Portuguese Investment Funds – new tax regime

To summarize, under the new regime, most of the income obtained by Funds will become exempt from Corporate Income Tax (CIT). Non-resident Investors without a local permanent establishment (provided they do not have their residence in a ‘tax haven’ and no more than 25% of its share capital is held by Portuguese-residents) will remain exempt from Portuguese taxation in respect of income derived from Securities Investment Funds and, in respect of income derived from Real Estate Funds, they will become taxed in Portugal at a 10% rate. Income obtained by Portuguese-resident Investors will always be taxed, whether the Investors are individuals or collective undertakings…