Portugal: Withholding tax on dividends to nonresident investment funds contrary to EU law
Supreme Administrative Court decision
The Supreme Administrative Court held that imposing withholding tax on dividends paid to a U.S. investment fund, while exempting dividends paid to resident investment funds, constitutes a restriction on the free movement of capital and is therefore contrary to EU law.
Background
The Court of Justice of the European Union (CJEU) in 2022 confirmed that Portugal's withholding tax regime on dividends paid to non-EU investment funds was contrary to the free movement of capital.
Read a July 2024 report prepared by the KPMG member firm in Luxembourg