With the upcoming personal income tax (IRS) filing deadline approaching, taxation once again takes centre stage in savings and investment decisions. In this context, Ricardo Seabra Moura, Counsel in the Tax team, took part in the Best Investment Session held on 12 February, dedicated to the impact of taxation on the net returns of investments.
Throughout the session, key issues for private investors were addressed, ranging from the importance of understanding the tax framework before investing to recent legislative changes affecting the capital markets.
Ricardo Seabra Moura highlighted that “Law 31/2024 introduced tax incentives to make the capital market more attractive and to promote savings”, stressing that the recent measures aim to strengthen the competitiveness of the Portuguese market. He further noted that “the new tax incentives make the capital market more competitive and appealing to investors”.
The webinar covered, in particular:
- The distinction between investment income and capital gains, and their respective tax treatment;
- The aggregation of income and the criteria for its application;
- Tax benefits associated with retirement products;
- The potential impact of new tax measures on savings and investment.
The Morais Leitão Counsel also emphasised that “before investing, it is essential to assess the tax implications: there are products that reduce taxation over time and maximise returns”. According to the lawyer, “products such as Unit-Linked policies, investment funds, ETFs, shares or bonds may benefit from lower taxation if held over the medium term — and this makes a difference to the final return”.
The session provided an overview of the recent developments in the tax framework applicable to investments and highlighted the strategic role of taxation in the efficient management of savings, particularly in a context of significant legislative change.
The event can be rewatched on Banco Best’s YouTube channel.
