The latest data from the Tax and Customs Authority (AT) reveals a surge in capital flows, increasing by over one billion euros within a year, from 6.9255 billion euros in 2023 to 8.0786 billion euros last year.
Banks are mandated to report annually to the AT the amounts each client transfers to financial centers with preferential tax regimes if the yearly sum exceeds 12,500 euros. These communications help the Tax Authority compile these amounts to combat tax fraud and evasion.
In total, 131,000 transfers were made last year by 17,289 clients with bank accounts in financial institutions in Portugal. On average, each sender transferred 467,300 euros to a preferential tax center.
The amount of transfers completed in 2024 surpassed those of the past four years. In 2021, 6.6989 billion euros were transferred, increasing to 7.4097 billion euros in 2022, dropping to 6.9255 billion euros in 2023, and rising again to 8.0786 billion euros. Both the number of clients and transactions hit their highest since 2021.
Switzerland, Hong Kong, and the United Arab Emirates remain the top jurisdictions receiving capital flows.
Switzerland is the primary destination, absorbing 40% of the transfer total, exceeding 3.250 billion euros. Over 1.5963 billion euros were sent to Hong Kong, while less than one billion euros, totaling 762.2 million, were transferred to the United Arab Emirates. Macau ranks fourth with 356.3 million euros, followed by Singapore with 353 million euros and Liechtenstein with 174.8 million euros.
The main reasons for these transfers include payments to suppliers (1.478 billion euros), other types of payments (988.3 million euros), treasury management transfers (840.8 million euros), commercial flows (589.9 million euros), commercial settlements payments (546.4 million euros), and payments between companies within the same economic group (134.2 million euros).
For accounts located in Switzerland, the primary destination, clients cited payments to suppliers, treasury management transfers, and other payments as the reasons for their transfers.
Of the total 8 billion euros transferred to various territories, the majority is executed by companies and collective entities. More than 7.1 billion euros of flows were initiated by corporate entities (8,003 entities), while 906.2 million euros were transferred by individuals (9,286).
Officially, the list of territories Portugal considers tax havens is named the list of countries, territories, and regions with preferential tax regimes, significantly more favorable, encompassing over 80 jurisdictions with financial centers where personal income tax or corporate tax is particularly low or nonexistent, or that are deemed non-cooperative for tax purposes.
