This is the oldest tax in Portugal and its origins date back to the 17th century. This tax applies to a broad range of economic operations. Law 150/99 of 11 September approved the Stamp Duty Code, and it has been successively amended since then.
Characteristics of stamp duty
Stamp duty applies to a series of legal acts, contracts, documents, titles, documents and other acts or situations that are listed in the General Stamp Duty Table. Given the heterogenic nature of the tax, it is necessary to consult the table in order to check whether a particular legal act is subject to this tax. It may cover multiple situations, such as rental agreements, successions and endowments, cheques, credit securities, gambling, loans, the granting of credit, guarantees and interest, among others. The tax only applies to acts that have occurred on Portuguese territory.
The entities that have an economic interest in the act shall pay the tax. If there is more than one interested party, payment shall be shared by the all the parties proportionally. Operations that are subject to VAT and not exempt from it shall not be subject to Stamp Duty.
The law also provides for application of Stamp Duty on the following:
- Documents, acts or contracts issued or signed outside of Portuguese territory under the same terms they would otherwise have been issued or signed on Portuguese territory, if submitted here for any legal purposes;
- credit operations undertaken and guarantees pledged by credit institutions, financial companies or any other entities, regardless of their nature, headquartered abroad, undertaken by affiliates or branches abroad of credit institutions, financial companies or any other entities headquartered in Portuguese territory, to any entities, regardless of their nature, domiciled in Portugal, the domicile being considered the head office, affiliate, branch or stable establishment;
- Interest, commissions and other instalments charged by credit institutions or financial companies headquartered abroad or by affiliates or branches abroad of credit institutions or financial companies headquartered in Portugal to any entities domiciled in Portugal, the domicile being considered the head office, affiliate, branch or stable establishment of the entities that participate in the transactions;
- Insurance policies that cover risk that occurs on Portuguese territory.
Taxpayers must submit a monthly declaration itemized according to each applicable fee listed in the General Table, no later than the 20th of the month that follows the one in which the tax obligation was generated.
Companies established within the scope of the International Business Centre of Madeira as of 2015 shall be subject to a limitation of 80% with respect to Stamp Duty.
