidades parentais conjuntas), where both parents remain equally involved in decisions about the child’s life, even if the child primarily resides with one of them. In some situations, the court may establish exclusive parental responsibility (responsabilidades parentais exclusivas), assigning decision-making authority to only one parent, usually when there is conflict or absence of the other parent, or when shared responsibility would not serve the child’s best interest.

Common disputes in these matters include disagreements over where the child should live, the frequency and logistics of visitation, financial contributions from one or both parents, and the involvement of extended family members. In certain cases, accusations of parental alienation, neglect or domestic violence may also arise and must be handled with sensitivity and legal precision. These factors can heavily influence the outcome of the court’s decision and may lead to supervised visitation or limited contact.

The Public Prosecutor plays a crucial role in all family law proceedings involving minors. Whether the process is consensual or litigated, the Ministério Público must be heard to ensure that the proposed arrangements protect the child’s fundamental rights. In consensual proceedings, the Public Prosecutor may oppose the parents’ agreement if it is deemed insufficient or inadequate. In litigious cases , the prosecutor may also present evidence and arguments to guide the court in reaching a decision aligned with the child’s best interest.

Parents are strongly encouraged to seek legal advice early in the process. Reaching a well-structured agreement is often preferable to engaging in a lengthy court dispute, particularly when children are involved. Mediation and alternative dispute resolution methods may also be considered and are promoted in Portugal as effective tools to support parents in conflict while protecting the emotional well-being of their children.

At the end of a divorce or separation process, the resulting decision or agreement will be reflected in a court order that becomes legally binding. Non-compliance with that decision can lead to enforcement proceedings, including the intervention of child protection authorities or law enforcement in severe cases. It is therefore critical that all parties understand and commit to the arrangements established, and that any future changes in circumstances are brought to court to request a formal revision.

If you are seeking legal guidance in this regard, feel free to contact us. We are here to support you.

Portugal Elections Guide: What You Should Know

Wed, 14 May 2025 15:06:52 GMT

Portugal shall hold a parliamentary election on Sunday, 18 May 2025. These early elections come after the government lost a vote of confidence in the Assembly of the Republic on 11 March 2025, triggering the resignation of the current administration.

It is worth noting that the outgoing Portuguese government was only elected on 10 March 2024 .

This guide aims to provide voters with essential information about the upcoming 2025 Portuguese general election, including how to exercise their democratic right and understand the options available to them.

When Is the Election Campaign?

The official election campaign period commenced on 4 May and shall continue until 16 May, followed by the mandatory day of reflection on 17 May.

Which Political Parties Are Contesting the 2025 Elections?

The following political parties and coalitions are standing in these elections:

Major Parties:

PS
AD (PSD/CDS-PP)
Chega

Mid-sized Parties:

Iniciativa Liberal
BE
CDU (PCP/PEV)
LIVRE
PAN

Smaller and New Parties:

PPM
JPP
Ergue-te
ADN
PCTP/MRPP
Volt Portugal
Nós, Cidadãos!
Nova Direita
RIR
MPT
PTP
Partido Liberal Social

It is important to highlight that several of these parties shall have a limited presence in certain constituencies.

Current Parliamentary Representation

Of the 20 parties and coalitions contesting the 2025 general elections in Portugal, eight currently hold seats in the Portuguese Parliament:

PS
AD (PSD/CDS-PP)
Chega
Iniciativa Liberal
BE
CDU (PCP/PEV)
Livre
PAN

Parliamentary Seat Allocation by Constituency

Each constituency is allocated several parliamentary seats proportional to its population. The Portuguese Assembly of the Republic consists of 230 seats, distributed among constituencies as follows:

Lisbon is allocated 48 parliamentary seats, representing 20.9% of the total. Porto follows with 40 seats, making up 17.4% of the Assembly. Braga and Setúbal each receive 19 seats, accounting for 8.3% each. Aveiro is allocated 16 seats, representing 7% of the total. All other constituencies collectively receive 88 seats, which make up 38.1% of the Parliament.

Who Is Eligible to Vote?

All Portuguese citizens aged 18 or over have the right to vote in the legislative election, provided they are properly registered on the electoral roll. Additionally, Brazilian citizens residing in Portugal who hold a Citizen Card or Identity Card may also vote, thanks to the Equality of Political Rights Statute .

How to Check Your Polling Station

There are two straightforward methods to confirm where you should cast your ballot on 18 May 2025:

By text message: Send an SMS with the following format: RE [Your Identification Number] [Your Date of Birth in YYYYMMDD format] to 3838. This service is free of charge.

Via the Electoral Registration Portal : Enter either your Citizen Card number or Identity Card number along with your date of birth (YYYYMMDD format), or enter your full name and date of birth in the same format.

What You Need to Bring When Voting

To vote, you must provide your name to the polling station officials and present an official identification document. Whilst the Citizen Card or Identity Card is the most used document, should you not possess either, another official document featuring a recent photograph may be accepted.

In exceptional circumstances, if you arrive without any identification documents, you may still be identified either by two fellow voters who can confirm your identity through a declaration of honour or by unanimous recognition from the polling station officials.

Polling Hours

On election day, polling stations across Portugal shall be open from 08:00 am to 7:00 pm.

Frequently Asked Questions

Can EU citizens vote in Portugal's general election?

No, EU citizens who are not Portuguese nationals cannot vote in Portugal’s general elections.

How soon will the results be announced?

Preliminary results are typically available by midnight on election day. Official results shall be certified by the Constitutional Court within 10 days.

How is the 2025 election connected to Portugal's Carnation Revolution of 25 April 1974 ?

The 25 April 1974 Carnation Revolution ended nearly five decades of dictatorship and established democracy in Portugal. Every election since, including this 2025 vote, represents the democratic freedom won during that peaceful revolution. This year's election occurs just weeks after Portugal celebrated the 51st anniversary of this historic event, reminding voters of the importance of democratic participation.

Should you have any questions about life in Portugal or the electoral process, please do not hesitate to contact our team.

The “Light Version” of the D7: When the E6 Visa Makes More Sense

Fri, 09 May 2025 14:06:49 GMT

Luís Maria Branco | Lawyer

Portugal continues to attract global interest, thanks to its high quality of life, scenic landscapes, and welcoming environment. While long-term immigration options such as the D7 Visa or the Golden Visa often receive the most attention, the country also offers flexible short-to-medium-term solutions through its Temporary Stay Visas (Category E) .

One of the most practical and relevant options in this category is the E6 Temporary Stay Visa, a “lighter” and simplified alternative to the D7, designed for shorter stays. Aimed at financially independent non-EU/EEA/Swiss nationals with ties to Portugal, the E6 visa offers a streamlined, lower-commitment path to spending more than 90 days and up to one year in the country, without acquiring resident status.

The E6 visa fills an important gap in Portugal’s immigration framework. Aside from the standard Schengen visa, which limits stays to 90 days within a 180-day period, and full residency visas, most other one-year visas are granted only for specific purposes, such as studying, working, undergoing medical treatment, participating in amateur sports , investing , volunteering or other narrowly defined activities.

In contrast, the E6 requires only that applicants show sufficient passive income and a meaningful connection to Portugal. This flexibility makes the E6 particularly attractive for individuals seeking time in Portugal without the complexities of long-term relocation.

To meet these requirements, the passive income must be equal to or exceed the Portuguese minimum wage, set at €870 per month in 2025, and be both stable (received regularly) and passive, meaning it is not derived from active employment. Examples include: pension payments, rental income from residential or commercial properties, interest on savings or fixed deposits, dividends from investments, income from trusts or annuities, royalties from intellectual property, distributions from structured financial products, or earnings from family investment portfolios. As for the ties to Portugal, the immigration authorities currently interpret this as property ownership, which must be evidenced by a valid property deed.

When compared to the D7 Visa, which is a residence visa that requires a clear intention to settle in Portugal, often leading to minimum stay requirements and tax residency , the E6 allows for an extended stay without triggering tax liability, provided the applicant does not exceed 183 days in the country or establish habitual residence.

Additionally, the E6 application process is also notably more straightforward. It is handled entirely through the Portuguese consulate in the applicant’s home country, with no need for a follow-up appointment with AIMA ( Agência para a Imigração e Mobilidade ) after arrival in Portugal.

Once submitted, the application is dispatched by the consulate to AIMA for review. If approved, the visa is issued with a maximum validity of 12 months and allows multiple entries into Portugal. This defined structure offers clear parameters, limited obligations, and a clean exit after one year.

This structure makes the E6 particularly attractive for individuals who wish to spend only part of the year in Portugal, such as during the winter months or another preferred season. The lighter administrative burden, combined with the visa’s defined timeframe and flexibility, makes it an appealing option for those seeking simplicity, autonomy, and temporary access to life in Portugal.

It is important to note, however, that this means the E6 visa is generally not renewable. Once it expires, the holder must either leave the country or transition to another legal immigration status. Moreover, the E6 visa only permits legal stay in Portugal and does not grant automatic freedom of movement throughout the Schengen Area. For travel to other Schengen countries, a separate visa or compliance with individual entry requirements may be necessary.

For those considering spending extended time in Portugal without committing to permanent relocation, the E6 Temporary Stay Visa offers a uniquely flexible solution. If you are exploring whether the E6 or another immigration route best aligns with your personal or professional goals, our team is available to assist you with expert, tailored legal guidance.

Contact us! We’re here to help you.

Corporate Acts in Portugal: Share Transfers, Corporate Object Amendments and Registered Office Changes

Thu, 08 May 2025 10:49:58 GMT

Tomás Melo Ribeiro | Lawyer

In the life of a private limited liability company in Portugal (sociedade por quotas), certain corporate acts require formal procedures and timely registration to produce valid legal effects. Among the most common are the transfer of shares (cessão de quotas), the amendment of the corporate object (alteração do objeto social) and the change of the company’s registered office (alteração da sede social). This insight outlines the legal requirements for each of these operations and highlights the importance of proper compliance with the applicable rules.

1. Share Transfers (Cessão de Quotas)

Share transfers are generally permitted in a sociedade por quotas unless restricted by the company’s articles of association (contrato de sociedade). Such transfers may arise from a sale, donation, exchange, or other voluntary act. When a transfer involves a third party, prior consent from the company is typically required, unless the transfer occurs between spouses, ascendants, descendants, or existing shareholders. Restrictions or prohibitions in the articles are valid if they represent the shareholders’ will and do not conflict with mandatory legal provisions.

Any transfer must be executed in writing and signed by all involved parties. When it results in a change of control of more than 50% of the company’s share capital (capital social), a tax compliance declaration (declaração de situação tributária regularizada) must be submitted to the competent authorities.

If, as a result of the transfer, the company ends up with only one shareholder, it does not automatically become a single-member private limited company (sociedade unipessoal por quotas). A formal declaration must be issued by the sole shareholder, a registration by transcription (registo por transcrição) must be completed, and the company’s name must be updated to include “Unipessoal” before “Lda.” If new shareholders are later added, the reverse process must also be completed: registering the new shareholders, amending the articles of association and removing the word “Unipessoal” from the name.

2. Corporate Object Amendments (Alteração do Objeto Social)

Amending the corporate object is often necessary when a company decides to change or expand its business activities. Such a change must be approved by a resolution of the shareholders, typically requiring a qualified majority of 75% of the share capital, unless the articles of association specify a different rule.

Once approved, the change must be recorded in the meeting minutes (ata da assembleia de sócios), and the relevant clause in the articles of association must be amended accordingly. The amendment can be executed through a public deed (escritura pública) or by a private document signed by all shareholders. It must then be registered with the Commercial Registry Office (Conservatória do Registo Comercial), either in person or online via the ePortugal portal.

The change becomes legally effective once registered and is automatically published on the Ministry of Justice website, ensuring its public accessibility and enforceability.

3. Registered Office Changes (Alteração da Sede Social)

Changing the company’s registered office follows a similar procedure. A resolution must be approved by the shareholders, documented in meeting minutes and followed by an amendment to the articles of association. The change must then be registered with the Commercial Registry Office.

If the new address is located in a different municipality (concelho), the company must obtain a certificate of admissibility (certificado de admissibilidade) from the National Registry of Collective Persons (Registo Nacional de Pessoas Coletivas), unless the company name is pre-approved or generic (nome de fantasia). In addition, documentation proving the company’s right to use the premises, such as a lease agreement or a usage declaration (declaração de utilização), may be required.

After registration, the new address is automatically communicated to the Portuguese Tax Authority (Autoridade Tributária e Aduaneira) and other relevant administrative entities.

Final Considerations

All corporate acts must be registered within 30 days of the shareholder resolution. Once registration is complete, the updated information is reflected in the company’s permanent certificate (certidão permanente), contributing to legal certainty and transparency.

Although share transfers, corporate object amendments and registered office changes are common in business practice, they must follow formal procedures and be properly documented and registered. Non-compliance may result in delays, penalties or the invalidity of the intended changes. Legal guidance ensures that each step is executed under Portuguese commercial law , reducing risk and helping companies maintain up-to-date and legally sound corporate records.

For expert legal guidance on corporate acts in Portugal, including share transfers, corporate object amendments, and registered office changes, contact LVP Advogados.

A Family Member Has Passed Away in Portugal: What You Need to Know About the Inheritance Process

Fri, 02 May 2025 11:30:13 GMT

Sara Sbai Oliveira | Immigration Consultant

The death of a family member is always difficult, both emotionally and practically. If your relative has passed away in Portugal, you may find yourself facing a set of unfamiliar legal procedures. Inheritance in Portugal follows a formal structure defined by the Civil Code , and understanding each step is essential to avoid delays, fines, or complications between heirs.

This guide outlines what you need to know and do: from confirming the existence of a will to completing the division of the estate and fulfilling your tax obligations .

The first step is to confirm whether the deceased left a will. This is done by requesting the “certidão sobre a existência de testamento, escritura de renúncia ou repúdio da herança ou legado” , a certificate issued by the Portuguese authorities that confirms whether any testamentary disposition is registered. The certificate can be requested online, costs €25 and is typically delivered by post within about one month. It is important not to move forward with other steps, such as identifying the heirs, until this certificate is received, as the existence of a will may affect who is entitled to inherit.

Once you know whether or not a will exists, the next step is to obtain the “Habilitação de Herdeiros” , a formal declaration of who the heirs are. This procedure can be carried out at a notary’s office. Under Portuguese law, there are two types of heirs: legitimate heirs, who are automatically entitled to a portion of the estate, and testamentary heirs, who are named in the will. Legitimate heirs are, by law, the spouse, the relatives and the state. The process must be initiated by a person called the “cabeça de casal” - the head of the estate - who is responsible for representing the inheritance until the assets are fully divided. This person is usually the surviving spouse, the closest relative, or someone appointed in the will. If more than one person qualifies, the one who lived with the deceased for over a year is qualified or, failing that, the oldest will take precedence. The law requires the “Habilitação de Herdeiros” to be requested within three months of the date of death.

Once the heirs are formally identified, the estate must be declared to the Portuguese tax authorities in a process called “Participação do Imposto de Selo por Óbito” . This is mandatory even when no tax is due. The declaration must include all assets left by the deceased in Portugal, including real estate, vehicles, bank accounts, and investments. It must be submitted within three months from the end of the month in which the death occurred. Failing to do so can result in fines. Although stamp duty (Imposto do Selo) is generally charged at a rate of 10%, there are exemptions for the spouse or civil partner, ascendants (parents and grandparents), and descendants (children and grandchildren). Even if no tax is owed, the declaration must still be submitted for the inheritance process.

After fulfilling the fiscal obligations, the next step is to divide the estate among the heirs. This is known as “partilha de bens”. If all heirs agree, the division can be made by signing a deed of division (escritura de partilha) before a notary. If there is disagreement, the matter must be resolved in court. Before any division takes place, the deceased’s debts must be paid, and in some cases, assets such as real estate may need to be valued. Portuguese law guarantees a reserved share of the estate to legitimate heirs, even if the will states otherwise. Once the assets are divided, each heir must formally register their share. Real estate must be updated at the Land Registry, vehicles must be registered at the IMT, and bank or investment accounts require supporting documents and proof of tax compliance.

While this process is clearly structured in the law, it is not always straightforward in practice. Tight deadlines, complex family situations, and cross-border elements can create additional challenges. We can help you understand your rights, ensure deadlines are met, assist with documentation, and coordinate communication with notaries, tax authorities, banks, and other institutions. Legal support is especially helpful when one or more heirs live abroad, when there is a will to interpret, or when disagreements arise.

How LVP Advogados Can Assist You

If you have recently lost a family member in Portugal and are unsure of the next steps, our team is available to support you throughout the inheritance process. From requesting the necessary certificates to the final division of assets, we ensure your interests are protected and that the process moves forward as smoothly as possible.

Contact us!

Facing a Drink-Driving Charge in Portugal: Legal Consequences and How a Lawyer Can Help

Wed, 30 Apr 2025 13:49:43 GMT

Margarida Tempera | Lawyer

In Portugal, driving under the influence of alcohol is considered a serious legal infraction, carrying significant consequences that may affect not only your financial and criminal record but also your personal and professional life. Whether the offence is classified as administrative or criminal, the law provides a clear framework for prosecution and enforcement. However, it also offers important safeguards for individuals who act promptly and seek proper legal assistance. This article outlines the legal framework applicable to drink-driving cases in Portugal, the potential consequences of such charges, and how legal representation can play a decisive role in protecting your rights and minimising the impact of the accusation.

Under the Portuguese Road Code (Código da Estrada), it is strictly prohibited to operate a vehicle while under the influence of alcohol. The legislation defines the condition as follows: “A driver shall be considered to be under the influence of alcohol where their blood alcohol concentration is equal to or greater than 0.5 grams per litre, or where, following an examination conducted in accordance with this Code and supplementary legislation, they are deemed as such in a medical report.” In essence, a driver is deemed to be under the influence when their blood alcohol concentration (BAC) reaches or exceeds 0.5 grams per litre, or when a medical report, issued per legal procedures, classifies the individual as unfit to drive due to alcohol consumption.

BAC levels are assessed either through a breathalyser test (commonly referred to as a “balão”) or, where necessary, a blood test. Refusal to submit to either method is in itself a criminal offence.

The law sets out graduated BAC thresholds, each carrying distinct legal consequences depending on the level detected. The general legal limit is 0.5 g/l; however, this threshold is reduced to 0.2 g/l for professional drivers and for those who have held a driving licence for less than three years, reflecting a higher standard of responsibility for higher-risk groups.

If a driver is found with a BAC between 0.5 g/l and 1.2 g/l, the offence is typically considered administrative. Sanctions may include a fine and temporary disqualification from driving. When the BAC equals or exceeds 1.2 g/l, the act constitutes a criminal offence, triggering prosecution by the Public Prosecutor and the possibility of a criminal record, with all its associated legal and personal consequences.

The penalties for exceeding the limits can be severe. In administrative cases (BAC between 0.5 and 1.2 g/l), drivers may face a fine ranging from €250 to €2,500, loss of between 3 and 5 points on their driving licence, and a driving ban lasting from one month to two years. These sanctions, while administrative, may have lasting consequences, particularly for individuals whose professional activity depends on driving, such as delivery drivers, public transport workers or sales representatives.

In addition to the legal penalties, a conviction for driving under the influence may result in a substantial increase in car insurance premiums or lead to the non-renewal of the policy by the insurer.

In some cases, the vehicle may also be subject to seizure as a precautionary measure, particularly if there is a risk of repeat offending or where the vehicle is directly linked to the offence.

When the BAC equals or exceeds 1.2 g/l, the matter becomes significantly more serious. The case moves from the administrative to the criminal sphere and falls under the Portuguese Penal Code and criminal procedure rules. The individual may be summoned for questioning by the Public Prosecutor and may face a prison sentence (even if suspended), mandatory participation in a road safety training programme, and a driving ban ranging from three months to three years.

A conviction may also result in a criminal record, which could affect employment prospects, renewal of residence permits or visas for foreign nationals, and harm one’s professional or personal reputation.

Repeat offenders or individuals who refuse to undergo a breathalyser or blood test when lawfully ordered to do so may face aggravated penalties. Refusal is itself a separate criminal offence and may be prosecuted regardless of whether the person is found to be under the influence. In such cases, the authorities may apply the maximum penalties available, invoking obstruction of justice or deliberate non-cooperation.

Despite the seriousness of these accusations, not every drink-driving case is straightforward. There are numerous procedural safeguards in place, and it is not uncommon for errors to occur during enforcement. In such situations, an experienced lawyer may challenge the admissibility or reliability of the evidence, which can lead to a reduction or even dismissal of the charge.

Throughout the proceedings, the defendant has the right to remain silent and the right to be assisted by a lawyer, particularly during questioning by the Public Prosecutor or the police.

At LVP Advogados , we provide legal support tailored to the specific circumstances of each client. Our approach begins with a careful review of the case history, including the police report, the technical details of the test, and an analysis of whether all legal procedures were correctly followed at the time of the stop and testing.

Legal representation can be particularly valuable when negotiating alternative measures, such as replacing a fine or driving ban with a road safety awareness course, an option sometimes available to first-time offenders. Where criminal charges have been filed, we assist clients in negotiating with the Public Prosecutor for a suspended sentence or a more lenient outcome, considering the client’s background, absence of prior offences, and personal circumstances. In cases involving substantial procedural irregularities, we may seek the full dismissal of the charges.

An equally critical aspect relates to procedural deadlines. In administrative cases, the driver usually has 15 working days from the date of notification to respond to the charge, either by paying the fine, contesting the infraction, or requesting a hearing. Failure to act within this period may result in automatic enforcement of the sanction and loss of the opportunity to present a defence. In criminal matters, early legal intervention is strongly advised to prevent escalation and to explore procedural strategies that may avoid a full trial.

From a broader perspective, it is important to consider the collateral consequences that may result from a drink-driving offence. These may include cancellation or suspension of professional driving licences, ineligibility for certain professions, difficulty renewing residence permits (in the case of non-citizens), and significant reputational damage, especially in small professional or social communities.

Although facing a drink-driving charge can be overwhelming, it is essential to remember that an accusation is not the same as a conviction. With the right legal guidance, it is possible to build a defence that addresses both factual and legal aspects, ensuring your rights are respected and that any outcome is fair and proportionate.

In conclusion, if you are facing a drink-driving charge in Portugal, acting quickly and seeking proper legal support can make a significant difference. From challenging procedural errors to negotiating reduced penalties or full dismissal, legal counsel plays a vital role in safeguarding your rights and helping you move forward.

If you have received a notification or court summons related to a drink-driving offence, we recommend that you contact a lawyer without delay . Time is of the essence, and early legal action is the first step toward ensuring your defence is heard and your rights are fully protected.

Need assistance with drink-driving charges or related matters? LVP Advogados is here to support you during this time. Reach out to us, and let us provide the help you need.

Portugal’s Golden Visa: What Remains After the 2023 Reform

Wed, 30 Apr 2025 10:18:19 GMT

Joana Loureiro Veríssimo | Lawyer

Since its creation in 2012, Portugal’s Golden Visa programme has provided a gateway for non-EU citizens to obtain residency through qualifying investments. Over time, the programme has undergone significant reforms, reflecting shifts in national policy priorities, particularly concerning housing and urban development.

The most recent and impactful change came with the enactment of Law No. 56/2023, which entered into force in October 2023. This legislation redefined the scope of eligible investments, moving away from real estate and passive capital transfers and instead promoting investments in innovation, cultural contributions, and job creation. Several popular routes were eliminated, including:

The acquisition of real estate valued at €500,000 or more.
The purchase and rehabilitation of properties over 30 years old or located in designated urban rehabilitation areas with a minimum combined investment of €350,000.
Capital transfers of €1.5 million or more.

The termination of these options significantly reshaped the programme.

Following these reforms, immediate concerns arose regarding the status of pending applications. Law No. 56/2023 clarified that it does not apply retroactively. Residence permits already issued, and family reunification applications approved under the previous regime, remain valid. Applications already submitted or at preliminary stages, such as those awaiting municipal pre-approvals, will continue to be processed under the former legal framework. However, upon renewal, these residence permits will be converted into residence permits for immigrant entrepreneurs. Renewals must be carried out in person before the Portuguese authorities, and the new permits will be subject to updated minimum stay requirements. This transitional mechanism protects the rights of investors who acted in good faith under the previous law, while gradually aligning their status with the current immigration policy.

Law No. 56/2023 marks a decisive shift in the Golden Visa programme . The government now aims to direct foreign investment towards sectors that generate long-term value for the Portuguese economy and society. Under the new regime, applicants may qualify by investing at least €500,000 in scientific research conducted by institutions within the national scientific or technological system, contributing a minimum of €250,000 to support artistic production or the preservation and restoration of cultural heritage through recognised public or private entities, transferring at least €500,000 into collective investment or venture capital funds established under Portuguese law, provided that at least 60% of the fund’s investments are made in companies headquartered in Portugal and that the fund has a minimum maturity of five years, incorporating or expanding a company that creates and maintains at least 10 full-time jobs, or transferring €500,000 to establish or reinforce a company’s share capital, combined with the creation or maintenance of the required number of jobs for at least three years.

Under the current framework, investments involving real estate, either directly or indirectly, are no longer eligible under the Golden Visa programme. However, investments made in designated low-density areas benefit from reduced thresholds or employment requirements. These areas are defined as regions with fewer than 100 inhabitants per square kilometre or a GDP per capita below 75% of the national average. In practice, this includes much of inland Portugal, excluding the coastal regions south of the River Lima and north of the River Sado, as well as the islands of Madeira and the Azores.

To qualify, applicants must not only complete a qualifying investment but also meet general eligibility criteria and minimum stay requirements. The two-year Golden Visa residence permit requires at least 14 nights spent in Portugal during each two-year period, which is typically interpreted as seven nights per year. For residence permits that are converted into immigrant entrepreneur permits, now issued with a three-year validity, the law does not specify a minimum stay. However, based on current practice, it is assumed that the same rule applies: seven nights per year, or 21 nights over three years.

Applicants must also consider the administrative fees, updated as of March 2025 and payable to the Agency for Integration, Migration, and Asylum (AIMA). For the initial residence permit, the processing fee is €618.60, and the issuance fee is €6,179.40. Renewals under the Golden Visa investment routes that are still valid are subject to a processing fee of €618.60 and an issuance fee of €3,089.70. In these cases, the residence permit remains valid for two years. However, if the investment is no longer eligible, for example, real estate or capital transfers, the residence permit will be converted into an immigrant entrepreneur permit, valid for three years, with significantly lower fees: a processing fee of €618.80 and an issuance fee of €181.50. Additional reductions apply to minors and Portuguese-speaking countries (CPLP) nationals , who benefit from an issuance fee of €58.10. These fees apply to each applicant, including in family reunification cases , and are revised annually in March.

The timeline for accessing Permanent Residence and Portuguese citizenship differs. For Permanent Residence, the five years is counted from the date of issuance of the initial residence permit. For Portuguese citizenship , however, the five years is calculated from the day after the payment of the Golden visa application analysis fee, provided that the residence permit is subsequently issued. In both cases, applicants must meet all general eligibility conditions and demonstrate sufficient knowledge of the Portuguese language. More information on the path to citizenship is available in the insight prepared by my colleague, Danielle Avidago, which you can access [here] .

Despite the substantial changes introduced by Law No. 56/2023, Portugal’s Golden Visa programme remains active. It continues to offer a viable pathway to residency and citizenship for investors committed to supporting the country’s scientific development, cultural heritage, and economic growth.

If you are considering an application under the new regime or would like advice on how these changes may impact your case, our team is available to assist with tailored legal support.

“Time Is of the Essence": The 5-Year Residency Period for Portuguese Citizenship Simplified

Tue, 29 Apr 2025 11:13:48 GMT

Danielle Avidago | Immigration Consultant

Remember back on 22 October 2024, when we stated that we did not yet have information regarding the true meaning behind the Nationality Law amendment on article 19(4) when it stated that the 5-year period starts when “the temporary residence permit was requested”? Well, now our million-dollar question has been answered!

AIMA has recently clarified, in an explanation session held recently, that the 5-year period for Golden Visa applicants starts counting from the following date of the settlement of the Golden Visa application analysis fee , provided that the application is approved.

To verify the accuracy of this information and, of course, ensure that our clients submit a complete and precise Portuguese Citizenship application , we have requested several Time Counting Certificates before AIMA for our Golden Visa clients to determine what date they were considering for the 5 years to apply for Portuguese Citizenship for Time of Residence.

Before, the Certificates stated different dates: some indicate the date of submission of the documents in the online portal , some the analysis fee payment, others the date of the first appointment, and even some matched the date of issuance of the applicant's first residence card.

Now, after several months of waiting, the Time Counting Certificates by AIMA have finally harmoniously determined one date: the date following the payment of the analysis fee . This corroborated AIMA´s speech in the clarification session, despite nothing of the kind being found in the law.

The amendment of the Nationality Regulation, which we have also previously mentioned we were waiting for, is still a topic in the Government; nothing has been published or approved. Yet, with the upcoming legislative elections in May 2025, we cannot guarantee that this official amendment will see the light of day anytime soon.

Nonetheless, having AIMA´s confirmation on their reading of the Nationality Law amendment applied to Golden Visa applicants is reassuring and will allow for more precise and complete Portuguese Citizenship Applications for Time of Residence.

You may now wonder, “ But what if my card takes over 3 years to be issued? Even after completing 5 years from the payment of the analysis fee, do I still have to wait for the renewal to apply for citizenship? ” The answer is negative. As long as you have a valid residence permit and have completed the 5 years of legal residency in Portugal by the time of the Portuguese citizenship application, it is not relevant whether you have renewed your residence permit twice or never.

AIMA´s understanding of when “the temporary residence permit was requested” to apply for Portuguese Citizenship for Time of Residence may also be extended, from our perspective, to Expression of Interest and CPLP applications submitted on their respective online portals and whose analysis fee is paid upon the online submission. That, of course, until the recent legal amendment, determined that applicants may only apply to those regimes requesting a prior residency visa in their country of residence.

Speaking of prior residency visas, we believe the same logic could be applied to what we call “ D applications ”. Because in the D7, D8, D3 and other D applications , AIMA fees are paid on the day of the appointment, according to our experience, the following day of the payment of AIMA´s fee is to be considered the start of the 5 years for Portuguese Citizenship application for Time of Residence, provided that the permit is approved .

Despite some uncertainty concerning the initial date of the 5 years to apply for Portuguese Citizenship Application for Time of Residence that some residence permits regimes still face, if you are about to complete your 5 years of residence in Portugal, the time to apply is now! The government has informed that they are discussing extending the 5-year minimum required time to apply for Portuguese Citizenship for Time of Residence for a longer period, which will greatly impact the lifelong plans of several applicants and their families.

Once again, because we are on the verge of legislative elections, this discussion may be postponed for the next months, and the period for the entry into force of this amendment may also translate into some more months. If you have the possibility of applying this year , we highly encourage you to do so.

Should you require our assistance on “reading the clock” to determine whether you are or aren't close to completing your five years of legal residence in Portugal or directly submitting your Portuguese Citizenship Application for Time of Residence, we shall be more than happy to assist.

Understanding the RCBE: Central Register of Beneficial Ownership in Portugal

Wed, 23 Apr 2025 15:22:54 GMT

Tomás Melo Ribeiro | Lawyer

The Central Register of Beneficial Ownership (RCBE, Registo Central do Beneficiário Efetivo) is a mandatory register established by the Portuguese government to promote corporate transparency and ensure compliance with anti-money laundering and counter-terrorist financing legislation. The RCBE’s main objective is to identify the natural persons who ultimately own or control companies and other legal entities operating in Portugal , whether such control is direct or indirect.

The legal framework for the RCBE is set out in Law No. 89/2017, which transposed the European Union’s anti-money laundering directives into Portuguese law. Since its introduction, the RCBE has become a central component of corporate compliance in Portugal .

All legal entities operating in Portuguese territory are required to register under the RCBE . This includes commercial companies such as limited liability and joint-stock companies, associations, foundations, cooperatives, and also branches or representative offices of foreign entities . Other entities engaged in any kind of activity in Portugal may also fall under this obligation.

A beneficial owner is defined under Portuguese law as any natural person who ultimately holds an ownership interest in an entity, exercises significant control or influence over it, or benefits economically from its activities. Control may be exercised through shareholding, voting rights, contractual arrangements, or other means. Each entity is responsible for carefully evaluating its structure to accurately identify all individuals who meet these criteria, even if that control is not readily apparent in corporate documents.

RCBE declarations must be submitted through the Justice Portal (Portal da Justiça) . For newly incorporated entities, the initial declaration must be submitted within 30 days of incorporation. Any subsequent changes to beneficial ownership must also be reported within 30 days of the change. In addition, all entities must submit an annual confirmation of their RCBE information by 31 December. It is important to understand that the RCBE declaration is separate from the commercial registration; both are legally required, but serve different regulatory purposes.

The initial RCBE declaration must be submitted by a shareholder or partner of the entity. However, once the company is incorporated, lawyers, notaries, and solicitors may assist with and submit the declaration on the entity’s behalf.

Failure to comply with the RCBE obligations can lead to serious legal and financial consequences . These include administrative fines ranging from €1,000 to €50,000, as well as restrictions on core business activities. Non-compliant entities may be prohibited from distributing profits, entering into or renewing contracts with public entities, applying for public or EU funding, participating in public tenders, trading company securities on regulated markets, or carrying out real estate transactions.

By keeping a clear and up-to-date record of beneficial ownership, companies operating in Portugal contribute to national and international efforts to strengthen corporate transparency and financial integrity. The RCBE is a key tool in reinforcing trust in the business environment and ensuring responsible corporate governance.

If you require any assistance with your RCBE obligations, whether for a first-time submission, a change in beneficial ownership, or your annual confirmation, the Corporate Team at LVP Advogados would be pleased to support you .

Extending the Personal Income Tax Return Submission Deadline in Portugal: When and How to Use Model 49

Mon, 21 Apr 2025 10:06:49 GMT

António Pratas Nunes | Lawyer

In Portugal, taxpayers are required to submit a Personal Income Tax return, known as Modelo 3 do IRS. Through this declaration, individuals report their worldwide income from the previous year, along with other relevant information regarding their personal tax situation.

In 2025, the deadline for submitting the IRS Model 3 , in respect of income earned in 2024 began on April 1st and ends on June 30th 2025 .

However, there are circumstances in which the deadline may be extended . This is often the case when a taxpayer must declare income earned abroad but has not yet received all the necessary information - such as income statements or confirmation of taxes withheld and paid in the foreign jurisdiction - within the regular Portuguese filing period.

According to International Double Taxation Treaties, as well as Portuguese national legislation, there are instances where a taxpayer is entitled to a tax credit for income earned abroad .

This situation can arise when, in the source state (the country where the income was earned), local tax authorities have carried out a withholding tax on that income. This typically occurs when both states have the authority to tax a specific income, resulting in definitive withholding at a predetermined percentage as agreed in double taxation treaties.

To avoid being taxed twice- in the source state, where the income originates, and in Portugal, the state of residence- the tax paid abroad can be deducted from the tax payable in Portugal, within certain limits and under specific conditions.

Even so, to benefit from this tax credit, the taxpayer must be able to confirm the exact amount of tax paid abroad. This typically requires the completion of the foreign tax return and the subsequent tax settlement by the foreign tax authorities.

So, what can the taxpayer do if the foreign tax declaration and its corresponding settlement are only issued after the deadline for submitting IRS Model 3 in Portugal?

In such cases, the taxpayer may request an extension of the IRS Model 3 deadline by submitting the IRS Model 49 . This request extends the deadline from June 30th to December 31st of the same year.

By submitting IRS Model 49, the taxpayer formally notifies the Portuguese tax authorities that they are awaiting confirmation of foreign tax payments, and that the conditions for an extension are met.

(A) What conditions must be met to request an extension?

The taxpayer must have income originating from abroad.
Such foreign-sourced income must grant the right to a tax credit for international double taxation.
The amount of tax credit cannot be determined by the IRS Model 3 submission deadline —June 30th.

(B) What documents must the taxpayer submit to the tax authorities in order to benefit from the extension?

To this end, the taxpayer must complete the IRS Model 49 and submit it by the last day allowed for the IRS Model 3-by June 30th.

The IRS Model 49 must include the following information:

The taxpayer’s NIF (tax identification number) and the NIFs of household members (spouse or civil partner, dependants);
Marital status;
The nature of the foreign income: employment income, pensions, dividends, royalties, etc;
The country of origin of the income (the source state).

(C) Once an extension is granted, by when must the taxpayer submit the IRS Model 3?

The submission deadline is extended to December 31st of the respective tax year.

In scenarios involving complex tax matters—such as the declaration of foreign income or the claim for international double taxation relief—it is essential that taxpayers comply with the procedures and timelines established under Portuguese tax law. As a legal professional, I strongly recommend ensuring full compliance with all requirements and deadlines to avoid penalties and to secure entitlement to any applicable tax benefits.

If you have any questions or would like tailored guidance on this subject, our team is here to help . Do not hesitate to reach out - we are committed to providing the support you need.

Guia Atualizado da Residência CPLP: Concessão, Renovação e Substituição em 2025

Wed, 16 Apr 2025 14:40:48 GMT

Sara Sbai Oliveira | Consultora de Imigração

A Comunidade dos Países de Língua Portuguesa (CPLP) é constituída pelos Estados-Membros de Angola, Brasil, Cabo Verde, Guiné-Bissau, Guiné Equatorial, Moçambique, Portugal, São Tomé e Príncipe e Timor-Leste, tendo como objetivo a cooperação e o apoio mútuo entre os seus membros. Neste sentido, as Autorizações de Residência CPLP constituem um instrumento jurídico criado pelo Governo português para facilitar a integração e regularização de cidadãos da CPLP que pretendem estudar, trabalhar ou viver em Portugal.

Acompanhar as constantes alterações legislativas na área das Migrações em Portugal tem sido um desafio para muitos migrantes. As mudanças relacionadas com as Autorizações de Residência CPLP são especialmente relevantes, tendo em conta o fluxo migratório entre os países da CPLP e Portugal, bem como as significativas alterações de regime ocorridas nos últimos anos. Assim, é importante analisar estas mudanças e compreender os novos procedimentos em vigor.

As Autorizações de Residência, criadas ao abrigo do Acordo sobre a Mobilidade entre os Estados-Membros da CPLP, de 17 de julho de 2021, são concedidas a cidadãos dos países da CPLP e visam uma tramitação mais simples para obtenção de residência em Portugal. Com as recentes alterações introduzidas pela Lei n.º 9/2025, de 13 de fevereiro, à Lei n.º 23/2007, de 4 de julho, as Autorizações de Residência CPLP passam a adotar o modelo uniforme de residências temporárias da União Europeia , proporcionando aos requerentes acesso a um cartão físico, válido por dois anos, renovável por períodos sucessivos de três anos . Adicionalmente, os titulares passam a ter direito à livre circulação no Espaço Schengen , algo que anteriormente não era permitido com este tipo de autorização.

Para cidadãos da CPLP que pretendam atualmente solicitar uma autorização de residência, o novo processo de concessão exige a obtenção prévia de um visto consular nos postos consulares portugueses no país de origem. Após a emissão do visto, o requerente terá acesso a uma data de agendamento na AIMA, visível no seu passaporte. Caso essa informação não conste no passaporte, deverá preencher um formulário específico no site da AIMA, indicando o número do visto consular e o número do passaporte, recebendo posteriormente um email com a marcação do agendamento.

As alterações legais em vigor implicam a substituição de todas as Autorizações de Residência CPLP antigas, emitidas em formato de papel, por um novo cartão de residência . Desde 14 de fevereiro de 2025, a AIMA tem convocado os titulares destas autorizações para comparecerem a um agendamento destinado à recolha de dados biométricos e entrega de documentação. Esta substituição está prevista na Portaria n.º 36-B/2025/1, de 13 de fevereiro. Após serem notificados por email pela AIMA, os titulares recebem instruções para proceder ao pagamento de um Documento Único de Cobrança, sendo depois marcada a data para a recolha de dados biométricos e entrega de documentos.

Estas alterações legais estabelecem que todas as Autorizações de Residência CPLP obedecem agora a um modelo uniformizado, com cartão físico e com a possibilidade de circulação livre no Espaço Schengen – algo que anteriormente não era possível. A anterior limitação à circulação no espaço Schengen para titulares de Autorização de Residência CPLP levantava diversas questões jurídicas, tanto no plano do direito nacional como no âmbito do Direito da União Europeia. A nova legislação elimina essa desigualdade, equiparando os titulares de residência CPLP aos portadores de outras autorizações de residência em Portugal, tanto ao nível dos direitos de circulação dentro do espaço europeu, como na duração da validade do título de residência, que passou de um para dois anos.

As Autorizações de Residência CPLP representam uma via mais simples de regularização para cidadãos dos países da CPLP que desejem viver em Portugal. As recentes alterações legislativas promovem uma maior uniformização do sistema, proporcionando mais segurança e comodidade para os requerentes. No entanto, recomenda-se a procura de apoio jurídico especializado para garantir o correto cumprimento de todas as etapas do processo.

Caso necessite de esclarecimentos adicionais ou de apoio no âmbito do processo de concessão, renovação ou substituição da Autorização de Residência CPLP, a nossa equipa estará disponível para prestar o acompanhamento necessário .

New or Fully Renovated Home and Old Problems? What You Can Do if Your “Brand New” Property Starts Falling Apart in Portugal

Mon, 14 Apr 2025 12:56:38 GMT

Margarida Tempera | Lawyer

Purchasing a newly built or extensively renovated home is, for many, one of life’s most significant investments. Whether buying directly from a developer or acquiring a previously owned property that has undergone comprehensive renovation works, buyers naturally expect modern construction standards, high-quality materials, and a safe, habitable living space.

However, these expectations can be quickly frustrated when, shortly after moving in, the property begins to reveal serious construction defects , such as water infiltration, structural fissures, or insulation failures.

This insight focuses specifically on such situations, that is, when the home purchased is either newly constructed or subject to extensive renovation works prior to the sale . It does not apply to buyers of older, second-hand homes sold by private individuals without substantial recent works.

In the cases covered, Portuguese law offers important protections to homeowners, provided they act promptly and in accordance with the legal procedures in place.

The Portuguese Civil Code establishes a warranty regime applicable to construction work . Under Article 1225, the constructor and, in certain cases, the seller may be held liable for defects that compromise the safety, stability, or intended use of the building. This legal liability extends for a period of five years from the date of delivery of the completed work. During this period, any construction-related defect - whether concerning structural integrity, waterproofing, or foundational issues - may give rise to a legal claim. However, the law places a corresponding obligation on the buyer: the defect must be reported within one year from the date it is discovered. Timely notice, preferably in writing and sent via registered post with acknowledgment of receipt, is essential to preserve legal rights.

In addition to the Civil Code, Portuguese legislation provides enhanced consumer protection in transactions involving private individuals purchasing property from professional sellers or developers . Decree-Law no. 84/2021, provides for a ten-year warranty in situations where the defect compromises the structural safety of the property . This extended protection ensures that even if a latent defect is discovered several years after the purchase, the buyer may retain their rights, provided the issue affects the building’s structural integrity.

Together, these legal regimes ensure that purchasers of newly constructed homes benefit from a minimum of five years and, in some cases, ten years of legal coverage, depending on the nature of the defect and the contractual relationship.

Construction defects may be apparent, such as visible cracks or water stains, or latent, such as insulation failures or foundational deficiencies. Common examples include water infiltration from roofs or façades, structural fissures in walls, ceilings, or floors, defective or absent waterproofing and thermal insulation, failures in plumbing or drainage systems, and damage resulting from poor soil conditions or execution errors. Any defect that compromises the intended use, safety, or value of the property may give rise to legal claims.

The Portuguese Civil Code, particularly Articles 1207 to 1225, sets out the legal framework applicable to such defects and the purchaser’s right to seek appropriate forms of redress. These include repair of the defect at the expense of the responsible party (whether builder or seller), a reduction in the purchase price to reflect the diminished value of the property, or even termination of the contract where the defect renders the property unfit for its intended purpose. In addition, under Article 798, failure to fulfil contractual obligations may entitle the buyer to claim compensation for breach of contract, including damages arising from alternative accommodation or other related expenses.

Upon discovering a defect, it is essential that the buyer act promptly and in a structured manner . The first step involves documenting the issue in detail, including photographic and video evidence, as well as dated records indicating when the defect was first observed. All receipts or invoices related to mitigation efforts or associated expenses should be retained.

The responsible party should then be notified by means of a registered letter with acknowledgment of receipt, clearly describing the nature of the defect and requesting appropriate remedial action. It is further recommended to obtain an independent technical assessment from a duly qualified engineer or architect. Such expert reports may prove critical in substantiating the existence of the defect and attributing liability, particularly if the matter proceeds to formal dispute resolution. Should the issue remain unresolved, or if the response is unsatisfactory, legal advice should be sought without delay. If an amicable resolution cannot be reached, the matter may be referred to the courts or to alternative dispute resolution mechanisms such as arbitration or mediation. In either case, the quality of documentation and the reliability of expert evidence will be central to the outcome.

It should be underscored that, although the applicable warranty periods may extend to five or ten years depending on the circumstances, the exercise of these rights is subject to strict procedural requirements . In practice, the most common reason for the loss of legal protection is the failure to report the defect within one year of its discovery. This deadline is peremptory: even significant defects occurring within the warranty period may be deemed unenforceable if timely notice is not provided.

The discovery of construction defects in a newly acquired property can be a source of considerable frustration and uncertainty. Nevertheless, the Portuguese legal framework provides purchasers clear and enforceable rights. Through proper documentation, compliance with notification requirements, and guidance from qualified legal counsel, property owners can take the necessary steps to protect the value of their investment and assert their rights under the law.

If you have further questions regarding this matter, get in touch with us and we will be delighted to assist you.

At LVP Advogados, we assist clients in asserting these rights in matters involving construction defects. Where a newly acquired property presents deficiencies that may give rise to liability, our team is available to advise on the applicable legal framework, the appropriate course of action, and the procedural steps required to safeguard the homeowner’s position.

Branch or Subsidiary? Structuring Your Business Expansion into Portugal

Thu, 03 Apr 2025 12:26:36 GMT

Tomás Melo Ribeiro | Lawyer

Companies seeking to enter the Portuguese market — whether to serve local clients or operate as a gateway to the European Union — must decide how to structure their presence. Two common options are the creation of a branch (sucursal) or the incorporation of a subsidiary, typically a Sociedade por Quotas (Lda) or Sociedade Anónima (SA) . This choice will depend on several factors, including control, liability exposure, tax efficiency, and long-term business strategy.

Portugal remains an attractive jurisdiction for international investors. In addition to benefiting from EU membership and access to a skilled, cost-competitive workforce, the country offers a stable legal environment and government incentives for innovation and foreign direct investment. These conditions have attracted companies across sectors such as technology, tourism, real estate, and renewable energy.

A branch is not a separate legal entity. It operates as an extension of the parent company and is fully dependent on it, both legally and financially . This means that all obligations arising from the branch’s operations in Portugal are ultimately assumed by the parent. From a tax perspective, the branch is subject to corporate income tax (IRC) on profits derived from activities carried out within Portuguese territory, but it is not taxed on worldwide income. Because it does not have its own legal personality, profit transfers to the parent are direct and do not require a formal dividend declaration, though such transfers may still be subject to withholding tax unless a double taxation agreement applies.

Setting up a branch does not require minimum capital, and incorporation costs are relatively low. However, its perceived status in the market may be limited, as it is often viewed as an operational outpost rather than a long-term local commitment. For businesses that aim to test the market or carry out limited-scope activities, a branch may be an appropriate starting point.

A subsidiary, by contrast, is a Portuguese company in its own right . It enjoys legal autonomy and is responsible for its obligations. Liability is limited to the company’s assets, which offers a layer of protection to the foreign shareholder. The subsidiary is subject to Portuguese corporate tax on its global income and must comply with local accounting and reporting obligations. The incorporation process requires the appointment of directors or managers, the drafting of articles of association, and the deposit of share capital—although the minimum capital requirement is symbolic in the case of an Lda (€1).

Because it is a separate legal entity, profit distribution from a subsidiary takes the form of dividends, requiring approval by shareholders. Where the parent company is based in the EU or EEA, or in a jurisdiction with a qualifying tax treaty with Portugal, dividends may be exempt from withholding tax provided specific conditions are met—such as a minimum participation threshold and a one-year holding period. This exemption reflects the alignment of Portuguese tax legislation with EU directives and does not require separate treaty relief.

For ease of comparison, the table below sets out the main legal and operational differences between branches and subsidiaries under Portuguese law:

Branch (Sucursal)

Subsidiary (Lda or SA)

Legal Personality

Not distinct from the parent company

Independent legal entity under Portuguese law

Liability

Parent company bears full liability

Liability is limited to the company’s share capital

Taxation

Taxed solely on Portuguese-source income

Taxed as a Portuguese tax resident (worldwide income)

Capital Requirements

No minimum capital needed

Minimum: €1 (Lda); €50,000 (SA)

Flexibility

Faster and less costly to establish

Greater operational autonomy and credibility

Market Perception

Perceived as an extension of a foreign entity

Perceived as a committed local business

Profit Repatriation

Direct transfer to parent (may be subject to withholding)

Requires shareholder resolution for dividend distribution

Incorporating a subsidiary is often the preferred route for businesses that intend to establish a stable, long-term presence . It facilitates the development of local operations, allows participation in public tenders or incentive schemes, and enhances the company’s standing with clients, regulators, and partners. It is also typically required where the activity to be carried out in Portugal is subject to licensing or regulatory oversight.

From a legal standpoint, the two structures differ significantly in terms of liability, tax treatment, reporting obligations, and reputational perception. While the branch model offers simplicity and cost-efficiency, it also exposes the foreign company to direct legal risk. The subsidiary model, though more complex to establish and maintain, provides operational independence and limits risk exposure to the capital invested.

The appropriate structure will depend on the business’s objectives, the nature of the activity to be pursued in Portugal, and the desired level of integration with the local market . As always, prior legal and tax advice is strongly recommended to ensure compliance and to align the chosen model with the company’s broader strategic priorities.

Should you require further clarification or assistance in determining the most appropriate structure for your business in Portugal, our team will be pleased to support you. We are available to provide tailored legal guidance throughout the planning and establishment process, ensuring that your expansion complies with all applicable requirements and aligns with your broader strategic objectives.

Contact us! We can provide the help you need.

IMT Exemption and Refund: A Key Incentive for Urban Rehabilitation in Portugal

Tue, 01 Apr 2025 15:56:11 GMT

Diogo Pedro | Lawyer

Cleuzina Cruz | Paralegal

Portugal has implemented a series of tax benefits to encourage urban rehabilitation, with the IMT (Imposto Municipal sobre Transmissões Onerosas de Imóveis) exemption and refund being among the most significant. IMT is a property transfer tax levied at the time of real estate acquisition, and depending on the property’s value and purpose, it can represent a substantial cost for buyers. However, the Portuguese government allows for IMT exemption at the time of purchase or a refund after rehabilitation under specific conditions. These measures are designed to promote investment in older buildings, revitalise urban areas, and increase the availability of quality housing.

To qualify for an IMT exemption , the property must be over 30 years old or in a designated Urban Rehabilitation Area (ARU). Additionally, the buyer must commit to rehabilitation works within three years of purchase. These works must comply with legal requirements under the Regime Jurídico da Reabilitação Urbana (RJRU) or the Regime Excecional de Reabilitação Urbana (RERU). Upon completion, the property’s conservation rating must improve by two levels or more, achieving at least a "good" classification. The exemption also requires that the property be used for permanent housing, whether as the buyer’s primary residence or as a long-term rental unit. If the property qualifies for an exemption but IMT was initially paid, a refund can be requested once the rehabilitation is officially recognised. This process involves submitting a formal request to the tax authorities along with municipal certification of rehabilitation and proof of compliance with energy efficiency and housing quality standards. If approved, the IMT paid at the time of purchase is refunded, further reducing acquisition costs.

Beyond IMT benefits, Portugal offers a range of additional tax incentives for urban rehabilitation. Properties undergoing accepted rehabilitation qualify for an IMI (Imposto Municipal sobre Imóveis) exemption for three years, with a possible five-year renewal if they remain designated for permanent housing.

Rental income can also be taxed at a reduced autonomous IRS rate of 25%, instead of the standard progressive tax rates of up to 53%.

Furthermore, renovation works qualify for a reduced VAT rate of 6%, provided rehabilitation occurs in urban rehabilitation areas (critical areas for urban recovery and reconversion, areas of intervention by urban rehabilitation companies and others) delimited in legal terms according to local regulations.

Also, contracts for the improvement and renovation of properties or independent parts used for housing may also be included, with the exception of cleaning work, maintenance of green spaces and contracts for real estate that include elements such as swimming pools, saunas, tennis courts, golf or mini-golf courses or similar facilities.

To maximise these benefits, property buyers should assess eligibility before purchasing a property, ensuring it meets the criteria for IMT exemption or later reimbursement. It is crucial to obtain municipal approval for rehabilitation projects and comply with tax regulations to take advantage of other incentives. Buyers who pay IMT at the time of purchase should maintain thorough records and submit the required documentation to request a refund after completing renovations.

The IMT exemption and refund serve as key financial tools for investors and homeowners engaged in urban rehabilitation. By reducing acquisition and renovation costs, these incentives contribute to preserving Portugal’s architectural heritage, improving urban infrastructure, and increasing the supply of energy-efficient housing. Investors and buyers considering a property for rehabilitation should consult legal and tax professionals to ensure compliance with all requirements and fully benefit from these tax advantages.

Get in touch with us!

Citizenship by Marriage or Civil Partnership: When Can the Public Prosecutor Oppose It?

Mon, 31 Mar 2025 12:40:21 GMT

Florbela Lopes | Lawyer

Acquiring Portuguese citizenship through marriage or a civil partnership with a Portuguese national may appear to be a straightforward legal process. However, it is essential to understand that this is one of several pathways to Portuguese citizenship that is subject to potential opposition by the Public Prosecutor’s Office.

Under Portuguese law, a foreign national who has been married to, or in a legally recognised civil partnership with, a Portuguese citizen for at least three years may apply for citizenship. However, in addition to the requirement that the marriage be properly registered in Portugal or the civil partnership judicially recognised, other crucial conditions must be met before applying.

One of the most important requirements is demonstrating an effective connection to the Portuguese community - a connection that is not automatically presumed from the marriage or civil partnership alone. Applicants must show real ties to Portugal, such as residence in the country, proficiency in the Portuguese language , or other tangible signs of integration.

Portuguese nationality law does provide for exceptions. The requirement to prove a connection to the Portuguese community does not apply if the marriage or civil partnership has lasted six years or more, or if the couple has children who hold Portuguese nationality. Applicants outside these exceptions must be prepared to present clear and credible evidence of their connection to Portugal.

Even after an application is accepted and nationality is granted, the Public Prosecutor may still oppose the acquisition of Portuguese citizenship . Under the law, such opposition may be brought within one year of the registration of nationality, through the filing of a legal action.

Several grounds for opposition exist, the most common being the lack of an effective connection to the national community. Others include criminal convictions with a prison sentence of three years or more (under Portuguese law), involvement in threats to national security (such as terrorism), or service to a foreign state in certain public or military roles.

If the Civil Registry Office identifies circumstances that could justify opposition, the applicant may be notified. Additionally, if the Civil Registry Office or another public entity becomes aware of such facts, it must inform the Public Prosecutor and submit the relevant documentation to the competent court.

For this reason, acquiring nationality does not necessarily mean the process is definitively closed upon registration. Applicants may still face challenges, underscoring the importance of careful preparation and full compliance with all legal requirements.

Given these complexities, applicants should approach the process with diligence. Thorough documentation can significantly increase the chances of a successful application. We strongly recommend that individuals seeking Portuguese citizenship based on marriage or civil partnership prepare their applications meticulously and provide solid evidence of their connection to Portugal - particularly if they do not fall within one of the exceptions, such as having Portuguese-national children or a marriage/civil partnership lasting six or more years.

A well-prepared application can reduce the risk of opposition and improve the chances of a smooth and successful outcome.

Contact us! We can provide the help you need.

From Concept to Incorporation: The D2 Visa and Business Establishment in Portugal

Fri, 28 Mar 2025 18:17:22 GMT

Luís Maria Branco | Lawyer

Tomás Melo Ribeiro | Lawyer

The D2 Visa, commonly referred to as the Entrepreneur Visa, provides a legal pathway for nationals of non-EU, EEA, and Swiss countries to establish a business, pursue entrepreneurial activities, or invest in Portugal. This visa category was designed to attract foreign investment and encourage entrepreneurs, freelancers, and independent professionals to contribute to the national economy.

The present overview provides a comprehensive and structured analysis of the D2 Visa, detailing its purpose, eligibility criteria, application process, and principal advantages for prospective applicants, along with essential information regarding the incorporation of a company in Portugal.

Eligibility: Who May Apply for the D2 Visa

Entrepreneurs seeking to establish a new business in Portugal.
Business owners or shareholders aiming to expand their existing operations into Portugal.
Freelancers and independent professionals intending to provide services and create a professional presence in Portugal.

Eligibility Requirements for the D2 Visa

While specific conditions may vary depending on the applicant's professional profile, the following general requirements are applicable across all categories:

Business Plan : The business plan is a critical component of the application, detailing the business model, financial viability, and anticipated contributions to the Portuguese economy. Key aspects include job creation, innovation, and market relevance.
Capital Investment : Applicants must demonstrate access to adequate financial resources to fund their business. Although there is no minimum investment threshold, the capital must be appropriate for the nature and scope of the business. Acceptable sources include personal funds, investment capital, or third-party financing.
Proof of Financial Stability : Applicants must prove the ability to support themselves and any dependents while residing in Portugal. This is typically evidenced by bank statements, income documentation, or proof of financial assets. A recommended benchmark is a minimum of €12,000 for the applicant, €6,000 for a spouse, and €3,600 per child.
Professional Qualifications (Freelancers and Independent Professionals) : Applicants in these categories must provide documentation proving relevant qualifications and experience, as well as client contracts or service agreements with entities based in Portugal.
Company Registration : The business must either be fully registered or in the process of registration with the competent Portuguese authorities at the time of application.
Economic Relevance : The proposed activity must demonstrate a potential economic benefit to Portugal, which may include job creation, innovation, or filling a market need. This is particularly relevant for applicants under the Start-Up Visa framework.

Steps to Establish a Company in Portugal

Company formation in Portugal involves several legal and administrative steps. While the process can be managed independently, engaging legal or accounting professionals is recommended for efficiency and compliance.

1. Choose a Business Structure

Sole Proprietorship (Empresário em Nome Individual) : This structure is appropriate for individual entrepreneurs and self-employed professionals who intend to operate independently. It does not establish a separate legal entity, and the entrepreneur assumes full and unlimited personal liability for the business’s obligations.
Single-Member Limited Liability Company (Unipessoal, Lda.) : This form of incorporation is well-suited for entrepreneurs operating individually, without the need for a complex corporate framework. It establishes a separate legal entity and offers limited liability protection, making it a preferred option among freelancers and independent professionals. The sole shareholder is also typically the managing partner.
Private Limited Company (Sociedade por Quotas - Lda) : This is the most commonly adopted corporate structure in Portugal, particularly suitable for small to medium-sized enterprises. Although there is no mandatory minimum share capital, it is advisable to allocate an amount proportionate to the operational requirements of the business. The liability of each shareholder is limited to the value of their respective equity participation in the company.
Public Limited Company (Sociedade Anónima - SA) : This legal structure is generally reserved for larger commercial undertakings, especially those seeking to raise capital through public or private investment, or with the intention of becoming publicly listed. It requires a minimum share capital of €50,000, and the liability of shareholders is limited to the amount of capital subscribed, with no personal liability for the company’s debts.

2. Business Name and Activity

Select the company’s legal name and clearly define the intended business activity. It is essential to ensure that the chosen name is not already registered. Furthermore, the designated activity must be classified following Portugal’s official Classification of Economic Activities (CAE), and all necessary sector-specific licenses and authorisations must be duly obtained prior to the commencement of operations.

3. Commercial Registration

All companies established in Portugal are required to be duly registered with the Portuguese Commercial Registry (Conservatória do Registo Comercial). This process entails the submission of the company’s Articles of Association, duly executed by the founding members, along with all other requisite supporting documentation per applicable legal and regulatory provisions.

4. Tax Identification Number (NIF)

Obtain a tax identification number (Número de Identificação Fiscal – NIF) for both the company and the entrepreneur from the Portuguese Tax Authority, as this is a mandatory requirement for company incorporation, tax compliance, and the execution of various legal and financial transactions in Portugal.

5. Business Bank Account

Entrepreneurs are required to open a corporate bank account with a duly licensed Portuguese financial institution to deposit the initial share capital, where applicable. This account is essential for the effective management of the company’s financial operations and for conducting all business-related transactions in compliance with national banking and regulatory standards.

6. Corporate Taxation

Portugal offers a competitively structured corporate tax regime. The standard corporate income tax rate is 20%, which is relatively low in comparison with many other jurisdictions within the European Union. This favourable tax framework enhances Portugal’s appeal as a destination for foreign direct investment and business establishment within the European single market.

7. Appointment of a Certified Accountant

It is strongly recommended to engage a certified accountant at the time of incorporation. The appointed professional will be responsible for ensuring that the company complies with all applicable legal obligations, including those related to taxation, financial reporting, and bookkeeping. The involvement of a certified accountant is particularly critical to maintaining ongoing compliance with Portuguese legal and regulatory requirements, thereby mitigating the risk of penalties or administrative sanctions.

8. Beneficial Owner Declaration

As part of the incorporation process, it is a legal obligation to submit a Beneficial Owner Registration Declaration (Registo Central do Beneficiário Efetivo) to the Portuguese Commercial Registry. This declaration must disclose the identity of the individual(s) who ultimately own or exercise control over the company. The purpose of this requirement is to promote corporate transparency and to support the prevention of money laundering and other illicit financial activities through the clear identification of the company's beneficial owners.

For a more detailed guide on incorporation, you may refer to our article: Establishing a Company in Portugal .

Application Procedure for the D2 Visa

1. Document Preparation. Applicants must compile and submit all necessary documentation, which includes the following:

Valid passport.
Portuguese tax identification number (NIF).
Portuguese business bank account.
Comprehensive business plan.
Proof of financial means.
Proof of accommodation in Portugal.
Company registration or evidence of active registration process.
Professional qualifications (for freelancers)
Valid health insurance.
Criminal record certificate from the country of nationality and residence.

2. Submission at the Portuguese Consulate. The application must be submitted to the Portuguese consular post with jurisdiction over the applicant’s country of residence.

The consulate is legally required to issue a decision within sixty working days from the date of submission.
If the application is approved, the applicant will be granted a visa valid for 120 days, during which they may enter Portugal and attend their scheduled appointment with AIMA .

3. Assessment by AIMA

Following consular submission, the application is forwarded to the Portuguese immigration authority, the Agency for Migration, Integration, and Asylum (AIMA), which undertakes an assessment of the proposed business plan, the applicant’s financial capacity, and the anticipated economic contribution of the business to the Portuguese economy.
AIMA is expected to issue a decision regarding the residence permit within ninety working days, provided that the application file is complete and compliant with all legal requirements.

4. Residence Permit Issuance

Upon approval, the applicant receives a temporary residence permit valid for two years, renewable as long as the business remains active and compliant with the legal requirements.

5. Path to Permanent Residency and Citizenship

After maintaining valid residence status in Portugal for a continuous period of five years, holders of the D2 Visa become eligible to apply for permanent residency . In addition, applicants may also qualify for Portuguese citizenship, provided they satisfy all legal requirements, including minimum residency periods and proof of basic proficiency in the Portuguese language.

Key Advantages of the D2 Visa

Entrepreneurial autonomy with no restriction on the business sector.
No mandatory minimum investment threshold.
No obligation to create jobs, although it may strengthen the application.
English is widely spoken in business environments.
Access to public healthcare and education in Portugal.
Visa-free travel within the Schengen Area.
Eligibility for family reunification.
Pathway to permanent residency and Portuguese citizenship.
No need for incubator sponsorship, though Start-Up Visa options exist.

Important Considerations

The process is highly competitive; a well-structured business plan is essential.
Bureaucratic hurdles may arise, and delays are common.
Legal assistance is recommended to navigate regulatory requirements and avoid delays.
Minimum stay requirements must be met to maintain legal residency and qualify for permanent status.

Conclusion

The D2 Visa presents a valuable opportunity for foreign entrepreneurs, investors, and freelancers seeking to establish a long-term presence in Portugal and access the broader European market. While the process requires careful planning and compliance, it offers a flexible and accessible route to residency and citizenship for qualified applicants.

For professional assistance with the D2 Visa or other immigration matters, our team is available to provide guidance and support at every stage of the process.

Get in touch with us!

Portugal Introduces a Streamlined Work Visa Process

Wed, 26 Mar 2025 17:23:00 GMT

In the last year, Portugal implemented several measures to regularise the entry of immigrants into national territory, such as the elimination of expressions of interest . On the other hand, Portuguese companies need a foreign workforce to maintain their productivity, for this reason, a “green lane” will be established to streamline the work visa process for foreign nationals being recruited by Portuguese companies.

On the companies’ side, there are obligations that must be fulfilled, such as providing training and ensuring adequate accommodation.

The official signing of the Green Lane agreement will take place on 1 April 2025 at the Ministry of Foreign Affairs.

Over the years, immigrants have significantly contributed to various sectors of the Portuguese economy , such as agriculture and tourism, bringing with them a diverse range of skills, experiences, and knowledge that enrich the labour market and drive the growth of Portugal.

To better understand this “green lane,” we will provide answers in this article:

How Will This ‘Green Lane’ Work?

It will have five important steps:

The business entity requests an appointment to submit the visa application and sends the documentation to the DGACCP (Direção-Geral dos Assuntos Consulares e Comunidades Portuguesas in Portuguese; Directorate General for Consular Affairs and the Portuguese Communities).
The DGACCP forwards the process to the corresponding consular post.
The consular post schedules the appointment.
AIMA and UCFE (Unidade de Coordenação de Fronteiras e Estrangeiros in Portuguese; Borders and Immigration Coordination Unit) issue their opinions.
The consular posts make a decision and, if favourable, proceed to affix the visa stickers on the passports.

In the first step, the business entity must gather all the required documentation and send it to the DGACCP.

In the second step, the DGACCP has two days to forward it to the consular post.

Meanwhile, AIMA and UCFE have three and five days, respectively, to issue a legal opinion regarding the granting of the visas in question. With the legal opinion issued, the consular posts make the final decision.

The final decision on the granting of the visa must be made within twenty days from the applicant's appointment at the consular post, provided that the legal requirements for the issuance of the visas are met.

What Are the Obligations of the Companies?

On the company's side are some requirements that must be met in order to have the work visa streamlined effectively.

One of them is to collect, compile, and present copies of all required documentation.

Another is the submission to the DGACCP, along with the appointment request, the list of recruited foreigners, including their names, dates of birth, travel document numbers and validity, nationalities, countries of residence, and email addresses.

They must issue and sign a term of responsibility, committing to meet two criteria: the existence of an employment contract underlying the visa application (the proposal does not specify the nature of this contract, so it may not be permanent) and the provision and validity of health and travel insurance coverage.

Additionally, they must commit to Ethical Recruitment, which includes:

Ensuring a valid employment contract.
Providing opportunities for professional training and Portuguese language learning (IEFP may offer support).
Ensuring access to adequate accommodation.

This is intended to reject and prevent practices related to labour exploitation, human trafficking, or any other actions that may harm the rights of recruited workers.

It is essential to note that AIMA may suspend this 'green lane' due to relevant security reasons or serious difficulties affecting essential public services’ capacity to respond.

If you have further questions regarding this matter, get in touch with us and we will be delighted to assist you.

2024 Tax Return Season

Tue, 25 Mar 2025 12:49:47 GMT

António Pratas Nunes | Lawyer

Now that March is ending, we find ourselves in the time of year when taxpayers in Portugal need to submit their tax returns. Between April and June, taxpayers need to navigate the complex world of filling in the IRS Model 3 declaration, deciding what must be declared, and understanding how their sources of income will be taxed in Portugal.

Here are some insights and practical recommendations to help you through this process:

1. Who Needs to File Tax Returns in Portugal in 2025?

Tax residents in Portugal (2024) : Individuals who are considered residents in Portugal during the year 2024 are required to declare their worldwide income in Portugal. This means that all income—both domestic and foreign—must be reported and will be considered for taxation.

Non-Residents : Non-residents only need to declare their income from Portuguese sources. For instance, rental income from a property located in Portugal must be declared and will be subject to taxation.

Additionally, before preparing the tax return, in case you have income from different sources it’s always important to confirm the residency status and understand how the income will be taxed under the Double Taxation Treaties signed with Portugal.

2. Filing Period and Deadlines

The process of submitting tax returns is essentially done online through Portal das Finanças. To do so, taxpayers need to have:

Their tax identification number, as well as the tax identification numbers of any household members, if applicable.
Access to their Portal das Finanças account, including the access password for themselves and any household members, if applicable.

The income earned in 2024 must be declared between 1 April and 30 June 2025 by submitting the IRS Model 3 declaration. While it is possible to file your declaration after the deadline, doing so typically incurs fines.

However, there are exceptional cases where the taxpayer may present their tax return outside of the established period. For example, if you’re a Portuguese resident with foreign income and are still waiting for confirmation regarding taxes paid abroad, you may request an extension to file without incurring penalties.

3. Are All Declared Incomes Subject to Taxation?

Not all declared income will necessarily be taxed. For example, under the Non-Habitual Resident (NHR) regime, there are scenarios where you are required to declare your income, but certain earnings might be exempt from taxation. For example, an NHR taxpayer receiving dividends from a country not listed on the tax haven blacklist may benefit from an exemption of taxation in Portugal – provided other conditions are met.

4. New Changes in Effect for 2025

On 17 March 2025, the tax authority issued the binding rule nº 20278, which adjusts the IRS Model 3 declaration to reflect recent legislative changes. We highlight the following key changes:

a) Capital Gains from the Sale of Shares in Micro or Small Companies Abroad

Capital gains from the sale of company shares are generally taxed at a flat rate of 28%. However, if the capital gains originate from the sale of shares in a micro or small company—whether located in Portugal or abroad – Only 50% of the gains are subject to the 28% tax rate. This policy is designed to encourage the capitalisation and growth of small businesses.

Previously, the IRS Model 3 declaration did not have the option for the application of this measure when capital gains resulted from the sale of shares in micro or small companies located abroad. This limitation often forced taxpayers to file complaints with the tax authorities or even pursue legal action to ensure the law was applied.

With the updated version of the IRS Model 3 declaration, it is now possible to directly request this 50% exemption without resorting to such measures.

b) Increased Designation of Revenue to Charitable, Religious, Cultural, or Environmental Organisations

Until 2024, taxpayers could allocate 0.5% of their payable tax to public benefit organisations supporting cultural, youth, or sports activities.

Considering the legal change was implemented last year, this allocation has been increased from 0.5% to 1%. The IRS Model 3 declaration has been updated accordingly, allowing each taxpayer to support these organisations even more significantly.

c) Inclusion of Crypto-Assets as employment income

With the introduction of the tax regime for crypto-assets, the IRS Model 3 declaration has been updated to allow the declaration of employment income earned through crypto-assets.

d) Inclusion of IFICI+ Tax Benefit

With the implementation of the State Budget for 2024, the Non-Habitual Resident (NHR) regime was repealed, and a new regime was introduced: the Tax Incentive Regime for Scientific Research and Innovation (IFICI+ or NHR 2.0).

Consequently, the sections on the Model 3 tax declaration that were previously dedicated to the NHR regime have been updated to include an option for IFICI+. This ensures that taxpayers can accurately indicate the regime under which they are registered.

In conclusion, filing your annual income declaration might seem like navigating a maze but being well-informed and organised makes the process much more manageable. By understanding who must declare, which incomes are affected, and how the recent changes benefit various taxpayers, you can optimise your tax planning and avoid unnecessary fines.

Contact us, and we will handle your tax returns with ease and expertise.

Estatuto de Igualdade de Direitos e Deveres a Cidadãos Brasileiros: Para Que Serve?

Fri, 14 Mar 2025 14:53:20 GMT

Danielle Avidago | Consultora de Imigração

Que a ligação umbilical entre Portugal e Brasil é secular, não é nenhuma novidade. Considerar os dois povos como irmãos e partes de uma mesma família, é pouco para descrever essa relação, que começou de forma opressiva e violenta, mas que perdura no tempo como portadora de respeito mútuo, compreensão e amizade.

Com o intuito de manifestar essa atual relação pacífica e respeitosa entre o Brasil e Portugal e fortalecer os seus laços, unidos por interesses convergentes, os dois países celebraram a 22 de abril de 2000 o chamado Tratado de Amizade, Cooperação e Consulta entre a República Federativa do Brasil e a República Portuguesa. Assinado no Porto Seguro, Brasil. O Tratado entrou em vigor em 2001, elencando uma série de direitos e deveres que cabem tanto a portugueses como se fossem brasileiros no Brasil, e a brasileiros como se fossem portugueses em Portugal.

O Tratado ainda prevê uma maior colaboração e cooperação na diplomacia entre os dois países, nomeadamente nas áreas da defesa e segurança, justiça, mais especificamente no ramo do direito penal, redes consulares mais eficientes e diretas, e na área da migração. Apesar de algumas dessas áreas não impactarem diretamente os cidadãos brasileiros e portugueses, é de extremo relevo para a manutenção dessa amizade transatlântica.

Em Portugal, esses direitos e deveres são manifestados através da emissão do Estatuto de Igualdade de Direitos e Deveres, que pode ser solicitado desde que o requerente seja maior de idade e possua uma autorização de residência válida. Alguns desses direitos são: a equivalência de acesso à educação, podendo brasileiros pagar as mesmas propinas que portugueses; mais facilidade na equivalência de notas e graus académicos; mais oportunidades e tipos de bolsas de estudo que seriam apenas destinadas a portugueses; intercâmbio cultural e académico mais facilitado; desempenhar funções em órgãos de sociedade; candidatar-se a cargos públicos; e acesso ao sistema de saúde público. Estes são apenas alguns dos direitos e deveres que esse Estatuto fornece.

Na área migratória, a isenção de visto não só para turismo, mas também para atividades culturais, empresariais ou jornalísticas que não excedam 90 dias também existe graças a esse Tratado, que muitos também chamam Tratado de Porto Seguro.

Além do Estatuto de Igualdade de Direitos e Deveres após 3 anos de residência legal em Portugal o cidadão brasileiro pode requerer o Estatuto de Igualdade de Direitos e Deveres Políticos. Com esse estatuto, o portador pode votar em eleições autárquicas e, decorridos 4 anos de residência, pode até ser candidato a Presidente da Junta de Freguesia, por exemplo. Esse Estatuto tem, no entanto, um porém: ao desejar participar da vida política portuguesa, o cidadão brasileiro perde o direito de participar da vida política do Brasil.

Outro benefício desse estatuto é o direito a solicitar um Cartão de Cidadão. É isso mesmo, além da sua autorização de residência, o portador do estatuto tem direito a um cartão de cidadão que confere os mesmos direitos que um nacional português, a única diferença sendo a menção da nacionalidade, que continua a ser brasileira. As exceções aos direitos e deveres que cabem aos cidadãos brasileiros portadores de um cartão de cidadão são, por exemplo, não poderem candidatar-se a Presidente da República, nem seguir uma carreira diplomática em nome de Portugal.

* Imagem ilustrativa do Cartão de Cidadão brasileiro, emitido ao abrigo do Tratado de Porto Seguro.

Além da possibilidade de usufruir com mais facilidade e comodidade dos direitos que o Estatuto de Igualdade de Direitos e Deveres fornece, o cartão de cidadão torna-se no seu principal documento de identificação no país e nas suas viagens pelos vários Estados Membros da União Europeia. Por outro lado, a autorização de residência apenas confere o título de residente legal no país. Um documento depende, no entanto, do outro: a validade do seu cartão de cidadão é a mesma que a da sua autorização de residência.

Seja porque não lhe convém esperar 5 anos para ter os mesmos direitos e contribuir para o país como um português, ou porque sequer deseja solicitar a nacionalidade portuguesa , esse cartão de cidadão, em conjunto com os Estatutos acima descritos, é uma ótima forma de oficializar o seu vínculo com Portugal e facilitar a sua vida diária no país. Com o Estatuto de Igualdade de Direitos e Deveres numa mão, e o cartão de cidadão noutra, fica mais fácil para você chamar Portugal de casa, e para Portugal lhe chamar cidadão.

Se você quer se sentir e ser tratado como um cidadão português e europeu, sem, ao mesmo tempo, abdicar da apaixonante identidade cultural que define o significado de “ser brasileiro”, o Estatuto e o cartão de cidadão são as melhores opções para si. E será uma honra para nós o ajudarmos a ser português, sem deixar de ser, também, brasileiro.

Entre em contato conosco e veja como podemos te ajudar!

Establishing a Company in Portugal: Key Considerations and How to Get Started

Thu, 06 Mar 2025 16:05:15 GMT

Tomás Melo Ribeiro | Lawyer

Portugal is an increasingly popular choice for entrepreneurs and businesses looking to establish a presence in Europe. The country offers several benefits that make setting up a company here practical and advantageous.

1. Advantages of Establishing a Company in Portugal:

Favourable Corporate Tax Rate : Portugal offers a corporate income tax rate of 20% , which is among the most competitive in the European Union. By comparison, corporate tax rates are 25.8% in the Netherlands, 32.02% in France, 25% in Spain, 24% in Italy, and approximately 30% in Germany. ¹
Support for Entrepreneurship : The Portuguese government has implemented the Startups Framework (Law no. 21/2023), which introduces several incentives for emerging businesses, including:

Income Tax Exemption on Stock Options : Providing a more favorable tax regime for employees of startups.
Reduced Corporate Income Tax : Offering lower tax rates during the initial years of a startup’s operation.
IMT Exemption : Applicable to startups acquiring property for business activities.

Access to the European Single Market: Companies established in Portugal benefit from the freedom to trade and provide services throughout the European Union, enabling streamlined access to a vast consumer base.

2. Methods to open a company in Portugal

There are three primary ways to establish a business in Portugal: online, in person, and through the “Empresa na hora” (instant company setup).

Online Registration:

This is the most convenient and efficient method for those who prefer a digital approach.
You can complete the full process of registering a business on the Portuguese Tax Authority’s website (Portal das Finanças) and the Commercial Registry Portal (Registo Comercial).
This method allows you to submit documents, complete all necessary forms, and receive your company registration remotely. It’s an ideal option for entrepreneurs who prefer a paperless process and can manage everything from home or the office.
Online registration is suitable for a range of business structures, including Sole Proprietorships, Limited Liability Companies (Lda.), and others.

In-Person Registration:

This method requires physically visiting the Commercial Registry (Conservatória do Registo Comercial) or a Public Notary in Portugal to submit the necessary documents.
You will need to fill out forms, provide identification, and register with the relevant authorities.
This option may be preferable for individuals who want to ensure personal guidance during the process, especially when dealing with more complex structures or legal advice.
While it may take a bit longer compared to online registration, it offers an in-person, direct approach to starting a business.

Empresa na Hora (Instant Company):

The Empresa na Hora (Company in One Hour) service is a highly efficient method for opening a business in Portugal within a single day.
Through this service, you can create a Limited Liability Company (Lda.) or a Sole Proprietorship quickly. The company is established and registered on the spot.
This option allows entrepreneurs to finalise all legal steps, including obtaining the NIF (Tax Identification Number), registering with the Portuguese Commercial Registry, and obtaining the certificate of incorporation, all within an hour.
Empresa na Hora is available at designated Empresa na Hora centres across Portugal, making it ideal for those who want to start their business immediately.

3. Legal Forms of Companies in Portugal

The most common corporate structures in Portugal include:

Limited Liability Companies by Quotas (Lda.)
Single-Member Limited Liability Companies (Unipessoal Lda.)
Public Limited Companies (S.A.)

The following chart addresses the main features of each structure:

4. Procedure for Online Company Formation in Portugal

The incorporation process involves several key steps:

Selection of the Company Name : Applicants may choose a pre-approved "fantasy name" or request a certificate of admissibility from the National Register of Legal Entities.
Definition of Share Capital : Contributions may be made in cash or in kind, with flexibility regarding the timing of the contributions.
Establishment of Corporate Purpose : Clearly define the economic activities the company intends to pursue.
Preparation of the Articles of Association : Applicants may adopt a standardised model or submit bespoke articles tailored to the company’s specific needs.

Additional Procedural Elements

Appointment of a Certified Accountant : It is advisable to designate a certified accountant during incorporation to manage the company’s accounting and financial obligations.

5. Post-Incorporation Formalities

Upon successful completion of the incorporation process, the relevant public authorities will:

Register the Company Electronically , providing immediate confirmation of its legal status.
Issue the Company’s Electronic Card and Social Security Identification Number (NISS) , which are essential for operational purposes.
Provide Access to the Permanent Commercial Registry Certificate , which is available electronically and valid for three months.

To ensure compliance with all legal and tax obligations in Portugal , the interested parties will need to take, after incorporating a company, the following steps:

Beneficial Owner Registration Declaration : The interested parties need to submit the Beneficial Owner Registration Declaration to the Portuguese Commercial Registry. This declaration provides information about the individual(s) who ultimately own or control the company. It is a legal requirement to ensure transparency.
Opening a Bank Account for the Company : This account will be used for the company’s financial transactions, such as depositing the share capital and paying operational expenses.
Filing the Declaration of Commencement of Activity : This process formalises the company's business activity with the Tax Authority and determines the applicable tax regime (e.g., VAT, corporate tax), and it must be made within 30 days of the company’s incorporation to avoid penalties.

How LVP Advogados Can Assist You

At LVP Advogados , our team of legal professionals offers comprehensive support throughout the company incorporation process. We provide tailored advice to ensure compliance with Portuguese regulations and facilitate a smooth and efficient establishment of your business in Portugal.

Contact us today for further information and to discuss how we can assist you in achieving your corporate objectives in Portugal.

¹ https://pt.tradingeconomics.com/country-list/corporate-tax-rate

Opposing an Injunction in Portugal: Deadlines, Procedures, and the Importance of Legal Representation

Thu, 27 Feb 2025 16:19:11 GMT

Margarida Tempera | Lawyer

Receiving a letter from the Portuguese National Injunction Office (Balcão Nacional de Injunções) can be concerning, but understanding the process is essential to responding effectively. This document explains what an injunction request (requerimento de injunção) entails, the deadlines involved, the necessary steps to oppose it, and the importance of legal assistance to ensure your defense is properly structured .

What Is an Injunction Request?

An injunction request is a special legal mechanism that allows creditors to claim outstanding debts in a simplified and expedited manner. It is governed by Decree-Law No. 269/98 of 1 September and is primarily used for unpaid invoices, service agreements and other financial obligations.

When you receive a notification from the National Injunction Office, a creditor has initiated a legal procedure against you for an alleged unpaid debt. This request includes:

The case number (ending in YIPRT ), identifying the proceedings.
A summary of the claim, stating the amount requested and the justification provided by the creditor.
The deadline for response and your available legal options.

Why Should You Respond to an Injunction Request?

Ignoring an injunction request can have serious consequences. This request has executory force , meaning that if no opposition is filed within the legal deadline, the creditor can move forward with enforcement proceedings, leading to:

Asset seizure (e.g., bank accounts, real estate, vehicles).
Wage garnishment .
Additional costs , including interest and enforcement agent fees.

Need legal help with your injunction case? Complete our quick form for expert assistance.

Deadlines and Next Steps

Upon receiving an injunction request, you have 15 days to either:

Pay the claimed amount .
File an opposition (contesting the claim);
Negotiate a settlement with the creditor (if applicable).

Failing to act within this period results in the injunction becoming an enforceable title, allowing the creditor to initiate debt recovery proceedings without further litigation.

When Is a Lawyer Required?

Legal representation is not mandatory for filing an opposition to an injunction. However, engaging a lawyer is highly recommended , as the success of your defense depends not only on the truth of your arguments but also on the ability to present valid legal proof following procedural requirements and deadlines .

A lawyer ensures that:

Your opposition is correctly structured , avoiding procedural errors that could lead to dismissal.
Relevant evidence is gathered and presented effectively .
Legal arguments are aligned with current legislation .
Your rights are safeguarded , particularly if the case progresses to court.

The Importance of Proper Legal Proof

Even if you believe the creditor's claim is unfounded, it is insufficient to merely state that the debt does not exist. The court will require documented and legally admissible proof . Common defenses include:

The debt was already paid (supported by bank statements, receipts, or invoices marked as settled).
The debt is not legally valid (e.g., lack of a signed contract, expired claim due to prescription).
Incorrect amounts were claimed (requiring verification of calculations and interest applied).
There is an ongoing dispute regarding the services or goods provided .

Need legal assistance? Fill out our form, and we'll be in touch to provide the help you need.

What Happens if You File an Opposition?

If an objection is filed within the 15-day deadline, the injunction process will no longer be handled by the National Injunction Office (BNI) and will be transferred to court, where the parties' designations change:

The claimant (creditor) becomes the plaintiff (Autor).
The respondent (debtor) becomes the defendant (Réu).

At this stage, the procedure transforms into a legal action, which can take the form of either an ordinary declarative action or a special procedure for the enforcement of pecuniary obligations, depending on the amount in dispute.

At this stage, a judge will review the case, analyse the evidence presented, and either schedule a hearing or issue a ruling based on written submissions.

This transition means that the case will be subject to more formal procedural rules, requiring careful legal strategy and adherence to evidentiary requirements set by the applicable legislation.

Possible Outcomes

Injunction dismissed : If your opposition is successful, the case is dismissed, and no payment is required.
Negotiated Agreement : The parties may reach an out-of-court settlement, avoiding further litigation.
Creditor Wins the Case : If the court rules in favor of the creditor, the debt becomes legally enforceable, and enforcement proceedings can begin.

Final Considerations

Failure to respond can lead to severe financial consequences , including asset seizure and wage garnishment.
Legal assistance increases the likelihood of a successful defense , ensuring compliance with procedural requirements.
Time is crucial : The 15-day deadline is strict, and missing it significantly limits your legal options.
Appeals are possible : If an unfavourable decision is issued, further appeals may be available, but court fees apply.

Conclusion

Receiving an injunction request does not mean automatic liability, but it does require immediate and well-structured action. Legal assistance is key to navigating the process effectively, avoiding procedural mistakes, and ensuring that your rights are protected. If you need help opposing an injunction, seek specialised legal advice as soon as possible to prevent irreversible consequences.

Receiving an Injunction can be daunting, but acting promptly and strategically is essential.

Engaging a qualified legal professional ensures that procedural rights are protected, defenses are adequately raised, and the best possible outcome is pursued.

If you have received a letter from the Portuguese National Injunction Office, do not wait until the last minute to seek legal assistance. Understanding your rights and obligations is the first step toward a strong legal defense.

My citizenship application has not moved for a long time now, what can I do? Unravelling the World of Nationality Litigation

Wed, 26 Feb 2025 17:41:17 GMT

Danielle Avidago | Immigration Consultant

"At first it's strange, then it ingrains". This Portuguese common expression accurately expresses the path to Portuguese citizenship , both from the individual and the State perspective. Where a foreigner is still unfamiliar with the State’s values and customs, and vice-versa, until it gradually becomes a fundamental part of that country and its dynamic, like an ecosystem.

Becoming a Portuguese citizen, for some, means reconnecting to their parent or grandparent who spent their entire childhood amazing them with stories of a country where the sun rarely leaves their side, and they can feel safe and at peace walking on a Sunday afternoon through its beautiful and colourful streets.

For others, it translates into officially becoming what they always felt they were since the moment they stepped foot and set their roots in Portugal . The traditions, customs, cuisines, and charm that make Portugal the unique country it is are so entangled in their daily lives that nothing is fairer than legally becoming the Portuguese citizens they already feel they are.

However, becoming a Portuguese citizen may be more challenging than it seems. It's not only because of the numerous documents and proof of connection to the Portuguese community that one must gather, with required or helpful documents not always clearly stipulated in the law, but also mainly because of the time it takes. When applicants find out that the estimated time for a Portuguese application to be analysed usually takes from 2 to 3 years, their eyes widen, and they immediately start rethinking their life choices.

Why does the IRN, the governmental body linked to the Portuguese Ministry of Justice responsible for analysing citizenship applications, take so long to decide on Portuguese Citizenship applications? - you may ask. Well, since the pandemic, requests for Portuguese citizenship have increased considerably , while the number of professionals analysing the applications has decreased proportionally. Additionally, with the amendments to nationality law, the IRN aims to ensure that each applicant is undoubtedly entitled to Portuguese citizenship, resulting in extended analysis periods.

Well - you might still wonder - but 3 years is not the legal deadline for the IRN to conclude citizenship application processes, is it? No, it is not. According to article 41° of the Nationality Regulation, the IRN has 30 days to analyse the applicant’s documentation and requirements, and 60 days to issue a decision. If this legal deadline were to be followed, citizenship application processes would be concluded within 4 months, but the reality is that not even minor's applications are analysed this fast.

To escape this responsibility, the Consultive Council of the IRN issued report number 76/2022 stating that this legal deadline is not to be considered as the to the IRN considering the current panorama of low supply of staff and high demand of applications.

Although the (excuses) explained above are not an obstacle for some people, for others it may be crucial for them to enjoy, in this lifetime, all the benefits that the title of being a Portuguese citizen comes with. This means that for those applicants who have been waiting for way over the legally stipulated deadline for a decision from the IRN, and are to be considered elders, or have been diagnosed with a disease that aggravates their health condition, there is an alternative other than “hold still”.

It is possible to make your right to citizenship worthwhile through the judicial administrative route of the Subpoena for the Protection of Rights, Freedoms and Guarantees.

This urgent and special legal administrative action aims to rapidly and efficiently address violations of fundamental and constitutional rights that the administrative organs failed to respect and protect, as is their duty.

Because of the urgency and exceptionality that this kind of legal action entails, the Portuguese judicial system enables foreigners, represented by Portuguese lawyers only, to file this subpoena. This means that under this regime, it is not necessary to be a Portuguese citizen to access the Portuguese judicial system.

For this kind of administrative legal action to be successfully deferred, we need to prove that fundamental rights were affected by this delay from the IRN. It should not be exclusively about the amount of time that has passed, but more about why this time has to be urgently and immediately ceased.

According to the Portuguese courts on this matter, the situations that better illustrate why the IRN urgently needs to analyse one applicant’s case to the detriment of others are precisely advanced age and severe health conditions.

However, if you do not fit into any of the above situations, it does not mean you are not entitled to appeal your case before the Portuguese courts. As long as you can prove urgency, the violation of fundamental rights, and that the IRN failed to meet the legal deadline it is bound by, the subpoena should be accepted by the court.

The courts already understand that the right to citizenship, when the applicant meets all the legal requirements, is a fundamental right deeply and intrinsically linked to the right to self-determination, family unification, and effective citizenship. Which fundamental rights were violated depends on the citizenship application and how the delay has impacted the applicant's life.

Whether it is a job you would only be accepted into if you were Portuguese; being reunited and feeling like you belong to your Portuguese family; living as a citizen in the country that always felt like home; or finally setting roots and freely connecting to the traditions and customs that run in your veins.

If you feel you fit into one of the above scenarios, and your application has been pending before the IRN well beyond the legal deadline, we would be happy to assist you in taking the IRN to court and fighting for your right to be a Portuguese citizen.

The Process of Vehicle Importation and the Benefits of Electric Vehicles

Tue, 25 Feb 2025 16:22:53 GMT

Cleuzina Cruz | Paralegal

The importation of cars has become a growing trend, with consumers and businesses increasingly keen to broaden their options beyond the local market. While the domestic market offers a wide range of cars, importing vehicles from other countries , particularly European markets like Germany and France, has emerged as an appealing alternative due to the competitive prices and variety of options.

The increasing ecological concern has made electric vehicles an attractive option gaining ground in the Portuguese market.

Importing a vehicle involves a series of steps, starting with choosing the right car. When selecting a vehicle to import, it is essential to consider its condition, country of origin, and whether it complies with local safety and emissions standards.

Each country has specific regulations that a vehicle must meet to be legally registered and driven . These regulations vary greatly, so it is important to ensure that the car you are importing meets the required standards, especially concerning safety and environmental impact. Because of this, one of the most important documents for the importation process is the Certificate of Conformity (COC), for both electric and non-electric vehicles.

Once a vehicle has been selected, the next step is to ensure it meets the necessary criteria. This includes checking emission levels, safety features and technical specifications. For example, a vehicle imported into the European Union must comply with strict CO2 emissions regulations. It is advisable to consult local authorities or professionals to confirm that the car can be imported legally.

Another crucial step is the financial aspect of the importation process. Taxes such as VAT, ISV, and registration fees must be paid during the process. The associated costs can vary according to the car model, price, and country of origin.

In some cases, vehicles may have to undergo alterations to conform to local rules, which can add additional costs to the process.

Electric cars have garnered significant attention compared to conventional vehicles, owing to their environmental and economic advantages.

Conventional vehicles depend on combustion engines running on gasoline or diesel, unlike electric vehicles that are powered by rechargeable batteries and electric motors. This difference results in lower emissions, making them more environmentally friendly. As a result, they play a key role in combating climate change and reducing air pollution.

Another important factor in the attraction to electric vehicles is the maintenance, due to their simpler mechanics and the absence of components that don't require the same maintenance as conventional cars.

Electric vehicle owners benefit from no oil changes, fewer wearing parts, and lower maintenance costs.

The Portuguese government offers incentives to encourage the purchase and import of electric vehicles, incentives such as import duties exemptions, ISV and VAT.

Importing electric vehicles reduces dependence on fossil fuels while supporting the shift toward cleaner, sustainable transportation. As consumers increasingly prioritise green technologies, this option has become more attractive.

In conclusion, while importing requires careful attention to regulations and documentation, the growing popularity of electric vehicles and government incentives confirm their crucial role in sustainable transportation, making them the future of transport. These vehicles are essential to reducing climate impact and building a greener future.

Contact us if you need any assistance with importing your car to Portugal.

Immigration Law Update: Major Changes for CPLP Citizens

Fri, 21 Feb 2025 17:27:20 GMT

On Friday, 14 February 2025, Law No. 9/2025 came into effect, introducing amendments to Law No. 23/2007 of 4 July, which governs the legal framework for the entry, stay, exit, and removal of foreign nationals from Portugal.

For context, Law No. 9/2025 introduced amendments to seven articles, aiming to facilitate and simplify the entry and stay of citizens from the Member States of the Community of Portuguese-Speaking Countries (CPLP) in Portugal.

The CPLP (Community of Portuguese Language Countries – Comunidade dos Países de Língua Portuguesa) is an international organisation comprising countries where Portuguese is an official language. Its primary objectives are to promote cooperation in political, economic, and cultural areas among its member states while fostering the Portuguese language and cultural exchange.

Among the amendments, Article 75, paragraph 2 is particularly noteworthy. It states:

When the applicant is covered by the CPLP Agreement and holds a short-stay visa or has legal entry into the national territory, they may apply for a temporary residence permit.

In practical terms, this means that citizens who enter Portugal legally can apply for a temporary residence permit without the need for a visa. They simply need to enter the country as tourists, as is the case for citizens of CPLP member states. Tourist stays are limited to a maximum period of 90 days.

Citizens from countries that are not members of the CPLP can still apply for a temporary residence permit; however, they must first obtain the appropriate visa .

Temporary stay visas are intended for individuals planning to stay in Portugal for more than 90 days but less than one year. Various types of temporary stay visas are available to accommodate different purposes, such as medical treatment, family reunification, employment, study, and seasonal work. These visas are formally classified as E1 Visa, E2 Visa, and so forth.

The member states of the CPLP include:

The Republic of Angola
The Federative Republic of Brazil
The Republic of Cape Verde
The Republic of Guinea-Bissau
The Republic of Equatorial Guinea
The Republic of Mozambique
The Portuguese Republic
The Democratic Republic of São Tomé and Príncipe
The Democratic Republic of Timor-Leste

If you require legal assistance with your immigration process in Portugal, feel free to contact us.

Inheritance and Wills in Portugal: A Tax-Free Legacy for Close Family Members

Thu, 13 Feb 2025 17:14:54 GMT

Margarida Tempera | Lawyer

Inheritance can be a complex and often emotional process, especially when taxation is involved. However, Portugal stands out as a jurisdiction that facilitates the transfer of wealth within families by exempting certain heirs from inheritance tax. This policy reflects the country’s longstanding respect for family heritage, ensuring that assets such as real estate, businesses, and personal possessions can pass seamlessly from one generation to the next without an additional financial burden.

Portugal’s favourable inheritance laws make it an excellent choice for individuals seeking to efficiently secure their family's financial future.

Absence of Inheritance Tax for Close Family Members

Unlike many jurisdictions where estate and inheritance taxes can significantly diminish the value of inherited assets, Portugal exempts certain heirs from taxation. Spouses, children, grandchildren, parents, and grandparents can inherit property and other assets free of inheritance tax. This framework allows families to maintain their estates without the financial strain that often accompanies succession in other countries.

This exemption not only preserves family wealth but also ensures that inherited properties, such as family homes or long-held investments, do not become financial liabilities due to taxation. Beneficiaries can retain these assets without the need to liquidate them to cover tax obligations, reinforcing Portugal’s reputation as a favourable jurisdiction for estate planning.

Contact us to learn more about preserving your family's wealth.

Stamp Duty for Other Beneficiaries

While direct heirs benefit from a tax-free inheritance, other beneficiaries, including siblings, distant relatives, and unrelated individuals, are subject to a 10% stamp duty on inherited assets. This means that individuals intending to leave assets to non-traditional heirs, such as close friends or charitable organisations, must consider the tax implications in their estate planning.

Estate Planning Considerations

Given the nuances of inheritance law, proper estate planning is crucial, particularly for those who wish to distribute their assets beyond the legally defined group. Engaging a legal professional can help ensure that estate plans align with both Portuguese law and any applicable international succession rules.

Comprehensive estate planning goes beyond drafting a will; it requires an in-depth understanding of the legal framework governing inheritance, including potential tax liabilities and cross-border succession laws. Individuals with assets spread across multiple jurisdictions should be particularly mindful of how different legal systems interact, as conflicting laws may complicate asset distribution.

Moreover, for those considering leaving assets to non-traditional heirs or beneficiaries in different countries, it is essential to anticipate any legal challenges that may arise. Some jurisdictions enforce forced heirship rules, which could override the testator’s intentions, necessitating strategic planning to mitigate any potential disputes. By proactively addressing these considerations, individuals can safeguard their wealth and ensure that their wishes are respected, minimising administrative burdens and legal uncertainties for their heirs.

While Portugal provides significant freedom in estate planning, this freedom is not absolute, as certain legal constraints govern how assets can be distributed.

Under Portuguese law, forced heirship rules apply, meaning that if a person has legitimate heirs, such as a spouse, children, or, in their absence, parents, only one-third of the estate can be freely bequeathed to third parties, whether they are relatives or unrelated individuals. The remaining two-thirds are reserved for these heirs by law, ensuring that direct family members retain a protected share of the inheritance.

It is only in the absence of legitimate heirs that an individual may dispose of their entire estate as they see fit, including leaving it to friends, charitable organisations, or other beneficiaries.

Moreover, if no direct family members exist, and no valid will or lifetime donations have been made, the estate does not remain unclaimed, and the State ultimately inherits all assets, reinforcing the importance of thoughtful estate planning to ensure that one's legacy is distributed according to their wishes.

Contact us if you require legal assistance.

Drafting a Will in Portugal

Portuguese law permits both residents and non-residents to draft a valid will in the country , provided it adheres to legal formalities. However, the applicability of a Portuguese will to foreign assets depends on various factors, including the jurisdiction in which the assets are held and whether international succession laws apply.

For expatriates and foreign investors, a common concern is whether a will executed in Portugal affects assets located abroad. In principle, a Portuguese will govern assets situated within Portugal, while foreign assets remain subject to the laws of the country where they are located.

However, under European regulations, individuals with assets in multiple jurisdictions may, in some cases, elect the succession law of their nationality to apply to their entire estate.

Additionally, certain jurisdictions impose forced heirship rules, which may override the testator’s wishes and mandate that a portion of the estate be distributed to specific heirs. Understanding these potential legal conflicts is essential when drafting an estate plan that involves assets in multiple countries.

Revocability of a Will

In Portugal, a will is not an irrevocable document. It can be amended or revoked at any time during the testator’s lifetime, ensuring that estate plans remain flexible and adaptable to changing circumstances. Furthermore, if assets mentioned in a will are no longer in the testator’s possession at the time of death, the corresponding provisions may become null and void.

Final Considerations

While Portugal offers significant advantages in terms of inheritance tax exemptions, careful estate planning is essential, particularly for individuals with assets or heirs in multiple jurisdictions. A well-structured estate plan, potentially including a Portuguese will alongside wills in other relevant countries, can help mitigate legal complications and ensure that a testator’s wishes are respected.

Ultimately, Portugal is not only an attractive place to live and invest but also a jurisdiction that enables individuals to secure their legacies for future generations with clarity and efficiency.

How We Can Assist

Inheritance and estate planning require careful legal consideration to avoid unnecessary complications. Our team of experienced legal professionals is available to provide guidance tailored to your specific circumstances, ensuring that your estate is structured following Portuguese law and any relevant international regulations. Whether you are looking for guidance on drafting a will, understanding succession laws, or managing cross-border assets, having the right information is essential to navigating the process with confidence and clarity.

Contact us to request expert legal assistance.

Your Step-by-Step Guide to Portugal Temporary Stay Visas

Thu, 06 Feb 2025 17:46:34 GMT

Luís Maria Branco | Lawyer

Portugal is a destination that captivates the world. The country offers something for everyone, from its vibrant culture and rich history to its excellent healthcare system and growing opportunities for digital nomads. To accommodate the diverse needs of visitors and temporary residents, Portugal has developed a comprehensive range of visas. Among these are the Temporary Stay Visas (E Type), often overshadowed by long-term options like the D7 Visa or Golden Visa , but which play a vital role for individuals seeking shorter-term stays in Portugal .

Created for those planning to remain in the country for more than 90 days but less than one year, without the intention to establish long-term residency, these visas address a wide range of needs, including medical treatment, family reunification, work, study, and seasonal employment, with several attractive benefits:

Expedited process : these visas typically involve a simpler application process, with decisions often issued within 30 days.
Flexibility : they are designed for shorter stays but can be renewed in certain cases, allowing adjustments to the duration of the stay.
Multiple entries : visa holders can leave and return to Portugal during its validity without jeopardising their legal status.
Pathway to residency : these visas offer an opportunity to experience life in Portugal and evaluate the possibility of pursuing long-term residency.

The application process must be conducted in person at the Portuguese consulate corresponding to the applicant’s country of residence.

Whilst many visa types share general requirements, each visa category also includes specific documentation tailored to its purpose. Understanding these distinctions is crucial to submitting a successful application.

1. Temporary Stay Visa for Medical Treatment Purposes

If visitors require medical care in Portugal, the E1 visa is their gateway to world-class healthcare. Whether for surgeries, therapies, or specialised rehabilitation, this visa supports those needing extended treatment, particularly when specialised treatments are unavailable in their home country. Applicants must submit medical reports, documentation from a recognised healthcare institution confirming the necessity of care, and proof of financial means, which can be demonstrated through a responsibility term issued by a Portuguese resident or embassy.

2. Temporary Stay Visa to Accompany a Family Member Undergoing Medical Treatment

For family members supporting a loved one receiving treatment in Portugal, this visa ensures they can stay by their side. Proof of family ties, medical documentation, and financial means are required, with flexible options like embassy statements or responsibility terms, similar to the medical treatment visa.

3. Temporary Stay Visa in the Framework of World Trade Organisation Nationals (WTO)

The E2 visa facilitates the transfer of employees within the same company or corporate group based in WTO member states. Perfect for those in managerial, technical, or professional training roles, this visa requires documentation of the transfer and financial support, derived from employment contracts or responsibility terms issued by the host institution.

4. Temporary Stay Visa for Independent Work Purposes

Freelancers and self-employed professionals, such as consultants or artists, can thrive in Portugal with the E3 visa . A work contract or service agreement is essential, along with, if applicable, a statement verifying compliance with the professional qualifications required for the activity in Portugal. Financial means must be demonstrated through contracts or responsibility terms signed by a host entity. For those looking to expand their professional horizons, this visa opens doors to new opportunities.

5. Temporary Stay Visa for Scientific Research, Academic Teaching, or Highly Qualified Activities

Researchers, educators, or professionals in highly specialised fields may find the E4 visa an ideal opportunity to contribute to Portugal’s academic and professional landscape. This visa enables individuals to engage with leading institutions and projects. Qualification requires proof of admission to collaborate with a research centre recognised by the Ministry of Education and Science, through a work contract, employment offer, service agreement, or scholarship for research, academic teaching, or highly qualified activities in Portugal.

6. Temporary Stay Visa for Amateur Sports

Amateur athletes with aspirations to train or compete in Portugal can embrace new opportunities with the E5 visa . A document from a Portuguese sports federation or club is required, along with a statement of responsibility from the club covering housing, healthcare, and repatriation costs. Candidates must also show financial means equivalent to 50% of the Portuguese Minimum Wage unless the club guarantees food expenses through a term of responsibility.

7. Temporary Stay Visa for Periods Over 3 Months in Exceptional Circumstances

The E6 visa is made for unique cases, including short-term study, student exchange, unpaid internships, volunteer work, or international commitments. Applicants must provide proof of their circumstances and necessary documentation. For study programmes under a year, required documents include an enrollment certificate, a host family statement, or proof of housing, with financial support from grants or scholarships. Internships require an acceptance letter from a recognised organisation, and financial means can be demonstrated through a responsibility term. Volunteer work requires confirmation from an acknowledged institution, compliance with age requirements, and similar financial proof. For international commitments, applicants must submit a service agreement and a certificate of technical qualification.

8. Temporary Stay Visa for accompanying family members holding a temporary stay visa

Family reunification holds a special place within Portugal’s visa framework, reflecting the country’s strong commitment to preserving family ties. The E7 visa allows eligible family members to join Temporary Stay Visa holders during their time in Portugal, ensuring families can remain united. Spouses, civil partners, minor or dependent children, and dependent parents of the visa holder or their spouse are all eligible under this category.

Candidates must provide documents proving their relationship to the primary visa holder, such as marriage or birth certificates, all duly legalised and translated into Portuguese, as well as the main applicant's National Visa request and, if applicable, a valid Residence Visa. Additionally, proof of sufficient financial means to support the family during the stay is essential. The reunification visa is valid for the same duration as the principal applicant’s visa, enabling family members to reside legally in Portugal and access healthcare, education, and other public services.

9. Temporary Stay Visa for Seasonal Work Purposes

The E8 visa opens doors to Portugal’s vibrant seasonal work opportunities in industries like agriculture, tourism, and hospitality. With a valid work contract detailing job specifics — such as location, duration, and salary — along with proof of accommodation, this visa presents an opportunity to contribute to Portugal’s dynamic economy. Employers must provide accident insurance and medical protection, ensuring workers are supported during their stay. For those who have successfully worked in Portugal before, a simplified application procedure may be applicable.

10. Temporary Stay Visa for Academic or Professional Training

Short-term academic courses or training programmes are covered by the E9 visa. To qualify, proof of admission from a higher education or training institution, along with evidence of financial means and accommodation arrangements is required.

11. Temporary Stay Visa for Remote Work (Digital Nomads)

Tailored for remote workers, this visa supports professionals employed or self-employed with clients outside Portugal. Visa seekers should produce proof of employment or service contracts, demonstrate an income of at least four times the Portuguese Minimum Wage over the past three months, and present proof of fiscal residence.

Conclusion

Portugal’s comprehensive Temporary Stay Visas offer customised solutions for a variety of personal and professional needs, allowing individuals to experience its bustling cultural scene, rich history, and thriving opportunities. The Family Reunification Visa, in particular, ensures that families remain united and supported, reflecting Portugal’s commitment to fostering strong familial connections.

How LVP Advogados Can Assist You

At LVP Advogados , we provide personalised guidance to navigate the complexities of these visa categories. If you are considering applying for a Temporary Stay Visa or have questions about Family Reunification, contact us . We are here to ensure a smooth and efficient process tailored to your needs.

To Be or Not to Be a Permanent Resident: Your Options After Five Years of Calling Portugal Home

Wed, 05 Feb 2025 16:02:35 GMT

Danielle Avidago | Immigration Consultant

After 5 years of living in a country, after holding a residency visa and some residence permits, it is normal to feel like that place has always been your home. A home you were not born in, but where it makes you feel safer and more welcomed than your birthplace. And that feeling is more common in Portugal than we think.

A sense of belonging grows in you with each winter sunbath, every bite of pastel de nata or bacalhau, and with every passing day. That is why Portugal enables foreigners who have lived in and called Portugal home for at least 5 years to apply for Portuguese citizenship and match their sense of belonging to Portugal with an official Portuguese nationality.

However, despite feeling like Portugal is where you belong and where you can be your true self, sometimes applying for citizenship is not the path for you. Either because your non-European Union home country does not allow dual citizenship, or simply because you do not wish to apply. In those cases, the Portuguese immigration law allows two paths: the Permanent Residence and the Long-Term Resident Status . Let us dissect a bit of each option.

” To obtain permanent residence, you must meet three criteria: five years of residence in Portugal, a valid residence permit, and completion of either a Portuguese course or an A2 language test. „

„

To obtain permanent residence, you must meet three criteria: five years of residence in Portugal, a valid residence permit, and completion of either a Portuguese course or an A2 language test.

”

Permanent Residence

This option is available to third-country nationals who meet three criteria: five years of residence in Portugal , a valid residence permit, and completion of either a Portuguese course or an A2 language test . This Permanent Residence Permit is valid for 5 years, allowing you to relax and enjoy everything Portugal has to offer without concerns about administrative procedures, as the renewal of the residence permit is done through a simple request.

This option is ideal for those residents who fall in love with Portugal and do not see themselves living in any other European country. It allows you to work, and have access to health services, education, social security and justice in Portugal, while also enjoying a sunny and breezy afternoon in an esplanada by the river. If stability and peace in Portugal is what you are looking for, this is the best option for you.

Contact us for more information on obtaining Permanent Residence in Portugal.

Long-Term Resident Status

This status is very similar to the Permanent Residence Permit, with one pivotal and crucial difference: the possibility of residing and working in other European Union countries. Although you are very into Portugal and the sunny beaches, you wish to explore what more Europe has to offer in terms of quality of life, studies, work opportunities, or even personal growth. With this residence permit, you can freely have several “homes” in all European Union countries (Ireland and Denmark being the exceptions).

This status allows you to benefit from several rights the European Union considers fundamental, such as education, health, and work opportunities, which you can freely and easily access when bearing a Long-Term Resident Status.

To apply in Portugal, you still must take an A2 Portuguese test or course . It also has no validity date, but it must be updated according to the immigration law of the country you are now living in. You must maintain regular ties with Portugal to retain this status.

If studying in various European Union countries or exploring potential European Union homes to work and live in is what you are looking for, this is the best option for you.

To summarise, with the Permanent Residence Permit , you can keep stably strengthening your connection to Portugal, bearing most of the fundamental rights and duties Portuguese citizens are bound to; while with the Long-Term Residence Status , you can freely enjoy the rights, privileges and duties any European Union national has, getting familiarised with all the different cultures and customs of the European Union Member States, bound by their uniqueness.

Whether you choose to settle permanently in Portugal or explore opportunities across the EU, our team is here to guide you through the process that best aligns with your personal and professional goals.

Contact us to request expert legal assistance.

AIMA Subpoena Data: Understanding the Real Numbers

Tue, 04 Feb 2025 12:14:16 GMT

As of 4th February 2025, the total number of pending AIMA subpoenas by the end of January, specifically until the 31st, stood at approximately 50,046 cases.

Despite this high number, the subpoenas in January reflected a downward trend, with a daily average of 335 cases. For context, the daily average in November 2024 was 536 cases, while in December 2024, it was 404 cases.

Why Is This Data Relevant?

Understanding these figures is essential to assessing how the Portuguese legal system is effectively addressing the needs of foreign citizens and residents, ensuring that their residency processes are handled efficiently.

At LVP Advogados, we continuously monitor legal updates related to immigration policies to ensure that the necessary legal actions are taken for each of our clients.

What Are Subpoenas?

The full name is "Subpoena for the Protection of Rights, Freedoms, and Guarantees", or in Portuguese, “Intimação para a Defesa de Direitos, Liberdades e Garantias”, a legal mechanism intended to safeguard constitutional rights and ensure timely administrative action.

How Do Subpoenas Work?

In theory, the process should follow these steps:

A lawyer files and submits the initial petition.
A judge has 48 hours to accept the petition or request additional documents.
Once accepted, AIMA is notified and granted a 7-day period to respond.
The judge has 5 days to issue a ruling.
If AIMA fails to comply, daily financial penalties are imposed until compliance is achieved .

In practice, due to this overload of court cases, it can take a bit longer, once there are only two stressed-out bailiffs working in the court secretariat, among more than 50 thousand files.

How LVP Advogados Can Assist You

As a law firm based in Portugal with a focus on immigration and citizenship law , LVP Advogados is supported by a dedicated team of attorneys and legal professionals, ready to provide comprehensive responses to those seeking to reside in Portugal.

If you need legal assistance regarding this matter or any related issues, contact us .

Key Portuguese Tax Deadlines for 2025

Wed, 29 Jan 2025 17:14:06 GMT

2025 has just begun, bringing with it new opportunities and responsibilities. To make the most of the year ahead, staying informed about legal obligations, particularly those related to taxes and finances is crucial. Familiarising yourself with the key deadlines of the Portuguese tax calendar is an essential step. In this article, we will outline the important tax dates for 2025 to help you remain organised and ensure compliance with the Portuguese Tax Authority.

Organising personal finances is vital to maintaining a smooth and stress-free life. By creating a well-structured budget for daily expenses and establishing a savings plan, individuals can work towards achieving financial stability – a goal that many aspire to attain.

To effectively manage personal finances, it is essential to be familiar with the tax calendar and adhere to its deadlines. Most importantly, this helps to avoid legal penalties, which can often be costly.

This is particularly relevant for residents in Portugal, holders of the Non-Habitual Resident (NHR) tax regime , companies headquartered in Portugal, and individuals earning income sourced within the country.

To assist with the 2025 tax calendar, here are the key dates and deadlines in the Portuguese tax schedule:

31st January 2025

Form 44 Declaration (Category F Income Without Electronic Rent Receipts)

This declaration involves landlords reporting rental income paid by tenants through the Finance Portal. It applies to leasing contracts, subleasing, granting usage rights for property (not classified as leasing), or the rental of machinery and furniture installed in leased properties.

10th February 2025

Form 10 Declaration

Companies and self-employed individuals under Category B of the Personal Income Tax (IRS in Portuguese) – covering professional and business income – must submit Form 10 Declaration by 10th February 2025. This applies to the annual income of 2024 for domestic employees who have not been declared every month.

17th February 2025

Notification of Long-Term Lease Contracts or Terminations

Landlords are required to notify the Portuguese Tax Authority of new or terminated long-term lease contracts. This step is necessary to qualify for tax benefits related to personal income tax (IRS in Portuguese) .

Consultation and Update of Household Data

It is essential to update any changes in household composition that occurred by 31st December 2024. This includes events such as births, marriages, divorces, deaths, or changes of residence.

25th February 2025

Validation of Last Year's Invoices on the e-Fatura Portal

Take the time to register any missing invoices, update information, or correct any errors. It is crucial to ensure that all expenses are properly linked to the NIF number for accurate tax reporting.

1st April to 30th June 2025

Form 3 Declaration

Submission of the personal income tax return for the 2024 fiscal year. This can be completed between 1st April and 30th June, either via Form 3 or through the Automatic Income Tax Return option.

These are some of the key deadlines, but there are many other important tax obligations to be aware of, including those related to Personal Income Tax, Business Income Tax, VAT (Value Added Tax, or IVA in Portuguese), Stamp Duty, and Property Tax.

If you would like to stay informed about the 2025 Portuguese tax calendar or prefer to delegate the management of these obligations , our team is here to help.

Want to know how LVP Advogados can assist you?

Click here to contact us and ensure your tax obligations are managed efficiently and stress-free.

“No Appointment? No Problem: Solving the Visa Conundrum in Portugal”

Fri, 24 Jan 2025 11:41:52 GMT

Margarida Tempera | Lawyer

Portugal’s charm has made it a prime destination for immigrants, drawing people with its sunlit coasts, safety, and a lifestyle that feels like a lifestyle reminiscent of a constant holiday.

However, behind this idyllic exterior lies an immigration system riddled with inefficiencies, leaving many visa holders stuck in limbo, grappling with a peculiar predicament when receiving a visa without a corresponding appointment to process their residency.

Despite its ambitious mission to streamline immigration processes , it has struggled to deliver, leaving applicants navigating an administrative labyrinth.

For many, receiving a visa is the first tangible step toward building a life in Portugal, as it signals hope, the promise of stability, and the possibility of embracing new opportunities. Yet, the excitement often gives way to frustration when visa holders realise that their documents lack the crucial next step: an appointment to finalise their residency permit, as without this, the visa serves as little more than a temporary pass, leaving immigrants in a precarious legal grey area.

Obtaining a residence visa for Portugal starts with submitting the application alongside the required documents and if applicable scheduling an interview at the Portuguese Consulate, which, in theory, seems simple enough, right?

Once the application is reviewed (assuming all the stars align), the Consulate will issue a magical document that allows up to two entries and a stay of up to four months in the country, commonly referred to as a shiny residence visa.

Here's the kicker: attached to this visa is usually a precious link, as important as a golden ticket, because it is that link that provides the date for your in-person scheduling appointment with AIMA, promising to reveal the date, time, and location of your rendezvous with Portuguese bureaucracy.

But what if there is no link? Welcome to the next level of the game.

Now, you must tackle the Herculean task of scheduling the appointment yourself, which involves endless attempts to contact AIMA - think thousands of calls a month and dozens of emails shooting into the ether.

If you have ever wondered what it feels like to shout into the void, this might be your chance.

The absence of an appointment is not just a clerical oversight; it has significant legal and practical implications.

Without a residency appointment, immigrants cannot obtain essential documents that contribute to their daily lives and stability in Portugal, which results in the uncertainty that often forces individuals to navigate everyday life with restrictions, unable to integrate into Portuguese society fully.

This systemic flaw stems from the sheer volume of applications that AIMA receives daily.

Well, why does AIMA not respond? Well, here’s the plot twist: we don’t know either.

Portugal’s growing popularity as a relocation hub has overwhelmed its administrative capacity, leading to delayed responses and incomplete processes, as the lack of a synchronised system between visa issuance and residency scheduling exacerbates the issue, leaving applicants to fend for themselves in an opaque and disjointed system.

Faced with administrative silence, many immigrants feel trapped and uncertain about how to proceed. However, Portuguese law offers a remedy, as the legal framework prioritises the protection of fundamental rights, including the right to legal residency for those who meet the requirements.

When polite persistence gets you nowhere, and administrative failures threaten these rights, individuals can turn to the courts for resolution.

The legal mechanism most suited for this scenario is the Subpoena for Protection of Rights, Freedoms, and Guarantees . This tool, embedded in Portuguese Administrative Law, is designed to address urgent violations of fundamental rights and, by filing it, applicants can compel AIMA to act, ensuring their case is addressed with priority.

The process is straightforward yet impactful, as once the subpoena is filed, the courts act swiftly, often requiring AIMA to respond within days .

The goal is to resolve the matter urgently, recognising the critical importance of legal residency for immigrants. Yes, that’s right, when patience runs out, legal summons step in.

This nifty legal tool compels action, cutting through the red tape and ensuring your case is heard.

Although court proceedings add an additional layer to the process, they remain one of the most effective ways to hold the system accountable and ensure timely action.

For those navigating this issue, it is crucial to remain proactive.

Regularly checking the status of your application, maintaining clear records of all correspondence, and promptly addressing any requests from AIMA can prevent further delays.

While the system may feel daunting, persistence and informed action can make a significant difference.

The broader implications of this issue extend beyond individual cases, as they highlight the need for systemic reform within AIMA to address the root causes of inefficiency , streamlining processes, investing in digital infrastructure, and increasing staffing are essential steps to ensure the agency can meet the demands of Portugal’s growing immigrant population.

While the road to residency may be fraught with challenges, it is not without solutions. Portugal’s commitment to upholding fundamental rights provides a safety net for those caught in the system’s inefficiencies.

With the right support and a clear understanding of the available legal remedies, immigrants can navigate these hurdles and secure the residency they need to build their lives in Portugal .

If you find yourself holding a visa without an appointment, remember that you are not alone, there is a path forward, and with persistence and the right guidance, the life you envisioned in Portugal is still within reach.

So, while the road to securing a residence visa might feel like a never-ending soap opera, rest assured that it comes with solutions.

Whether through connections, persistence, or even a subpoena, the dream of Portuguese residency is still within reach, despite the bureaucratic hurdles!

Take the first step and contact us to see how we can help you in your residency journey in Portugal.

AIMA Receives €5.97 Million to Expedite Residency Applications

Wed, 22 Jan 2025 15:27:48 GMT

On 21st of January 2025, the Portuguese government approved a grant of 5.97 million euros to the Agency for Integration, Migration and Asylum (AIMA) . This funding is intended to address the backlog of 400,000 pending residence application cases and streamline the resolution process.

This funding was outlined in Resolution of the Council of Ministers No. 7/2025 and published in Diário da República, the official gazette.

The funding is allocated to the ongoing enhancement of AIMA's operations, with the objective of reducing the backlog of pending cases to zero by 30th of June 2025.

Since September 2024, AIMA has implemented various initiatives to address the backlog of 400,000 pending residency cases, starting with the establishment of new service centres .

These centres are characterised by their provision of linguistic support and the integration of resources from various public entities to increase assistance for immigrants. They also include Social Security services and collaboration with migration associations recognised as non-governmental organisations. Often organised based on the cultural backgrounds of their members, these associations play a crucial role in safeguarding immigrants' rights and promoting their social well-being as they establish their new lives.

It is important to note that these centres are temporary and are scheduled to operate until 2nd of June 2025.

In the final months of 2024, we published an article defining the changes implemented by the AIMA Agency and the current challenges it faces . The article provides a detailed overview of the adjustments made by the agency, along with insights into Portuguese immigration regulations.

In the case of Golden Visa residency applications , AIMA has also refined its management approach through digitalisation, aiming to expedite the application process. The focus is on processing as many applications as possible during the first half of 2025.

AIMA has also established partnerships with municipalities and the previously mentioned non-governmental organisations to decentralise and optimise the services offered.

The 5.97 million euros allocated will be distributed as follows: 1.63 million euros will be assigned to municipalities for the establishment of service centres in their regions, while the remaining 4.34 million euros will be directed to non-governmental organisations (NGOs).

The funds will be used to finance investments in technology for collecting biometric data from residency applicants, as well as to hire additional personnel for document screening at service centres.

The 5.97 million euros will be obtained from the 58 million euros already raised by AIMA through fees paid by immigrants undergoing regularisation processes. AIMA will oversee the allocation of these funds in accordance with the expenditures delineated in the 2024-2025 multi-year budget, financed using its own resources.

Through this initiative, Portugal reaffirms its dedication to addressing the challenges faced by foreigners wishing to reside here, while fostering social inclusion. It aims to promote a more efficient and compassionate system to meet the needs of the foreign population.

If you are a foreigner seeking guidance with your immigration process, do not hesitate to reach out to us . We are here to provide expert advice and help you navigate the best course of action.

Justice Modernised: The New Regime of Online Court Summons and Notifications for Corporate Bodies and Individuals

Mon, 20 Jan 2025 15:39:31 GMT

Danielle Avidago | Immigration Consultant

As the first days of 2025 dawn, a question flits across my mind: who still checks their post box? It’s such an unnatural act for me. But do you know what does feel natural to me—and likely to you as well? Checking my phone as soon as I wake up. Admit it, without fear: barely have we opened our eyes, and already we are plugged into the digital world. I’ll confess, I’m far quicker to check my email inbox than the post box downstairs, as my phone rests conveniently on my bedside table, whereas the post box is near the building’s car park (and guess what… I don’t own a car).

It was with this modern reality in mind, and the overwhelming congestion plaguing courts nationwide, that the government passed the Decree-Law No. 87/2024 of 7 November. In force since 10 November 2024, this decree establishes electronic service of process as the default method for corporate entities and an optional one for individuals. The government has also enacted Decree-Law No. 91/2024, in force since 15 January 2025, which regulates technological solutions and explains in detail how people can contribute to modernising the courts.

To solidify electronic service as the standard in courts, the decree has amended various articles relating to service and notifications across multiple procedural codes, including the Civil Procedure Code, the Insolvency and Corporate Recovery Code, the Administrative Courts Procedure Code, and the Labour Procedure Code. The exception to this rule is criminal processes, which still use mail summons and notifications as the default method.

What Companies and Their Representatives Must Do Immediately:

Register an email address in the Digital Services Area of the Courts, using the Public System of Electronic Notifications.
Create a unique email address.

For you to register a private company , you should have the business attribute, as the company's representative, or whoever has the quality and powers of a certified proxy, under the terms of article 546 of the Companies Code, approved by Decree-Law 262/86 of 2 September, in its current version, and the ordinance that regulates it.

Once these steps are completed, it will be possible to receive communications, summons, and procedural notifications. Whenever the court, the public prosecutor’s office, or any other adhering public organisation has something to communicate, a notification will be sent to the associated email address.

The all-important question every trainee lawyer in the country will ask once their firm registers on this platform is: When are we considered to have been summoned or notified? Until 10 November 2024, a person was deemed summoned or notified three days after receiving the summons or notification. Now, to expedite judicial processes that have been gathering dust on the judges’ desks, a person is considered summoned upon accessing the summons in their reserved area.

If a corporate entity fails to access it within eight days , a letter is sent to the registered business address, informing them that the summons is available in their reserved area. In such cases, service is deemed complete on the eighth day following the date the summons was made available in the reserved area.

If access only occurs 30 days after the summons , the deadline for submitting a defence begins from the date of access, with the intervening days treated as a delay.

For those corporate entities who still check their post box over their email inbox and do not register on the platform, a “penalty” will be in order: summons will be sent via registered mail with acknowledgement of receipt, at a cost of 1 UC (currently €51.00). This fee is intended to cover the financial, material, human and environmental costs of printing, enveloping and sending the citation. This penalty will only be in force 6 months after the entry into force of Decree-Law No. 87/2024 of 7 November, according to article 17º of this diploma. This means that you, the corporate entity, have until May 2025 to register and avoid the penalty.

For the Particular(ly Litigious) Individuals:

Registration on the platform for electronic service and notification follows the same procedure, but the timelines—our beloved and feared deadlines—are slightly different:

If access is not made within 30 days of availability in the reserved area, it is presumed to be refused, and the court proceeds with a summon via an enforcement agent.
If the individual accesses the summons during this period, the deadline is calculated from the date of access.

If you are not a holder of a NIF (Portuguese Fiscal Identification Number) or a NIPC (Portugal Fiscal Identification Number for Companies), or that information is not available for the court's secretary to access, the court considers that it is impossible to send a summon, notification or any other communication through this electronic route, which leads us back to check our postbox more often according to article 246 paragraph 13 of the Civil Procedure Code.

Because this is an optional procedure for private individuals, no penalty for not registering to receive electronic summons is in order.

Those rules became effective on 10 November 2024 and apply to ongoing cases before that date, except for administrative and fiscal processes, which will only be effective on 15 September 2025.

Electronic summons are the safest way for the courts to make sure that the intended parties will be aware of the judicial process at hand. And if no party can be summoned, the Prosecutor’s Office will be safely summoned to jump in and make sure that this court case takes its smooth and efficient course. The deadline counting mentioned is a manifestation of this new system concern´s to safeguard the right of defence and guarantee that is not compromised.

So, discard your fax machines, because the intention of the courts is for all communications to be conducted electronically, reducing the towering piles of paperwork cluttering clerks’ offices. This measure also reflects the Portuguese courts’ desire to be more transparent and swifter in resolving disputes—a reform we have long awaited. Then why not take an active role in this transformation? If you want to know more about it, feel free to contact us so we can assist you in taking part in this revolutionary act towards a more efficient and digital justice.

The Lease Chronicles: Perils, Perks, and Peculiarities of Renting in Portugal

Fri, 17 Jan 2025 15:14:12 GMT

Margarida Tempera | Lawyer

Imagine you have finally discovered the perfect rental in Portugal, a charming flat adorned with traditional azulejos, offering a picturesque view of cobblestone streets and perhaps even a cosy café just below, where the scent of freshly baked pastéis de nata drifts through your window each morning. As you sit down to sign what seems like a straightforward document, commonly known as the lease agreement, you might feel a sense of relief, thinking the most challenging part of the process is behind you. However, in reality, you may be unwittingly entering a labyrinth of legal intricacies, peculiarities, and unforeseen hurdles that could turn this seemingly simple contract into a complex and occasionally dramatic experience.

That said, it is important to bear in mind that the lease agreement, despite often being perceived as a harmless contract granting tenants certain rights, is in reality a complex legal document filled with formalities designed to protect the party drafting the agreement.

While Portuguese law aims to protect both landlords and tenants, with special emphasis on safeguarding the weaker party (typically the tenant), the reality is far more intricate, as many lease agreements deviate from legal provisions, containing clauses that are disproportionate, outright illegal, or simply baffling.

In light of this, the lease contract could easily be described as one of the most common yet deceptively simple contracts. Its specifications, even when unlawful, often lead to disputes and create significant hardships for those unfamiliar with their legal rights.

From renewable contracts disguised as fixed-term agreements to demands for 12 months' rent upfront, today’s rental agreements often push the boundaries of what is legally or ethically acceptable.

Speaking of renewal, it is worth noting that lease agreements in Portugal come with built-in opportunities for automatic renewal because, unless explicitly agreed otherwise, a fixed-term contract will renew automatically for the minimum period of 3 years , even if the notice of opposition to the renewal is given, often catching both landlords and tenants off guard.

For landlords, terminating a fixed-term lease requires a solid understanding of the legal nuances, as the notice periods vary depending on the contract type, its renewals, and its duration, sometimes making the process feel like sending a breakup text over a few months in advance.

On the other hand, tenants benefit from shorter notice periods, offering more flexibility to terminate a contract or oppose a renewal, which allows them to seek better accommodations, whether for improved natural light or fewer plumbing issues.

Having said that, let us now dive into everyone’s favourite topic: rent .

If you have ever wondered why Lisbon rents seem to be competing with London or Paris, you are not alone, as the average rent for a modest two-bedroom flat in Lisbon can surpass 1,500 euros, while in more rural or suburban areas, you might find something similar for 500 to 800 euros.

The irony is palpable when you realise that this disparity exists in a country where the minimum wage hovers around 870 euros, but here is a fun tidbit for tenants to keep in mind: rent updates are not just something landlords can casually adjust over their morning espresso, as Portuguese law strictly requires any annual increase to follow the inflation index, which means you will not wake up one day to find your rent doubled unless you have signed something incredibly dubious.

On the other hand, landlords often find themselves at the mercy of tenants who treat security deposits as a personal savings account or who believe “normal wear and tear” includes drilling holes into every available surface. Despite occasional tenant abuses, Portuguese law provides landlords with legal remedies, particularly in cases of non-payment, where the eviction process, albeit slow, is designed to restore their rights.

However, the notorious delays in the Portuguese legal system often require landlords to exercise patience and rely on skilled legal counsel to navigate the labyrinthine process of reclaiming their property.

Another fascinating topic worth mentioning is the resurgence of longer-term leases, spurred by tax incentives introduced to combat the housing shortages driven by Portugal’s booming tourism industry.

This policy has encouraged landlords to offer five or even ten-year agreements, luring them with significantly lower tax rates while granting tenants the stability of a home they can enjoy without fear of sudden price hikes or abrupt eviction notices.

Of course, in true rental market fashion, some landlords have interpreted these provisions with a flair for creativity, attempting to juggle short-term profits and long-term benefits in a real estate act that could rival even the most daring circus performances.

While this initiative aims to stabilise the market, it has also given rise to some “innovative” definitions of what constitutes a long-term lease, leaving tenants and legal advisors seeking clarity in equal measure.

And then there are the quirks, those delightful idiosyncrasies that make the Portuguese rental market unique.

Did you know that rental agreements can, sometimes, be verbal? However, despite being technically allowed, this practice is highly discouraged, as proving their terms in court if disputes arise can be extremely challenging. And let us not forget the mysterious case of missing receipts as the most common gripe among tenants attempting to claim their rent for tax deductions, only to be met with a landlord who insists that handing over an invoice is somehow optional, despite being aware of the legal obligation to declare rental income and issue official receipts through the Portuguese Tax Authority (Autoridade Tributária).

The reality is that the day-to-day life of landlords and tenants in Portugal often mirrors a sitcom, complete with misunderstandings, occasional disputes over noisy neighbours or stubborn light fixtures, and a sprinkling of heartfelt compromises, and for every landlord lamenting the tenant who redecorated without permission, there is a tenant complaining about a landlord who seems to have vanished into thin air when the heating stopped working.

Yet, despite these challenges, the rental market remains a cornerstone of Portuguese living, providing homes to countless individuals and families seeking to carve out their little corner of this sunny paradise.

So, whether you are a tenant trying to navigate your rights or a landlord wondering if that lease you downloaded from the internet is actually enforceable, remember this: the rental market is as much about relationships as it is about regulations.

With the right knowledge, a touch of humour, and perhaps a well-timed call to a savvy legal advisor, you can turn even the trickiest of rental situations into a win-win.

After all, life is too short to worry about peeling paint or missing receipts, especially when Portugal’s cobblestone streets, vibrant culture, and unparalleled views await right outside your door.

Portuguese Citizenship - How to Prove Knowledge of Basic Portuguese?

Thu, 16 Jan 2025 11:25:25 GMT

Madalena Viana Pedreira | Lawyer

Have you been a legal resident of Portugal for the past five years? If so, the exciting time may have come - you are now eligible to apply for Portuguese citizenship . However, while you may meet the eligibility criteria, are you prepared to prove you meet all the requirements? Specifically, do you have a certificate demonstrating your knowledge of basic Portuguese?

To obtain Portuguese citizenship by naturalisation, applicants must prove their understanding of the Portuguese language. This requirement ensures that those who become Portuguese citizens can communicate at a basic level. Unlike some European countries that also require cultural knowledge, Portugal focuses solely on language assessment.

This article outlines various ways to demonstrate knowledge of the Portuguese language, offering flexibility depending on the applicant’s circumstances. Special provisions apply to minors, seniors, people with disabilities, and nationals of Portuguese-speaking countries.

How to Prove Knowledge of the Portuguese Language

The Portuguese nationality law provides several pathways to prove your language proficiency:

Certificate of Qualifications from an Educational Institution

Applicants can provide a certificate from a public, private, or cooperative educational establishment, recognised under legal terms, confirming successful attendance of Portuguese language classes for at least two academic years.
If the certificate is from an institution where Portuguese is the official language, it must certify attendance and qualification in Portuguese as part of the curriculum.

Certificate of Approval in a Portuguese Language Test

This test can be taken in public educational institutions in Portugal or locations accredited by Camões - Instituto da Cooperação e da Língua, I.P. if taken abroad ( more details here ).
The test includes three components: reading comprehension, writing, and oral comprehension.
Only individuals who meet the minimum age for compulsory education in Portugal are eligible to take the test. Compulsory education ends:

Upon obtaining a high school diploma; or
In the school year during which the student turns 18, regardless of diploma completion.

For applicants aged 60 or older who cannot read or write, the test is adapted to match their ability to demonstrate knowledge of Portuguese. Those with disabilities or serious health conditions are exempt but must provide proof through a multipurpose medical certificate or report, as per Portuguese legislation.

Certification in Portuguese as a Foreign Language

Applicants can obtain a certificate by completing a Portuguese language test at an assessment centre recognised by the Ministry of Education and Science ( more details here ). The test must confirm a level of A2 or higher.

Certificate of Completion of Level A2 or Higher in a Certified Course

A certificate issued by public educational establishments, employment and training centres, or Instituto do Emprego e da Formação Profissional, I.P. (IEFP, I.P.).
Courses, commonly known as Português Língua de Acolhimento (PLA), must include a minimum of 150 hours and be conducted in certified learning centres.

Proof for Minors

For minors who have not yet completed the 1st level of basic education, a declaration issued by their school can serve as proof of Portuguese language knowledge.

Proof for Nationals of Portuguese-Speaking Countries

Applicants from Portuguese-speaking countries can prove proficiency with a certificate of qualifications from a recognised educational institution in their country.
Additionally, proficiency is automatically assumed for individuals who:

Were born and are nationals of a Portuguese-speaking country for at least 10 years, and
Have resided in Portugal for at least five years, regardless of the type of residence permit.

These are the different ways to demonstrate your proficiency in the Portuguese language.

If you require further information, contact us . We are here to assist with your needs.

Navigating Tax Benefits: A Comparative Analysis of Non-Habitual Residence (NHR) Tax Regime and IFICI+ Tax Benefit

Wed, 15 Jan 2025 11:41:00 GMT

Diogo Pedro | Tax Consultant

Since 2009, Portugal has been actively encouraging the arriving of new residents through the Non-Habitual Resident (NHR) regime. This initiative aims to attract both capital and expertise to our country by inviting individuals to establish residence in Portugal.

Under this regime, individuals who have not been residents in Portugal in the last 5 years, and whose incomes are subject to taxation in their home country, are granted a 10-year exemption from personal income tax (IRS).

Furthermore, the NHR regime offers the option to tax income from labour and freelance work at an autonomous tax rate of 20%, along with a 20% withholding tax rate for labour incomes. This specifically applies to activities characterised by a high level of scientific, artistic, or technical value.

However, the NHR regime has been revoked and now Portugal has introduced a new tax benefit to replace it.

This new tax incentive aims to promote high-value activities and is outlined in Article 58.º-A of the Tax Benefits Statute. The name of the regulated tax benefit is IFICI+ .

This benefit includes:

People lecturing in higher education and scientific research, along with participating in scientific roles within the national science and technology system. This includes employment opportunities within entities, structures, and networks, as well as positions and memberships in governing bodies within organizations recognized as technology and innovation centres.
Skilled positions within the context of contractual benefits aimed at promoting productive investment, in alignment with Chapter II of the Portuguese Investment Tax Code.
Individuals with jobs recognised by the Agency for Investment and Foreign Trade of Portugal, E.P.E., or by IAPMEI - Agency for Competitiveness and Innovation, I.P. as fundamental to the national economy (including those working in the Azores and Madeira, subject to conditions set by regional laws).
Individuals engaged in research and development activities, whose expenses are eligible for the purposes of the tax incentive system in research and business development, as outlined in the Investment Tax Code.
Individuals moving to Portugal to work for certified start-ups (companies with a staff of no more than 250 individuals, an annual income not exceeding 50 million euros and a business history of fewer than ten years), provided that the company’s headquarters are established in Portugal or have representation in the country. Alternatively, they must have at least 25 employees in Portugal. Moreover, these startups cannot result from a merger or division of a larger company.
Job positions or other activities carried out by tax residents in the autonomous regions of the Azores and Madeira.

Now, let’s examine the practical differences between taxation under the NHR regime and the IFICI+ tax benefit.

For this purpose, we will consider an individual whose income results from a Portuguese salary, interest income, capital gains from real estate, capital gains from stocks and a private pension, all from white-listed countries.

By analysing all this information, we can conclude that the IFICI+ tax benefit is notably more exclusive. It particularly focuses on education, R&D and entrepreneurship activities. However, taxpayers who fall within this new tax benefit can get an exemption from foreign income derived from white-listed countries.

This means that, even though the IFICI+ has a stricter range of applications, it can be more advantageous for the individuals who can benefit from it. Given the fact that there is no need for the income to be subjected to taxation or liable to taxation in the country of source, unlike the NHR regime.

With the IFICI+ tax benefit officially regulated through Regulation No. 352/2024/1 on the 23rd of December 2024, every foreign taxpayer in Portugal who fulfils the requirements can apply and benefit from this special regime.

If you have further questions regarding this matter or need help with the application, get in touch with us and we will be delighted to assist you.

Navigating the Fiscal Address Maze in Portugal: Simple Steps for Big Benefits

Tue, 14 Jan 2025 15:42:24 GMT

Cleuzina Cruz | Paralegal

Changing your fiscal address is not just a simple update of your contact details; there are serious consequences in doing so. In this article, you will find the key points to consider when updating your fiscal address, including which services, recognised besides the Tax Authority need an address update.

Your fiscal address is the official address recognised by the Tax Authorities, where you will receive your official correspondence, such as tax notifications. If you decide to move to Portugal permanently, you should change your tax address with the Tax Authority. However, this change for foreign citizens depends on the status of your immigration process.

If you are already a Portuguese citizen and decide to move to another country or house you should start by changing your address on your Citizen Card, you can do this online and in person at the IRN (Instituto dos Registos e do Notariado in Portuguese).

Changing the address on the citizen's card will also be updated automatically in some services, such as the Tax Authorities, Social Security, National Health Service, etc.

If you are not a Portuguese citizen and decide to move your fiscal address to Portugal, please keep in mind that this is only possible after you have your immigration situation regularised at AIMA (Agência para a Integração, Migrações e Asilo in Portuguese).

You need to inform other entities to ensure the update of your personal records and documents. These include:

AIMA : You must inform AIMA about your new address, as they manage residence permits for foreign nationals.
Tax Authority: You need to update your address with the Tax Authority to ensure that your Tax records are accurate.
Social Security : The update done on your fiscal address must be informed to the Social Security services.
National Health Service: You must inform your health centre about your new address, and if you move to a different Parish you may be appointed a new family doctor.
IMT ( Instituto da Mobilidade e dos Transportes) : If you are a holder of a Portuguese driving license, you must update your address.
Banks and Insurance companies : These institutions can request an update of your address to send information regarding your accounts, loans and other services.
Telecommunications providers
Utilities
Insurance
Citizen Card

Failing to update your tax address can lead to serious administrative and financial consequences.

One of the risks of an outdated tax address is missing important deadlines. For example, if you do not receive a payment notice, you may end up paying fines and interest for late payment.

Non-compliance with tax obligations can also result in a penalty for failing to keep your details updated, as stipulated by Tax Authority regulations.

Additionally, for those benefiting from special tax regimes, such as the Non-Habitual Resident (NHR) Regime, or the new IFICI+ benefit , the correct tax address is essential to ensure that those benefits are applied properly. If the address is not updated, the individual may lose their entitlement to the benefit, leading to significant financial losses.

The update of the tax address can be easily done through the Tax Authority's website (Portal das Finanças in Portuguese) or at the service centres and should be done whenever there is a change in the taxpayer's place of residence.

In conclusion, keeping your address updated with the relevant institutions is essential to avoid missing important notifications, delays in processes like tax refunds or insurance claims, and complications in emergencies. Taking this simple step helps keep your affairs in order and ensures that your rights and responsibilities are properly managed.

For further inquiries or additional information on this topic, please feel free to contact us . We are available to provide further insights or address any questions you may have.

IFICI+: The New Tax Benefit for Foreigners Now Regulated

Thu, 09 Jan 2025 11:44:12 GMT

Diogo Pedro | Lawyer

The IFICI+ tax benefit, designed for foreign taxpayers in Portugal, was officially regulated on 23rd of December 2024 through Regulation No. 352/2024/1.

This regulation plays a crucial role, as Article 58.º- A only introduced the tax benefit and lacked the necessary framework for implementation. Although the IFICI+ tax benefit was established in principle, its practical application and utilisation were not feasible until now. With this regulation, the IFICI+ has become fully operational.

Below, the key aspects of this regulation are outlined, including eligibility criteria, application procedures, and how the benefit works, to provide a clear understanding of its framework.

Eligibility Criteria

To be eligible for the IFICI+ tax benefit, applicants must meet specific eligibility requirements, including:

Being a taxpayer with residency in Portuguese territory.
Engage in professional activity that falls within the scope of paragraphs a) to f) of number 1 of Article 58 - A of the Estatuto dos Benefícios Fiscais (EBF) – Tax Benefits Statute.
Cannot benefit or have previously benefited from the Non-Habitual Resident (NHR) Tax Regime or Regressar tax benefit .
Cannot have been a tax resident in Portugal in the last 5 years.

Enrolment Requests

Timelines are a critical aspect of this process. To benefit from this tax regime , the enrolment request must be submitted by the 15th of January of the year following the first year of residency in Portugal.

Subsequently, enrolment requests must be presented to the appropriate regulatory bodies, which vary depending on the applicant’s professional activity.

Foreign citizens who become Portuguese taxpayers from 1st of January 2024 onward are eligible to apply for the IFICI+ tax benefit. However, those who become tax residents in 2024 have until 15th of March 2025 to complete the application.

Requirements Validation

The entities responsible for validating the eligibility of candidates for the IFICI+ tax benefit are as follows:

Tax Authority – responsible for ensuring compliance with all legal requirements of the application.
Activity-Specific Regulatory Bodies – Validate professional activity eligibility based on the framework outlined in Article 58-A, number 1, paragraphs a) to f) of the EBF. The regulatory bodies are outlined in Regulation No. 352/2024/1, Article 2, number 2, paragraphs a) to f).

Required Documentation

To meet the requirements for the IFICI+ application, the following documentation must be provided:

A copy of the employment contract, applicable exclusively to dependent workers.
An updated, permanent commercial certificate is required when the activity involves being a member of a corporate body.
A copy of the scholarship contract, applicable when the activity performed relates to scientific research.
Proof of the relevant academic qualifications.
Any additional documents that may be requested.

If a taxpayer benefiting from the IFICI+ tax regime undergoes a change in their professional situation, this change must be reported to the relevant entity responsible for regulating the respective activity.

Such a professional change may render the beneficiary ineligible to continue receiving the IFICI+ tax benefit. Any changes must be reported by January 15 of the year following the occurrence, clearly stating, when applicable, the date on which the previous activity was terminated.

Key Features of the Tax Benefit

Key features of the IFICI+ tax benefit include:

Taxpayers meeting the eligibility requirements can benefit from a special Personal Income Tax rate of 20% on net income from categories A (employment) and B (self-employment) derived from eligible activities.
This reduced rate applies for a period of 10 consecutive years starting from the year of residency registration in Portugal.

Conclusion

Portugal is dedicated to enhancing its corporate landscape by attracting investment and skilled professionals. The introduction of the IFICI+ tax benefit for knowledge workers is a significant step toward achieving this goal. Alongside the thriving business environment, Portugal's natural beauty and unique charm make it an irresistible destination for those seeking both professional and personal fulfilment.

If you would like to learn more about the IFICI+ tax benefit or need assistance with your application, please feel free to contact us . We are here to provide guidance and support tailored to your needs.