The European Commission has decided to take Portugal to the EU Court of Justice for discriminating against taxpayers which cease to be tax resident there. The Commission considers such provisions to be incompatible with their right to free movement set out in the Treaties.

Under Portuguese tax law, taxpayers no longer resident in Portugal are subject to immediate taxation in case of exchange of shares. Taxpayers are also taxed immediately in case of transfer to a company located abroad of assets and liabilities related to the exercise of an economic or professional activity. The Commission considers that such immediate taxation penalises those persons who decide to leave Portugal or transfer assets abroad, by introducing less favourable treatment for them in comparison to those who remain in the country or transfer assets to a resident company.

Press release


Informatiesoort: Nieuws

Rubriek: Europees belastingrecht

H&I: Previews


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