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The Government presented yesterday the draft State Budget for 2026. In this newsletter we summarise the main tax changes included in the draft State Budget.

PERSONAL INCOME TAX

Regarding Personal Income Tax (PIT), the proposed changes are as follows:

• PIT brackets update. The PIT brackets will be updated by 3,5%.
• Reduction of PIT rates. Reduction of the PIT rates for the 2nd to the 5th brackets, according to the following table:

• Minimum subsistence amount. The reference value for the minimum subsistence will be increased from €12.180 to €12.880.

CORPORATE INCOME TAX

In terms of Corporate Income Tax (CIT), the 2026 State Budget proposal includes the following proposal:

• Autonomous taxation. Expansion of the list of vehicles eligible for reduced autonomous taxation rates. In addition to plug-in hybrid vehicles with a minimum electric range of 50 km and emissions below 50 gCO?/km, vehicles approved under the “Euro 6e-bis” emissions standard — which allows emissions up to 80 gCO?/km — will also be included.

It should be noted that the announced reduction of the CIT rate from 20% to 19% will be included in a separate act.

VALUE ADDED TAX

Regarding Value Added Tax (VAT), the following measure is proposed:

• Reduced VAT rate. Application of the reduced VAT rate to services related to the processing of olives into olive oil.

REAL ESTATE TRANSFER TAX

Regarding the Real Estate Transfer Tax (RETT), the 2026 State Budget Proposal includes the following change:

• Adjustment of tax brackets. Update of RETT brackets by 2%.

TAX BENEFITS

The 2026 State Budget Proposal includes the following changes to the Tax Benefits Statute:

• Incentive for wage increases: Maintenance in 2026 of the exemption from PIT and social security contributions, up to 6% of the annual base salary, on productivity bonuses, performance bonuses, profit-sharing, and balance-sheet gratifications that are irregular in nature. Reduction of the minimum required salary increase from 4.7% to 4.6% for companies to benefit from the 200% relief in relation to the expenses related to salary raises for employees with permanent contracts.
• Incentive for consolidation of rural properties: Extension of tax incentives for the consolidation of rural properties (exemption from RETT and stamp duty on the transfers of rural properties required for the consolidation).
• Other benefits: Extension of several tax benefits until 31 December 2026, namely:

- Deductions under social impact bond partnerships;
- External loans and rental of imported equipment;
- Financial services from public entities;
- Swaps and loans from non-resident financial institutions;
- Deposits from non-resident credit institutions;
- Repo operations with non-resident financial institutions;
- Management entities of designations of origin and geographical indications;
- Entities managing integrated systems for specific waste flow management;
- Sports, cultural, and recreational associations;
- Associations and confederations;
- Tax incentives for forestry activities;
- Forest management entities and forest management units;
- Deduction for the determination of taxable profit for companies;
- Deductions from individual income tax;
- Value Added Tax (VAT) – transfers of goods and services provided free of charge.

SPECIAL CONTRIBUTIONS

The 2026 State Budget proposal also includes the following measures:

• Special contributions. Continuation of the main extraordinary special contributions, namely:

- Contribution to the audiovisual sector;
- Contribution in the banking sector;
- Contribution in the pharmaceutical industry;
- Extraordinary contribution by suppliers to the medical devices industry of the National Health Service; and
- Extraordinary contribution in the energy sector (CESE).

• Solidarity surcharge in the banking sector. Repeal of the solidarity surcharge on the banking sector, following its declaration of unconstitutionality by the Constitutional Court.
• Contribution to the audiovisual sector. No adjustment of the contribution to the audiovisual sector in 2026.
• Extraordinary Contribution in the energy sector. Companies operating in transportation, distribution, or underground storage of natural gas will no longer be subject to this contribution, in accordance with the unconstitutionality rulings by the Constitutional Court. Assets dedicated to the operation of electricity transmission and distribution networks, acquired from 1 January 2026, in new condition, constructed, or expanded will be excluded from the CESE tax base.

ACESSORY OBLIGATIONS

The 2026 State Budget proposal also includes the following measures:

• Inventory. Taxpayers will be exempt from the obligation to value inventories when fulfilling the reporting requirement under Article 3.º-A of Decree-Law No. 198/2012:

i. For the taxable period starting on or after January 1, 2025; and
ii. For taxpayers not required to maintain a permanent inventory, for the taxable period starting on or after January 1, 2026.

• SAF-T. Submission of the SAF-T (PT) accounting file, as defined by Ordinance No. 31/2019, will apply to the 2027 and subsequent periods, to be submitted in 2028 or later periods.
• Invoices. Until December 31, 2026, invoices in PDF format will be accepted and electronic invoices for all purposes established in tax legislation.

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On September 30, 2025, through Order No. 71/SEAEn/2025, the Portuguese Secretary of State for Energy decided to extend by a further 12 months the deadlines established in paragraph 1 of Joint Order No. 1/SEAMB/SEENC of February 22, 2024. This extension applies to projects holding production and operation licenses issued under Decree-Law No. 15/2022, as well as to certificates of operation for generation units with an installed capacity of up to 1 MW, not already covered by Order No. 170/MAEN/2025 of May 14. According to the Portuguese Government, the measure was adopted to ensure equal treatment and legal certainty.

With the publication of the new order, the deadlines for the entry into operation of generation units have now been extended as follows:

• 52 months for projects not subject to Environmental Impact Assessment (EIA) or Environmental Incidence Analysis (AIncA);
• 55 months for projects subject to EIA or AIncA;
• 54 months for units with an installed capacity of up to 1 MW.

The sequence of ministerial orders leading to the above is already extensive. For reference:

• Order of the Portuguese Secretary of State for Environment and Energy, June 21, 2021: extension of 10 months for deadlines to obtain production and/or operation licenses (later clarified on May 20, 2022, to include the expiry period of preliminary registrations for units ≤ 1 MW);
• Order of the Director-General for Energy and Geology, July 2, 2021: extension of 10 months for the expiry of preliminary registrations for units ≤ 1 MW;
• Order of the Portuguese Secretary of State for Environment and Energy, May 20, 2022: extension of 11 months for production and/or operation licenses and 6 months for preliminary registrations and operation certificates (≤ 1 MW);
• Order of the Portuguese Secretary of State for Energy and Climate, March 17, 2023: extension of:

1. 9 months for projects not subject to EIA/AIncA;
2. 12 months for projects subject to EIA/AIncA; and
3. 6 months for preliminary registrations and operation certificates (≤ 1 MW).

• Order of the Portuguese Secretary of State for Energy and Climate, February 22, 2024: extension of 10 months for all licensing and operation certificate deadlines;
• Order of the Portuguese Minister for Environment and Energy, May 14, 2025: extension of 12 months for the same deadlines.

The Portuguese Government has stated that no further extensions will be granted, and that all granted licenses and certificates will lapse in accordance with the applicable law.

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The Portuguese Government has put out for public consultation the diploma that aims to update the national renewable energy targets and implement monitoring and certification mechanisms, partially complying with Directive (EU) 2023/2413 (Renewable Energy Directive - RED III). Among the main measures of the legislative project are:

• Update of national targets: Portugal aims to reach 49% of renewable energy in gross final energy consumption by 2030, with intermediate stages of ≥40% in 2025 and ≥44% in 2028, and 5% of innovative renewable technologies in installed capacity by 2030.
• Buildings, industry and heating/cooling sector: In buildings, 75% of the energy consumed should be from renewable sources by 2030, allowing up to 20% of waste heat and cold to be accounted for. The industry is expected to increase the share of renewables by 16 percentage points by 2030, with specific targets for renewable hydrogen of 42% by 2030 and 60% by 2035. In heating and cooling, the minimum shares are set at 46% in 2025 and 63% in 2029, with incentives for heat pumps, efficient district networks and biogas/biomethane.
• Transport sector: The overall target is 29% renewables by 2030, with specific shares for road (28%), maritime (18%) and non-electrified rail (14%), including a minimum of advanced biofuels, hydrogen and non-bio-renewable fuels.
• Sustainability criteria: The diploma reinforces the rules for biofuels and bioliquids, limiting the contribution of food crops to biofuel production to 3.1% and excluding fuels with a high risk of indirect land-use change, unless certified as low risk.
• Bond system: Biofuel (TdB), low carbon (TdC) and renewable electricity (TdE) bonds issued by ENSE are created. The system also provides for credits and compensation to suppliers who do not meet the targets.

There are already some reactions in the Portuguese media: there are also those who see an opportunity opening up for the energy sector coming from the acceleration of the pace of incorporation of renewables in final consumption (80% of renewables in the electricity system in 2026, against 85% in 2030). But it is also worth highlighting the less ambitious goals than the National Commitment: The influential weekly newspaper Expresso questions the 49% fixation in the diploma, contrasting with the 51% of the PNEC 2030. The online newspaper Observador notes that the diploma sets targets for specific sectors (buildings, industry, heating), but without deepening the monitoring mechanisms, which can generate critical contributions during the consultation.Citizens, companies and associations can participate in this public consultation on the ConsultaLex platform until October 25th.

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The Portuguese government has recently launched the privatisation of TAP – Transportes Aéreos Portugueses, SA (TAP), Portugal’s flag carrier, with the publication of Decree-Law No. 92/2025 ("Privatisation Decree") and the approval of the tender documents (caderno de encargos).

The privatisation involves the sale of a minority stake of up to 49.9% of TAP’s share capital, of which up to 5% must be offered to employees. The State will retain the majority stake.

According to media reports Lufthansa, Air France-KLM, and the IAG Group have are frontrunners for winning the privatisation. All three are headquartered in Europe, have the required expertise for managing TAP and can explore many synergies for the development of TAPs business.

The possibility of non-EU airline companies, including consortia with other investors, has been downplayed by most commentators because of the perception that only an European airliner could meet the Portuguese Government's requirements.

However, European companies may not be able to present credible bids that satisfy the selection criteria of the Privatisation Decree.

The Privatisation Decree requires bidders to comply with certain requirements, such as fit and proper status, financial capacity, size (e.g. minimum of €5,000 million in revenues in one of the last three years) and certified air operator status.

The proposals will be evaluated according to the following criteria:

• Financial proposal: including, among other required elements, the price offered for the TAP shares;
• Technical proposal: including an industrial plan and strategic project aligned with the reprivatisation objectives, in particular ensuring that TAP’s headquarters and main establishment remain in Portugal, and that strategic routes are maintained;
• Legal and financial standing: absence of any legal or financial constraints that could hinder completion of the transaction within the required timeframe, affect the payment terms, or compromise conditions safeguarding the State’s interests; and
• Labour commitments: compliance with workers’ rights and existing collective bargaining agreements.

Clearly, Lufthansa, Air France-KLM, and the IAG Group fulfil the requirements of the Privatisation Decree and are capable of submitting proposals that align with the aforementioned criteria, though some (if not all) of these criteria may pose substantial challenges for any European operator seeking to adopt a long-term perspective on TAP's business, as envisioned by the Government.

Coincidentally, Lufthansa has announced an investment of €227 million in the construction of a new industrial facility for engine and aircraft component repair in Portugal, aiming to generate over 500 specialised jobs.

In contrast, Lufthansa has recently unveiled a strategic restructuring initiative, named "Matrix Next Level," aimed at centralising key functions such as network planning and financial management across its airlines. The move is expected to further consolidate the group’s various airlines. This centralisation strategy appears to conflict with the Portuguese Government’s stance on maintaining a more balanced control over TAP. Although the Portuguese Government is prepared to give operational control to its new partner, it wishes to retain certain functions in Portugal and to safeguard the Portuguese workforce, objectives that seem at odds with Lufthansa’s plans.

Similarly, IAG and Air France-KLM are pursuing the airline industry’s prevailing trend of centralising functions and cutting costs, which may also clash with the Portuguese Government’s priorities. All leading contenders in TAP’s privatisation process are likely to face challenges in restoring profitability to TAP without significantly reducing its cost structure.

The constraints posed by the privatisation evaluation criteria will put extreme pressure on the financial proposal and lead to difficult negotiations of the price terms, the investments conditions and the employee protections to be given by the entering shareholder(s). Aligning the costs of meeting the Portuguese government's desired commitments and the investor's expected return on investment may prove difficult.

This creates an opportunity for a non-European airline to submit a successful bid. Decree-Law No. 92/2025 does not exclude non-EU airline companies, as only a minority stake is to be privatised, meeting the Regulation (EC) No. 1008/2008's requirement that EU airline companies must be controlled by EU/EEA/Swiss states or nationals to retain their operating licenses and traffic rights within the EU.

Non-EU players could potentially offer more advantageous conditions (financial, industrial, and labour-related) if they have a longer term perspective of the transaction, instead of wanting TAP to fill in the gaps in their offering as the now frontrunner bidders seem to intend. TAP's European and American routes could be more important for non-European airlines and opening up the middle east and Asian markets could offer new business avenues for investors with a long term perspective. The past examples of the privatisation of the Portuguese energy companies EDP (Portugal's largest energy producer) and REN (which operates the national power grid), which proved extremely successful investments for non-European buyers show that it is possible for Asian and Middle East investors to have a chance to out-bid IAG, Lufthansa and Air France-KLM.

An intriguing possibility mentioned in the media in the context of TAP’s privatisation is the potential involvement of Carlos Tavares, the former CEO of Stellantis. Carlos Tavares, a Portuguese national with a proven track record in leading complex turnarounds and strategic restructurings in the automotive industry, could leverage his expertise and network to put together a competitive bid.

In conclusion, while European frontrunners such as Lufthansa, Air France-KLM, and IAG Group currently dominate the narrative surrounding TAP’s privatisation, the constraints imposed by the Privatisation Decree and the Portuguese Government’s strategic objectives may create significant hurdles for these contenders. Their centralisation strategies and cost-cutting priorities could conflict with the Government’s emphasis on maintaining TAP’s national identity and workforce protections. This opens a window for non-EU bidders, who, unbound by such operational constraints and potentially driven by a longer-term vision, could present competitive bids. The historical success of non-European investments in Portuguese strategic assets underscores this possibility, suggesting that the outcome of TAP’s privatisation remains far from certain.

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The Portuguese government kicks off the privatization of TAP – Transportes Aéreos Portugueses, SA (TAP), Portugal’s flag carrier, with the publication of Decree-Law No. 92/2025.

Under Decree-Law No. 92/2025, the Government has authorised the sale of up to 49.9% of TAP’s share capital, ensuring that the State retains at least 50.1%.

The minority stake will be split between a strategic investor (or consortium of investors), who will acquire up to 44.9%, and up and the TAP Group employees, who will have the option to acquire up to 5%. If the employees do not acquire the full 5%, the remaining shares will be sold to the selected investor.

The primary objectives of TAP's reprivatisation include maximising the recovery of public funds invested in TAP, enhancing the airline’s brand and market position, and ensuring connectivity to key destinations, particularly those with historical, cultural, and social ties to Portugal.

Potential investors must satisfy certain participation requirements, including fit and proper status, financial capacity, certified air operator status, size, and any other specific conditions that the Council of Ministers may establish in the tender documents (caderno de encargos).

The sale process should include the following stages:

• Expression of interest: interested parties must submit their expression of interest within the timeframe specified in the tender documents;
• Screening: the Government will assess whether the interested parties meet the participation requirements;
• Non-binding proposals: interested parties will submit indicative (non-binding) offers, after which selected bidders may be invited to submit binding proposals;
• Binding proposals: selected bidders will submit binding offers, following which the contract will be awarded or the bidders may be invited to a negotiation phase (if applicable); and
• Negotiation: the Government will negotiate with the selected bidders, who will be asked to submit their best and final binding offers.

Proposals (both non-binding and binding) will be evaluated according to the following criteria, among others which may be further specified in the tender documents to be approved by the Council of Ministers:

• Financial proposal: including, among other required elements, the price offered for the TAP shares;
• Technical proposal: including an industrial plan and strategic project aligned with the reprivatization objectives, in particular ensuring that TAP’s headquarters and main establishment remain in Portugal, and that strategic routes are maintained;
• Legal and financial standing: absence of any legal or financial constraints that could hinder completion of the transaction within the required timeframe, affect the payment terms, or compromise conditions safeguarding the State’s interests; and
• Labour commitments: including compliance with workers’ rights and existing collective bargaining agreements.

Decree-Law No. 92/2025 includes additional safeguards to protect public interests, such as a potential five-year lock-up period for shares sold to the investor, preventing immediate resale or encumbrance. A 90-day lock-up period may also apply to the shares acquired by the employees.

Additionally, both the State and the investor will retain rights over future sales of TAP shares and the investor will have a tag along right in sales carried out by the State.

To regulate these rights and the investor’s rights in the management of TAP, the State and the investor will enter into a shareholders’ agreement.

TAP privatization decree also addresses the future of TAP’s real estate assets near Humberto Delgado Airport. Given plans to eventually close this airport upon the opening of the Luís de Camões Airport, the State may retain these assets in the public sphere post-reprivatisation for independent valuation and development. This decision could have implications for companies or investors interested in real estate opportunities in the real estate market.

The reprivatisation is expected to provide TAP with the tools and scale needed to compete more effectively in the global aviation market, potentially leading to increased passenger traffic. This operation is closely tied to broader infrastructure projects in Portugal, such as the new Lisbon Airport, the high-speed train links and the third Tagus crossing.

The approval of TAP's privatization decree marks the beginning of a transformative chapter in TAP’s history, seeking to ensure its long-term competitiveness in global aviation while safeguarding Portugal’s strategic interests. The Government is expected to approve the tender documents in the coming days.

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Decree-Law No. 93/2025 establishes a new legal framework for electric mobility in Portugal and brings national legislation closer to Regulation (EU) 2023/1804 (“AFIR”), which sets targets for the deployment of alternative fuels infrastructure. This new scheme aims to make charging points more accessible for electric vehicle users, ensure effective nationwide coverage and streamline the operation of the electric mobility system, securing universal access to all charging points.

Key changes compared with the previous framework include:

• End of centralised network management – Until now, one entity managed the entire network. Service providers may now install and manage their own charging network without the need to connect to common network, while still ensuring access for all users;
• End of the role of “electricity supplier for electric mobility”, allowing charging point operators to contract electricity through the market or under a self-consumption model, and to contract with other mobility service providers.

Other key measures

• Mandatory ad hoc charging at all public charging points, allowing users to charge without a prior contract, using payment methods such as bank cards or QR codes;
• Introduction of smart and bidirectional charging, enabling energy to be fed back from vehicle batteries into the grid.;
• Extension to electric vessels, with specific rules for the installation and operation of charging points;
• Interconnection with international networks, making charging and payment abroad easier it easier to charge and pay while abroad.

On the environmental side:

• Issuance of “avoided CO?” certificates for renewable energy use, enabling users and charging point operators to trade these certificates to meet decarbonization targets.

On the information management side:

• Obligation to provide information to the new Data Aggregator for Electric Mobility, with no market activity, responsible for sending data to the National Access Point, managed by the IMT (Institute for Mobility and Transport);

On the licensing side:

• Simplified procedures with shorter deadlines, possible tacit approval, and in some cases, only prior notification;
• All procedures to be carried out online via the Single Digital Services Portal.

A transition period is established until 31 December 2026 to ensure a gradual shift from the previous model to the new framework

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DGEG, the Portuguese energy ministerial department, and APA, the Portuguese Environment Agency, published two joint orders updating the Environmental Impact Assessment (“EIA”) and Capacity Reservation Title (“TRC”) procedures for energy storage projects that were set by a previous joint order dated 14 July 2023.

These changes follow the blackout in the Iberian Peninsula on April 28, 2025, highlighting the need for energy storage to help keep the power grid stable and secure by encouraging the use of storage systems.

The first joint order, published last July 30, introduces the following changes:

• The injection capacity declaration to the Public Electricity Grid (“RESP”) is now issued directly by the grid operator, but only to start the prior evaluation or EIA request for autonomous storage projects on the SILiAmb platform. This declaration does not replace the TRC, which remains mandatory at a later stage to obtain the right to inject into the grid.
• Early-stage projects that have already paid for grid studies but do not yet have the TRC can now begin the EIA with a preliminary study or draft design.

The second joint order, of July 31, clarifies when energy storage projects are exempt from EIA and case-by-case analysis:

• For co-located storage, adding a storage facility to a project that already has a TRC and is in the same licensed area does not need a new EIA or a new Environmental Compliance Declaration (“DCAPE”) if these were already approved. The developer only needs to provide proof during post-evaluation that all conditions are met.
• For autonomous storage, projects up to 50 MW/200 MWh, or up to 20 MW/80 MWh in sensitive areas, are exempt from EIA without case-by-case analysis,

In bout cases a minimum distance of 5 meters between the storage facility and the fenced project area boundary is required.

These orders came into effect the day following their publication.

Although these are positive updates, the DGEG's Q2 2025 grid capacity report shows no significant capacity for standalone storage projects in Portugal’s electricity grid as of 30 June 2025. And, as the TRC submissions under the general access regime remain suspended for both production and storage projects, the practical impact of these new rules will be limited for autonomous storage initiatives.

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The Portuguese Government approved the first phase of TAP’s privatisation, which includes the sale of up to 44.9% of the company’s share capital to a strategic investor, along with an additional 5% reserved for employees.

This decision follows the financial restructuring of the TAP Group, initiated in 2021, in response to the impacts of the COVID-19 pandemic. As part of this process, the State injected approximately €3,200 million into the company and regained full ownership of the share capital, following the exit of the previous shareholder, a consortium formed by David Neeleman, founder of the airline Azul, and Humberto Pedrosa of the Barraqueiro Group.

While the possibility of privatising up to 100% of TAP was considered, the Government argues that selling a minority stake offers advantages; however, this option seems to be largely due to pressures from both the left and the right against a full privatisation. With the proposed partial privatisation, the Government aims to ensure the entry of private investors who will provide additional funding, as may be required, and technical expertise to enhance the financial return in a future sale of the remaining capital, while leaving strategic decision-making control in the hands of the State. Selling a minority stake also allows for a broader range of potential investors, including those from countries outside the European Union, since European legislation requires that the majority of the capital be held by European citizens or companies.

The main conditions of the privatisation that have been disclosed are as follows:

• Sale process. The sale will take place in several stages, namely: the pre-qualification of interested parties, the submission of non-binding offers, the submission of binding offers, final negotiations, and the signing of the contract.
• Calendar. The process is expected to take around one year, with the sale anticipated to occur in the third quarter of 2025.
• Evaluation criteria. The selection of the buyer will prioritise, in particular, the proposed industrial plan, fleet expansion, the development of airport infrastructure within national territory, investment in sustainable fuels, and the immediate capital injection the investor is willing to make in the company. The Government's main concerns include maintaining TAP’s hub in Lisbon — considered vital to the national economy and to the airline’s role as a strategic link between Europe, Africa, and South America — as well as preserving TAP’s identity as a national brand, ensuring it is not reduced to a mere subsidiary of an international group.
• Management. Under the approved model, private investors will assume management responsibilities, while the State is expected to retain veto rights over strategic matters through a shareholders’ agreement to be proposed by the bidders.
• Disposal of the remaining capital. The tender conditions to be approved are expected to give the State and the investor pre-emption rights in the event of a sale – without imposing, in either case, drag along rights.

Although at first glance the newly approved model – combining private management with majority public ownership – may present certain advantages, past experience suggests that this solution also poses several risks and challenges, namely:

• Safeguarding return. If investors propose to make significant investments, they will undoubtedly seek mechanisms to safeguard their expected returns. These mechanisms might include profit distribution rules that reflect their investments rather than mere ownership percentages, or purchase price formulas for any future sale of the controlling stake that consider the value of their management and capital contributions. Such arrangements could ultimately reduce the financial return the State may obtain;
• Risk of "nationalisation" of losses. The experience of TAP's previous privatisation process, which ultimately led to its nationalisation, has set a difficult precedent to overcome if TAP ever encounters problems in the future, whether caused by a flawed strategy, mismanagement, or unexpected events like the Covid-19 pandemic, which led to the injection of public funds that are now unrecoverable.
• State interference in management. Maintaining State control may prompt private investors to protect their position by limiting the State’s scope of intervention to very narrow aspects. Alternatively, they may seek compensation for any interventions that impact their expected returns, either through put options on their stake or via price adjustment mechanisms.

Among those interested in the privatisation are major European groups such as Lufthansa, Air France-KLM, and the IAG Group, which owns, among others, British Airways and Iberia. These groups have already taken part in the preliminary consultation phase and have expressed their intention to submit proposals. However, the Government appears committed to also seeking interested parties outside the European Union, so the participation of other operators cannot be ruled out.

The decree-law outlining the privatisation conditions approved by the Government is expected to be published shortly.

KEY INFORMATION

Share capital

100% owned by the Portuguese State (through the Directorate-General of Treasury and Finance)

Subsidiaries

TAP has the following subsidiaries:

• Portugália - Companhia Portuguesa de Transportes Aéreos S.A.
• TAP Logistics Solutions, S.A.
• SPdH – Serviços Portugueses de Handling, S.A.

Financial information

• Net income: €54 million
• Revenues: €4,242 million (+1%)
• Recurring EBITDA: €875 million (+21%)
• Recurring EBIT: €383 million (+9%)
• Seat supply measured in ASK (2024): +1.6%
• Revenue per seat measured in RPK (2024): +3.4%.
• Net Debt: €750.3 million
• Credit ratings: BB- by S&P and Ba3 by Moody's

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Portugal’s Energy Services Regulator, ERSE, has introduced new network access tariffs for facilities that qualify as Intensive Electricity Customers (ECE). This follows approval from the European Commission on April 24, 2025, allowing special cost reductions for these energy-intensive sites.

Under the new rules, ECE facilities can benefit from significant discounts on General Economic Interest Costs (CIEG):

• Facilities in sectors with a high risk of economic impact, as listed in Annex I of the European Commission’s 2022 guidelines on climate, environment, and energy, will receive an 85% reduction on CIEG.
• Facilities in other at-risk sectors qualify for a 75% CIEG discount. This can increase to 85% if the facility meets all of the following:

1. At least 50% of its electricity comes from renewable sources.
2. At least 10% of its consumption is secured through forward contracts or bilateral agreements.
3. At least 5% of its energy comes from renewable self-consumption.

Additionally, all energy used through self-consumption, even if supplied via the public grid, is fully exempt from CIEG.

For more details on the ECE program, visit The New Portuguese Rules for Energy Intensive Consumers on our website.

© 2025 MACEDO VITORINO

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The rules governing the security deposits (caução) to be provided by producers of renewable or low-carbon gases injecting into the public gas grid have been set out in Order No. 8030/2025, issued by the Portuguese Directorate of Energy (DGEG).

These rules follow the amendments to the Portuguese National Gas System legal framework, which now requires project developers to provide a financial deposit to the DGEG as a condition for connecting production facilities to the gas network. The aim is to ensure that developers remain committed to implementing their projects after securing grid capacity.

The newly published order defines both the form for the deposit and the reference values used to calculate the total amount to be deposited.

The deposit must be provided to the DGEG within 25 days of the approval of the producer’s prior registration (registo prévio), which is required to start the project development. It may be submitted as a bank deposit, bank guarantee, or surety bond, in accordance with the official forms annexed to the Order. Proof of the deposit must be uploaded to the DGEG’s online registration platform, with original documents submitted either by post or in person.

The amount of the deposit is calculated as 10% of the annual reserved capacity for the project, in MWh/year, based on the following formula:

Deposit = 10% × Reserved Capacity (MWh/year) × Reference Price (€/MWh)
The applicable reference prices are:

• €7.44/MWh for biomethane; and
• €22.00/MWh for renewable hydrogen

The deposit will be returned within five days of the registration of the project’s operational start date. However, if the prior registration expires due to a failure to begin operations within the legally required timeframe, or if it is cancelled under conditions set by law, the deposit will be forfeited to the DGEG.

Failure to provide the deposit within the relevant deadline results in the automatic rejection of the project’s prior registration.