The Government of Portugal has initiated the procedure to include the Russian Federation in the national list of non-cooperative tax jurisdictions. Lisbon has sent an official request to the Assembly of the Republic, requesting authorization to revise the sovereign list of states. If approved by parliament, Russia's status will change, which will be a direct consequence of the synchronization of Portuguese legislation with the decisions of the Council of the European Union, adopted back in February 2023.

This step will not remain a formality. Inclusion of the country in the register of "tax havens" (regulated by Order No. 150/2004) will automatically annul standard preferences and transfer all financial flows to strict fiscal control. For residents of Portugal who maintain assets or income in the Russian Federation, this means a fundamental change in the rules of the game.

Financial consequences: from 28% to 35%

According to estimates by tax consultants, the change in Russia's status will entail the application of punitive rates and enhanced administration. Key changes will affect the following areas:

  • Increased tax rate: A flat rate of 35% will be applied to any income from Russian sources — dividends, interest on deposits, coupons, as well as capital gains from the sale of securities or real estate. This is a significant increase compared to the standard 28%.
  • Mandatory declaration: Residents will be obliged to declare all controlled foreign assets and accounts in the Russian jurisdiction annually. Reporting is submitted to the tax authorities (Autoridade Tributária e Aduaneira) using a special form, Modelo 39.
  • Corporate restrictions: Portuguese companies will lose the right to deduct expenses from the tax base for transactions with Russian counterparts. This will make doing business with Russia economically less profitable.
  • Tightening of compliance: Banks are obliged to automatically transmit information on cross-border transfers to countries on the blacklist. Any transactions with signs of Russian beneficiaries will be subject to enhanced checks for money laundering (AML).

Blow to the NHR regime and migration programs

The legislative initiative will affect a large group of citizens who have used Portugal's migration programs. According to the Agency for Integration, Migration and Asylum (AIMA), the number of Russians legally residing in the country has tripled: from 5.2 thousand people in 2021 to 18.5 thousand by the end of 2024.

A significant part of this diaspora arrived via visas for persons with passive income (D7), digital nomad visas, or under the favorable tax regime for new residents (Non-Habitual Resident — NHR). Lawyers emphasize that recognizing Russia as a "tax haven" effectively neutralizes the key advantages of the NHR regime for those who have retained sources of income in their homeland.

According to the norms of the General Tax Law of Portugal (Lei Geral Tributária), transactions with entities from jurisdictions with preferential taxation are subject to special control. The burden of proving the business purpose of the operation and the absence of intent to evade taxes is fully placed on the taxpayer.

Dilemma for residents

As a result, Portuguese residents with ties to Russia will face a tough choice. They will either have to completely liquidate assets in the Russian Federation to avoid increased taxation and bureaucratic burden, or come to terms with significant financial losses when paying taxes within Portugal. For business, this means reviewing the strategy of working with Russian partners, as expenses for their services will no longer reduce the tax base.