On 30 March 2016, the State Budget 2016 (Law 7-A/2016) of Portugal has been promulgated by the President of the Portuguese Republic and published in the official journal Diário da República. Additionally, on 5 February 2016, further budget measures have announced.

The main changes of this new Law 7-A/2016 are related to:

  • Amendments to the tax regime applicable to distributing Portuguese Collective Investment vehicles;
  • The eligibility criteria to the Participation Exemption Regime;
  • Several exemption mechanisms such as capital gains or repo transactions exemptions; and
  • The authorization for the government to transpose during 2016 the Directive 2014/107/UE and Common Reporting Standard (CRS) to domestic law.