Portugal: Withholding tax on dividends to nonresident investment funds contrary to EU law

Supreme Administrative Court decision

July 31, 2024

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

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.

By submitting, you agree that KPMG LLP may process any personal information you provide pursuant to KPMG LLP's . Privacy Statement

An error occurred. Please contact customer support.

Job seekers

Visit our careers section or search our jobs database.

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Office locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.

Headline