Relief at source - eligibility, documentation, deadlines - Portuguese debt securities
Who can obtain relief at source?
Relief at source of withholding tax on interest from Portuguese debt securities is available through LuxCSD for beneficial owners depending on the applicable legislation, as follows:
Domestic bonds subject to Law 83/2013 clarified by Circular Letter 4/2014
Eligible beneficial owners | Rate applicable at source |
DTT/TIEA residents eligible for tax exemption | 0% |
Credit institutions, financial companies, pension funds, insurance companies domiciled in an OECD Member State or in a DTT country | 0% |
Collective Investment Vehicles (CIVs) domiciled in an OECD Member State or in a DTT country | 0% |
Central banks, public law agencies, public law entities or International/Supranational organisations recognised by the Portuguese state | 0% |
Portuguese residents eligible for tax exemption | 0% |
Portuguese residents not eligible for tax exemption but applying for reduced tax rates | 25% / 28% |
Documentation requirements
There are different documentation requirements depending on the applicable legislation and on the status and residency of the beneficial owner.
Domestic bonds subject to Law 83/2013 clarified by Circular Letter 4/2014
To apply for tax relief at source, all customers holding such bonds must submit:
- One-Time Certificate for Portuguese Debt Securities - DL 193/2005 amended by Law 83/2013;
- Per-payment instruction, if no standing instruction in place;
Important Note: To obtain tax exemption at source on behalf of non-residents of Portugal eligible for tax exemption as per Law 83/2013, customers must provide only the total position held by such beneficial owners. Their identity and separate holdings are not requested.
Form descriptions are presented according to the procedures available for relief and/or reclaim of withholding tax on income from Portuguese debt securities.
Deadlines for receipt of documents
Documentation for relief at source of withholding tax on interest from Portuguese debt securities must be received by LuxCSD at least one business day before the respective payment date by 10:00 CET.
Important note:
If any instruction, tax certification or amendment is received after these deadlines, the customer’s entire application for relief at source will be rejected, with the possibility to be processed via the quick refund.