Investing from Portugal: the 28% rate, englobamento and PPR

• Capital gains: 28% on the balance of gains and losses; englobamento as an option.
• Holding period: for securities admitted to trading and open-ended funds, 10% of the balance is exempt after more than 2 years, 20% from 5 years and 30% from 8 years.
• Under 365 days: englobamento is mandatory if taxable income including the gain reaches the top bracket.
• Dividends and interest: 28% final withholding (taxa liberatória) when paid through a paying or mandated agent.
• PPR: 20% of contributions deductible from the tax, at most EUR 400, 350 or 300 depending on age.
• US dividends: 15% under the treaty.

The positive balance of gains and losses on securities is taxed at an autonomous rate of 28% (CIRS art. 72(1)). Residents of Portugal can opt for englobamento instead, taxing the gains together with their other income at progressive rates (art. 72(13)). Englobamento is mandatory for the balance on assets held for less than 365 days if taxable income including that balance reaches the top bracket of the scale (art. 72(14)).

Since Law 31/2024, a holding-period relief applies (CIRS art. 43(5)) to securities admitted to trading on a market and to units of open-ended investment funds: 10% of the balance is exempt for more than 2 and less than 5 years, 20% for 5 to under 8 years and 30% from 8 years. The relief applies to positive and negative balances alike, so losses are reduced too.

An example with a EUR 10,000 gain on listed shares: after one year EUR 2,800 of tax, after six years EUR 2,240 (EUR 8,000 taxable), after nine years EUR 1,960 (EUR 7,000 taxable).

The rate is higher where Portugal's list of states with a clearly more favourable tax regime comes in: 35% on gains on securities whose issuer is domiciled there, and on investment income from debtors domiciled there where no tax was withheld (art. 72(18)). What counts is the domicile of the issuer or debtor, not of the broker. For certain transactions, including derivatives, losses do not count if the counterparty is subject to such a tax regime (art. 43(7)). That can affect CFDs and other derivatives where the counterparty is based there.

Investment income within the scope of CIRS art. 71(1) carries a final withholding tax of 28% (taxa liberatória). This includes income from securities of foreign issuers paid to Portuguese residents through an agent mandated by the debtor or the holder. Whether a broker abroad without a Portuguese establishment withholds the tax, the article does not say. Englobamento can also be chosen for investment income.

We found no tax on securities transactions. Stamp duty (Imposto do Selo, table item 17.3.4) charges 4% on "other commissions and charges for financial services" billed by or through credit and financial institutions. Whether that reaches a broker's commissions, particularly a broker abroad, we have not checked.

The Plano de Poupança-Reforma (PPR) is the retirement product under EBF art. 21; since Law 31/2024 it also covers pan-European personal pension products (PEPP) domiciled in the EU or EEA.

• Deduction: 20% of the year's contributions reduces the tax, at most EUR 400 under age 35, EUR 350 from 35 to 50 and EUR 300 over 50, within the limits of CIRS art. 78. Someone under 35 contributing EUR 2,000 thus reaches EUR 400.
• Payout as capital: for category E payouts (lump sum or over up to ten years), two fifths of the income is taxed at 20%, which works out at 8% of the income.
• Outside the legal cases: the deducted amounts are clawed back, increased by 10% per year or part year, and the income is taxed at 21.5%.

In addition, EBF art. 20-A supports long-term saving in deposits, other investments with financial institutions and government debt where the capital is locked for at least five years; shares are not included, and we did not read how large the relief is. The former share savings plan (PPA) was repealed in 2018.

Investment firms are registered by the Comissão do Mercado de Valores Mobiliários (CMVM), credit institutions by the Banco de Portugal. The compensation limit of the Sistema de Indemnização aos Investidores we could not confirm from any official source.

Portuguese providers we do not compare or rate (yet): ActivoBank (Banco de Portugal no. 23), authorised to receive and transmit orders, and Banco Carregosa (CMVM no. 0169, Banco de Portugal no. 0235) with its GoBulling trading platforms and PPR.

The Comissão de Valores Mobiliários (CVM) supervises the securities market. Brokers from abroad such as Avenue and Webull offer their services to Brazilian residents through a Brazilian intermediary authorised by the CVM and the central bank (CVM Parecer de Orientação 33/2005); according to these providers, their own services are not supervised by the CVM.

• Brazilian exchange: 15% on net gains, 20% for day trading (Law 11.033/2004). Gains on spot-market share sales are exempt in months in which total sales are BRL 20,000 or less. Except for day trades, the Brazilian intermediary withholds 0.005% of the sale value as an advance, creditable against the monthly tax. Losses can be offset against later gains of the same kind.
• Dividends from 2026: 10% withholding on the whole amount when the same company pays the same individual more than BRL 50,000 in a month (Law 15.270/2025). On top comes a minimum tax for total income above BRL 600,000 a year, rising linearly to 10% from BRL 1.2 million.
• Investments abroad: 15% a year through the tax return, without deductions (Law 14.754/2023), on dividends, gains on foreign exchanges and also currency gains against the real. Foreign tax is creditable only where a treaty or reciprocity exists.
• US dividends: there is no double taxation treaty with the US; the US rate is 30%. Whether reciprocity allows a credit we have not checked.
• Reporting: capital abroad of USD 1,000,000 or more is reported to the central bank every year.
• Currency exchange: the IOF tax is 1.10% on transfers abroad for investment and 3.5% on other transfers making money available abroad to the resident or relatives (Decreto 6.306, 2025 wording). The legal text refers to a congressional decree (DL 176/2025) and a Supreme Court case (ADC 96), whose status we have not checked.
• Investor protection: the MRP mechanism of the B3 exchange, administered by BSM, compensates proven losses caused by participants in B3 markets up to BRL 200,000 per investor; the same limit applies to cash held with a participant if the central bank intervenes or it is liquidated.
• Retirement: contributions to a PGBL are deductible up to 12% of income if contributions are also paid to public social security. For payouts, a declining table can be chosen, from 35% up to 2 years to 10% above 10 years; the same applies to life insurance with survival cover (VGBL).

From our comparison, Webull has a Brazilian site; US trading is executed by Webull Financial LLC and offered through the Brazilian firm H.H. Picchioni CCVM. Interactive Brokers has a Portuguese-language site. We have not compared or rated, among others, Avenue (Avenue Securities Banco de Investimento, registered with the CVM), Nomad (through Global Investment Services DTVM), XP Investimentos and Nu Invest. More on the page brokers for investors in Brazil.

• the compensation limit of the Portuguese Sistema de Indemnização aos Investidores;
• Anexo J and the reporting of accounts abroad in Portugal;
• whether stamp duty applies to the commissions of a broker abroad;
• Portuguese tax reports from XTB, Trade Republic, DEGIRO and Revolut;
• for Brazil: the payment deadline for exchange gains, whether day trading is excluded from the BRL 20,000 limit, the legal status of the IOF beyond the legal text, brokers' Brazilian tax reports, and the offer of eToro and Binance.

Compare by country of residence: stock brokers for investors in Portugal and ETF brokers for investors in Portugal.

• Portal das Finanças, CIRS: art. 43, art. 71, art. 72; EBF: art. 20-A, art. 21, art. 26; stamp duty table
• IRS, Tax Treaty Table 1 (Rev. May 2023), NRA withholding, tax treaties A to Z (3 January 2026)
• Providers in Portugal: XTB; Trade Republic; Revolut; DEGIRO; Interactive Brokers; ActivoBank; Banco Carregosa
• Brazil, laws on planalto.gov.br: Lei 11.033/2004; Lei 8.981/1995; Lei 15.270/2025; Lei 14.754/2023; Decreto 6.306/2007; Lei 9.532/1997; Lei 11.053/2004
• CVM; Banco Central, Resolução BCB 279; BSM, MRP; CVM, register of intermediaries
• Providers in Brazil: Webull Brazil; Avenue; Nomad

This article is for information only and does not constitute investment, legal or tax advice.