In Portugal, a restrictions on the deduction of interest has announced that effects from 2013. Net financial costs are only deductible up to the higher of EUR 1 million (EUR 3 million before 1 January 2014) or 30% of profit before depreciation, net financing expenses and tax, subject to transitional provisions. The restriction is applicable for net financing expenses relating to bank financing and intragroup loans, and includes both domestic and foreign financing. Net financing expenses exceeding the threshold may be carried forward for 5 years.