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Find out more about IPT.
There is no IPT regime in Portugal. Instead, Stamp Duty applies.
Stamp Duty Portugal Law
The Portuguese tax law for Stamp Duty/Insurance Premium Tax is contained within the Decree Laws.
Basis of Portuguese IPT / Stamp Duty Calculation
Stamp Duty in Portugal is based on three components:
- Commercial Premium;
- Gross Premium; and
- Total Premium.
Stamp Duty is calculated on the gross premium. Tax is due at the cashing in of the premium.
Portuguese IPT Liability
The insurer is liable for the tax calculation and payment. EEA insurers operating on the Freedom of Services basis are required to appoint a local fiscal representative. This representative must keep detailed records of all insurance policies written in Portugal by the insurer.
Portugal IPT / Stamp Duty Rates
Principal Portuguese Stamp Duty rates include:
- Personal accident 5%;
- Health 5%;
- Fire and property 9%;
- Motor 9%;
- Marine 5%;
- Credit 5%;
- Liability 9%; and
- Other classes 9%.
Life insurance cover is exempt from Portuguese Insurance Premium Tax / Stamp Duty. However, Freedom of Services insurers providing Life cover in Portugal may nevertheless have to appoint a local Fiscal Representative. This rep must file the equivalent of ‘nil’ returns with the Portuguese tax authorities.
Reinsurance is exempt from Stamp Duty / IPT in Portugal.
There are many variations to the rates above.
Portuguese Parafiscal Charges
In addition to Portuguese Stamp Duty, there are also a number of additional insurance levies and charges, including:
- Fire Brigade;
- Accidents at Work (FAT);
- Emergence Fund (INEM);
- Motor Guarantee Fund (FGA); and
- Portuguese Insurance Institute (ISP).
Payments of Portugal IPT / Stamp Duty
Portuguese IPT is payable in the month following the payment of the premium.
Most of the Insurance Parafiscal Charges and Levies are due on a monthly basis too.
International enquiries should contact TMF’s UK offices, which co-ordinate global IPT services.
Find out more about IPT.