During a hearing on the State Budget proposal for 2026 (OE2026), João Pratas, President of the Portuguese Association of Investment Funds, Pensions, and Patrimonies (APFIPP), presented several proposals to the lawmakers amidst the budget discussion.
The association suggests creating a “transfer regime” that allows the movement of funds between investment funds without interim taxation, taxing only at the final redemption.
“[Currently] when the owner of an investment fund wants to transfer from fund A to fund B, they effectively have to redeem and re-subscribe. Taxation occurs here. There should only be taxation at the final redemption,” he stated.
This change would be significant “to allow investors to change investment strategies without being taxed for doing so,” he explained.
Another proposal from the association involves establishing a fiscal regime for investment and pension funds equivalent to that of insurance products, with which they compete. The APFIPP advocates for a “reduction in taxation” of funds after a specific investment period, “after five years, after eight years.”
During the hearing, PSD deputy Almiro Moreira emphasized the need for the country to focus on policies that promote better savings for citizens, especially to safeguard the future after active life.
Representing PS, deputy Marina Gonçalves stressed the necessity of ensuring a public pension system, which, she said, “does not invalidate” other savings instruments.
João Pratas also argued it is “extremely important” for investment and pension funds to access the conditions granted to individual landlords when adhering to the affordable rent regime, ensuring the sector can be involved in promoting rental housing.
