Foreword

The protection of intellectual property rights (IP), including copyright of literary, artistic and musical works, and patents, trademarks, and software, is an important factor to consider when starting a business. 

Portugal offers a strong IP protection system, following Europe’s long legal tradition that dates back to the 19^th century, with the first Portuguese Author Rights Code approved in 1851, and is aligned with European Union directives and regulations on IP.

This briefing highlights the main legal and practical aspects of IP, including the recognition of authors’ economic and moral rights, the copyright protection for literary, artistic, musical works, software and databases, and the protection of patents, designs, and trademarks. It also covers the mechanisms for enforcing these rights if they are infringed.

Other key information concerning the most relevant aspects about doing business or working in Portugal is available at www.macedovitorino.com/en/Why-Portugal. The «Why Portugal» webpage contains a description of the main aspects that concern businesses and individuals investing in Portugal, including:

• How to set up a business.
• Forms of investment incentives and government grants available and how to apply.
• Getting a Portuguese residence permit or a golden visa.
• Hiring employees, employers' obligations and rules concerning the dismissal of employees.
• Portugal's main taxes, including among others personal and corporate income taxes, VAT and property taxes.
• Intellectual property protection, software, patents, trademarks and technology.
• Real estate, acquisition and lease of property and financing and tax related issues.
• Dispute resolution, the judicial system and of the main steps and costs of lawsuits.

1. Regulatory framework

1.1. Author rights code and industrial property code

The two main pieces of legislation governing intellectual property in Portugal are the Portuguese Author Rights Code (Código do Direito de Autor e dos Direitos Conexos, "CDADC"), which regulates the attribution and protection of authors' copyright and personal rights and other non-copyrightable works, and the Industrial Property Code (Código da Propriedade Industrial, "CPI"), which governs industrial property rights, encompassing trademarks, patents and designs.

Portuguese intellectual property legislation follows European directives and regulations. Portuguese IP laws offer the same level of protection as other EU countries.

1.2. Recent legislative reforms

Recent legislative reforms include amendments to the Author Rights Code by Decree-Law No 47/2023, which transposed Directive (EU) 2019/790, known as the Digital Single Market ("DSM") Directive, and the entry into force on 17 February 2024 of the EU Digital Services Act ("DSA").

Following the amendments introduced by Decree-Law 47/2023, the Author Rights Code now grants press publishers exclusive online rights in Portugal, enforceable against digital intermediaries and makes digital platforms directly responsible for copyrighted content posted by users, requiring them to secure licences with copyright holders before hosting or sharing the content. The new legislation also grants authors the right to claim an increase in the agreed remuneration when it proves to be disproportionately low compared to the revenues that were subsequently generated by the exploitation of their works.

In turn, the DSA will impact streaming platforms and social media businesses that offer their services to recipients located in the EU, including Portugal. Businesses operating outside of the EU may be impacted. As an EU regulation, the DSA is directly applicable in Portugal without needing national implementation.

The DSA defines "online platform" as "a hosting service that, at the request of a recipient of the service, stores and disseminates information to the public", excluding the cases where the activities or functionalities of the service are minor and purely ancillary and inseparable from the primary service. [1]

Social media services like Instagram, YouTube, Facebook and LinkedIn, as well as streaming services like Spotify or Netflix, fall under the DSA definition of online platform, although its application to streaming services is very limited because they do not distribute content that they do not know before publishing it. Online publishers and media companies also fall under the definition, although some may benefit from the exception, and, like with streaming services, its practical impact will be very limited.

Under the DSA, digital services platforms will be required to, among other things:

• adopt transparent moderation policies;
• establish reporting and reaction mechanisms for user complaints, including appeal processes; and
• publish annual reports detailing their content moderation activities, including automated moderation processes using non-human mechanisms such as AI.

While the DSA imposes a general duty to react when it receives a complaint, it expressly prohibits general monitoring or surveillance of content and users.

The type and level of compliance measures, including risk mitigation and algorithmic moderation, depend on the platforms' scale and risk profile, as well as their technical capabilities.

Platforms that fail to act in a timely manner or adequately on reported illegal content may face civil, criminal, or administrative liability, including significant financial penalties. When taking down content or imposing restrictions on accounts, platforms must provide clear reasons for such decisions. Very large platforms (e.g. YouTube, Instagram, TikTok) and very large online search engines (e.g. Google Search, Bing) have more stringent obligations regarding the management and mitigation of systemic risks as well as reporting and data sharing requirements.

The Portuguese Government, through Decree-Law 20-B/2024 of 16 February 2024, designated the National Communications Regulator (Autoridade Nacional de Comunicações, "ANACOM"), the national communications regulator, as the national Digital Services Coordinator. The Media Regulatory Authority, (Entidade Reguladora para a Comunicação Social, "ERC"), and the General Inspection of Cultural Activities (Inspeção-Geral das Atividades Culturais, "IGAC") were designated as the national competent authorities for matters related to social media and other media content and matters concerning copyright and related rights respectively.

1.3. International conventions

IP rights are also protected by international treaties to which Portugal is a party. Portugal is a member of the World Intellectual Property Organisation ("WIPO") since 1975 and a signatory to several key international agreements that provide broader, cross-border protection of intellectual property rights and industrial property rights, including, among others:

• Berne Convention for the Protection of Literary and Artistic Works (1886);
• Universal Copyright Convention ("UCC, 1952");
• WIPO Copyright Treaty ("WCT, 1996");
• WIPO Performances and Phonograms Treaty ("WPPT, 1996");
• Agreement on Trade-Related Aspects of Intellectual Property Rights ("TRIPS, 1994");
• Madrid Agreement Concerning the International Registration of Marks (1891); Madrid Protocol (1989) ("Madrid System");
• International Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organisations ("Rome Convention, 1961");
• Convention for the Protection of Producers of Phonograms Against Unauthorised Duplication of Their Phonograms ("Geneva, 1971");
• European Patent Convention ("EPC, 1973");
• Patent Cooperation Treaty ("PCT, 1970");
• Paris Convention for the Protection of Industrial Property (1883);
• Budapest Treaty (1977) on the recognition of the deposit of microorganisms for patent purposes;
• Nice Agreement Concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks (1957);
• Locarno Agreement Establishing an International Classification for Industrial Designs (1968);
• Strasbourg Agreement Concerning the International Patent Classification (1971);
• Lisbon Agreement for the Protection of Appellations of Origin and their International Registration (1958); and

(1)International Convention for the Protection of New Varieties of Plants ("UPOV Convention"), 1961, as revised.

2. Intellectual property

2.1. Authors' economic and personal rights

2.1.1. Economic rights

Portuguese law grants the author an exclusive economic right to commercially exploit the intellectual works she or he has created or to which the author is entitled by law. Commercial exploitation includes the right to make copies and disseminate the work, as well as the right to license or sell such rights to another person.

As a rule, copyright over intellectual works belongs to their authors, although its economic component may be assigned to the employer or the person that commissioned the work. In the case of collective works, ownership belongs to the company, individual, or legal person responsible for organising and directing the creation of the work and on whose name the work was disclosed.

The copyright owner may give a third party the right to disclose, publish, or otherwise use the work in the ways specifically authorised, covering one or more of the economic rights.

When granting a licence to use a work, the specific rights being granted must be specified. In the absence of an express reference of specific rights, only those necessary to fulfil the purpose of the authorisation are considered licensed.

Economic rights under copyright may be transferred or encumbered. If no duration is specified, such transfers or encumbrances are presumed to last a maximum of twenty-five years (ten years for photographic works). Works may be encumbered through usufruct, temporary grants of economic rights, or by pledging the copyright.

2.1.2. Personal rights

Like other civil law countries, Portuguese law grants the author the so-called "moral" or "personal" rights in respect of the works they create, which include the recognition of "authorship" and the protection of the work’s authenticity and integrity.

The author's personal rights include:

• the right to be identified and recognised as the creator and to preserve the work as originally expressed. The author may accept or reject proposed changes and make any modifications they considered appropriate, exercising the rights of attribution, recognition of authorship, protection of integrity, modification, and access to a copy;
• the right to decide if, when, and how the work is disclosed to the public; and
• the right to withdraw the work from circulation for compelling personal reasons, in which case the author must indemnify the affected parties.

Personal rights are untransferable and unassignable, even with the author's consent, and cannot be waived or extinguished by the passage of time.

2.2. Duration of copyright

Copyright lasts 70 years after the author’s death, even if the original work was published or came out after the author’s death. When the copyright’s term expires, the work enters the public domain and can be used freely. Falling in the public domain does not affect the moral rights, which are protected indefinitely.

2.3. Protected works

2.3.1. Literary, artistic and scientific works

The Author Rights Code protect the intellectual creations in the literary, scientific, and artistic domains, irrespective of their genre, form of expression, merit, mode of communication, or purpose, naming among others:

• books, pamphlets, journals, newspapers, and other writings;
• lectures, lessons, addresses, and sermons;
• plays and musical plays works, including their performance;
• choreographic works and pantomimes, expressed in writing or by any other means;
• musical compositions, with or without words;
• cinematographic, television, phonographic, videographic, and radio works;
• works of drawing, tapestry, painting, sculpture, ceramics, tile, engraving, lithography, and architecture;
• photographic works or works produced by any process analogous to photography;
• works of applied arts, industrial designs or models, and design works that constitute artistic creation, regardless of protection under industrial property law;
• illustrations and maps;
• projects, sketches, and plastic works relating to architecture, urban planning, geography, or other sciences; and
• slogans or mottos, even if of an advertising nature, provided they are original.

Copyright protects the expression of ideas, but not the ideas themselves. Therefore, while the specific expression of an idea is protected, the underlying idea, method, or system is not.

2.3.2. Software

The Portuguese Software Law enacted by Decree-Law 252/94 of 20 October 1994, which transposed Directive 91/250/EEC, establishes the rules applicable to the legal protection of software (computer programs).

Computer programs benefit from copyright protection when they integrate and combine the programming language, the program's potential functionalities and its unique code in a way that demonstrates creative expression.

To be protected, computer programs must be original and not copied from another program. Software is protected as literary works; software owners have the right to use, reproduce and distribute it by any means and in any form, to dispose of it (including licensing or granting rights of use), and modify it in any manner.

Copyright protection extends only to the expression of the software, including the source and object code, but excludes protection for the underlying ideas, principles, algorithms, or programming methods. Original algorithms part of a computer-implemented invention that has a technical character can be patented if they meet the patentability requirements set out in the Industrial Property Code, i.e. novelty, inventive nature and industrial applicability.

The owner of the software may put into circulation originals or copies of the computer program and has the right to lease the copies. The copyright owner can also register the program at the literary property register.

Software developed by a company is presumed to be a collective work owned by the employer when created by an employee in the performance of her/his duties or under the employer's instructions, unless the parties expressly agree otherwise.

Persons authorised to use a copy of the software may utilise the program for any purpose of their choosing, including to create a backup copy or studying and testing the program’s functioning, but may not use it to infringe the software owner's rights, such as reverse engineer it or make and distribute copies.

The licensee or another person with the right to use the program or acting on behalf of a person authorised to do so can decompile parts of a program to ensure the interoperability of that software with other programs.

The unauthorised economic exploitation of software by an individual or legal person might be considered a violation of the Software Law and is considered a criminal offence under the Cybercrime Law approved by Law 109/2009, of 15 September 2009, which follows closely the European Convention on Cybercrime of 2001.

2.3.3. Databases

Databases are protected as copyright when they are considered intellectual creations as defined in Decree-Law 122/2000 of 4 July 2000, which implemented Directive 96/9/EC on the legal protection of databases. This includes cases where the selection or arrangement of the contents reflects the author’s own intellectual creation, that is, where there is originality in the way the data are chosen or organised.

When a database is not protected by copyrights, its owner benefits from special protection when there has been a substantial investment in obtaining, verifying or presenting the database contents. The exclusivity lasts for 15 years, starting from the end of the calendar year in which the database was created.

2.4. Collective management organisations

Copyright owners may delegate the management of their works to a share-based collective management organisation, such as the Portuguese Authors’ Association (Sociedade Portuguesa de Autores) or the Portuguese Software Producers’ Association (Associação Portuguesa de Software, "ASSOFT").

The authority of these organisations to represent rights holders derives automatically from an individual’s status as a member, adherent, or beneficiary of the services provided by the organisation, whose corporate purpose is the management of the economic rights entrusted to them.

2.5. Registration with IGAC

Copyright protection is acquired automatically immediately after the work completion, without requiring registration, deposit, or any other formalities.

However, it is possible to register at IGAC to prove the authorship of the work. Registration provides an additional layer of protection by granting a presumption of ownership over the work.

Registration may be carried out by authors of literary, scientific, or artistic works, such as books, paintings, sculptures, or musical compositions. It can also be performed by holders of related rights, including record labels or the heirs of authors.

To register literary, scientific and artistic works, IGAC requires specific documentation. While the exact requirements may vary depending on the type of work, all applications must include the following documents:

• completed registration form: including details such as the author’s name, the title of the work, and its type;
• copy of the work: a physical or digital copy of the work to be registered; and
• proof of payment: a receipt or evidence of the registration fee payment.

Additional documentation is required depending on the type of work. For example, for computer programs, the following information must be provided:

• brief description of the program;
• programming language used;
• operation system compatibility;
• complete source code presented as a sample of the work;
• executable file of the program; and
• list of files and flowchart.

IGAC communicates its decision regarding the registration within 10 business days from the date the application is received.

The registration of literary and artistic works with IGAC requires a fee, which varies depending on the method of submission, €60 for online registration and €80 for in-person or postal registration.

 

Registration	Fee (Online)	Fee (In-Person/Postal)
Amendment of works (content)	€60	€80
Recording acts and rights on the registration (including title)	€30	€30
Registration of transfer of rights	€30	€30
Registration of a literary or artistic pseudonym	€30	€40

3. Industrial property

3.1. Patents and utility models

3.1.1. Scope

Patents ensure exclusive use and the right to prevent others from manufacturing, offering or storing an invention that has industrial use without the owner’s consent, even if the invention is applied to a product consisting of or containing biological material or to a process that creates, treats or uses biological material. Inventions may include products, processes and new processes for obtaining already known products and substances.

The invention must be a novelty, destined for industrial use and cannot be obvious to a person with average knowledge in the technical field in question.

Discoveries, scientific theories and mathematical methods, materials or substances existing in nature, nuclear materials, aesthetic creations, schemes, rules and methods for intellectual pursuits, games or businesses, and information presentations are not patentable.

Inventions contrary to law, public policy, public health and best practices cannot be patented.

The duration of patents is 20 years following the application date subject to the payment of annual renewal fees. The patent validity can be shortened if the annual fees are not paid. For pharmaceutical and plant protection products, it is possible to apply for a supplementary protection certificate, which extends the patent protection for up to five years.

The patentholder must exploit the patented invention. The exploitation has to begin within four years, counting from the application date or three years, counting from the date of the patent grant, whichever is longer. Patents may be licensed or sold.

Portuguese patents must be registered at the National Institute of Industrial Property (Instituto Nacional da Propriedade Industrial, "INPI").

European patents, which are valid in the European Patent Convention contracting States, must be registered at the European Patent Office or at INPI. Patents last for 20 years. European patents are valid in the 26 European Union countries (except for Spain and Croatia) without the need for national verification and the payment of any fees in the contracting countries. The European Patent Office is responsible for granting European patents. The application must be in one of its official languages: English, French or German.

The World Intellectual Property Organisation is responsible for granting and protecting international patents in more than 150 countries. The applicant must be a national or resident of a Patent Cooperation Treaty contracting State. National laws govern the registration process in each country.

Utility models are product or procedure inventions with industrial applicability and cannot cover biological materials. Utility models have a simplified approval procedure and are subject to examination by INPI, the entity responsible for granting and registering industrial property rights in Portugal.

Utility models are subject to the same object constraints as patents. Utility model rights last six years from the application date. The protection period can be extended for a maximum of 10 years from the day of application.

3.1.2. Registration

Patents and utility models must be registered with INPI, which is responsible for granting and managing these rights.

The application must include the following documents:

• claims defining what is considered new and inventive and characterising the invention;
• a detailed description of the invention;
• any drawings necessary for a complete understanding of the description (when applicable);
• an abstract of the invention;
• an illustration of the invention for publication in the industrial property bulletin if necessary for understanding the abstract; and
• a title for the invention.

Portuguese law allows the filing of a provisional patent application with a simple description of the invention (pedido provisório de patente), without the full documentation required for a standard application. The provisional application can be in English or Portuguese and does not require claims. It secures an early filing date and establishes priority. The provisional patent application must be converted into a definitive patent application, adding formal documentation (submitted in Portuguese) and paying the full application fee within 12 months from the submission of the provisional application. No new subject matter may be added in the definitive application; if a new matter is introduced, the conversion of the provisional application will not be accepted. When a new matter is added, the filing date will commence on the date of the change to the original application. Such new patent application cannot claim priority from the previous provisional patent application.

INPI will issue a search report within 10 months from receiving the provisional application. Based on this report, the applicant will be able to better assess the likelihood of success of the application, adjust the wording of claims or decide to make a new application that does not conflict with an existing patent or prior application. It is possible to apply online for patents or provisional patents, as well as to register utility models at https://inpi.justica.gov.pt/. 

Application[2]	Online Fee	Paper Fee	Annual Renewal
Patent Application	€125.66	€251.32	-
Provisional Patent Application	€12.57	€25.14	-
Conversion of Provisional to Definitive Application	€87.98	€175.96	-
Patent Examination	€62.83	€125.66	-
Patent Annual Renewal Fees	-	-	€61.97 (5th year) to €867.41 (20th year)
Utility Model Application	€219.91	€439.82	-
Utility Model Examination	€94.26	€188.52	-
Utility Model Annual Renewal Fees	-	-	€31.65 (5th year) to €43.95 (10th year)

 

At the European level, patents are granted by the European Patent Office (EPO) under the European Patent Convention (EPC). A European patent has a maximum term of 20 years, subject to the payment of annual renewal fees. Applications may be filed in any language; however, if not filed in one of the EPO’s official languages (English, French, or German) a translation into one of these languages must be submitted within two months of filing. After the grant, the patent must be validated in each designated Contracting State in accordance with that State's national requirements, which may include filing translations and paying national fees.

Internationally, patent applications may be filed under the Patent Cooperation Treaty (PCT, 1970), administered by the WIPO. This system allows applicants to seek protection in more than 150 countries through a single international application, but the final granting of the patent is always carried out by the national or regional offices of the countries concerned.

International and European patent fees vary depending on the method of submission, as follows:

Application	Online Fee	Paper Fee
Provisional Protection	€62.83	€125.66
National Validation	€62.83	€125.66

3.2. Designs

3.2.1. Scope

Owners of designs of the product’s shape, lines, contour, colours, textures or materials have the exclusive right to use it and to prevent its use by unauthorised third parties.

To be protected, designs do not need to be entirely a novelty but must include at least a new feature or layout of already used elements but presented differently. Rights over registered designs last five years following the application date and can be renewed for consecutive equal periods of time up to a maximum of 25 years. When registered, the design is protected by copyrights since its creation date.

Unregistered Community designs are automatically protected for three years from the date of their first disclosure in the EU. This protection allows the owner to prevent unauthorised commercial use by third parties.

3.2.2. Registration

Design applications must be filed with INPI. The application must include, among others:

• indication of the products in which the design is to be applied or incorporated, using the international classification of industrial designs;
• priority details, if priority is claimed (country, date, and number of the first application);
• graphic or photographic representations of the design; and
• optionally, a short description (maximum 50 words per product) referring only to the elements shown in the representations or sample.

However, once registered, a design cannot be modified, even by its owner. Only non-essential modifications (such as scaling, enlarging or reducing the design) are permitted within a registration. Modifications to the essential characteristics of a design (such as changed lines, shapes, or ornamentation) that are new and unique, require registration as a new design.

Designs may also be registered at the European Union Intellectual Property Office ("EUIPO"), where a single application provides protection across all EU Member States.

At the international level, registration through WIPO provides acknowledgement of intellectual property rights in several countries, depending on the specific system used. The Patent Cooperation Treaty ("PCT") has 158 Contracting States, while the Hague System for industrial designs covers about 96 countries. Applicants must be nationals, residents, or have a real and effective industrial or commercial establishment in a country that is a Contracting Party to the system in question. Recognition and enforcement of rights always depend on the laws of each country where protection is sought.

The following table sets out the fees payable for each application and the name of the entity to which it must be submitted.

Type of Application/Renewal	Entity	Fee (Online)	Fee (Paper)
Design Application	INPI	€53.98	€107.96
Multiple Application (per additional design, same class)	INPI	€26.99	€53.98
Renewal (per five-year period)	INPI	From €53.98	From €107.96
Design Application (1st design)	EUIPO[3]	€350 per design	Not specified
Multiple Application (2nd design) [4]	EUIPO	€125 per design	Not specified

3.3. Trademarks

3.3.1. Scope

Trademarks are distinctive signs used in trade to identify products and services. They grant their holders an exclusive right of use for 10 years, renewable indefinitely for equal periods.

A trademark may consist of words, personal names, drawings, letters, numbers, sounds, the shape of a product or its packaging, or even advertising slogans. To be valid, trademarks must have a distinctive character and be represented clearly and precisely so that third parties can determine the scope of protection. Marks representing the usual name of a product or service or the ones that have descriptive elements are not accepted as trademarks.

An unregistered trademark has a limited priority right. Under article 213 CPI, a mark used for less than six months may be registered with priority over third parties, and its user may oppose identical or similar applications. After this period, prior use no longer gives automatic priority, but it may still be invoked to refuse or cancel a later registration if it constitutes unfair competition (Article 232(1)(h) CPI).

The scope of protection allows the owner of a registered trademark to prevent third parties from using identical or similar signs for identical or similar goods or services, where such use is likely to cause confusion or association.

For a trademark to be considered misused or imitated (Article 238 CPI), the following requirements must be met:

• Priority. The registered trademark must have priority over the infringing trademark. Priority is determined by the date on which the trademark was filed; hence, the trademark whose registration was filed first takes precedence.
• Affinity between products and/or services. Imitation or usurpation requires that both trademarks mark goods and/or services that are identical or similar. Affinity relates to the principle of speciality, expressing protection for the distinctive function of the trademark but only for the goods or services for which the trademark was actually registered. To verify the existence of affinity, it is important to consider whether we are dealing with relations of (i) competition, (ii) substitution, (iii) complementarity, (iv) accessoriness, and (v) derivation.
• Error or confusion. Trademarks must be similar in a way that misleads or confuses the consumer, who can distinguish them only after careful analysis or comparison or understand a risk of association.
• Risk of confusion or association. Confusion may occur directly when the consumer confuses two brands, thinking they are the same, or indirectly when the consumer considers one brand a modification of another. There is also confusion in a broad sense if the consumer believes that the companies owning the brands have some economic or organisational relationship. Confusion may also arise from the likelihood of association, where the consumer considers the sign and the trademark similar, recognising the trademark but not confusing them.
• Graphic, phonetic, visual, and conceptual similarity. Graphic similarity exists when the words are written identically or similarly. Phonetic similarity occurs when the sound resulting from reading the signs is identical or similar. Visual similarity exists when the appearance of the signs is identical or similar. Conceptual similarity arises when the signs express concepts or ideas that are identical or similar.
• Easily mislead or confuse the consumer. Portuguese law requires that the risk of confusion be significant, easily misleading or confusing the consumer. To assess this, one must consider the average consumer, i.e., the consumer without a high level of attention, and determine whether, in the specific case, that consumer would be in error or would become confused.

3.3.2. Registration

The trademark should be registered at INPI, and its protection is limited to the national territory. It is possible to register trademarks online at inpi.justica.gov.pt. The application must include, among others:

• a representation of the trademark, including words, figures, drawings, and colours (if colours are claimed);
• the list of goods and/or services, classified under the Nice Classification;
• if priority is claimed: the country, date, and number of the first application;
• if the mark includes another person’s name or portrait, their authorisation; and
• if the mark contains symbols, coats of arms, emblems or distinctions of the State, municipalities, or other entities, their authorisation.

INPI can, on its own motion, refuse trademark registrations based on certain grounds for refusal outlined in the Industrial Property Code. These grounds include the reproduction of a trademark previously registered by someone else for identical goods or services (Articles 230, 231 e 232 CPI). However, there are grounds for refusal dependent on a prior complaint and cannot be identified ex officio by INPI.

A trademark application will also be refused if it is identical or similar to another previously well-known trademark in Portugal or the European Union, especially when it takes unfair advantage of the distinctive character or prestige of the other trademark, or if it could jeopardise that trademark, even if associated with different products or services.

The owner of a trademark right can also request the cancellation of a trademark registration within ten years from the date the registration was granted, through a reasoned request filed with INPI. There are no grounds for cancellation if the earlier trademark does not meet the condition of genuine use (Articles 4/5, 266 e 263 CPI).

It is important to consider the system of forbearance preclusion, which stipulates that if the owner of a registered trademark, aware of the fact, has tolerated the use of a later registered trademark for five consecutive years, they lose the right to request cancellation of the later trademark or to oppose its use (Article 261 CPI).

Beyond national registration, trademark protection may also be obtained at the European and international level. An EU trademark, registered with the EUIPO, covers all Member States of the European Union and may be applied for by any person or company worldwide.

To secure protection internationally, registration through the Madrid System (under WIPO) allows applicants to seek protection in more than 100 countries, although recognition and enforcement of rights remain subject to the national laws of each country.

Once the trademark products are made available in the European Economic Area by the owner or with its consent, the owner's rights are considered expired. The trademark holder cannot disallow its use on the products. Furthermore, the trademark has to be used for five consecutive years; if not, the registration expires.

The fees vary depending on the method of submission.

Type of Application	Authority	Online Fee	Paper/Post/Courier Fee
Trademark Application	INPI	€148.71	€297.42
Renewal	INPI	€148.71	€297.42
Trademark Application	EUIPO	€850.00	€1,000.00

3.4. Trade secrets

Any confidential business information that provides a competitive advantage can be considered a trade secret.

Trade secrets can include know-how, technical knowledge (potentially patentable or not) or business and commercial data such as lists of customers, business plans and manufacturing processes.

Disclosure, acquisition or use of the competitor’s trade secrets without its consent is considered illegal if the information: (i) is secret, meaning that it is not generally known or easily accessible, (ii) has commercial value because of its secrecy and (iii) has been subject to considerable diligence by the person responsible for the information control in order to keep it secret.

It is also unlawful to disclose or use a trade secret when the recipient of information knew or should have known when first hearing about it that such secret had been obtained directly or indirectly from another person who was using or disclosing it illegally.

It is lawful to access a trade secret when that results from an independent discovery, from an employee’s rightful access to the information in accordance with accepted practices or the law. It is also legal to study, disassemble or test a product or object that has been made available to the public or when such access complies with honest commercial practices.

Whenever there is a breach or well-founded fear that others may cause serious damage to the trade secret, the court may, at the request of the interested party, order the appropriate precautionary measures.

In the event of a trade secret breach, the court decision can order the infringer to refrain from using or disclosing the trade secret and prohibit the infringer from producing, offering, placing on the market, importing, exporting or storing the product of such secret.

When unfair competition, abuse of rights and other legal rules protecting business secrets do not apply or do not offer sufficient protection, it is advisable to enter into a non-disclosure agreement before exchanging confidential and sensitive information to business partners, shareholders, employees, suppliers and customers.

Unlike for patents or trademarks, protection is not time limited. Furthermore, this protection does not involve any formalities with competent authorities, and there is no registration fee, which means that its effect is immediate.

4. Enforcement of IP rights

4.1. Overview

The protection of IP rights in Portugal combines administrative, criminal, and civil enforcement mechanisms, which provide a wide range of complementary remedies to protect IP rights holders.

IP civil remedies aim to prevent or provide relief to the injured party against damages, through indemnification actions as well as injunctions, preservation of evidence measures, or the seizure and destruction of the infringing goods. Civil proceedings are generally brought before the Intellectual Property Court (Tribunal da Propriedade Intelectual), which holds specialised jurisdiction over IP related disputes.

Criminal liability rules aim to prevent and sanction the most serious violations of intellectual property rights and may only be applied by the criminal courts. Their role is mainly punitive, applying penalties such as imprisonment or fines, but also serve to prevent violation and reinforce rights holders' position by giving them a sanctioning framework that protects their interests.

The administrative protection measures offered to IP holders are primarily intended to prevent and sanction economic infringements and will apply in addition to or independently of civil and criminal remedies. In the field of industrial property, INPI is the authority responsible for enforcing administrative remedies, while IGAC is responsible in the field of author's and related rights.

In some cases, certain remedies overlap giving the injured party the option to choose one or seek protection from criminal, civil and administrative authorities and courts.

In addition, the Competition, Regulation and Supervision Court (Tribunal da Concorrência, Regulação e Supervisão) has jurisdiction over cases involving anti-competitive practices that result from the misuse of IP rights.

4.2. Civil remedies

4.2.1. Copyright and related rights

Rights holders may initiate civil proceedings under the Author Rights Code (Articles 201-210J CDADC) seeking the following remedies:

• the cessation of unlawful use of an author’s literary or artistic name or other identifying signs;
• damages as compensation for losses caused by any infringing conduct;
• an order to compel the infringer or third parties to produce evidence in their possession, including banking, financial, accounting, or commercial documents, provided the applicant presents prima facie evidence of copyright or related rights infringement;
• measures to preserve evidence in cases of infringement or imminent risk of serious harm, such as detailed descriptions, sample collection, or seizure of suspected infringing goods, materials, instruments, and related documents;
• an order to compel the alleged infringer or other parties in the commercial chain to provide detailed information on the origin and distribution networks of infringing goods or services, including details of producers, suppliers, quantities, and prices;
• seizure of the infringer’s assets, including bank accounts, suspected infringing goods, and instruments used in the violation;
• destruction, withdrawal, or permanent removal from commercial channels of infringing goods and the instruments used in their production;
• an injunction to stop ongoing or imminent infringement, including orders directed at intermediaries.

The court's final ruling on the merits of the case may include precautionary measures to prevent the infringing party from engaging in actions that could violate the rights holder's interests (Article 210J CDADC). These measures may also apply to intermediaries and can include:

• a temporary ban on carrying out specific activities or professions;
• the denial of the right to sell or promote products in fairs or markets; and
• the temporary or permanent closure of the establishment.

4.2.2. Industrial property

Holders of industrial property rights have similar remedies as those granted to authors and copyright owners with the differences that arise from the different nature of the object of the protected rights set out in the Industrial Property Code (Articles 339 et seq. CPI), which include seeking:

• the declaration of nullity or annulment of industrial property rights, including patents, supplementary protection certificates, utility models, topographies of semiconductor products, designs, trademarks, logos, rewards, designations of origin, and geographical indications;
• a court order compelling the opposing party or third parties to produce evidence in their possession or control, such as banking, financial, accounting, or commercial documents, provided the applicant demonstrates sufficient indications of an industrial property infringement;
• urgent court measures to preserve evidence in cases of infringement or imminent risk of serious harm, including detailed descriptions, sampling, or seizure of suspected infringing goods, materials, instruments, and related documents;
• urgent interim measures from the court to prevent imminent infringement or to prohibit the continuation of an ongoing infringement, including against intermediaries whose services are used to infringe;
• urgent court measures to prevent imminent infringement or prohibit ongoing unlawful acts related to industrial property rights;
• the seizure of the infringer’s assets, including bank accounts, suspected infringing goods, and instruments primarily used for the violation;
• damages as compensation for infringement, covering actual losses and lost profits, with the calculation also considering any unfair benefits gained by the infringer.

Following a judgement on the merits, the court may impose accessory sanctions and precautionary measures (Article 348 and 349 CPI), including the publication of the decision, the destruction of infringing goods, the temporary prohibition of certain professional activities or the exercise of certain activities or professions, the denial of the right to participate in fairs or markets, and the temporary or permanent closure of the business establishment.

The Industrial Property Code imposes the same requirements as the Author Rights Code. The applicant must provide sufficient evidence of ownership or authorisation and of an infringement or a serious and imminent risk. The measures may also be directed against intermediaries.

4.3. Criminal protection

4.3.1. General aspects

The violation of IP rights, covering both copyright and industrial property, may constitute a criminal offence.

In criminal proceedings, courts are authorised to seize of alleged offender’s movable and immovable assets, including bank account balances. Courts may also order the access to banking or commercial data and information related to the offender.

The jurisdiction to impose sanctions for criminal violations of IP rights, regardless of their nature, lies exclusively with the criminal courts and not with the TPI.

4.3.2. Copyright and related rights

The Portuguese Author Rights Code defines the following acts as criminal offences:

• the use of a work without the author's or rights holder’s authorisation;
• counterfeiting, reproducing or imitating a work without authorisation, as if it were original;
• infringing the right of paternity (authorship) or the right to the integrity of the work; and
• using of counterfeited or unlawfully used work, commercialising, distributing, or making available to the public a counterfeit or unlawfully used work.

Except for violations of moral rights, other offences are deemed public offences, meaning that criminal proceedings may be started ex officio and do not require a complaint from the rights holder.

4.3.3. Industrial property rights

Under the Industrial Property Code, the following conducts are deemed criminal offences punishable by imprisonment of up to three years or by a fine:

• infringement of patents, utility models, and semiconductor topographies, which include manufacturing products, using processes, or distributing goods that violate an exclusive patent, utility model, or topography right;
• reproducing, imitating, exploiting, importing, or distributing protected designs or models without authorisation;
• counterfeiting, imitation, and misuse use of a trademark by reproducing, imitating, or using a protected trademark without authorisation;
• unauthorised reproduction, imitation, or use of a protected trade name or business sign;
• unlawful use, reproduction, or imitation of a protected logo;
• copying, imitating, or misusing a protected designation of origin or geographical indication;
• obtaining or keeping an industrial property registration through abuse of rights; and
• registering a non-existent act or one carried out to conceal the truth.
• The sale or concealment of infringing products, which includes selling, placing on the market, or hiding products that violate industrial property rights, is punishable by imprisonment of up to 18 months or a fine. Additionally, bad-faith registration, which includes obtaining a patent, utility model, or design registration in bad faith, carries a penalty of up to 1 year’s imprisonment or a fine.

All offences described above are "semi-public crimes", which means that they depend on the rights holder's filing a complaint.

4.4. Administrative Remedies

4.4.1. Copyright and related rights

The following practices are deemed as economic offences under the Author Rights Code which entail a fine established in the Economic Administrative Offences Law (Regime Jurídico das Contraordenações Económicas, "RJCE"):

• non-compliance by importers, manufacturers, and sellers of physical media for phonographic and videographic works in reporting the quantities imported, manufactured, and sold.
• failure by manufacturers and duplicators of phonograms and videograms to report quantities they press or duplicate;
• non-compliance by manufacturers and duplicators of phonograms and videograms in reporting the quantities they press or duplicate;
• unauthorised public communication of previously commercially released phonograms and incorporated performances, without the consent of the respective author, producer, or their representatives, whether through public performance or audiovisual broadcasting.
• unauthorised public communication of videograms through television broadcasts or retransmissions, as well as works and performances incorporated therein, without the required authorisations; and
• failure to duly identify the author of a work by her/his/its name, pseudonym, or other adopted identifying marks, or to acknowledge the works on which an adaptation is based.

Under the Economic Administrative Offences Law, other accessory sanctions may be applied to the infringer by the court ruling on the infringement at the request of the affected party which may include:

• forfeiture of seized assets in favour of the State;
• temporary prohibition on engaging in a specific activity; and
• temporary suspension of the infringer's right to sell products in fairs or markets.

IGAC is the entity responsible for processing administrative offences, and the respective inspector-general is charged with determining the sanctions to be imposed on the offender (Article 206 CDADC).

In addition, under article 209 CDADC, the rights holder may request the police or administrative authorities of the place where the infringement took place to suspend unauthorised performances, recitations, executions, or other public uses of protected works, and to seize all proceeds obtained from the infringement.

4.4.2. Industrial property rights

As for administrative offences regarding industrial property, very serious economic offences include unfair competition and violation of a protected trade secret. The range of serious economic offences is more extensive and includes:

• unfair competition, that is, engaging in acts contrary to honest commercial practices that cause harm to competitors, such as creating confusion with another’s products, services, or business;
• violation of protected trade secrets;
• improperly claiming or using prizes, distinctions, or rewards granted in connection with industrial property rights;
• producing, importing, exporting, acquiring, or keeping signs (names, insignia, logos, designations of origin, or geographical indications) with the intent of using them unlawfully or enabling their unlawful use;
• use of illicit trademarks by placing into circulation or using trademarks that are not legally valid or that infringe registered rights;
• using another person’s protected name, insignia, or logo without authorisation; and
• falsely claiming exclusive rights or improperly relying on industrial property rights that do not exist or are not enforceable.

The sanctions for engaging in administrative offences are established in the Legal Framework for Economic Administrative Offences.

In addition to fines, accessory sanctions may be imposed, including forfeiture of infringing goods, temporary bans on carrying out an activity, closure of establishments, deprivation of the right to participate in fairs or markets, and publication of the decision.

Negligence and attempt are also punishable under law and repeated offences are treated as an aggravating factor that increases the severity of the sanction.

5. Final remarks

This briefing provides an overview of the IP protection framework in Portugal. The following are the main takeaways:

• IP Regulatory Framework. Portugal offers a stable IP protection regime, aligned with European Union directives and regulations, and is a party to several international treaties and conventions, such as the Berne Convention (1886), the Universal Copyright Convention (UCC, 1952), the WIPO Copyright Treaty (WCT, 1996), TRIPS (1994). Portugal's IP main legislation includes the Portuguese Author Rights Code and the Industrial Property Code, ensuring protection for copyright, patents, trademarks, designs, and trade secrets.
• Recent Legislative Developments. The Portuguese Author Rights Code was amended to implement the EU DSM Directive on copyright in the digital environment, granting authors and performers the right to receive additional compensation when the revenue generated by the work significantly exceeds what was expected at the time of its creation. The DSA, in force since February 2024, imposes strict rules on online platforms, specifically in large social network operators like Meta, YouTube, TikTok etc..
• Copyright and Related Rights. Authors benefit from both economic and personal (moral) rights under Portuguese law. Economic rights include the rights to transfer or license the use of the work, while moral rights, which are inalienable, protect authorship and the integrity of the work. Copyright protection extends for 70 years after the author’s death, and registration with IGAC, though not mandatory, provides a presumption of ownership.
• Industrial Property Rights. Patents, utility models, designs, and trademarks are protected under the Industrial Property Code, with registration managed by INPI. Patents last for 20 years, designs up to 25 years with renewals, and trademarks for 10 years, renewable indefinitely. Utility models offer a shorter protection period of up to 10 years with a simplified approval process.
• Software and Databases. Software is protected as a literary work under the Software Law. Databases receive copyright protection if they reflect original intellectual creation or sui generis protection when they entail significant investment, lasting 15 years.

Enforcement Mechanisms. The Portuguese IP protection framework includes civil, criminal and administrative enforcement mechanisms. Civil remedies include, among others, actions for damages, injunctions, and the seizure of infringing goods. Serious violations, such as counterfeiting and misuse of trademarks, are subject to criminal sanctions. Administrative measures offer more expedient remedy against violations, principally of economic nature, without the need for immediate judicial intervention.

1. Introduction

Portugal's telecommunications, media and technology ("TMT") market has undergone significant changes over the last years, with a strong development of its communications' infrastructure and several EU driven regulatory developments that changed the regulatory landscape. Fibre to the premises covered 95.5% of households in 2025, against an EU average of 74.1%. 5G carries more traffic than the earlier mobile generations, and several new transcontinental submarine cables now land on Portugal's coast. Hyperscale data centre projects, led by the campus at Sines, are adding capacity.

This growth brings operators, investors and infrastructure providers are subject to a large set of rules derived from EU directives and regulations. Law 16/2022 of 16 August governs electronic communications, and Decree-Law 125/2025 transposes the NIS2 Directive on cybersecurity. EU legislation on artificial intelligence, data and crypto-assets applies alongside them, and the Commission published the Digital Networks Act ("DNA") proposal in January 2026. Several of these statutes are new, and some are still changing.

This briefing explains those rules and the market in which they apply. It is written for operators, investors, cloud and data centre providers and their advisers. It covers electronic communications, network infrastructure, digital services, cybersecurity and user protection, and it treats media only as part of the market overview.

The briefing states the law and the market as at September 2026. Market data comes mainly from 2025 and from ANACOM, the electronic communications and space regulator, and from public announcements by operators and investors.

Section 2 describes the market. Sections 3 to 7 cover each area of regulation in turn, and section 8 sets out the key takeaways. Appendix A lists the regulatory authorities and Appendix B the dates referred to in the briefing.

2. Market Overview

Portugal enters the final quarter of 2026 with the connectivity profile of a mature European market and the investment pipeline of an emerging digital infrastructure hub. The indicators below illustrate this profile: fixed broadband, 5G and data centre investment.

FIXED BROADBAND ACCESS	FIXED ACCESSES	5G IN ACTIVE USE	MICROSOFT
90.5% of households, 2Q 2026	4.9M +2.2% YoY, 2Q 2026	45.8% of accesses, 2Q 2026	€8.6B AI investment in Sines[1]

The fibre deployment started with public co-funding and was extended by private operators that identified the commercial case for early investment. The 5G crossover reflects, in part, changes in mobile consumption as gigabit fixed access becomes the primary home connection. The Microsoft commitment in Sines is significant: Portugal has moved from a marginal position on the hyperscaler map to a viable alternative to the traditional FLAP-D markets for certain workloads.

2.1. Sector indicators

2.1.1. Fixed broadband and the migration to gigabit

By the end of the second quarter of 2026, 90.5% of Portuguese households had access to fixed broadband, 0.6% more than a year earlier. The number of fixed accesses reached 4.9 million, an increase of 2.2% year on year. Fibre to the home or building ("FTTH/B") continued to drive growth and now accounts for 73.9% of fixed accesses, after adding 234,000 accesses (+7.0%) over the previous twelve months. The remaining accesses split between cable, xDSL[2] and a residual share of fixed wireless and satellite connections.

The shift to ultra-fast broadband is advanced. In the second quarter of 2026, 94.2% of fixed accesses were ultra-fast, with download speeds of 100 Mbps or more. Gigabit accesses, with speeds of 1 Gbps or above, now represent 47.4% of the total and, for the first time, outnumber accesses between 100 Mbps and 1 Gbps (46.9%). The gigabit segment grew 66.6% year on year, reflecting both supply and demand: operators bundle higher tiers as standard, and end users increasingly take them up to support cloud workloads, video conferencing and home office connectivity.

2.1.2. Mobile networks and the move to 5G

On the mobile side, 5G has drawn level with 4G. By the end of 4Q 2025, 5G and 4G each accounted for 42.3% of mobile accesses in effective use. Legacy 2G and 3G technologies fell to 15.4% combined. By the end of 2Q 2026, the 5G share had risen to 45.8%.

The legacy technology footprint is shrinking by design. MEO switched off 3G in January 2024. NOS and Vodafone are following. The consumer transition is largely complete. The industrial transition is not: M2M deployments, point-of-sale terminals, fleet telematics and metering systems still running on 2G or 3G need to migrate, and operators have been making that clear for years. Progress in industrial estates has lagged well behind the consumer market.

On 5G, the rollout accelerated through 2024 and 2025 and continued at a slower pace in 2026. Base stations across the four operators reached 16,142 sites by the end of 2Q 2026, up 11.7% year on year. On paper, national coverage is in place. Indoor coverage in dense urban areas, however, remains uneven and continues to be a focus of investment, particularly for enterprise use in offices and large retail buildings.

2.1.3. Pricing and data consumption

Telecom prices in Portugal rose sharply in 2023 and 2024, driven by contractual clauses that allow the three largest operators to adjust tariffs annually in line with the previous year’s consumer price index ("CPI"). The trend reversed in 2025 and the decline deepened in 2026. In August 2026, telecom prices were 4.3% lower than a year earlier, the largest drop in the EU, where prices rose 2.6% on average. Two factors explain the reversal: the unwinding of the 2022–2023 inflation spike that fed through into CPI-indexed contracts, and the competitive pressure from DIGI’s entry.

DIGI, which launched consumer offers in November 2024 following its acquisition of NOWO, has positioned itself as the low-cost alternative. In August 2026, DIGI offered the lowest monthly price for nine of eleven offer types tracked by ANACOM, including standalone mobile service at €4. ANACOM’s price reports show that this competitive entry has begun to reshape the pricing floor, even though the incumbent operators’ prices have not converged fully.

Data consumption continues to climb. In 2025, each fixed broadband access generated an average of 311 GB per month, up 3.4% year on year, and the monthly average reached about 350 GB per access by 2Q 2026. Mobile data usage reached 16.2 GB per user per month in 2025, up 31.5%. Traffic on 5G networks represented 23.4% of total mobile data, with 5G users consuming an average of 8.3 GB per month. Voice traffic, by contrast, continues to decline across both fixed and mobile networks, and SMS volumes fell 25.2% in 2025, driven by the ongoing shift to over-the-top messaging services[3].

2.2. Key players and market structure

2.2.1. Telecommunications operators

The Portuguese telecoms market has three major operators and one fast-growing challenger. All offer a full spectrum of fixed and mobile services.

• MEO, the legacy incumbent under Altice Portugal, owns the country's principal fixed network and leads fixed broadband. It completed the 3G switch-off in January 2024 and is part-way through a multi-year upgrade programme, including a Radio Access Network ("RAN") deal with Nokia.
• NOS came out of the 2013 merger of cable operator ZON with mobile operator Optimus. It has advanced furthest on standalone 5G, marketed as 5G+, and shares radio access infrastructure with Vodafone in parts of the country.
• Vodafone Portugal is the Vodafone Group’s local operation. By end-2025 it had the largest 5G footprint in the country: 5,449 base stations, ahead of NOS, DIGI and MEO. The ranking measures conversion rather than reach. MEO operates 5,598 mobile sites, second only to Vodafone, but only 44.0% of them carried 5G at the end of 2025, against 94.4% for NOS and 92.0% for Vodafone.
• DIGI completed its acquisition of NOWO in October 2024 and launched consumer offers in November 2024. ANACOM approved the transfer of NOWO’s 3.6 GHz frequencies to DIGI in January 2025. Through an aggressive pricing strategy, the Romanian-based challenger has grown rapidly.

Below the four main operators sits a layer of small-scale operators, both fixed and mobile, including MVNOs[4] and sub-brands.

The main example is WOO, a NOS-owned brand built entirely around a smartphone app. It runs on NOS infrastructure and is aimed at price-sensitive, digital-native customers.

The incumbents also run youth brands: Moche under MEO, Yorn under Vodafone and WTF under NOS, which Optimus launched in 2013 and NOS kept after the merger.

Outside the incumbents’ own brands, LigaT entered in June 2023 with its own fibre in Mafra, Ericeira and Montijo, competing on price without depending on wholesale access. Lycamobile operates as an MVNO, mainly serving Portugal’s diaspora communities.

A further layer serves business customers only. ONI, created in 1998 out of the liberalisation of the Portuguese market and owned by the Spanish group Gigas since 2020, sells converged connectivity, cloud and cybersecurity to companies, and Portugal accounts for more than half of its parent’s revenues. Ar (previously known as Ar Telecom), part of the Spanish group Aire Networks since 2021, left the residential market and now competes for corporate and public sector accounts. ANACOM lists ONI and Ar, alongside Dialoga, BLU, Colt and Vanage, among the providers that operate exclusively in the non-residential segment, a segment that MEO, NOS and Vodafone nonetheless continue to lead.

As of Q4 2025, MEO, NOS and Vodafone together held 94.7% of active mobile lines, excluding M2M, according to ANACOM. DIGI/NOWO added another 3.3%, Lycamobile 2.0%. The three incumbents continue to control wholesale terms, though the market structure differs from the three-plus-one characterisation used in earlier periods.

2.2.2. Television and media

The Portuguese television market has three national broadcasters: public service operator RTP and two private free-to-air channels, SIC (Impresa Group) and TVI (Media Capital). Pay TV penetration is high: around 4.7 million subscribers, covering roughly 89% of households.

Ownership shifted in November 2025. MFE-MediaForEurope, the Berlusconi family group, took a 32.9% stake in Impresa, SIC’s parent company, which also owns Expresso, one of Portugal’s main newspapers. The transaction was worth approximately €17.2 million and does not give MFE control. The transaction increases links between Portuguese, Spanish and Italian media and indicates that Iberian and southern European broadcasters are seeking a stronger competitive position relative to streaming platforms.

The pressures elsewhere are uneven. Global Media Group, owner of Diário de Notícias, Jornal de Notícias and TSF, has reported recurring financial difficulties. Medialivre (Correio da Manhã, CMTV) and Media Capital (TVI, CNN Portugal) have reported positive results in recent periods. The RTP public service contract was renewed in March 2025 and runs to 2031.

The audiovisual sector is supervised by the Entidade Reguladora para a Comunicação Social ("ERC"), whose remit includes media pluralism, content classification and the protection of minors. The domestic regulatory framework for television rests on the Television and On-Demand Audiovisual Services Act (Law 27/2007 of 30 July, as amended), which transposes the Audiovisual Media Services Directive (Directive (EU) 2018/1808). It governs broadcasting licensing, advertising limits, European content quotas and the obligations of on-demand services.

Radio is regulated under Law 54/2010. Both statutes are enforced by ERC, which is also the designated national authority for the purposes of the European Media Freedom Act (Regulation (EU) 2024/1083), applicable from August 2025.

2.2.3. Data centre and cloud

The Sines hyperscale campus, operated by Start Campus, is changing the Portuguese cloud and data centre market.

SIN01, the first building of the campus, became operational in early 2025 with a capacity of 26 MW. The full campus is planned to deliver 1.2 GW of IT capacity across six buildings (SIN01 to SIN06). Each successive building can support up to 240 MW. SIN02 is expected to enter service in 2026.

PLANNED IT CAPACITY (MW)
SIN01 26 MW Operational	SIN02 240 MW Expected 2026	SIN03 – SIN06 934 MW Phases 3–6

Figure. Sines hyperscale campus, planned IT capacity by phase. Source: Start Campus.

In November 2025, Microsoft announced an investment commitment of approximately €8.6 billion (USD 10 billion) in AI-oriented data centre capacity in Sines, in partnership with Start Campus and AI infrastructure provider Nscale. The Microsoft, Nscale and Start Campus partnership is reported to deploy up to 12,600 next-generation Nvidia GB300 GPUs in Sines[5].

The announcement was among the largest single inward investments in Portuguese digital infrastructure to date and positions Sines as an alternative to the traditional FLAP-D markets (Frankfurt, London, Amsterdam, Paris and Dublin) for selected workloads.

Other operators with a footprint in Portugal include Equinix in Lisbon, AtlasEdge, Edged Energy, Altice Data Centre and NOS Data Centre. NOS reinforced its enterprise positioning in March 2025 with the acquisition of Claranet Portugal, expanding its cloud and managed services portfolio.

2.2.4. Competition and merger control

Merger control in the TMT sector is exercised by the Autoridade da Concorrência ("AdC"), which reviews concentrations under the Portuguese Competition Act (Law 19/2012 of 8 May). Any transaction meeting the applicable turnover thresholds must be notified to the AdC, which may clear, conditionally approve or oppose the concentration. ANACOM and ERC typically issue opinions but have no veto.

The DIGI–NOWO transaction illustrates this framework. The AdC blocked Vodafone Portugal’s proposed acquisition of NOWO in July 2024, finding that the removal of the fourth mobile operator would create significant barriers to competition and exert upward pressure on consumer prices. In contrast, the AdC adopted a non-opposition decision in October 2024 for DIGI’s €150 million acquisition of NOWO, on the basis that the combination would strengthen a new entrant rather than eliminate an independent competitor. ANACOM and ERC both issued favourable opinions. The deal completed in November 2024.

2.3. Investment trends in Portugal

Three trends are likely to shape capital deployment in the Portuguese TMT sector during 2026 and beyond.

First, AI-driven data centre investment. The Microsoft and Nscale commitment in Sines is one example, but other hyperscale and AI-oriented projects are moving towards the Iberian Peninsula. The attraction is specific: renewable energy at scale, direct seawater cooling at coastal sites, and landing stations for transatlantic submarine cables within reach. Several mid-sized operators have publicly indicated plans to open or expand Portuguese facilities in 2026 and 2027.

Second, submarine cable investment and the Atlantic Hub initiative. Around seventeen international cable systems already land on the Portuguese coast, across Carcavelos, Sesimbra, Seixal and Sines. That number is expected to reach twenty by end-2026, as Google’s Nuvem cable and the pan-Mediterranean Medusa cable enter service. The Atlantic Hub initiative connects this cable infrastructure to the Sines hyperscale campus, bringing together connectivity, energy and compute capacity in a combination that is rare in Europe.

Third, consolidation in adjacent industries. The MFE stake in Impresa, the NOS acquisition of Claranet Portugal and DIGI’s entry into Portuguese mobile are different transactions with different rationales. Each nonetheless reflects consolidation driven by scale. M&A teams reviewing Portuguese TMT in 2026 should expect activity on two tracks: telecoms operators acquiring managed services capabilities, and cross-border media consolidation.

3. Electronic Communications

3.1. Regulatory framework

The regulatory framework governing electronic communications networks and services in Portugal is set out in Law 16/2022 of 16 August (the Portuguese Electronic Communications Law – "ECL"). This statute transposed Directive (EU) 2018/1972, which established the European Electronic Communications Code.

The ECL sets out the rules applicable to the provision of electronic communications networks and services. It requires operators to comply with a general authorisation regime and with obligations aimed at ensuring competition, the efficient use of resources and the protection of end users.

The statute applies to any entity offering electronic communications networks or services in Portugal. This includes both providers established in Portugal and entities established abroad whenever their services extend to the Portuguese territory, whether directly or as part of a cross-border or global solution.

Under Article 3(1)(ss) of the ECL, electronic communications services are services normally provided for remuneration that consist in the conveyance of signals over electronic communications networks. The definition covers internet access services ("IAS"), interpersonal communications services and services consisting wholly or mainly in the conveyance of signals, including transmission services used for M2M communications and broadcasting. The definition therefore captures both traditional telecommunications services and certain over-the-top services.

3.1.1. Sectoral regulators and adjacent regimes

ANACOM (Autoridade Nacional de Comunicações, I.P.) is the national regulatory authority for electronic communications. ANACOM exercises licensing, supervisory and sanctioning powers under the ECL and acts as the primary point of reference for operators and providers active in the sector.

Centro Nacional de Cibersegurança, I.P. ("CNCS") is the national cybersecurity authority. CNCS exercises supervisory functions under the NIS2 transposition (Decree-Law 125/2025), addressed in Section 6 of this briefing.

Comissão Nacional de Proteção de Dados ("CNPD") supervises personal data processing in Portugal. The General Data Protection Regulation (Regulation (EU) 2016/679) is the primary data protection instrument and is enforced by CNPD in cooperation with the relevant Portuguese implementing legislation (Law 58/2019).

Several EU-level regimes apply directly and add complementary obligations. The Digital Services Act (Regulation (EU) 2022/2065) regulates intermediary services. The Digital Markets Act (Regulation (EU) 2022/1925) addresses gatekeeper platforms. The Data Act (Regulation (EU) 2023/2854) introduces a horizontal framework for data sharing, switching between data processing services and access to data generated by connected products. The AI Act (Regulation (EU) 2024/1689) is being progressively implemented, with phased application from 2025 to 2028.

3.2. Market access and general authorisation

The General Authorisation regime established in Article 16(1) of the ECL applies to all natural and legal persons offering electronic communications networks or services. This is true whether the network or service is made available to the public or provided on a self-provision basis.

Article 16(3) of the ECL sets out two exceptions:

• providers of number-independent interpersonal communications services, sometimes referred to as over-the-top ("OTT") services; and
• providers offering access to a public electronic communications network through a local radio network, where this does not form part of an economic activity or a public service dependent on signal transmission.

Under Article 17(1) of the ECL, any entity intending to offer public electronic communications networks or services in Portugal must notify ANACOM in advance. Entities whose services are not publicly accessible, or that fall within the exceptions, are exempt.

3.2.1. Content of the prior notification

The prior notification must include the following information:

• a declaration of the intention to commence activity in Portugal;
• the entity’s identification details, including, where applicable, its permanent representation in Portugal and the relevant website;
• contact details for communications and notifications, including a mandatory email address;
• the expected start date of the activity; and
• a brief description of the network or service to be offered in Portugal.

Where the offer concerns a service, the description must specify the type of service, the relevant market segment, the supporting network and any use of spectrum or numbering resources, with identification of the specific resources where applicable. Where the offer concerns a network, the description must address the network type and purpose, its ownership structure and any use of spectrum or numbering resources.

3.2.2. Registration and confirmation

Under Article 19(2) of the ECL, ANACOM must register the entity within five working days and issue a confirmation of registration. The confirmation includes information on rights of access, interconnection and installation of facilities.

Registration is free of charge. Entities operating under the General Authorisation regime are, however, covered by an annual fee, calculated on the basis of relevant income reported for the previous financial year. The fee is paid to ANACOM and is independent from any spectrum- or numbering-related charges.

3.3. ANACOM and sector supervision

ANACOM exercises supervisory powers including inspections, requests for information and the imposition of remedial measures. Sanctioning powers include administrative fines, with the maximum amounts set by the ECL and adjusted as a function of the seriousness of the breach and the size of the operator.

Operators and service providers are covered by a set of recurring reporting obligations. The main obligations are summarised below. The exact perimeter and frequency depend on the type of activity, the size of the operator and any specific obligations imposed by ANACOM as a result of market analysis or sectoral inquiries.

3.3.1. Annual identification and activity questionnaire

ANACOM requires operators to complete an annual identification and activity questionnaire. The form is divided into Part I, which covers identification details and a description of the operator’s activities, and Part II, which covers investments, accesses and services provided. The Part II indicators feed into ANACOM’s public statistical reports and inform the regulator’s view of market structure and competition.

3.3.2. Annual financial questionnaire

Operators must provide audited financial information relating to the previous financial year. ANACOM circulates a questionnaire that captures several financial indicators, including annual accounts and the management report for the relevant year. Where the operator is part of a wider group, the relevant figures relate to the Portuguese activity rather than the consolidated group.

3.3.3. Annual fee declaration

The annual fee payable by electronic communications networks and services providers is calculated on the basis of the relevant income reported for the previous financial year. Providers therefore declare the income that determines the fee through a dedicated form. The relevant income concept follows the regulatory definition and is not always identical to the accounting concept of revenue.

3.3.4. Other reporting obligations

In addition, operators face a range of ad hoc and periodic reporting duties. ANACOM requires network operators to submit data on geographic coverage, spectrum utilisation and base-station deployment on a quarterly, semi-annual or annual basis.

Operators designated with significant market power ("SMP") are subject to additional obligations, including cost-accounting, accounting separation and the submission of regulated wholesale pricing data. Consumer-facing providers must also report complaint volumes, resolution rates and switching statistics.

3.4. Roaming, universal service and other sector obligations

Roaming. Portuguese operators must comply with the EU Roam-Like-At-Home regime under Regulation (EU) 2022/612, which prohibits surcharges on voice, SMS and data used by subscribers travelling within the EEA. The regulation, extended to June 2032, sets declining wholesale caps (€1.30 per GB in 2025, falling to €1.00 in 2027) and requires operators to offer RLAH by default. Operators may apply a fair-use policy and must report roaming traffic data to ANACOM, which in turn feeds BEREC’s pan-European monitoring.

Universal service and adequate broadband. The ECL defines universal service as including adequate broadband internet access and voice communications at a fixed location, together with specific measures for end-users with disabilities. The Government determines the minimum bandwidth for universal service purposes, taking into account BEREC’s best-practice reports and actual usage patterns. In parallel, the social tariff for broadband access, introduced by Decree-Law 66/2021, ensures that lower-income households can access fixed or mobile broadband at reduced cost.

High-speed coverage and the Gigabit Strategy. Portugal’s National Strategy for Connectivity in Very High Capacity Networks (2023–2030) targets full household coverage by Gigabit-capable networks by 2030, backed by approximately €345 million in combined public and private funding. Operators holding 5G spectrum licences are subject to specific coverage obligations, for example, extending 5G to low-density parishes within defined deadlines. By end-2025, ANACOM reported 15,495 5G base stations deployed across all 308 Portuguese municipalities.

Quality of service and net neutrality. ANACOM monitors latency, packet loss and actual download and upload speeds and publishes comparative reports. Operators must comply with the EU open-internet rules under Regulation (EU) 2015/2120, which prohibit blocking, throttling or discriminatory treatment of traffic, subject to the limited exceptions. ANACOM may issue sanctions where an operator’s traffic management practices are found to breach these obligations.

Incident reporting obligations under the cybersecurity regime are addressed in Section 6 of this briefing.

3.5. The DNA proposal

In January 2026, the European Commission published a proposal for a Digital Networks Act, aimed at simplifying and updating the EU framework for electronic communications.

The proposal builds on the European Electronic Communications Code and introduces a stronger emphasis on cross-border consistency, on the deployment of advanced networks and on the adaptation of the regulatory regime to convergence with cloud and edge computing. The legislative process is ongoing and adoption is not expected before 2027.

The principal changes proposed by the DNA can be grouped under the following headings.

Single Passport authorisation. The DNA introduces a pan-EU general authorisation regime under which a provider may notify in a single Member State and operate networks or services throughout the Union without additional national notifications. Member States would not be permitted to impose requirements beyond the harmonised list of conditions. This represents a significant departure from the current regime, under which each country administers its own general authorisation.

Spectrum reform. Radio spectrum rights of use would, as a general rule, be granted for an unlimited duration, subject to periodic review by the national regulatory authority and a minimum term of forty years where a time limit is justified. The DNA also introduces a "use it or share it" principle, requiring holders to take steps to share rights of use where technically feasible, and establishes an EU-level authorisation regime for satellite systems.

Copper switch-off and fibre transition. The proposal mandates a structured transition from copper to fibre networks, with a final copper switch-off deadline of 31 December 2035. In areas meeting two cumulative criteria (at least 95% fibre coverage of premises and availability of affordable retail connectivity), earlier switch-off may be required. Member States must present national transition-to-fibre plans to the Commission by 31 October 2029.

SMP regime and access regulation. The significant market power framework is retained but simplified. Unused mechanisms such as co-investment-related deregulation and functional separation are removed. A new EU-level harmonised access product is introduced, which national regulatory authorities must consider before imposing specific national remedies. The Commission would gain veto power over remedies imposed by national regulatory authorities, extending its current powers beyond market definition and SMP designation.

Net neutrality and digital ecosystem cooperation. The existing open-internet framework is largely preserved. The DNA introduces mandatory biennial reporting by internet access service providers on net neutrality safeguards. It also establishes a voluntary conciliation procedure, mediated by national regulatory authorities with a BEREC opinion, for disputes between electronic communications providers and undertakings in adjacent sectors such as cloud and content.

Resilience and security. The DNA designates electronic communications networks as essential infrastructure and requires BEREC to adopt a Union Preparedness Plan for Digital Infrastructures. Supply-chain security requirements are integrated into the general authorisation regime, aligning with NIS2 and the revised Cybersecurity Act.

Governance. EU-level governance is restructured through the establishment of the Office for Digital Networks, which replaces the BEREC Office, and the creation of the Radio Spectrum Policy Body with an expanded strategic mandate for cross-border coordination.

For operators and corporate users active in Portugal, the DNA signals material regulatory change over the medium term. Areas of particular relevance include the replacement of ANACOM’s national authorisation procedures with the Single Passport, the impact of the copper switch-off timetable on wholesale access arrangements, the potential reduction of national-level reporting obligations through EU harmonisation, and the framework for backbone investment in cross-border infrastructure.

4. Network Infrastructure

4.1. Network licensing and spectrum allocation

The use of radio spectrum requires a specific right of use, granted by ANACOM under the ECL and complemented by the National Frequency Allocation Plan. Spectrum rights can be allocated through procedures that take the form of an auction, a beauty contest or a direct grant, depending on the band and the level of demand for it.

The 5G spectrum allocation completed in 2021 covered the 700 MHz, 900 MHz, 1800 MHz, 2.1 GHz, 2.6 GHz and 3.6 GHz bands. The auction was among the most contested in Portuguese telecommunications history and resulted in a footprint of frequencies broadly distributed between MEO, NOS and Vodafone, with NOWO obtaining a slot in the 3.6 GHz band. Subsequent secondary market transactions have refined the resulting holdings, including the transfer of NOWO’s rights in the 3.6 GHz band to DIGI in early 2025.

The terms of spectrum rights of use include conditions on coverage, on the deployment timeline and, where applicable, on the offer of national roaming. The breach of these conditions may give rise to administrative measures and, in extreme cases, to the revocation of the right of use.

Numbering resources are managed under the National Numbering Plan. They are allocated by ANACOM at the request of authorised providers and are covered by efficient use obligations and by fees that depend on the type and volume of resources granted. Number portability between operators is ensured under the relevant ANACOM regulation.

4.1.1. Numbering resources and sub-allocation

ANACOM manages the National Numbering Plan (Plano Nacional de Numeração, "PNN"), which is structured in accordance with ITU-T Recommendation E.164 and organises all telephone numbers into nine-digit ranges.

Rights of use of numbering resources are allocated by ANACOM upon request from authorised providers, following open, objective, transparent and non-discriminatory procedures; for ranges of exceptional economic value – such as 800 (freephone), 808 (shared-cost) and 707 (universal access) – allocation is preceded by a public consultation.

Until the end of 2021, numbering resources could only be obtained through primary allocation directly from ANACOM. The sub-allocation of numbers (i.e. the transfer of numbers by a rights holder to a third-party company) was not permitted. This meant that any company wishing to offer electronic communications services had to obtain numbers directly from ANACOM and comply with the full set of conditions applicable to primary rights holders, which could represent a disproportionate burden for smaller operators, MVNOs or niche-market entrants.

This changed with ANACOM Regulation 1028/2021, published on 29 December 2021, which for the first time introduced a sub-allocation regime into Portuguese law. Under this regime, a company holding rights of use of numbering resources ("rights holder") may sub-allocate numbers from eligible ranges to a third-party company ("beneficiary"), which may then use those numbers in its own retail electronic communications offers and assign them to end users.

The eligible ranges cover:

• fixed telephone service (2);
• mobile telephone service (91, 92, 93, 96);
• nomadic VoIP (30);
• universal access (707, 708);
• single-rate (760, 761, 762);
• freephone (800); and
• shared-cost services (808, 809).

The sub-allocation is subject to the following conditions: (i) only numbers from the listed ranges may be sub-allocated; (ii) the rights holder must notify ANACOM before launching the wholesale sub-allocation offer; (iii) the beneficiary must communicate to ANACOM the start of its retail electronic communications service; (iv) the rights holder retains ownership of the numbering rights and remains liable for the applicable fees; and (v) number portability rules apply in full, ensuring that end users of sub-allocated numbers enjoy the same switching rights as users of numbers obtained through primary allocation.

This change has materially lowered entry costs and administrative complexity, enabling new players, including MVNOs, secondary service providers and IoT platforms, to reach the market more quickly.

4.2. The communications infrastructure law

Facilities that provide network infrastructure supporting electronic communications services fall within the scope of Decree-Law 123/2009 of 21 May ("Communications Infrastructure Law"). This statute regulates the construction, access and installation of electronic communications infrastructures, including ducts, poles and other associated elements.

The Communications Infrastructure Law focuses on the physical layer of telecommunications infrastructure. Its application depends on the involvement of electronic communications operators in the use of such infrastructure. Operators deploying their own networks to interconnect with electronic communications services may benefit from specific rights. These include rights of way over public domain and, where strictly necessary, the possibility of expropriation for the installation of network infrastructure.

Operators are also covered by obligations, notably the duty to grant access to their infrastructure, such as ducts and related facilities, to other electronic communications operators. This access obligation is a central element of the regulatory framework: it allows competing operators to deploy fibre without duplicating civil works and is one of the reasons Portuguese fibre coverage extended quickly across the country.

Regarding municipal fees, the use of public and private municipal domain for the installation of electronic communications infrastructure gives rise to the Taxa Municipal de Direitos de Passagem ("TMDP"). The TMDP is calculated as a percentage, capped at 0.25%, of the total monthly billing issued by operators to end-customers in each municipality. Municipalities may opt not to levy the TMDP in order to promote network development, but where they do so they may not charge any other taxes, levies or fees for the same use of municipal domain. The State and the Autonomous Regions do not charge operators for the use of their respective public and private domains. Since the 2021 State Budget Law, operators are prohibited from passing the TMDP on to consumers.

At EU level, the Gigabit Infrastructure Act (Regulation (EU) 2024/1309 of 29 April 2024 – "GIA") replaced the Broadband Cost Reduction Directive (Directive 2014/61/EU) and became fully applicable on 12 November 2025. As a regulation, it applies directly without national transposition. The GIA strengthens infrastructure sharing obligations, extends access requirements to physical infrastructure owned or controlled by public sector bodies, introduces a four-month permit-granting deadline for very high-capacity network deployment and requires Member States to establish single information points for infrastructure transparency and permit applications. These provisions complement the domestic access regime under Decree-Law 123/2009 and are expected to accelerate fibre and 5G rollout, particularly in rural and underserved areas.

4.3. Fixed and mobile networks

The fixed network in Portugal is predominantly fibre-based. As shown in Section 2, FTTH accounted for 71.4% of fixed accesses by the end of the third quarter of 2025, with the remaining accesses split between cable, xDSL and a residual share of fixed wireless and satellite connections.

On mobile networks, the four operators have national 5G coverage, with the deployment patterns described in Section 2. Indoor coverage in dense urban areas continues to be a focus of investment. The Multi-Operator Radio Access Network ("MORAN") arrangement between NOS and Vodafone, which involves the sharing of radio access network infrastructure in defined areas, affects both coverage planning and competitive analysis.

Network sharing arrangements raise specific regulatory considerations. The MORAN arrangement has been in operation for several years and offers a useful precedent for any future sharing initiatives.

4.4. Submarine cables

4.4.1. Landing stations and the Portuguese position in the Atlantic

Submarine cables carry approximately 99% of the world’s international data traffic. Demand for new systems is no longer driven primarily by telecommunications carriers; it comes from the investment programmes of hyperscale cloud and AI operators, for whom cable capacity is a limiting factor.

Portugal has held a position in global communications infrastructure for an extended period. In the fifteenth century, Portuguese ships established maritime routes connecting Europe to other continents. In the nineteenth century, all district capitals were connected by telegraph through more than 1,600 km of lines, and Portugal joined the first global submarine cable network fifteen days after its initial launch. The country’s position at the western edge of the European mainland, its renewable energy base, and its historical connections to Latin America and Africa have made it one of the busiest submarine cable hubs in the Atlantic.

There are presently around twenty submarine cable systems landing on the Portuguese coast, distributed across four main landing zones: Carcavelos, Sesimbra, Seixal and Sines[6].

Among the systems that came on stream in the last few years, EllaLink, in service since 2021, was the first high-capacity direct fibre optic route between Europe and South America, linking Sines to Fortaleza in Brazil. Equiano, deployed by Google, became operational in 2022. The 2Africa cable, sponsored by a consortium that includes Vodafone and Meta and reportedly the largest subsea cable system in the world, landed in Carcavelos in March 2024.

The pan-Mediterranean Medusa cable, which will link Sines and Carcavelos to several North African and Southern European countries, is being deployed throughout 2026, having first landed in Marseille in October 2025. Google’s Nuvem cable, which will provide a new direct transatlantic route between Portugal and the United States, is expected to be ready for service in the second half of 2026.

Sines is developing rapidly as a landing site for transatlantic and regional submarine cable systems. The initiative known as the "Atlantic Hub", a partnership between aicep Global Parques, EllaLink and Start Campus and supported by the Portuguese Government, aims to establish the Sines Tech area as a resilient and accessible landing site for new transcontinental systems, in coordination with the local hyperscale data centre campus.

The geographical position of Portugal, south of the traditional FLAP-D markets (Frankfurt, London, Amsterdam, Paris and Dublin), and the increasing capacity constraints faced by those hubs, combined with the availability of renewable energy and direct seawater cooling, have positioned Sines as a significant site within the Iberian connectivity market.

Along with overseas cables, Portugal is replacing its domestic long-range subsea cables through a new ring (the Continente-Açores-Madeira, or CAM ring), to provide services between mainland Portugal and the Madeira and Azores autonomous regions.

The original ring, in operation since 1999, having reached the end of its design life, is being replaced by a 3,812 km submarine cable with an estimated capacity of at least 150 Tbps, scheduled for completion by the end of 2026, to be operated by IP Telecom, S.A., the telecom arm of the railway network concessionaire.

Along with capacity, the system will integrate a SMART module (Science Monitoring And Reliable Telecommunications) for seismic detection, climate and environmental monitoring.

An additional Interisland Ring Azores (Anel intra-ilhas Açores)[7] is under study to replace the inter-island system serving the nine Azorean islands; once deployed, it is expected to operate jointly with the CAM system as part of a broader Atlantic platform aligned with the EU Atlantic Gateway concept.

4.4.2. Licensing

Deploying a submarine cable system through the national maritime space requires a private use title (Título de Utilização Privativa do Espaço Marítimo, "TUPEM") under a framework set by Law 17/2014 of 10 April and developed by Decree-Law 38/2015 of 12 March, which governs the application procedure and the conditions of attribution.

The competent authority for the maritime space adjacent to the mainland, including the extended continental shelf, is the Direção-Geral de Recursos Naturais, Segurança e Serviços Marítimos ("DGRM"). In the maritime zones adjacent to the Azores and Madeira, between the baselines and the outer limit of the territorial sea, the relevant regional services issue the title.

Before filing, the proposed cable route must be checked against the Plano de Situação do Ordenamento do Espaço Marítimo Nacional ("PSOEM"), the maritime spatial planning instrument that allocates uses across the national maritime space.

For submarine cables, the TUPEM is normally granted under the concession regime, for a maximum of 50 years. Applications are filed electronically and follow a structured procedure:

• preliminary review by DGRM;
• consultation of other competent authorities;
• public consultation for at least 15 days, during which third parties may file competing applications or objections; and
• final decision by DGRM.

Award of the title generally requires a prior security deposit, calculated as the investment value multiplied by the applicable risk coefficient. The holder must also carry mandatory civil liability insurance for damage caused to third parties.

Where a submarine cable lands on Portuguese territory and is used to provide electronic communications services, additional obligations arise as operating the cable for electronic communications purposes requires registration with ANACOM.

Environmental impact assessment is not automatically required for submarine cables. In practice, applicants are frequently asked to seek a prior opinion from Agência Portuguesa do Ambiente ("APA") on whether the project requires said assessment.

Security review of new cable landings has increased. Designation of certain systems as strategic digital infrastructure triggers additional scrutiny of ownership structure, operational continuity and supply chain security. The national supervisory authority is the Centro Nacional de Cibersegurança.

Route confidentiality is a further consideration. Precise routing data for submarine cables is publicly accessible in some contexts, and this is treated as a security risk. Both national authorities and EU institutions are moving toward restricting access to that information.

4.5. Data centres and data storage

Portugal does not currently have a dedicated data centre licensing regime. The construction and operation of data centres remain subject to the general framework applicable to urban planning, construction, environmental licensing, infrastructure and industrial activity. Depending on the services provided, additional sector-specific regimes may apply.

Decree-Law 84/2024 establishes a specific legal framework governing the energy performance of data centres, partially transposing Directive (EU) 2023/1791 on energy efficiency and implementing Delegated Regulation (EU) 2024/1364. The regime applies to data centres with an installed IT power demand of at least 500 kW and imposes detailed reporting and transparency obligations concerning energy consumption, renewable energy usage, water consumption, waste heat reuse and operational efficiency metrics.

In March 2026, the Government approved the National Data Centre Plan (Plano Nacional de Centros de Dados, "PNCD"), together with a 2026–2027 Action Plan. The PNCD is structured around four pillars: regulation and governance, energy and infrastructure, demand and market, and territory and ecosystem. The plan aims to streamline permitting procedures, identify pre-approved development areas and centralise investor support through AICEP acting as a single point of contact. It also envisages maximum administrative decision periods and aligns with the National Digital Strategy, sovereign cloud objectives and the National Artificial Intelligence Agenda.

Energy availability and grid access are the principal constraints on new hyperscale capacity. The Sines campus benefits from a high voltage connection point, proximity to the cluster of submarine cable landings and direct seawater cooling. These are structural advantages that other sites in Portugal do not offer at the same scale.

Data centre operators that handle personal data, even on a purely infrastructural basis, are covered by the data protection regime. They may also fall within the cybersecurity perimeter introduced by the NIS2 transposition, where they qualify as essential or important entities under Decree-Law 125/2025. Data centre service providers and cloud computing service providers are listed as essential or important entities, depending on size, under the new framework.

Investment in data centres and other strategic TMT infrastructure may also engage the Portuguese foreign direct investment ("FDI") screening regime. Under Decree-Law 138/2014 of 15 September, the Council of Ministers may oppose acquisitions by non-EU or non-EEA investors that result in direct or indirect control over strategic assets in the energy, transport or communications sectors, where such transactions pose a real and sufficiently serious threat to defence, national security or the security of supply of essential services. To date, no transaction has been formally blocked under this regime.

5. Digital Services and Emerging Technologies

5.1. Cloud and data services

Cloud services are provided in Portugal both by the global hyperscalers and by domestic operators that have built or acquired cloud and managed services capabilities. The acquisition of Claranet Portugal by NOS in March 2025 illustrates the continued effort by domestic operators to move up the value chain into managed services and cloud.

From a regulatory perspective, cloud providers are not, as such, covered by the general authorisation regime under the ECL, unless their offer also includes the conveyance of signals through electronic communications networks. They are, however, often qualified as digital infrastructure providers for the purposes of NIS2, as data centre service providers, cloud computing service providers, content delivery network providers or managed service providers. The qualification as essential or important entity follows from the size and the activity of the relevant entity.

5.1.1. The Data Act and switching

The Data Act (Regulation (EU) 2023/2854) introduced a horizontal framework for data sharing, with mandatory access rights for users of connected products and obligations on data holders to enable switching between data processing services. Cloud providers active in the Portuguese market need to align their contractual frameworks with these requirements, in particular as regards switching, interoperability and unfair contractual terms.

The switching obligations are significant. Cloud providers are required to remove commercial, technical, contractual and organisational obstacles that prevent customers from switching to another provider or to an in-house solution. Specific timelines apply for the completion of switching processes, and the rules on egress fees become more restrictive over time. The full set of obligations applies from January 2027.

5.1.2. Data Governance and the European Data Strategy

Regulation (EU) 2022/868 ("Data Governance Act") has been applicable since September 2023 and establishes a framework for data intermediation services, data altruism and the re-use of protected public sector data.

In Portugal, the Conselho Nacional de Estatística supports national coordination, and CNPD retains its supervisory role where personal data is involved. Entities offering data intermediation services are subject to a notification regime and to obligations on neutrality, organisational separation and transparency.

Portugal was among 18 Member States subject to infringement proceedings opened by the European Commission in May 2024 for failing to designate the competent authorities required under the Data Governance Act or to demonstrate that those authorities were empowered to carry out the tasks required by the regulation. The Commission escalated the proceedings by issuing a reasoned opinion to Portugal in December 2024.

5.2. Artificial intelligence

Regulation (EU) 2024/1689 ("AI Act") establishes a horizontal regime applicable to providers, deployers, importers and distributors of artificial intelligence systems. The AI Act follows a risk-based approach. Prohibited practices have applied since February 2025. Obligations on general-purpose AI models entered into force in August 2025. The remaining substantive obligations on high-risk systems apply from 2 December 2027 for stand-alone systems and from 2 August 2028 for systems embedded in regulated products, following the Digital Omnibus on AI (Regulation (EU) 2026/1744).

5.2.1. National implementation

In Portugal, the designation of national competent authorities for AI Act enforcement is being completed during 2026. ANACOM, CNPD and sectoral regulators are expected to play complementary roles, depending on the area of deployment.

A market surveillance authority will be designated to oversee compliance with the requirements applicable to high-risk AI systems placed on the Portuguese market. The single point of contact and the notifying authority for conformity assessment bodies are also in the process of being designated.

Portugal participates in the European AI Office, which provides governance support at EU level for the implementation of obligations on general-purpose AI models. The AI Office’s work, including its codes of practice and guidelines, will be relevant for entities active in the Portuguese market.

5.2.2. Indirect impact on infrastructure providers

Even where infrastructure operators are not directly regulated as AI system providers or deployers, the AI Act has indirect effects. Cloud and data centre operators that host high-risk AI systems may face heightened contractual demands relating to availability, auditability, traceability and security. The interaction between AI compliance, cybersecurity governance and data protection requirements is likely to influence contractual structures and operational standards across the sector.

Boards of infrastructure entities should review their standard contractual templates with the AI Act in mind. Specific items to consider include: the allocation of responsibility for compliance with high-risk system obligations, the treatment of incidents potentially affecting AI system integrity, the handling of audit rights and the contractual support for traceability and explainability obligations.

5.3. Cryptocurrencies, blockchain and tokenisation

The market for crypto-assets in Portugal has undergone significant regulatory change since the EU adopted a comprehensive framework for digital assets. The pre-existing regulatory baseline centred on anti-money laundering obligations applicable to virtual asset service providers, introduced by Law 58/2020 of 31 August, which transposed the Fifth Anti-Money Laundering Directive. Banco de Portugal has supervised registered VASPs for AML/CFT purposes under Notice 3/2021, and this registration framework served as the baseline for entities operating in the Portuguese market prior to the application of the MiCA Regulation.

Regulation (EU) 2023/1114 ("MiCA") is the primary EU-wide framework for crypto-assets, with stablecoin provisions (covering asset-referenced tokens and e-money tokens) applicable since June 2024 and the full crypto-asset service provider licensing regime applicable since December 2024.

The Portuguese implementing legislation is Law 69/2025 of 22 December 2025. It establishes a dual-supervisory model: Banco de Portugal acts as the prudential supervisor (including oversight of stablecoin issuers), while CMVM supervises market conduct, the issuance of crypto-assets other than stablecoins, and market abuse. This "twin peaks" approach represents a departure from Portugal’s traditional sectoral model of financial supervision. VASPs that were registered with Banco de Portugal and actively operating before 30 December 2024 may continue to provide services under a transitional regime until 1 July 2026 or until they obtain or are refused MiCA authorisation, whichever occurs first.

Tokenisation and distributed ledger technology are addressed separately under the DLT Pilot Regime (Regulation (EU) 2022/858), which allows market infrastructure operators to admit DLT-based financial instruments to trading under a controlled framework. MiCA, the Digital Operational Resilience Act ("DORA") and the broader European data and AI regulatory framework together create multiple, overlapping compliance obligations for fintech operators, trading platforms and infrastructure providers in the Portuguese market.

6. Cybersecurity and Critical Infrastructure

6.1. The NIS2 and Decree-Law 125/2025

Directive (EU) 2022/2555 ("NIS2") was transposed into Portuguese law by Decree-Law 125/2025 of 4 December. The new regime replaces the prior framework and significantly expands the population of entities covered by cybersecurity obligations. The CNCS is the national competent authority and the single point of contact for the purposes of the regime.

The regime applies to public and private entities that meet the criteria of essential or important entities. The criteria combine sector membership and size. The sector list covers, among others, energy, transport, banking, financial market infrastructures, healthcare, drinking water, wastewater, digital infrastructure, ICT service management, public administration and space.

6.2. Essential and important entities

Essential entities are typically large entities active in highly critical sectors. Important entities are medium-sized entities in critical sectors and large entities in other sectors covered by the regime.

Both categories are covered by the same set of substantive obligations. The supervisory regime is, however, more intrusive for essential entities, with proactive supervision, including planned audits, available to the competent authority.

6.2.1. Size-based qualification

The size criteria draw on the EU recommendation on small and medium-sized enterprises. An entity is treated as a large entity if it employs more than 250 persons or has annual turnover exceeding €50 million and an annual balance sheet total exceeding €43 million. Medium-sized entities employ between 50 and 250 persons or meet the analogous turnover and balance sheet thresholds at the medium tier.

Where an entity is part of a group, the size assessment must take into account the group structure, in particular the relationship between the relevant entity and other group entities under the partner and linked enterprises concepts. This assessment can be more involved than it first appears, especially for groups with complex shareholding structures or with cross-border footprints.

6.2.2. Sectors regardless of size

The regime also captures certain entities regardless of size. These include providers of public electronic communications networks and services, qualified trust service providers, top level domain name registries, domain name system service providers, and certain providers of services that are critical to public security or public order.

The regime also addresses the position of small operators where their disruption would have a significant impact on a Member State.

6.3. Risk management measures

Essential and important entities must adopt appropriate technical, operational and organisational measures to manage the risks posed to the security of their network and information systems. The measures must be proportionate to the risk. NIS2 sets out a non-exhaustive list of areas that the measures must cover.

The areas of risk management include the following:

• policies on risk analysis and information system security;
• incident handling procedures;
• business continuity planning, including backup management and disaster recovery, and crisis management;
• supply chain security, including security-related aspects concerning the relationships between each entity and its direct suppliers or service providers;
• security in the acquisition, development and maintenance of network and information systems, including vulnerability handling and disclosure;
• policies and procedures to assess the effectiveness of cybersecurity risk management measures;
• basic cyber hygiene practices and cybersecurity training;
• policies and procedures regarding the use of cryptography and, where appropriate, encryption;
• human resources security, access control policies and asset management; and
• the use of multi-factor authentication or continuous authentication solutions, secured voice, video and text communications and secured emergency communication systems within the entity, where appropriate.

Boards of essential and important entities are required to approve and oversee the implementation of cybersecurity risk management measures. Members of the management body must follow training and ensure that staff receive appropriate training. The regime imposes personal accountability on board members.

6.4. Incident reporting and supervision

The regime imposes a layered incident reporting duty for significant incidents. Essential and important entities owe a series of notifications to CNCS:

• an early warning is due within 24 hours of the entity becoming aware of a significant incident, indicating in particular whether the incident is suspected to be caused by unlawful or malicious acts and whether it could have a cross-border impact;
• an incident notification with a more detailed assessment is due within 72 hours, including, where applicable, an updated assessment of the early warning and an indication of the type of threat or root cause that has likely triggered the incident;
• an intermediate report on relevant status updates is due upon request of the competent authority; and
• a final report is due within one month of the incident notification, providing a detailed description of the incident, its severity and impact, the type of threat or root cause likely to have triggered the incident, the applied and ongoing mitigation measures, and the cross-border impact, where applicable.

Where the incident is ongoing at the point at which the final report is due, a progress report is filed instead and a final report follows the resolution of the incident. The framework is intentionally tight, especially the 24-hour early warning, and entities should have an established internal escalation path that can deliver compliance with the timeline under operational pressure.

6.4.1. Sanctions

CNCS may carry out audits, request information and issue binding instructions. The regime also empowers the supervisory authority to apply administrative sanctions for non-compliance, with maximum fines that depend on the entity’s status as essential or important and on the seriousness of the breach.

For essential entities, the maximum fines reach the higher of €10 million or 2% of total worldwide annual turnover. For important entities, the maximum fines reach the higher of €7 million or 1.4% of total worldwide annual turnover. Beyond fines, the supervisory authority has at its disposal a range of corrective measures, including the suspension of certifications or authorisations and, in extreme cases, restrictions on the exercise of management functions for breach of obligations specific to the management body.

7. User Protection

7.1. Personal data protection and privacy

Personal data processing in Portugal is governed by the General Data Protection Regulation (Regulation (EU) 2016/679 – "GDPR"). The Portuguese implementing law is Law 58/2019 of 8 August. CNPD is the supervisory authority for personal data processing.

CNPD’s enforcement priorities have shifted in recent years to take in cookies, lawful basis for marketing communications, the handling of access and deletion requests, and the use of personal data in artificial intelligence training. CNPD has a track record of close engagement with both private and public sector entities and routinely issues guidelines that operators in the sector treat as effectively binding.

7.1.1. e-Privacy and electronic communications

In the electronic communications sector, the protection of personal data is complemented by Law 41/2004 of 18 August ("Portuguese e-Privacy Law"). The Portuguese e-Privacy Law establishes specific rules for traffic data, location data, unsolicited communications and the use of cookies and similar technologies. The European Commission withdrew the proposed e-Privacy Regulation in 2025, with the withdrawal published in the Official Journal on 6 October 2025. Directive 2002/58/EC and the Portuguese framework transposing it therefore remain in force.

Operators of electronic communications services are covered by specific obligations in case of personal data breaches affecting subscribers, including a notification duty to the supervisory authority and, where applicable, to the affected subscribers. These obligations apply in addition to the general personal data breach notification regime under the GDPR.

7.1.2. Practical compliance points

For operators active in the Portuguese market, several recurring practical themes have emerged from CNPD enforcement decisions. Cookie banners must offer an equally prominent reject option alongside the accept option. Lawful basis for marketing communications must be selected with care, with consent the default for direct marketing to non-customers and the soft opt-in available for own customers within tightly drawn limits. Data subject rights handling timelines should map cleanly onto the GDPR deadlines, with internal escalation paths to support atypical cases.

7.2. Consumer protection in electronic communications

The ECL devotes a specific chapter to end-user rights. The chapter introduces or reinforces rules on contractual transparency, contract duration and termination, the right to switch operator and number portability, and the supply of universal service.

7.2.1. Contract terms and switching

Maximum contract duration for consumer electronic communications services is set by law. Subscribers benefit from a clear right to terminate at the end of the loyalty period, with regulated information requirements that mean operators must alert customers before the loyalty period ends and inform them of the alternative offers available. Switching procedures, including number portability, follow harmonised timelines designed to minimise inconvenience for the customer.

ANACOM is the competent authority for the supervision and enforcement of these rules in the electronic communications sector. Direção-Geral do Consumidor, Autoridade de Segurança Alimentar e Económica ("ASAE") and consumer protection associations also have a role in consumer protection matters. Decisions of these authorities, particularly ANACOM, are relevant to contract drafting.

7.2.2. Recent enforcement priorities

Recent enforcement priorities have focused on contractual loyalty periods, automatic price adjustments, the clarity of switching procedures and the transparency of bundle offers.

ANACOM has been particularly active on automatic price adjustments. The regulator’s position is that price increases linked to inflation indices must be announced clearly in advance and that customers must have an effective right to terminate the contract without penalty if they disagree with the price change.

Operators serving consumers in Portugal should keep contractual templates under regular review and align them with the latest ANACOM guidance and decisions. Customer journey design also matters. Several recent enforcement decisions have focused not on the underlying contract clauses but on whether the customer experience was sufficiently clear and balanced, particularly at the end of the loyalty period.

8. Key takeaways

Networks. Fibre reaches more than 90% of Portuguese households and 5G traffic has overtaken the legacy mobile generations still in use.

Market structure. MEO, NOS and Vodafone remain the three largest operators, but DIGI’s entry and cross-border media consolidation are changing competition and deal activity.

Data centres. Sines is set to host a hyperscale campus among the largest in Southern Europe. The PNCD, approved in March 2026, and Decree-Law 84/2024 on energy performance define the planning and compliance environment for new projects.

Cybersecurity. Decree-Law 125/2025 transposes NIS2 and is in force. Essential and important entities face their first supervisory cycle in 2026, including the 24-hour incident early warning.

Artificial intelligence and data. The AI Act’s remaining high-risk obligations apply from August 2026 and already drive contractual demands on data-centre and cloud providers. The Data Act governs cloud switching and MiCA governs crypto-asset services.

Privacy. The Commission withdrew the e-Privacy Regulation in 2025; Law 41/2004 and the GDPR remain the framework. CNPD priorities include cookies, marketing consent and the use of personal data in AI training.

What comes next. The DNA proposal of January 2026 would recast authorisation, spectrum, copper switch-off and sector governance. Consumer enforcement concentrates on loyalty periods and automatic price adjustments.

Appendix A: Regulatory map

The table lists the authorities referred to in this briefing and the matters each of them supervises.

Authority	Remit	Section
ANACOM Autoridade Nacional de Comunicações	National regulatory authority for electronic communications. Grants spectrum and numbering rights, registers providers under the general authorisation regime, supervises the end-user rules of the sector and enforces the ECL. Expected to share AI Act competences with CNPD and sectoral regulators.	3.1.1, 4.1, 7.2
CNCS Centro Nacional de Cibersegurança	National cybersecurity authority and single point of contact under Decree-Law 125/2025 (NIS2). Supervises the security of strategic digital infrastructure, including submarine cable landings.	4.4.2, 6
CNPD Comissão Nacional de Proteção de Dados	Supervises personal data processing under the GDPR and Law 58/2019. Keeps its supervisory role for personal data under the Data Governance Act. Expected to share AI Act competences.	5.1.2, 5.2.1, 7.1
AdC Autoridade da Concorrência	Reviews concentrations under the Competition Act (Law 19/2012). ANACOM and ERC issue opinions without a veto.	2.2.4
ERC Entidade Reguladora para a Comunicação Social	Supervises television, on-demand audiovisual services and radio, including media pluralism, content classification and the protection of minors. National authority for the European Media Freedom Act.	2.2.2
DGRM Direção-Geral de Recursos Naturais, Segurança e Serviços Marítimos	Grants the private use title (TUPEM) for submarine cables in the maritime space adjacent to the mainland. Regional services act for the Azores and Madeira.	4.4.2
APA Agência Portuguesa do Ambiente	Gives a prior opinion on whether a submarine cable project requires an environmental impact assessment.	4.4.2
Council of Ministers	May oppose acquisitions by non-EU or non-EEA investors that give control over strategic assets, under the foreign direct investment screening regime (Decree-Law 138/2014).	4.5
Banco de Portugal and CMVM Comissão do Mercado de Valores Mobiliários	Supervise crypto-asset service providers under MiCA and Law 69/2025. Banco de Portugal acts as prudential supervisor. CMVM supervises market conduct, the issuance of crypto-assets other than stablecoins and market abuse.	5.3
Direção-Geral do Consumidor and ASAE Autoridade de Segurança Alimentar e Económica	Consumer protection authorities that act alongside ANACOM in the electronic communications sector.	7.2.1
Conselho Nacional de Estatística	Supports national coordination under the Data Governance Act.	5.1.2

Appendix B: Key dates

The table lists the dates referred to in this briefing in chronological order. Dates marked as proposed depend on adoption of the DNA proposal.

Date	Development	Section
12 November 2025	The Gigabit Infrastructure Act becomes fully applicable.	4.2
4 December 2025	Decree-Law 125/2025 transposes the NIS2 Directive into Portuguese law.	6.1
22 December 2025	Law 69/2025 implements MiCA and sets the supervisory roles of Banco de Portugal and CMVM.	5.3
January 2026	The European Commission publishes the DNA proposal.	3.5
March 2026	The Government approves the National Data Centre Plan and its 2026–2027 Action Plan.	4.5
1 July 2026	The MiCA transitional regime ends for crypto-asset service providers registered with Banco de Portugal before 30 December 2024, unless authorisation was granted or refused earlier.	5.3
27 July 2026	The Digital Omnibus on AI (Regulation (EU) 2026/1744) enters into force and postpones the high-risk obligations of the AI Act.	5.2
2026	Start Campus expects SIN02 to enter service in Sines.	2.2.3
Second half of 2026	Google's Nuvem cable is expected to be ready for service.	4.4.1
End-2026	The CAM ring replacement is scheduled for completion.	4.4.1
January 2027	The full set of Data Act switching obligations applies to cloud providers.	5.1.1
2027	The wholesale roaming cap falls to €1.00 per GB.	3.4
Not before 2027	Earliest expected adoption of the DNA.	3.5
2 December 2027	High-risk obligations of the AI Act apply to stand-alone systems.	5.2
2 August 2028	High-risk obligations of the AI Act apply to systems embedded in regulated products.	5.2
31 October 2029	Proposed: Member States present national transition-to-fibre plans to the Commission.	3.5
2030	Target date for gigabit-capable network coverage of all households.	3.4
31 December 2035	Proposed: final copper switch-off deadline.	3.5

1. Introduction

Portugal is now on the radar of many international investors wishing to move into Europe, seen as a safe haven in a world facing seismic changes. This is because Portugal offers unique living conditions, a welcoming environment and offers investment opportunities in a wide variety of sectors.
Portugal is a country located in the southwestern Europe, enjoying a prime location and exceptional conditions for doing business. Portugal is a member state of the European Union and enjoys a high level of security compared to most countries worldwide, including those in Western Europe. According to the Global Peace Index, Portugal ranks 7th globally and 5th in Europe.
This briefing provides an overview of the main legal and practical aspects concerning the Portuguese tax system, including corporate and personal income taxes, value added tax, property taxes, stamp duty etc.

2. Overview of the Portuguese System

The main taxes in Portugal are the personal and corporate income taxes and the value-added tax ("VAT"), which is levied on transactions in goods and services. There are also real estate transfer taxes and property ownership taxes, customs duties and some excise duties, such as the car tax and the tobacco tax.

The largest source of state revenue comes from VAT, income taxes and social security contributions.

Tax rates in Portugal are, to a great extent, in line with the rates of most EU countries seeks to attract foreign investors by offering some tax incentives, such as the Non-Habitual Resident Tax Regime and the free remittance of funds, which demonstrate Portugal’s commitment to attracting international talent, along with other incentives.

In 2026, the corporate income tax rate is 19%. A municipal surcharge of up to 1.5% and a State surcharge ranging from 3% to 9% also apply to companies with a taxable income of more than €1.5 million.

Personal income tax rates range from 13% to 48%, plus an additional solidarity rate of 2.5% and 5% on income above €80,000 and €250,000 respectively. In addition, employers and employees are required to make social security contributions at a rate of 34.75% of the employee's income, with 23.75% borne by the employer and 11% deducted from the employee's salary.

VAT rates range from 6% to 23% in the Portuguese mainland, 4% to 22% in the region of Madeira and 4% to 16% in the region of the Azores.

Income obtained abroad by Portuguese residents and in Portugal by non-residents might be taxed in Portugal.

To avoid double taxation, Portugal has double taxation agreements with more than 85 countries, such as the United States of America, China, Canada, India, Brazil, Japan, and the United Kingdom, as well as all the European Union member-states.

Additionally, Portugal has signed more than 50 bilateral agreements for the promotion and reciprocal protection of investments, alongside over 15 tax information exchange agreements.

The tax system in Portugal is monitored by the Tax and Customs Authority (Autoridade Tributária e Aduaneira), which is responsible for the management of taxes according to the rates defined by the tax legislation approved by the Parliament.

General tax rules are applied nationwide, but the autonomous regions of the Azores and Madeira enjoy fiscal autonomy, which is why the rates of some taxes are lower in these regions than the rates applicable in mainland Portugal. Municipalities can obtain their own revenues through municipal taxes regarding the provision of certain municipal services or for the use of municipal assets.

 3. Registration as a Portuguese taxpayer

To register as taxpayer in Portugal it is necessary to fill in a registration form (ficha de inscrição) in local tax office. The tax registration should be done before any activity is carried out in Portugal. The annual income tax return must be completed and delivered to the Portuguese Tax Authority.

The Portuguese tax system is managed by the Portuguese Tax Authority (Direcção-Geral dos Impostos). The tax year follows the calendar year, ending on 31 December.

Self-employed workers must declare the beginning of their activity to the Portuguese Tax Authority.

The annual personal income tax return (Modelo 3) must be filed between 1 April and 30 June of the following year, exclusively via the official online portal.

If a person does not comply with their tax obligations to complete the annual income tax return will be subject to a penalty, which amount ranges from €150 to €3.750.

4. Taxation of corporations

4.1. Corporate income tax

Commercial companies with headquarters or effective management in Portugal and companies with a permanent establishment in Portugal are subject to corporate income tax.

In Portugal, an establishment is considered "permanent" when a foreign company carries out its activity in Portugal through a branch, office or other establishment, as well as if a person acts on behalf of the company in Portugal and has broker powers and powers to enter into transactions in the name of the company. Since 2021, if the company provides services by using employees or other persons hired in Portugal for this purpose for at least 183 days in a 12-month period, such company will also be deemed to have a permanent establishment.

In 2026, the general corporate income tax rate in the mainland is 19%, which is levied on the company's taxable income. If it is a permanent establishment of a foreign company, only the taxable profit attributable to the activity in Portugal will be taxed. This rate will be reduced to 18% in 2027 and 17% in 2028.

In Madeira and the Azores, the corporate income tax rate is 13,3% and should also be reduced in the next years.

In the case of a small or medium-sized enterprise, the rate to be applied to the first €50,000 of the taxable income is 15% in the mainland and 10.5% in Madeira and Azores.

In general, business costs and expenses are tax deductible if they are properly documented and are essential to obtain taxable income or to maintain the source of production. However, there are limitations on the deduction of certain costs, such as interest expenses.

Corporate income tax is self-assessed and paid by companies when filing their annual income tax returns, which must be submitted by June 30 of each year if the tax year is the calendar year.

Presently, Portugal’s corporate tax rate (19%) is lower than the EU average (19.19%) and the global average (23.85%), although subject to the municipal and State surcharges.

4.2. Municipal surcharge

Corporate income tax is added to the municipal surcharge levied on the taxable amount that is not exempt from corporate income tax at the specific rate approved by each municipality (maximum limit of 1.5%). A reduced rate of surcharge may be applied to companies with a turnover of less than €150,000 in the previous year.

Most municipalities apply the maximum rate of 1.5%, such as Lisbon, Loures, Oeiras, Setúbal, Porto, Braga and Guimarães.

4.3. State surcharge

The taxable profit over €1.5 million is subject to the State surtax, which is calculated according to the following rates:

• From €1.5 million to €7.5 million: 3%.
• From €7.5 million to €35 million: 5%.
• Over €35 million: 9%.

4.4. Autonomous taxation

Companies might also be subject to autonomous taxation of certain expenses, in particular:

• undocumented expenses: 50% (increased to 70% when incurred by a person who is totally or partially exempt, or whose primary activity does not involve commercial, industrial, or agricultural operations);
• costs of gasoline or diesel vehicles: 8% if the acquisition cost is below €37,500; 25% if the acquisition cost is between €37,500 and €45,000; and 32% if the acquisition cost is equal to or exceeds €45,000;
• cost of hybrid vehicles: 2.5% if the acquisition cost is below €37,500; 7.5% if the acquisition cost is between €37,500 and €45,000; and 15% if the acquisition cost is equal to or exceeds €45,000;
• costs related to full electric vehicles: 10% applicable to vehicles with a price that exceeds €62.500;
• representation expenses: 10%; and
• daily allowances and car mileage reimbursements to employees for the use of their personal vehicles, which are not charged back to clients: 5%.

4.5. Foreign companies’ taxation

Non-resident companies that do not have a permanent establishment in Portugal may also be subject to corporate income tax if their income is obtained in Portugal and can be taxed in Portugal under the applicable double taxation agreements (e.g., dividends, capital gains, interest and royalties).

In general, income (excluding capital gains) deemed to be obtained in Portugal will be subject to a withholding tax at a rate of 25%, although that rate might be reduced to 15%, 10% or 5% under double taxation agreements.

The payment of dividends to companies established in another Member-State of the European Union that hold shares representing at least 10% of the share capital of the company established in Portugal during an uninterrupted minimum period of one year is exempt, provided that the company is an eligible company under the Parent Companies Directive. Interest and royalties may also be exempt from withholding tax if the payment is made to an affiliated company in another Member State of the European Union, provided that the relevant holding requirements are fulfilled.

Capital gains obtained by non-resident companies without a permanent establishment in Portugal resulting from the sale of real estate located in Portuguese territory are subject to corporate income tax. Capital gains arising from the sale of shares and other securities issued by companies resident in Portugal might be corporate income tax exempt unless:

• the seller has its headquarters in a jurisdiction subject to a more favourable tax regime;
• more than 25% of the company is, directly or indirectly, owned by resident companies or persons, unless the shareholder is resident in an EU Member State, an EEA country, or a country that is a party in a double taxation agreement with Portugal and the stake fulfils some of the participation exemption requirements (e.g., a minimum 10% stake and a minimum holding period of one year); or
• more than 50% of the target company’s assets are real estate properties located in the Portuguese territory or, if the target is a holding company, more than 50% of any controlled company’s assets include real estate property located in Portugal.

5. Taxation of individuals

5.1. Personal income tax

Personal income tax is levied on the annual value of the income of the following categories after the corresponding deductions have been made:

• Category A: dependent work income.
• Category B: business and professional income.
• Category E: capital income.
• Category F: property income.
• Category G: assets increase.
• Category H: pensions.

In general, income is subject to progressive rates, ranging between 13% and 48% in mainland Portugal, between 9.1% and 46.56% in the region of Madeira and between 9.1% and 33.6% in the region of the Azores.

To taxable income over €80,000, the following additional solidarity charges are applied:

• From €80,000 to €250,000: 2.5%.
• Over €250,000: 5%.

Work income is subject to withholding taxes, which are different according to the income and employee’s family situation. Some benefits may be exempt from income tax up to certain limits (e.g., meal allowances, subsidies).

In general, the determination of business and professional income is based on the taxpayer’s accounts. When the amount of income does not exceed €200,000, taxpayers may apply for the simplified tax scheme under which taxable income is determined by the application of coefficients.

Capital gains derived from the transfer of real estate or shares, or other investments, are also considered as income and taxed as personal income tax.

Health expenses, education and training expenses, household expenses and real estate expenses can be deducted, up to certain thresholds, from the taxpayer’s taxable income.

Certain incomes are subject to a flat rate of 28%, such as:

• capital income (e.g., dividends, interest, royalties);
• positive balance of capital gains and losses resulting from the sale of shares;
• positive balance of capital gains and losses resulting from the sale of real estate; and
• property income (e.g., rents).

Withholding tax might be applied to capital and property income. In any case, taxpayers may opt for the inclusion of such income.

Gains obtained from the transfer of real estate are not taxed when the permanent residence is sold, and the product of the sale is reinvested (after deducting the repayment amount of any loan for acquisition) in the acquisition of another permanent residence in Portugal or in any other EU Member-State between the 24 months before the sale and the 36 months following the sale.

Unlike residents who are taxed on their overall income obtained in Portugal and abroad, non-residents are taxed only on their income obtained in Portugal when such taxation is allowed under applicable double taxation treaties.

5.2. Non-habitual residents tax benefits

Portugal offers non-residents a more favourable tax regime over certain Portuguese and foreign source income without the need to make any investments a special tax regime for non-habitual residents (Residentes Não Habituais, "NHR") approved in 2009 and significantly changed in 2024. 

Under the 2024 NHR rules, income derived from employment or self-employment in Portugal, within a now more restricted list of "high value-added" activities, is taxed at a flat rate of 20%, compared to the standard progressive rates, which can reach up to 48%.

To qualify for the NHR regime as of 2024, the applicants must:

• work in a profession included in a narrow list of "high value-added" activities, which prioritizes roles critical to economic development (e.g., certain scientific, technological, or academic positions). Applicants must provide documentation proving their professional qualifications and activities align with these categories;
• establish tax residency in Portugal, either residing in Portugal for at least 183 days per year, or maintaining a primary residence in Portugal, defined as a habitual place of residence with the intention of permanent or long-term stay, as recognised under Portuguese tax law; and  
• not have been a tax resident in Portugal during the preceding five years before the application.

The NHR status grants tax benefits for a period of 10 consecutive years, provided the individual maintains tax residency in Portugal throughout this period. Failure to meet residency requirements in any given year may result in the suspension or loss of benefits for that year. 

Existing NHR beneficiaries under the 2009 NHR rules who registered before 1 January 2024 will continue to benefit from the reduced income tax rate until the end of the 10-year period initially granted.

5.3. Social security contributions

Income from employees, self-employed workers and members of corporate bodies are also subject to social security contributions, with the following rates being applied:

• Employees: 11% paid by the employee and 23.75% paid by the company;
• Self-employed workers: 21.4% paid by the worker and 10% paid by the client when the economic dependence exceeds 80%, and 7% when the economic dependence is lower than 80% but exceeds 50%; and
• Members of corporate bodies: 11% paid by directors and managers, 9.3% in the remaining situations and 20.3% or 23.75% paid by the company, respectively.

Some benefits are excluded from contributions, such as:

• allowances up to the limits established for personal income tax purposes;
• the compensation for termination of the employment contract in case of collective dismissal; and
• possible subsidies for medical care and medicine for employees and their families.

Portugal has entered into several social security conventions, establishing exemptions for workers who are temporarily working in Portugal, such as from the United States of America and Canada.

6. Taxation on transactions of goods and services

6.1. Value-added tax

VAT is levied on the following transactions:

• transfers of goods and services rendered for consideration;
• importation of goods; and
• intra-community transactions carried out in the national territory.

Natural or legal persons who carry out an economic activity or who, by carrying out a single taxable transaction, fulfil the assumptions of the actual incidence of personal income tax or corporate income tax are taxpayers subject to VAT.

Transfers of goods which are in Portugal at the moment of shipping to the purchaser or, if there is no shipment, that are in Portuguese territory when the goods are made available to the new purchaser are, as a general rule, subject to VAT in Portugal. Intra-community acquisitions are also subject to VAT in Portugal.

However, some transfers of goods are exempt from VAT:

• intra-community transfers of goods;
• exports, transactions assimilated to exports and international transport; and
• transfers of goods intended to be placed in customs and fiscal warehouses to be subsequently exported to other countries.

The provision of services is subject to VAT in Portugal:

• when the acquirer is a taxable person established in Portugal (B2B transactions); and
• when the acquirer is a non-taxable person (typically, a non-business consumer) and the provider of the service is established in Portugal (B2C transactions).

However, some services are always subject to VAT in Portugal when they are executed in Portugal, such as:

• real estate services (regarding real estate located in Portugal);
• transportation of passengers within the territory of Portugal;
• cultural, artistic, scientific, sporting, recreational, educational and similar events; and
• short-term lease of transportation vehicles made available in Portugal.

There are other exceptions to the above-mentioned location rules (e.g., telecommunications services, broadcasting, and electronic services when the acquirer is a person established or living outside Portugal).

The general VAT rate applicable in mainland Portugal is 23%. Certain goods and services are subject to an intermediate VAT rate of 13% or a reduced rate of 6%.

In the Azores, the general VAT rate is 16%. The intermediate rate is 9%, and the reduced rate is 4%. In Madeira, the VAT rates are 22%, 12% and 4%, respectively.

VAT is levied on the value of the consideration obtained or to be obtained from the purchaser. From this amount, default interest, discounts, rebates, and bonuses that may be granted are excluded.

VAT is due at the moment when the services are provided or when the goods are at the purchaser’s disposition.

In addition to the above-mentioned transactions, the following transactions are also exempt from VAT:

• medical and educational services;
• transfer and renting of real estate;
• certain financial operations; and
• insurance and reinsurance operations.

As a rule, there is no tax deduction when the taxable person practices transactions exempt from VAT. However, in certain cases and subject to certain requirements, the law allows the deduction of VAT (e.g., intra-community transfers) or waiver of exemption (e.g., transfer and renting of real estate).

6.2. Other taxes on consumption

In addition to VAT, other consumption taxes may be applied to products that entail environmental and public health costs. The following are Portugal’s main excise duties:

• tax on alcohol, alcoholic beverages and beverages containing added sugar or other sweetening matter;
• tax on petroleum products and energy; and
• tax on tobacco.

The authorised warehouse keeper and the registered consignee are considered taxable persons.

These taxes are due to the taxable person at the moment of consumption or in the determination of losses to be taxed.

Embassies or consulates, international organisations recognised by the Portuguese State and the forces of a State party to the North Atlantic Treaty Organisation Products are exempt from subject excise duties.

6.3. Customs taxes

As a member of the European Union, Portugal only imposes customs duties on imports of goods from countries that are not members of the EU Customs Union. Customs tariffs are set as a percentage of the price of the imported good and of the related costs which are included in the Common European Customs Tariff.

7. Property taxes

7.1. Overview

Buying a property in Portugal requires registration with the Portuguese Tax Authority to obtain a taxpayer identification number. This process involves several taxes and related costs. Typically, the buyer’s costs include the property transfer tax, stamp duty, property and land registry fees, municipal property ownership tax, and legal and notary fees.

7.2. Property transfer tax

The municipal real estate transfer tax is a municipal tax that taxes the onerous transfers of property rights over real estate assets located in Portugal. As a rule, IMT is levied on the value of the contract through which the asset was transferred or on its tax value, whichever is higher.

The acquisition of more than 75% of the share capital of a real estate company may also be subject to real estate transfer tax if certain conditions are met (e.g. real estate represents more than 50% of the assets and is not allocated to a business activity).

Normally, IMT is paid prior to the transfer of the property. Before executing the deed of sale, the notary will require proof of the IMT payment, which must be done through the Tax Authority’s official website at Portal das Finanças.

The real estate transfer tax rates vary according to the type of asset:

• Land: 5%.
• Urban buildings used as primary residence: between 0 and 7.5%.
• Urban buildings used as secondary residence: between 1% and 7.5%.
• Other urban buildings and other onerous acquisitions: 6.5%.
• Buildings (urban or land) or other acquisitions where the purchaser is resident in a territory subject to a clearly more favourable tax regime: 10%.

The real estate transfer tax rates applicable to residential urban properties are structured on a progressive scale as detailed below:

• up to €106,346: exempt (0%);
• over €106,346 and up to €145,470: 2%, with a deductible amount of €2,909.4.
• over €145,470 and up to €198,347: 5%.
• over €198,347 and up to €330,539: 7%.
• over €330,539 and up to €660,982: 8%.
• over €600,982 and up to €1,150,853: flat rate of 6%; and
• above €1,150,853: flat rate of 7.5%.

For individuals under 35 years of age purchasing their first home, the initial €330.539 of the property value or price is exempt from taxation, provided that the total value or price of the property does not exceed €648,022. To qualify, buyers must: (i) not be considered dependents for tax purposes in the year they buy – even if they still live with their parents – and (ii) not have owned any residential property at the time of purchase or in the previous three years.

Certain transactions are exempt from real estate transfer tax, such as the acquisition of real estate by investment funds for rental housing, as well as the acquisition of buildings for resale by real estate companies.

The real estate transfer tax rate will be 10%, irrespective of the value, in the case of properties owned or controlled, directly or indirectly, by legal entities resident in a state, territory or region with a clearly more favourable tax regime.

Typically, real estate transactions are exempt from VAT. Notwithstanding, under certain conditions, the seller or the lessor may opt to renounce such exemption to be able to deduct the input VAT.

7.3. Property tax

The municipal property tax, IMI, is a real estate ownership tax levied annually on the taxable value of buildings located in Portugal. IMI is calculated based on the sum of the property tax values (Valor Patrimonial Tributável, "VPT") of the properties held by each taxpayer as of December 31 of the year to which the tax relates.

The municipal property tax rates are different according to the type of real estate:

• Urban buildings: 0.3% to 0.45%.
• Land: 0.8%.
• Buildings owned by entities incorporated in offshore financial centres: 7,5%.

The applicable rate within these ranges will be determined by the municipalities on a yearly basis and will increase threefold in the case of urban property left vacant for more than a year or of buildings in a state of ruin.

The urban buildings and apartments will be deemed not to be in use if the owner has no contracts with utilities or there has been no consumption of water, electricity, gas, and telecommunications for a period of one year.

In addition to municipal property tax, an additional property tax (Adicional ao Imposto Municipal sobre Imóveis, "AIMI") is levied as follows:

• for individuals 0.7% for properties with a total tax value up to €1 million, 1% if between that value and €2 million, and 1.5% if it exceeds €2 million (for married couples all the values are doubled);
• 0.4% for corporations; and
• 7.5% for entities resident or domiciled in tax havens, regardless of the value of the property.

Urban buildings used for commerce, industry or services are not subject to AIMI.

The municipal property tax is paid in a single instalment in May when the tax amount is equal to or less than €100, in two instalments paid in May and in November when the tax amount is over €100 and equal to or less than €500 or three instalments paid in May, August and November when the tax amount exceeds €500. AIMI is paid in a single instalment in September.

Certain exemptions or reductions may apply to specific cases, including urban buildings used as personal and permanent residences, buildings owned by taxpayers with dependents, and urban buildings designated for touristic purposes.

The exemption for personal residence buildings is applicable only if the tax value of the property does not exceed €125,000 and the owner’s taxable income in the year prior to acquisition is below €153,300.

When these conditions are met, the exemption is valid for a period of three years. Buildings incorporated into enterprises with a touristic purpose are exempt from tax for seven years.

Municipalities may reduce the municipal property tax rate applicable to urban buildings used as the primary and permanent residence of taxpayers or their household, based on the number of dependents the taxpayer's responsibility.

8. Stamp duty

Stamp duty is levied on various legal acts, documents, contracts and other transactions that are exempt from VAT, which are described in the General Stamp Tax Table, such as:

• Onerous acquisition of real estate: 0.8%.
• Donations: 10%.
• Lease and sublease: 10%.
• Business acquisition: 5%.
• Health insurance contracts: 5%.

Stamp duty is imposed on these facts even when they occur outside of Portugal if they are presented for legal purposes in Portugal.

There are certain facts that may benefit from stamp duty exemption under special conditions, such as:

• premiums and commissions related to life insurance;
• acquisition of a first permanent residence by an individual aged 35 or younger, provided that the property value does not exceed €330,539;
• transactions between financial institutions;
• shareholders’ loans, including the respective interest;
• business restructuring or cooperation operations
• loans, up to 1 year, granted by companies in a control or group relation for treasury needs;
• cash pooling agreements, with a duration not exceeding one year, involving companies in a control or group relationship; and
• interest charged on loans for the acquisition, construction, reconstruction or improvement of one’s own housing.

9. Conclusions

Below are the key aspects regarding Portuguese taxes that should be considered when starting a business in Portugal:

1. Why Portugal. Portugal is a safe and attractive destination for international investors, offering unique living conditions, a welcoming environment, and investment opportunities in various business sectors. Portugal shows high security rankings (7^th globally, 5^th in Europe, in the Global Peace Index).

2. Taxation of Corporations. Corporate income tax applies to companies with headquarters or permanent establishments in Portugal at 19% (13.3% in Madeira/Azores), with a reduced rate of 16% for SMEs on the first €50,000 of taxable income (11,2% in Madeira/Azores).

Additional municipal surcharges (up to 1.5%) and state surtaxes (3%-9% for profits over €1.5 million) apply, alongside autonomous taxation on specific expenses.

Non-resident companies face withholding tax (up to 25%) on Portuguese-sourced income, with exemptions under EU directives and treaties.

3. Taxation of Individuals. Personal income tax is progressive (13%-48% in mainland), with additional solidarity charges (2.5%-5%) on income over €80,000.

Non-habitual residents (NHR) benefit from a 20% flat rate on high value-added activities for 10 years if residency and professional criteria are met.

Social security contributions are mandatory at 34.75% for employees (split between employer and employee).

4. Taxation on Transactions of Goods and Services. Value added tax (VAT) applies to goods and services transactions at a general rate of 23% (16% in Azores / 22% in Madeira), while certain items are subject to an intermediate VAT rate of 13% (9% in Azores / 12% in Madeira) or a reduced rate of 6% (4% in Azores / 5% in Madeira).

Additional consumption taxes cover alcohol, petroleum, and tobacco, while customs duties apply only to non-EU imports under the Common European Customs Tariff.

5. Property Taxes. Municipal real estate transfer tax (IMT) ranges from 0%-10% based on property type and buyer status, with exemptions for first homes under specific conditions.

Municipal property tax (IMI) is 0.3%-0.45% for urban buildings, with an additional tax (AIMI) of 0.4%-1.5% for high-value properties.

Exemptions apply for primary residences under defined criteria.

6. Stamp Duty. Stamp duty applies to legal acts and transactions exempt from VAT, such as real estate acquisitions (0.8%), donations (10%), and business acquisitions (5%). Exemptions exist for specific financial operations such as life insurance premiums and housing loans under certain conditions

1. INTRUDUCTION

As of 2025, we estimate Portugal's total operational data center capacity is approximately 47.5 MW, which marks an inflection point compared to late 2024 and early 2025 (citing 15 MW, 29 MW, or 37 MW). This sudden surge is almost entirely attributable to the recent commissioning and inauguration of the first 31 MW facility (SIN01) at the new Start Campus project in Sines, which more than doubled the country’s previous capacity.

The projected development pipeline totals approximately 1,38 GW (1 383 MW) of new announced capacity, which for now includes only two projects: the 1.2 GW Start Campus in Sines and the 180 MW Edged (MERLIN Properties) "AI Campus" near Lisbon.

This growth reflects two converging factors:

• the increase in global demand for AI requiring large capacity data centers; and
• Portugal's specific advantages, including exceptional intercontinental connectivity, and cost-effective and abundant renewable energy.

Portugal's advantages position it to expand its presence significantly in the European data center market. According to Copenhagen Economics, under an accelerated growth scenario, Portugal's total capacity could reach 2,181 MW (2.18 GW) by 2030, adding €26.2 billion to Portugal's GDP between 2025 and 2030.

Although ambitious, these goals reflect present expectations of accelerated growth in Europe's AI infrastructure. According to Research and Markets, the European data center construction market is projected to expand from USD 55.20 billion in 2024 to USD 86.60 billion by 2030, at a CAGR of 7.70%. [1]

To achieve these objectives, international investors must have confidence in Portugal's ability to provide a stable legal framework, reliable approval procedures within reasonable timeframes, and clear guidelines for successfully building and operating facilities in the country.

A key aspect of the investment decision depends on understanding the legal landscape, including the licensing processes, fiscal incentives, environmental compliance requirements, and other critical conditions that influence project feasibility, risk factors, and long-term project viability.

This briefing provides an overview of Portugal's current data center market and its projected development until 2030. It is the first in a series of papers concerning the main legal aspects for the development of data centers in Portugal, including licensing procedures, environmental compliance, land use and zoning requirements, access to power, connections to telecommunications networks, data protection and cybersecurity regulation, and financing.

2. Market overview

Portugal's data center market shows rapid growth, with significant discrepancies in recent reports highlighting its dynamism. As of H1 2025, operational capacity totals approximately 44.5–47.5 MW (minor variance due to unlisted legacy assets like Equinix LS1 and Ar Telecom).

Key facilities include:

• Start Campus SIN01 (Sines, Live): 31 MW;
• Asterion Covilhã (Live): 7 MW;
• NOS (Total Live, Matosinhos/Carnaxide): 3.04 MW;
• Equinix LS2 (Lisbon, Live June 2025): 1 MW; and
• Other Legacy (Decsis, Claranet, REN): 2.5 MW.

The legacy market divides into two categories: telecom-owned assets, dominated by MEO and NOS, dispersed across Lisbon, Porto, and Covilhã (e.g., MEO's 7 MW, 12,000 m² site as the largest); and colocation providers like Equinix, Claranet, and Ar Telecom, concentrated in Lisbon. These typically feature traditional air-cooling, lower power density, and smaller scales.

Based on public data, Table 1 summarizes the ~41 existing data centers in Portugal.

Table 1 – Data Centers in Portugal H12025

Facility Name	Operator	Location	Capacity (MW)	Area (m2)
SIN01	Start Campus	Sines	31.0	17,500
Data Center Covilhã	Asterion	Covilhã	7.0	12,000
NOS (Total)	NOS	Matosinho, Carnaxide	3.04	3,073
LS2	Equinix	Lisbon	1.0	2,050
Evora Data Center	Decsis	Evora	1.0	700
Porto Data Center	Claranet	Porto	1.0	N/A
REN Ermesinde	REN	Porto	0.5	1,400
LS1	Equinix	Lisbon	N/A	1,475
Various Other	Various	Lisbon, Porto	N/A	N/A
TOTAL (Reconciled)			~44.5 MW (Accounted)	~38,200 m2 (Accounted)

 Source: datacentermap.com (accessed in November 2025); analysis: Macedo Vitorino.

3. Future investments

3.1. Overview

Portugal's data center pipeline totals approximately 1.38 GW (1,383 MW), based on a bottom-up sum of announced projects. Reports citing >310 MW understate the figure, as it falls below the Start Campus project alone. Others at 1,261 MW are nearer but omit key additions, such as the 180 MW Edged/Merlin campus.

Until this date the construction of data centers with a total capacity1.38 GW (1,383 MW) capacity have been announced, but demand may be higher considering the increase in AI needs and Portugal's specific advantages for deploying new data centers.

The current 1.38 GW pipeline includes the following:

• Under Construction / Next Phase: approximately 394 MW, including the 180 MW Edged/Merlin "AI Campus" (construction commenced in October 2024), the 180 MW Start Campus SIN02 (groundbreaking scheduled for 2025), and the 34 MW AtlasEdge LIS001/LIS002 facilities;[2]
• Planned (Long-Term): approximately 989 MW for projected Start Campus developments (SIN03-SIN06).

3.2. Start Campus (Sines)

The Start Campus project in Sines is currently the single most important data center operator in Portugal:

• Projected Scale: A 1.2 GW total campus capacity.
• Investment: A total private investment of €8.5 Billion.
• Phasing: The campus we be built sequentially through 2030:
  • SIN01: 31 MW (Live/Operational H1 2025).
  • SIN02: 180 MW (Next planned facility, RFS 2026).
  • SIN03-06: Subsequent buildings of up to 240 MW each.

The Sines project was designed to meet the global AI industry's key needs by addressing power, connectivity, and cooling challenges. Its core advantage is a design merging AI-readiness with high sustainability.

Sponsors state that the campus was built for Artificial Intelligence and High-Performance Computing (HPC) workloads, making it the first in Southern Europe to achieve OCP Ready™ v2 certification.[3]

The project uses 100% renewable energy and a seawater cooling system repurposing infrastructure from a decommissioned power station. This achieves a Power Usage Effectiveness (PUE) of 1.1 and a Water Usage Effectiveness (WUE) of zero.

By locating these features at a major renewable power and connectivity hub with Atlantic Ocean access, Sines offers greater sustainability and efficiency than inland facilities.

3.3. Lisbon data center facilities: Edged (Merlin) & Atlasedge

A second cluster is being developed in the Lisbon metropolitan area to serve the capital's business and population needs:

• Edged (Merlin Properties): 180 MW facility under construction in Vila Franca de Xira, near Lisbon, starting October 2024. Sustainability-focused, it is marketed as "carbon neutral" with "zero water consumption," backed by an on-site solar initiative up to 100 MW.
• AtlasEdge: Two facilities totaling 34 MW (LIS001: 10 MW; LIS002: 24 MW) under construction in Carnaxide near Lisbon.

Table 2 - Major Data Center Pipeline Projects (Announced & Under Construction)

Project Name	Operator	Capacity (MW)	Status
SINES DC (SIN02-06)	Start Campus	1,169	Planned (SIN02 RFS 2026)
AI Campus	Edged (Merlin Properties)	180	Under Construction
LIS001 / LIS002	AtlasEdge	34	Under Construction
TOTAL (RECONCILED)		1,383

3.4. Long-term market forecasts (2030)

Long-term projections of Copenhagen Economics and others[4], based on 2024 baseline data (37 MW), outline two possible scenarios for the development of data centers in Portugal, depending on the investment climate:

• Stagnation Scenario 2030: 591 MW;
• Expansion Scenario 2030: 2,181 MW (2.18 GW).

According to Copenhagen Economics these two 2030 scenarios reflect deliberate strategic and policy decisions. The stagnation scenario (591 MW) suggests that less than half of the currently announced 1.38 GW pipeline will be completed, due to challenges in policy, grid access, or financing. In contrast, the expansion scenario (2.18 GW) assumes the entire 1.38 GW pipeline is successfully built, with this achievement attracting an additional ~800 MW of new, currently unannounced investment by 2030. In between the two it is also possible that only the recently announced projects would be fully completed reaching the 1.38 GW mark.

Figure 1 - Current and estimated expansion of datacenter capacity in MW.

3.5. Drivers of the Portuguese data center growth

The key driver behind this new wave of development is the rapid advancement of AI, particularly Generative AI. AI workloads differ fundamentally from traditional cloud hosting, necessitating a new type of data centers with distinct characteristics:

• Large Scale: 200 MW is today's standard for AI-ready data centers.
• More Power Density: AI workloads and AI training models require more power per rack than older data centers.
• Clean energy and low environmental impact. AI energy consumption must meet the green energy requirements imposed by European legislation

One of the key drivers of the development of AI data centers is sustainable power, which resolves the primary limitation of legacy markets. Traditional FLAP-D hubs are "saturated," grappling with severe power shortages, grid constraints, and regulatory moratoriums (e.g., in Dublin and Amsterdam).

Portugal offers a solution to these issues:

• Availability & Cost: Portugal provides accessible, low-cost electricity, with industrial rates 22% below the EU average[5].
• Sustainability (Renewables): Portugal's power grid is among Europe’s greenest, with 68%[6] of energy consumption sourced from renewables.

3.6. Portugal as an intercontinental gateway

Portugal is a primary landing point for a new generation of intercontinental subsea cables, hosting an estimated 25% of global cables.[7]

Key subsea cables terminating in Portugal include:

• EllaLink: Connects Sines directly to South America (Brazil);
• 2Africa: A massive cable connecting Portugal to the entire African continent and the Middle East;
• Equiano (Google): Connects Portugal to West and South Africa;
• Nuvem (Google): A new cable expected in 2026, creating a crucial new transatlantic link to the US, landing in Sines; and
• Medusa: Connects to key ports in the Mediterranean.

This international connectivity is reinforced by its strong domestic terrestrial fiber network, with 95,4% FTTH/B[8] coverage, ensuring a high-speed, low-latency backhaul to Madrid and other mainland European countries. Portugal's infrastructure changes the traditional data flow model. Historically, data from Africa and South America landed in Portugal and was routed to FLAP-D markets for processing. Presently, with the development of large data centers, data can be processed directly in Portugal at the landing point, making Portugal a central interconnection hub.[9]

4. Final remarks

Portugal is a strategically positioned for large?scale and AI?driven data center development due to its digital infrastructure, abundant renewable energy resources, a robust investment pipeline and its intercontinental submarine cable links.

The successful development of a Portuguese data center requires careful planning, including:

• assessing zoning requirements early in the process to identify possible locations to only those that meet the zoning requirements;
• acquiring of lang rights, a straightforward process aligned with other civil law jurisdictions in Europe, with pre-agreement with landowners via "promissory agreements" being recommended;
• ensuring that the project complies with the required environmental requirements, including an assessment of whether an environmental impact assessment (EIA) is required under law and obtaining the required permits as may be necessary depending on the project’s specific characteristics; and
• obtaining a construction permit.

Large projects may benefit from the National Interest Project (PIN) regime, which can streamline approvals and accelerate deployment, provided that investment, employment, viability, and sustainability criteria are met.

Post-completion, operators need to ensure:

• compliance with Portuguese and European energy efficiency obligations, which require the use of renewable energy for facilities with a power demand over 500 kW IT; and
• implementation of cybersecurity and data protection measures set out in national and EU legislation.

1. Introduction

Portugal closed 2025 with €2.72 billion in real estate investment, the highest figure in over a decade and a 17% increase on 2024. International capital drove more than half of fourth-quarter volumes, confirming Portugal's standing as one of the more accessible entry points into Western European real estate.

2026 is shaping up as a year of normalisation rather than retreat. Yields are stable, offices and logistics are leading the rotation away from a retail- and hospitality-heavy market, and residential supply constraints continue to shape pricing.

Portugal's legal framework offers several competitive advantages, specifically the predictability of the property regime and the transfer of property. Property rights are codified in its Civil Code, transactions run through a formal sequence of contract, public deed and land registry filing, and security interests are enforceable through well-established procedures.

Acquisitions follow patterns familiar from other European jurisdictions: direct purchase by public deed, or indirect acquisition through a commercial company or a Real Estate AIU. Debt finance and financial leasing are both widely used. The typical security package combines mortgages over the property, pledges over shares and receivables, and where the parties qualify, the foreclosure mechanics under the financial-collateral regime. The briefing closes with the principal tax issues: the acquisition taxes (IMT and stamp duty), the holding taxes (IMI and AIMI), and the exemptions available to Real Estate AIUs.

For foreign lenders and investors certain features may be relevant in their investment decisions: (i) mortgages can only be enforced through court-supervised sale, and interest secured by the mortgage is limited to the three years preceding enforcement; (ii) covenants restricting the sale or further encumbrance of mortgaged property are void, although not when collateral is given with a vehicle company owning the property; (iii) share-deal acquisitions can avoid IMT, but a 10% punitive rate applies where the buyer is resident in a blacklisted jurisdiction; and (iv) Real Estate AIUs benefit from broad tax exemptions and have become the vehicle of choice for institutional investment.

2. Market overview

The Portuguese real estate market recorded, in 2025, its highest investment volume in over a decade, reaching €2.72 billion, representing an increase of 17% compared to 2024, with international capital accounting for approximately 54% of the total in Q4.

For 2026, commercial real estate investment is expected to reach €2.4 billion, reflecting a market normalisation in a context of stable yields.

The distribution of capital across sectors shifted significantly in 2025. Offices emerged as the leading asset class in the last quarter, attracting around 39% of total investment, marking a clear reversal from the first half of 2024, when retail and hospitality accounted for nearly 75% of volumes.

The recovery in the office segment was driven by a strong fourth quarter, with approximately €380 million transacted across ten deals, nine of which took place in Lisbon. Key transactions included Exeo Lumnia (€120 million) and Torre Oriente (€80 million).

The logistics sector also recorded significant growth, with investment volumes tripling year-on-year, a momentum that is expected to continue into 2026.

In the retail sector, prime rents continue to reach record levels, driven by strong demand in prime high street locations and leading shopping centres. Notable transactions include the acquisition by Ceetrus of the remaining 50% stake in Alegro Setúbal, resulting in full ownership of the asset.

The hotel sector is expected to maintain a positive trajectory, supported by sustained tourism demand and the ongoing improvement and diversification of supply.

The residential market in 2025 remained constrained by limited supply, with only one home completed for every six sold.

Prices increased significantly, with the Housing Price Index rising 4.1% quarter-on-quarter and 17.7% year-on-year. Demand remained strong, largely driven by national buyers, who accounted for 86% of transactions, while international buyers represented 5.1%.

Activity grew in value, although the number of transactions continued to be limited by supply shortages, with increasing demand shifting towards more affordable and peripheral areas.

3. Property rights

3.1. General aspects

Like in other civil law countries, there are two types of property rights under Portuguese law:

• rights in rem (direitos reais) which can be enforced against any third party or entity; and
• rights in personam (direitos pessoais) which can only be enforced against the person (individual or legal entity) with whom a contract obligation exists.

Rights in rem, as defined in the Portuguese Civil Code and other relevant legislation, are limited to those explicitly recognised by law and include property and property-like interests. Rights in rem must be created, mortgaged, or transferred through a deed executed before a Portuguese notary or attorney and must be registered with the land register.

In contrast, rights in personam, such as lease agreements and other usage rights, generally do not require registration with the land register, although certain leases can be registered, e.g. leases exceeding a duration of six years. As a rule, these rights can be created or transferred via contract.

Public records of properties, including registrations of acquisitions, mortgages, and other liens or encumbrances on immovable assets, including registered leases, are accessible online, and such registrations can be filed digitally.

3.2. Rights in rem

The most important forms of property interests in Portugal are:

• Freehold (direito de propriedade). Freehold gives the owner the right to use, exploit and dispose of a certain immovable asset. These rights include the right to build on a property subject to the applicable licensing requirements and planning restrictions.
• Joint ownership (compropriedade). It is possible for more than one person to own a property, where each owns an intangible share of the property. Each co-owner can dispose of her/his share of the property without the consent of the other co-owner(s), who have a right of preferred acquisition.
• Commonhold ownership (propriedade horizontal). Portuguese law allows buildings or building developments to be divided into units (frações) where each unit, which may be a store, an apartment or an office, is owned by a single owner and the common areas of the building, including the staircases, outside area, roof, etc., are co-owned by the owners of the building’s units. The owners together constitute the community of owners of the commonly owned property. Each owner may freely dispose of or encumber her/his unit of the building, including her/his share in the common areas, but the latter cannot be disposed of or encumbered separately.
• Building rights (direito de superfície). Building rights give their holders the right to construct and maintain a building or plantation on a property. The building right may be temporary or permanent.
• Usufruct (direito de usufruto). Usufruct rights give their holder the right to use and collect the fruits (frutos) of the property, which include rents, crops and other periodic revenues that may be generated by the property.

Portuguese law follows the numerus clausus principle: parties cannot create new categories of right in rem by contract, only the forms recognised by statute are available.

3.3. Rights in personam (lease rights)

The following are the most commonly used rights in personam in Portugal in modern legal practice:

• Lease rights. Under a lease agreement, the lessor grants the tenant the temporary right to use the leased asset. The tenant is obligated to return the asset upon the expiration of the lease term.
• Financial lease rights. Under a financial lease agreement, a bank or leasing company purchases the property selected by the tenant. The tenant is granted the right to use the property or building in exchange for rent payments, with the additional option to acquire the leased asset at the end of the agreement term.

Parties may freely agree the main commercial terms of a lease: rent, review mechanism, cost allocation, duration, renewal and termination, subject to mandatory rules designed mostly to favour residential lessees.

The statutory maximum term is 30 years; the default term in the absence of agreement is five years. Office and retail leases typically run for five to ten years.

The rent is usually payable monthly, but different payment terms may be agreed upon. Rent-free periods are common in store, office and factory leases. In most contracts, rents are updated annually in accordance with the consumer price index (excluding housing) published by the National Statistics Institute (Instituto Nacional de Estatística, "INE"), but the parties may agree on other criteria for reviewing rents.

Only property licensed by the relevant municipality may be leased. The purpose of the lease must be in accordance with the relevant use permit.

The transfer of the lessee's position as part of the transfer of a business establishment (trespasse) does not require the property owner's consent.

The statutory provisions regarding the termination of lease agreements due to default of the parties are mandatory.

As a rule, the tenant has a statutory pre-emption right on a sale of the leased urban property where the lease has been in force for more than two years. Therefore, when the property is leased buyers should carefully review the rights of the tenant.

Eviction of defaulting tenants is enforced through a special eviction procedure (procedimento especial de despejo), which is carried out through the National Lease Office (Balcão Nacional do Arrendamento).

Store leases in shopping centres, retail parks and similar managed developments fall outside the statutory lease regime, so the parties have full freedom of contract subject only to general principles.

Typically, the main rules on the operation of the development are set out in a regulation approved by the development owner or manager. Rent-free periods, stepped rents and turnover-based variable rents are standard.

The costs of utilities, services, maintenance and improvement works are normally borne by the lessee in the form of common service charges, which include management fees, other common areas-related services and, sometimes, marketing costs.

From a financing perspective, long-term leases are often critical in project finance structures, as they provide the predictable revenue streams that support the repayment of bank loans or bonds issued by the project vehicle.

Service charges are based on the area of the shops leased to each of the tenants in proportion to the overall area of the development.

Although parties are free to agree to the terms and conditions of the lease, it is common for agreements to be set out in standard contracts that are not subject to negotiation.

4. Structuring the acquisition

4.1. Overview

Investments in property in Portugal may be carried under any of the following structures:

• direct ownership by the investors; and
• indirect ownership by way of the incorporation of a Portuguese or foreign special purpose vehicle ("SPV").

Portuguese SPVs may take one of the following forms:

• a commercial company; and
• a real estate investment undertaking.

4.2. Direct acquisition

4.2.1. Promissory agreement of sale and purchase

The process typically begins with a promissory sale and purchase agreement. While not mandatory, the promissory agreement is the standard mechanism for locking in the deal where completion has to be deferred; for example, while the building is under construction or refurbishment, while ownership or licences remain to be registered, while the property is occupied by the seller or a tenant, or pending financing.

Once the promissory agreement is executed, typically the buyer makes a down payment to the seller of 10 to 20% of the sale price.

Promissory agreements may also give priority over third parties’ rights when registered with the Land Registry Office. This ensures that the property cannot be sold to another person. The registration is valid for six months and can be renewed for equal periods, or until one year after the date set by the parties for the execution of the deed of sale and purchase.

In project finance transactions, promissory agreements are frequently used not only to secure acquisition rights, but also as part of the collateral package required by lenders prior to financial close.

4.2.2. Deed of sale and purchase

The purchase of property must be made through a deed of sale and purchase executed before a notary (escritura pública) or an attorney.

The acquisition of property is subject to municipal property transfer tax and stamp duty, which must be paid in advance of the execution of the public deed of purchase, and, when applicable, notary’s fees.

Once the sale and purchase deed has been registered, the provisional registration with the Land Registry Office, in case it was made after the execution of the promissory agreement, will become definitive. When the promissory sale and purchase agreement has not been registered, the purchaser should register the deed of sale and purchase as soon as possible after execution.

Registrations with the Land Registry Office can be carried out online through the website https://www.predialonline.pt/PredialOnline/.

4.3. Indirect acquisition

4.3.1. Acquisition through commercial companies

Commercial companies, such as limited liability companies (sociedade por quotas, commonly referred to as "Lda") and limited liability company by shares (sociedade anónima, abbreviated as "SA"), are generally suitable for real estate investment.

Historically, limited liability company by shares was the preferred vehicle for tax reasons: transfers of its shares did not trigger municipal property transfer tax (IMT). Since 2020 limited liability companies and limited liability company by shares are taxed in the same manner.

For multi-investor structures, however, the SA remains attractive on corporate grounds: shares can be transferred privately and without registration at the Commercial Registry Office, although subject to the disclosure of the ultimate beneficial owner.

4.3.2. Acquisition using Real estate investment undertakings

The incorporation of collective investment undertakings is increasingly common in Portugal, driven by recent legislative changes. These entities are governed by the provisions of Decree-Law No. 27/2023, of 28 April 2023.

Collective investment undertakings are classified into two categories:

• Undertakings for Collective Investment in Transferable Securities ("UCITS"); and
• Alternative Investment Undertakings (organismos de investimento alternativo, "AIU"), which include real estate AIUs ("Real Estate AIUs").

Real Estate AIUs can take the form of either:

• an Alternative Investment Fund ("AIF"); or
• an Alternative Investment Company ("AIC").

These entities may be structured as open-ended, closed-ended, or mixed, depending on whether the participation units or shares issued are variable or fixed in number.

Real Estate AIUs are permitted to acquire property rights over immovable assets for purposes such as leasing, resale, or other economic activities. They may also hold shares in real estate companies, subject to specific legal restrictions.

Incorporating a public-subscription Real Estate AIU requires authorisation from the Portuguese Securities Market Commission (Comissão do Mercado de Valores Mobiliários, "CMVM"). Private-subscription Real Estate AIUs (whether AIF or AIC) follow a prior notification regime, under which the managing entity files the relevant constitutive documents with the CMVM before the vehicle commences activity.

In recent years, there has been a significant increase in the number of AICs investing in real estate in Portugal.

AICs are subject to the following rules:

• Legal Form. AICs must be incorporated as a limited liability company by shares.
• Management. AICs may be either self-managed or managed by an authorised management company.
• Minimum Capitalisation Requirements. If management is not delegated to a management company, the AIC must comply with specific managing and minimum capitalisation requirements. AICs must be established with a minimum share capital of €50,000 if managed by a management company, or €300,000 if self-managed. The share capital must be represented by nominative shares.
• Main Centre of Business. AICs registered in Portugal must have their head office located in Portugal and be managed from within the country.

Open-ended Real Estate AIUs are generally subject to corporate income tax, but some specific income streams, such as rental income, real estate capital gains, capital income, and dividends, are exempt from taxation.

Additionally, open-ended Real Estate AIUs may benefit from a reduction or exemption from municipal property transfer tax under the regime in Article 49 of the Tax Incentives Statute (Estatuto dos Benefícios Fiscais), subject to the conditions set out therein.

Real Estate AIUs are liable for stamp duty on their net asset value at a rate of 0.0125%.

Income distributed to investors is taxed as follows:

• Resident individuals are taxed at a rate of 28%.
• Resident companies are subject to corporate income tax at the applicable rates.
• Non-resident investors (both individuals and companies without a permanent establishment in Portugal) are generally subject to a withholding tax at a rate of 10%.

5. Financing the transaction

5.1. General aspects

The financing of real estate investments may take several forms. It is common to obtain financing from the following sources:

• equity or shareholder loans;
• bank debt/bonds; or
• financial lease.

Equity is provided by the management team (management equity) and by the institutional investors (institutional equity). In general, the management equity will comprise ordinary shares while the institutional equity will comprise both shares and quasi-equity debt instruments. Under Portuguese law equity may assume a variety of forms:

• Ordinary and preferred shares. Portuguese law allows the issuance of ordinary voting shares and non-voting preferred shares which carry the right to receive a preferred dividend. Preferred shares are a suitable form of funding to allow investors to recover their investment in the form of dividends. However, it must be noted that if the company cannot distribute profits in two successive years, the preferred shares will be converted into ordinary shares.
• Quasi-equity debt instruments. The acquisition vehicle may also be funded by participating loans made by its shareholders that may take the form of supplementary capital contributions (prestações suplementares), accessory contributions (prestações acessórias) or convertible bonds.

Large-scale developments are often financed through project finance structures, where debt is provided on a limited recourse basis and lenders rely primarily on the project’s future revenues. These structures usually involve the incorporation of an SPV that enters into the financing and security arrangements, thereby isolating the project from the sponsors’ balance sheets.

5.2. Secured loans

5.2.1. Security issues

Under Portuguese law, security may be provided by way of mortgage over land, buildings and other registered moveable property, pledge of moveable assets or assignment of proceeds. While the share pledge is provided by the investors, the mortgage is usually granted by the SPV. Mortgages must be executed by public deed, whereas the pledge would only need to be executed in writing in order to be valid and enforceable.

In acquisition finance, typically the most effective type of security is the pledge of shares. In project finance transactions, the security package is broader and typically includes not only mortgages over the property, but also pledges of SPV shares, assignments of receivables (particularly rental income), and step-in-rights in favour of lenders, ensuring effective control of the project cash flows.

The following diagram describes a typical private buy-out Portuguese security structure:

5.2.2. The pledge

Pledges are fixed charges created over the shares of the target or its subsidiaries, moveable assets or the business establishment of the target that give the lenders the ability to sell the assets or priority in the event of insolvency of the guarantor.

Pledges may be enforced by:

• court sale (venda executiva);
• private sale (venda privada); or
• foreclosure of financial pledges (apropriação).

Court sale is the default. Private sale is available only if the deed of pledge expressly so provides and the sale is for fair consideration. To reduce the risk of challenge by other creditors or the pledgor, the deed should specify the sale procedure, valuation method and bidder-selection process.

As a rule, the foreclosure of collateral is not allowed by Portuguese law. However, Decree-Law No. 105/2004, of 8 May 2004, which approved the legal framework applicable to the financial collateral arrangements, has allowed the foreclosure of financial pledges. Financial collateral arrangements are security agreements that meet the following requirements:

• at least one of the parties is a bank;
• the collateral consists of cash or a financial instrument (shares, bonds or other securities);
• the secured obligations include payment obligations or the obligation to deliver a financial instrument; and
• the collateral is actually provided to the collateral taker and the collateral arrangement is documented by way of a contract or deed.

Under Decree-Law No. 105/2004, foreclosure of the collateral without a court proceeding is available as an alternative enforcement method provided that the parties agree on:

• the use of this method; and
• the valuation of the collateral.

5.2.3. The mortgage

The mortgage enables the lender to be paid with respect to the secured liabilities by the value of certain real estate assets, or other assets treated as such, with preference in relation to the remaining common creditors.

Mortgages must be created by way of a public deed and registered before the relevant land or property registry office.

The main features of mortgages' legal framework are as follows:

• mortgages are charges over whole properties, including any fixed parts thereof, but not over the proceeds generated by such properties;
• mortgages secure the borrower’s payment obligations and any accessory obligations identified in the deed. The security extends only to interest accrued in the three years preceding enforcement, older interest ranks as an unsecured claim; and
• mortgages continue to encumber the mortgaged property until all secured liabilities are discharged in full.

In the event the mortgagor sells the mortgaged property to a third party, the purchaser of the mortgaged property, who is not personally liable for the secured liabilities, has the right to redeem the mortgage provided that it either discharges the secured liabilities directly or undertakes to deliver to the creditors the proceeds of the sale up to the amount of the secured obligations, otherwise the lien shall survive the sale.

Non-disposal covenants are void: any contractual restriction on the borrower’s ability to sell or further encumber the mortgaged property is unenforceable. Lenders therefore rely on the in rem effect of the mortgage rather than on undertakings.

The mortgagee may demand the replacement or the reinforcement of the mortgage if the mortgaged property is destroyed or its value is no longer sufficient to cover the secured liabilities.

Self-help is not available: a mortgagee may only enforce against the mortgaged property through court-supervised sale. This is the principal divergence from common-law security practice and should be factored into enforcement timetables.

In Portugal, mortgage loans generally follow three interest-rate regimes:

• fixed-rate mortgages, where instalments remain unchanged throughout the agreed fixed term;
• variable-rate mortgages, typically indexed to Euribor plus a spread, with periodic adjustments; and
• mixed-rate (hybrid) mortgages, which combine an initial fixed-rate period with a subsequent variable-rate regime.

Each option presents different levels of stability, predictability and exposure to interest-rate fluctuations.

5.2.4. Financial and operational lease

Under a financial lease, a leasing company acquires the asset selected by the lessee and grants the lessee the right to use it against periodic rentals, with an option for the lessee to buy the asset at the end of the term for a residual price. The rentals are calibrated to amortise the asset price plus interest.

Property financial lease agreements must be executed by way of a private deed, provided the signatures are authenticated by a notary and the notary confirms the existence of a utilisation or building permit, and must be registered with the land register.

Under financial leases, the lessee will run all the risks and advantages inherent to the utilisation of the asset. This means that the lessee instead of the lessor will depreciate the asset at the applicable rates.

Unlike in financial leases, under operational leases the lessee will not have an option to buy the asset and, therefore, it will not run the risk of destruction of the asset. In addition, the lessee will not be allowed to depreciate the asset, but it will be allowed to deduct the full amount of the rentals.

An alternative form of financing the acquisition of the asset is to execute a sale and lease back agreement, whereby the investor sells the asset to another investor which leases it back to the investor under an operational lease agreement with the option to acquire the asset at the term of the agreement. 

While in operational leases the rents are tax deductible, in financial leases only the interest component is tax deductible. The lessee recognises a right-of-use asset on its balance sheet and depreciates it over the lease term, subject to the applicable accounting regime (typically IFRS 16 or NCRF 9).[MV1] 

6. Tax issues

6.1. Transfer tax

The transfer of immovable property is taxable under the Municipal Property Transfer Tax (Imposto Municipal sobre as Transmissões Onerosas de Imóveis, "IMT"), assessed on the higher of the declared price and the property's taxable value. Rates are progressive: marginal rates of 7% and 8% apply up to €660,982, with a single 6% rate between €660,982 and €1,150,853 and a single 7.5% rate above €1,150,853 (2026 brackets). The same scale applies to acquisitions of second homes.

Two rules dominate the structuring analysis. A flat 10% IMT applies regardless of value where the buyer is a legal entity resident, directly or indirectly, in a jurisdiction on Portugal's blacklist of "clearly more favourable tax regimes". Non-EU sponsors normally interpose a transparent holding jurisdiction. Share deals are not automatically exempt from IMT. Under article 2(2)(d) of the IMT Code (as amended by Lei 75-B/2020), the acquisition of shares or quotas in any commercial company holding Portuguese real estate is treated as a taxable transmission where cumulatively:

• more than 50% of the company's assets consist of Portuguese real estate (book value or, if higher, taxable value);
• those properties are not directly allocated to an agricultural, industrial or commercial activity (other than buy-and-resell); and
• as a result of the acquisition, amortisation or any other event, a single shareholder holds at least 75% of the share capital, or the company is owned by two persons married or living in a de facto union.

Where these conditions are not met, share deals remain the standard route for transferring single-asset SPVs.

Most real estate transactions are exempt from VAT, although the seller or lessor may, in specified circumstances, waive the exemption to recover input VAT.

6.2. Ownership taxes

Ownership of immovable property is subject to Municipal Property Tax (Imposto Municipal sobre Imóveis, "IMI"), payable annually in up to three instalments by the freehold owner, the usufructuary or the holder of the building right. The applicable rates are:

• 0.8% on land and attached facilities (prédios rústicos);
• between 0.3% and 0.45% on urban properties (prédios urbanos); and
• 7.5% on properties owned or controlled, directly or indirectly, by entities resident in a state, territory or region with a clearly more favourable tax regime.

The applicable rate within these ranges will be determined by the municipalities on a yearly basis and increase threefold in the case of urban property left vacant for more than a year or of buildings in a state of ruin.

The urban buildings and apartments will be deemed not to be in use if the owner has no contracts with utilities or there has been no consumption of water, electricity, gas, and telecommunications for a period of one year.

Real estate assets (excluding assets allocated to commercial, industrial and service activities) may also be subject to Additional IMI (Adicional ao IMI, "AIMI").

For individuals, the taxable value up to €600,000 will be AIMI exempt. Above this amount, the following rates will apply:

• 0.7% on the taxable value from €600,000 to €1 million;
• 1% on the taxable value up from €1 million to €2 million; and
• 1.5% on the taxable value above €2 million.
• For companies, AIMI applies at a flat 0.4%, with no exemption.

AIMI applies at a flat 7.5% to entities resident in a blacklisted jurisdiction mirroring the IMT regime above

1. FOREWORD

After considerable delay, Law 16/2022, of 16 August 2022 (the "Electronic Communications Law" or "ECL") implemented the European Electronic Communications Code (the "European Code" or "EECC").

Despite the absence of changes in critical elements, the ECL brings in some crucial innovations regarding (i) consumer rights, (ii) sanctioning framework, and (iii) privacy in electronic communications.

Compared with the previous electronic communications law (Law 5/2004, of 10 February), the ECL has a wider scope reflecting a more comprehensive definition of "electronic communications service". According to the new definition, electronic communication services now include (i) internet access services; (ii) interpersonal communications services, including number-independent services such as most over-the-top ("OTT") communications applications; and (iii) services consisting wholly or mainly in the conveyance of signals, including services used for machine-to-machine communications.

The rules entered into force 90 days after the ECL's enactment, on 14 November 2022, with the following exceptions:

• rules on the charges required upon early termination of the agreement at the consumer's request (articles 136(4) and 136(5) of the ECL) became effective 60 days after publication, on 13 January 2023;
• rules on emergency communications and the single European emergency number, which take effect from the moment access to an emergency service is opened to the public by the competent national authorities; and
• rules on network and service security — including additional requirements and arrangements for assistance and cooperation with the National Computer Security Incident Response Team (Equipa de Resposta a Incidentes de Segurança Informática Nacional) — which came into force immediately upon publication of the ECL.

It is worth noting that, in 2004, the Portuguese legislator had already unified five EU Directives[1] into a single piece of legislation, creating a structurally cohesive framework that was broadly maintained until 2022. Even so, by mid-2021 the Portuguese communications regulatory framework comprised, in addition to the 2004 Electronic Communications Law, 46 other diplomas[2].

Despite major changes, particularly to consumer protection and the sanctioning framework, the ECL retains the same structure as its predecessor, with notable implications for operators' financial and business stability.

2. ANACOM AND OTHER AUTHORITIES

The Portuguese Communications Authority (Autoridade Nacional de Comunicações, "ANACOM") is Portugal's National Regulatory Authority (Autoridade Reguladora Nacional, "NRA") for the communications sector.

The term "communications" – which defines ANACOM's scope of authority – includes electronic and postal communications. The ECL clarified ANACOM's jurisdiction in previously undefined areas and expanded its role to include new market sectors.

For instance, the ECL extends ANACOM's regulatory authority to over-the-top ("OTT"[3]) services. Although these services operate exclusively at the application layer of data transmission networks[4], the ECL categorises OTT as an interpersonal communications service for legal and market-analysis purposes, particularly as regards end-user rights.

The ECL assigns ANACOM a comprehensive set of regulatory, supervisory and enforcement duties for the communications sector. Specifically, ANACOM is responsible for:

• promoting competition in the provision of electronic communications networks and services;
• ensuring access to networks, infrastructures, facilities, and services;
• protecting the rights and interests of consumers and other end-users; and
• ensuring access to the universal electronic and postal communications service and enforcing universal service obligations.

Among other changes, the ECL grants ANACOM additional powers and duties, particularly in spectrum management. ANACOM is now empowered to promote the shared use of the radio spectrum, allowing multiple operators to access the same frequency bands through the allocation of rights of use for frequencies (Direitos de Utilização de Frequências"DUF").

Additionally, the ECL clarifies that the rules for competitive or comparative selection procedures for radio spectrum rights of use must be approved by the government department responsible for the communications sector.

The ECL aligns with the European Electronic Communications Code by recognising the role of "other competent authorities" in the communications sector. Entities such as the National Authority for Emergency and Civil Protection (Autoridade Nacional de Emergência e Proteção Civil, "ANEPC") are granted specific statutory powers, particularly as regards end-user rights.

To this end, the ECL requires ANACOM to collaborate with "other relevant entities" by organising public consultations and sharing information on matters of joint interest, in particular those relating to emergency communications.

3. General authorisation, frequencies and numbers

3.1. General Authorisation

The provision of electronic communications networks and services is unrestricted: companies may offer such services without prior authorisation from the regulator, except where they seek rights of use for resources such as frequency bands or numbering.

Companies intending to provide public electronic communications networks and publicly available electronic communications services must notify ANACOM before commencing operations. The notification must include:

• a statement of the applicant's intent to begin operations;
• the applicant's identification details, along with the website associated with the provision of public electronic communication networks and services;
• contact information for communications and notices, including a mandatory email address;
• a brief overview of the planned network and services; and
• the expected service launch date.

Companies not subject to the general authorisation regime under the ECL are not required to notify ANACOM before launching operations. The requirement likewise does not apply to providers of electronic communications services not intended for public access.

ANACOM may also, by specific regulation, exempt certain providers of public electronic communications networks and publicly available services from this requirement.

3.2. General and Specific Conditions

Companies providing electronic communications networks and services remain subject to several general conditions established under the previous law. These include:

• access obligations;
• obligations related to the processing of personal data and the protection of privacy within the electronic communications sector;
• obligations to install and make available lawful interception systems to national authorities, including decryption capabilities where such facilities are offered;
• conditions of use of the radio spectrum for electronic communications services; and
• conditions of use to ensure communications between emergency services, competent authorities, civil protection agents and the public.

Entities not subject to the general authorisation regime are not subject to these general conditions.

In addition, companies providing electronic communications networks and services may also be subject to specific obligations, particularly those related to access and interconnection, retail market regulations, and the provision of universal service.

Finally, providers of number-independent interpersonal communications services may, in certain cases, also be subject to access and interconnection obligations as a result of changes introduced by the ECL.

3.3. Operator's Rights

The ECL grants companies providing electronic communications networks or services — whether intended for public or private use — the right to request rights of way and to use the radio frequency spectrum in order to deploy their networks and services.

Companies offering public networks or services have additional rights, including the right to apply for universal service provider status and expand their coverage nationwide.

These rights may be amended by legislative, regulatory or administrative measures, provided such changes are objectively justified and proportionate, and are notified to the rights holder. Amendments are subject to a public consultation process allowing stakeholders to provide input, unless the changes are minor or do not affect the fundamental nature of the rights of use.

The holders of DUF and numbering resources are granted a general guarantee of non-restriction and irrevocability of these rights until their expiration. However, the law outlines specific criteria under which these rights may be restricted or revoked in advance by the NRA, including:

• voluntary consent by the rights holder; and
• justified reasons to ensure the effective and efficient use of numbering resources or radio spectrum; and the implementation of technical measures under Article 4 of the Radio Spectrum Decision.[5]

Restricting or revoking rights without the holder's consent or in unjustified cases must follow a legal procedure that upholds the principles of proportionality and non-discrimination.

Where rights are restricted or revoked, holders are entitled to compensation for any exceptional and abnormal losses or damages suffered, as determined by ANACOM in accordance with the rules on non-contractual liability of the State and other public entities.

In summary, the ECL introduces no significant innovations in this area, but clarifies that these rules extend to OTT services and to companies wishing to offer electronic communications services not intended for public use.

3.4. The Radio Spectrum

The radio frequency spectrum, which enables the transmission of electromagnetic waves with frequencies between 3kHz and 3000GHz, is a vital public resource with significant economic and social value for the country. This importance is evident in the amounts paid for rights to use it and in the intense public debate surrounding spectrum-related issues[6].

ANACOM is responsible for managing the spectrum and must promote its efficient use in accordance with the principles of technology and service neutrality. The first principle means that any technology may be used in the frequency bands allocated to electronic communications services; service neutrality, in turn, means that any type of electronic communications service may be offered using those frequency bands.

The ECL has not introduced significant changes to ANACOM's role. ANACOM retains most of its existing powers, including the power to assign, modify, renew rights of use, and to authorise the transfer or lease of such rights.

However, in response to the difficulties encountered during the 5G DUF auction, the ECL introduces two seemingly conflicting changes regarding future frequency allocation procedures. On one hand, ANACOM has been granted new powers to safeguard competitive use of frequencies; on the other, the authority to decide on frequency allocation procedures has been transferred to the Government, which must now approve them directly.

The ECL reiterates ANACOM's responsibility for granting rights of use of frequencies for electronic communications networks or services. These rights are always time-limited. For example, rights of use for the spectrum of wireless broadband electronic communications services are granted for 15 years, with the possibility of renewal.

As under the previous regime, ANACOM is also responsible for defining the conditions associated with the rights of use of the spectrum. If breached, the regulator can revoke the rights of use or impose other measures. These conditions must be proportional, transparent, and non-discriminatory, including setting maximum periods of rights of use.

The ECL introduces an innovative provision for the shared use of the radio spectrum, expanding its potential applications.

The renewal of rights of use is possible, but the renewal rules have been significantly changed under the ECL:

• under the previous law, the renewal of rights of use for the radio frequency spectrum was solely dependent on the initiative of the holder; and
• under the ECL, ANACOM may proactively assess the need to renew the radio frequency spectrum.

Holders of rights of use for the radio frequency spectrum may also apply for renewal; however, applications must be submitted between 18 months and five years before the rights expire, compared with a minimum of one year's notice under the previous law. In any case, the regulator must respond to renewal requests within six consecutive months from the receipt date.

In the case of rights of use whose number has been limited, interested parties must be given the opportunity to provide input on their renewal, through a public consultation process. In this regard, in September 2024, ANACOM launched a public consultation on the availability of spectrum resources for terrestrial electronic communications services ("SCET"), addressed to manufacturers, operators, public and private entities, users and others, in addition to those currently allocated to the six operators that participated in the 5G Auction. The consultation was concluded in November 2024 and the respective report was approved on 20 February 2025, in which ANACOM signalled that it may be justified to make available in the near future the remaining 700 MHz band spectrum from the 5G Auction, with any further release of additional bands to be carried out on a phased basis.

As rights of use are licensed to operators, holders are required to pay periodic fees, which (save in exceptional cases) are intended primarily to cover the costs of radio supervision.

Finally, it is worth mentioning that the National Frequency Allocation Framework (Quadro Nacional de Atribuição de Frequências - "QNAF", which may be accessed through this link) serves as the technical management instrument used for the radio spectrum, which defines the conditions of use according to its purpose.

3.4.1. Transfer and Lease of Rights of Use

The ECL allows the transfer or leasing of rights of use for the radio spectrum.

As a rule, if the rights holder wishes to transfer or lease them, it can do so through a request to the regulator, which must approve or deny it within 45 business days.

However, in some cases, the transfer or leasing of rights of use is not permitted. These cases include rights allocated free of charge, the provision of radio broadcasting services and the distribution of television and radio broadcasting services as part of specific procedures to achieve public interest objectives.

3.4.2. Competition

Under the ECL, ANACOM is required to promote effective competition within the European Union's internal market when allocating, modifying or renewing frequency usage rights, and to minimise potential distortions of competition. To that end, ANACOM may itself adopt, or recommend to other competent authorities, measures to address such distortions. These measures may include, among others:

• limiting the number of spectrum bands for which usage rights are granted or imposing conditions on these rights;
• reserving portions of a spectrum band or group of bands for allocation to new market entrants; and
• denying new rights of use or prohibiting new spectrum uses in specific bands and imposing conditions to their allocation, transfer, or lease to prevent competitive imbalances.

When adopting such measures, the regulator must base its decisions on an objective and forward-looking assessment of competitive conditions in the market and the necessity of the proposed action.

3.5. Numbering Resources

The ECL designates ANACOM as the entity responsible for managing numbering resources in Portugal.

 "Numbering resources", defined as the structured set of codes used by electronic communication networks to route signals, are part of the National Numbering Plan (Plano Nacional de Numeração – "PNN", accessible through this link), or an international numbering plan[7]. ANACOM has the power to administer and allocate these numbers, which can be used to identify networks, network elements, end-users, services or applications that utilise these services and networks.

The ECL states that ANACOM is tasked with ensuring the availability of numbering resources for the operation of public electronic communication networks and the provision of publicly accessible electronic communication services.

Operators must submit a detailed and reasoned request to ANACOM to obtain the right to use these resources. ANACOM uses the National Numbering Plan as the technical tool for managing the allocation of numbers, which sets specific criteria for each numbering range.

Furthermore, Regulation No. 1028/2021, of 29 December, established the legal framework for the sub-allocation of E.164 numbers from the PNN, allowing holders of rights of use of numbering resources to assign them to third parties (beneficiaries). This regime contributes to reducing barriers to entry for new operators in the market, by enabling access to numbering resources without the need for a direct allocation from ANACOM, thereby promoting competition and innovation in the electronic communications sector.

3.6. Security and Emergency

The ECL establishes general responsibilities for coordinating electronic communications networks and services during crises, wars, major accidents or disasters, and threats to internal security, and singles out two specific rules:

• first, providers of communication services using numbers are required to issue free public warnings in the event of imminent or ongoing emergencies, accidents, or disasters; and
• second, all end-users of communication services are entitled to free access to the European emergency number 112, as well as any other national emergency numbers designated by ANACOM and listed in the National Numbering Plan, for making emergency calls.

4. Market overview

4.1. General Provisions

Under the ECL, market analysis and the imposition of specific obligations must comply with the principle of full justification: all decisions must rest on legal requirements and must be preceded by a public consultation.

Defining the relevant product and geographic markets in the telecommunications sector and determining which companies have significant market power are ANACOM's responsibility.

4.2. Market Analysis

The ECL entrusts ANACOM with the task of defining and analysing the relevant product and service markets within the electronic communications sector, taking into account the level of infrastructure-based competition in each.

Following this analysis, ANACOM may impose specific obligations when:

• market entry barriers exist;
• the market structure does not support effective competition; and
• competition law alone is insufficient to address specific deficiencies.

The analysis may be conducted for national and transnational electronic communications markets, in cooperation with European authorities.

4.3. Obligations on Operators with Significant Market Power

The ECL retains the traditional definition of significant market power as a strong economic position that enables a company to operate independently of competitors, customers and end-users.

Like the previous legislation, the ECL allows the regulator to impose certain obligations on companies with significant market power. These obligations may include:

• meeting reasonable requests for access to and use of infrastructure, such as civil engineering assets owned by the company;
• implementing cost-oriented pricing and cost-accounting systems for specific types of interconnection and access where there is no effective competition. The ECL introduces stricter conditions for imposing these obligations: ANACOM must now take into account the benefits of predictable, stable wholesale prices that encourage efficient market entry and incentivise investment in new and more advanced networks, particularly in areas of low population density; and
• the ECL aligns with the European Electronic Communications Code by recognising the positive impact that wholesale competition can have on retail markets and on the mitigation of competitive risks.

Accordingly, wholesale-only operators are subject to a more favourable regulatory regime. Their obligations may be limited to non-discrimination, access to specific network elements and associated facilities, or fair, reasonable and non-discriminatory pricing. This regime applies only where the operator meets strict cumulative criteria, which may make qualification challenging for some.

Companies with significant market power are now subject to specific obligations on infrastructure migration. To mitigate the competitive risks associated with the transition from legacy copper networks to next-generation networks, such companies must give prior notice of any plan to decommission or replace their infrastructure, in whole or in part.

Access obligations are not limited to companies with significant market power. To improve economic efficiency, the regulator can impose access requirements on operators or owners of cabling and associated facilities within buildings or up to the first distribution point outside the building, regardless of market power status. This measure relies on symmetric regulation that applies uniformly to all operators[8].

4.4. Access and Interconnection

4.4.1. Interconnection

Companies providing electronic communications networks and services are free to negotiate and conclude interconnection agreements independently.

ANACOM may impose access and interconnection obligations on companies, regardless of whether they hold significant market power, provided such obligations are objective, proportionate, transparent and non-discriminatory. For instance, ANACOM may impose additional obligations on undertakings that control access to end-users.

4.4.2. Regulatory Obligations

The ECL aligns closely with the EECC, preserving the regulatory obligations established under the previous legislation while introducing new obligations that are both more stringent and more complex.

One example is the ECL's emphasis on symmetric regulatory and access obligations — such as providing access to in-building cabling up to the first concentration point, granting access to civil engineering assets and imposing national roaming obligations. These provisions aim to strengthen regulatory oversight and promote fair competition; however, their stringency adds complexity that may hinder implementation.

While these new rules are intended to strengthen user protections, they raise practical implementation concerns.

4.4.3. National Roaming Obligations

Following the EECC, the ECL introduces the concept of national roaming. It is viewed as a significant regulatory mechanism for overcoming physical and economic barriers to the provision of services and networks that require radio spectrum rights of use, particularly for mobile network operators serving end-users.

Where access to and sharing of passive infrastructure is insufficient to ensure adequate coverage, the regulator may impose active infrastructure sharing or require national roaming agreements. Such obligations may, however, be imposed only under specific conditions — for example, where unavoidable physical or economic constraints (such as limited access in protected areas due to building restrictions) result in inadequate or non-existent service availability for end-users.

This mechanism is justified only where passive infrastructure sharing and access prove insufficient.

4.4.4. International Roaming

International roaming, introduced with early 2G mobile networks, allows customers of one provider to access mobile services through the networks of other operators while abroad. The service enables users to make and receive voice calls, send and receive text and multimedia messages, and access the internet while travelling, and has been one of the principal drivers of the widespread adoption of mobile services, particularly over GSM networks.

Roaming charges have traditionally been higher than domestic charges, as third-party operators set fees for visiting users. Regulatory pressure in the European Economic Area (EEA) has led to a significant reduction in those charges and, since the introduction of the EU's "Roam Like at Home" initiative in 2017, users within the EEA pay the same rates for international roaming as they do on their home network. Charges outside the EEA remain higher than domestic ones.

It is important to note that international roaming is not regulated by the ECL but by European regulations, specifically by Regulation (EU) 2022/612 of the European Parliament and the Council of 6 April 2022.

4.5. Regulatory Controls in Retail Markets

ANACOM's power to impose specific obligations on retail markets is subject to two cumulative conditions:

• the absence of effective competition; and
• the imposition of obligations on wholesale operators would not be sufficient to achieve the regulatory objectives.

The ECL aims to prevent operators from engaging in excessive pricing or discriminatory practices against end-users.

5. Users' rights, universal and mandatory services

5.1. End-users' Rights

Companies offering networks or services, including OTT providers, are now fully subject to the end-user rights set out in the ECL.

As an exception applies to the micro-entities[9] offering number-independent one-to-one communications services: although exempt from these rules, they remain required to inform end-users of the exemption.

Under the ECL, end-user rights extend to consumers, micro-entities, small enterprises and non-profit organisations that have not waived such rights.

Under the ECL, organisations are entitled to:

• receive written information about service terms and conditions;
• be notified at least 15 days in advance of the operator's intention to discontinue a specific service;
• access information on expected and actual service levels;
• receive itemised invoices, including an itemised cost breakdown and information on the end of the minimum contractual period;
• benefit from increased protections in cases of unauthorised contracts;
• have access to tools for viewing pricing and other contractual conditions;
• receive immediate and proportional reductions in monthly fees for service quality failures, in addition to any other applicable compensation;
• maintain continuous access to the contracted services and receive notice of service suspension; and
• exercise the right to number portability.

End-user protection has become a cornerstone of the ECL. Even so, the legislator's attempt to empower users has produced unintended consequences, including gaps in guidance that create an unwelcome sense of uncertainty. For example, the ECL prohibits operators from unjustifiably discriminating against customers based on nationality or place of residence, but offers no guidance on what may be considered justifiable discrimination — a sensitive matter likely to give rise to disputes.

The ECL seeks to empower end-users by ensuring fair treatment within the market. The protection of end-users is a fundamental aspect of the ECL. As part of this framework, the non-discrimination rules ensure that consumers have equal access to services and that companies cannot discriminate against users based on their nationality or residence. ANACOM has also approved a new Number Portability Regulation, which replaces the framework previously in force since 2005. The regulation was published in January 2025 and entered into force on 10 November 2025. The essential structure of the previous regime is preserved, but several important changes were introduced, including enhanced consumer-protection measures, such as:

• prohibiting certain portability fees for end users; and
• requiring providers to ensure both the portability of numbers and their activation.

5.2. Agreement Information Requirements

The ECL complements the framework for the disclosure of pre-contractual information. Under the ECL, public communication providers and operators, excluding machine-to-machine service providers, are now required to provide consumers with essential information (under the Consumer Protection Act) about key aspects of the agreement before signing the contract. Among other things, operators are required to disclose information on:

• the main characteristics of the goods or services;
• the provider's identity, including company name, postal address, telephone number and other contact details;
• the full price of the services, including the fixed fees, applicable taxes, additional setup charges, and other relevant costs, including maintenance fees; and
• the price calculation method in cases where, due to the nature of the service, the price cannot be determined before the agreement.

The ECL also requires operators to adopt and make available a summary of the user contract terms and conditions.

5.3. Control Mechanisms for Contracting and Invoicing

According to the ECL, billing for publicly available electronic communications services must be conducted monthly. Invoices must be sent to the end-user free of charge and must include:

• a breakdown of the services provided along with the corresponding prices;
• the remaining term of the minimum contractual obligations; and, where applicable,
• details of the social tariff for broadband internet access services and its application to consumers on low incomes or with special social needs.

5.4. Duration of the Agreement

Due to the prevalence of bundled services (triple, quadruple and quintuple play offerings with implied discounts[10]), particularly in the residential fixed-line market, local operators tend to waive setup fees in favour of minimum contract periods which, if breached, trigger steep early-termination fees. Unsurprisingly, minimum contract periods[11], have become one of the most debated issues in consumer law.

Even so, the ECL maintains its position on minimum contract periods and early-termination charges, opting for more targeted changes — in particular, introducing the concepts of initial and follow-up minimum contract periods and setting caps for both.

Consequently, operators providing publicly available electronic communications services must offer a version of those services without any customer lock-in period, and any minimum contract period is capped at 24 months.

In addition, a consumer's subscription to supplementary services or terminal equipment cannot be used to extend the initial lock-in period unless the consumer expressly agrees to the extension at the time of subscription.

5.5. Termination of the Agreement

On contract termination, the ECL departs significantly from general legal principles, particularly as regards default and liability, in order to strengthen consumer protection.

Under the ECL, services to defaulting non-consumer end-users may be suspended subject to prior notice, save that access to emergency services may not be discontinued.

For defaulting consumer end-users, the operator must issue a notice opening a grace period of at least 30 days. A further 30-day suspension period is then permitted, after which the contract terminates automatically, without further notice, once the applicable notification requirements have been met.

Where services are unavailable for more than 24 hours, the ECL requires a proportional reduction in the bill regardless of whether the consumer requests one. If service remains unavailable for more than 15 days, the end-user may terminate the agreement at no cost.

The ECL also sets out additional specific grounds for terminating the agreement, beyond those already mentioned.

For example, in the event of a "significant discrepancy between the actual performance of the service and the performance described in the agreement", the end-user may demand corrective measures — although the ECL does not specify which measures may be required — and may terminate the agreement without penalty. The use of such arguably vague concepts is likely to generate disputes and, in time, case law to delimit their application.

As noted above, the ECL has introduced specific changes to the admissibility of minimum contract periods and also caps early-termination charges payable where customers fail to comply with the agreed lock-in periods.

Under the ECL, a customer may terminate the agreement without incurring early-termination charges where the consumer:

• changes their primary residence permanently and the operator cannot provide the same or an equivalent service — in terms of characteristics and price — at the new address;
• loses disposable monthly income due to involuntary unemployment;
• is permanently or temporarily incapacitated for work or loses monthly income due to a long-term illness;
• moves to a third country, defined as an unforeseeable move of the contract holder's permanent residence outside of national territory; or
• is absent from their residence owing to imprisonment, or has become reliant on third-party care.

Although these additional grounds were introduced to protect interests the legislator deemed legitimate, the heavy reliance on vague terms — such as "unforeseeable move (…) out of national territory" or "loss of income due to illness" — is likely to give rise to implementation difficulties.

ANACOM has also launched an online platform through which consumers can submit termination requests and access contract information digitally.

5.6. Universal Service

Under the ECL, the universal service comprises a minimum set of services that must be made available to all consumers at an affordable price across the national territory, taking into account specific national conditions. Its purpose is to prevent social exclusion caused by lack of access and to enable citizens to participate actively in social and economic life.

The universal service must guarantee the availability of:

• reliable broadband internet access at a fixed location;
• voice communication services, including the necessary underlying connection, at a fixed location; and
• specific measures to ensure equivalent access for customers with disabilities to services available to other users.

The ECL introduces significant changes to the universal service regime, particularly by promoting social regulation through the so-called "social internet tariff".

5.7. Additional Mandatory Services

Under the ECL, the Government may require operators to provide additional services to the public within the national territory, beyond the universal service obligations. In such cases, a compensation mechanism must be put in place for the operators concerned.

6. Transport Obligations and Equipment

On public-interest grounds, ANACOM may impose signal-transmission obligations on companies operating in the television and radio programming services market, against adequate compensation.

Under the ECL, digital television equipment must be capable of decoding digital signals and of reproducing signals broadcast without encryption. Providers must also facilitate the interoperability of equipment so as to encourage its reuse.

Finally, any activity involving illegal devices — including their manufacture, import, distribution, sale, rental, installation, maintenance, promotion, acquisition or use — constitutes a serious administrative infraction.

An illegal device refers to any equipment or software specifically designed or adapted to enable unauthorised access to protected services in an intelligible form without the service provider's consent.

7. Fees, supervision and control

7.1. Rates

Operators providing communication networks and services under the general authorisation framework are subject to an annual fee. This fee is determined based on the administrative costs associated with managing, overseeing, and enforcing the general authorisation framework, the related rights of use and specific conditions.

Additionally, operators are responsible for additional fees related to the following:

• the allocation and renewal of frequency rights;
• the allocation, reservation, and renewal of numbering resource rights; and
• the allocation of rights of way.

7.2. Supervision and Control

7.2.1. Disclosure of Information

To effectively carry out its responsibilities, ANACOM is authorised to access and request information from operators when necessary, provided the request is objectively justified, non-discriminatory and reasonable.

Specifically, companies must provide financial data and any additional information requested by ANACOM or other competent authorities, as long as the need is established, to ensure compliance with administrative charges, licensing conditions, and other regulatory requirements. In general, operators must provide financial and technical information to guarantee compliance with obligations related to the services they are authorised to provide.

7.2.2. Control

As a regulatory body, ANACOM is responsible for overseeing the enforcement of the ECL, in addition to the Portuguese Food and Economic Security Authority (Autoridade de Segurança Alimentar e Económica – "ASAE") and the Portuguese Tax Authorities (Autoridade Tributária e Aduaneira). ANACOM is also in charge of supervising the electronic communications sector as a whole.

However, under the ECL and other relevant legislation, judicial courts and central Government agencies, such as the national cybersecurity agency (Centro Nacional de Cibersegurança – "CNCS"), hold a level of jurisdiction over the sector. These include the previously mentioned ANEPC (the emergency and civil protection agency), the Food and Economic Security Authority (Autoridade de Segurança Alimentar e Económica – "ASAE"), the Competition Authority (Autoridade da Concorrência – "AdC"), the Tax and Customs Authority (Autoridade Tributária e Aduaneira – "AT") and the district council's authorities.

7.2.3. New Sanctioning Framework

The ECL has significantly expanded its sanctioning framework. It now includes more than 120 administrative infractions, of which nearly 97% are considered severe or very serious, potentially resulting in fines of up to one million or five million euros.

Figure 1 - Distribution of administrative offences foreseen by the ECL according to their seriousness.

Regarding compliance with the end-consumer rules, more than 40 applicable sanctions account for over a third of the total ECL's administrative infractions under the ECL.

Figure 2 - Distribution of sanctioning rules according to the subject (as a % of all administrative offences covered by the ECL).

Under the ECL, issuing guidelines, recommendations, or instructions to employees, agents, or business partners that may lead to a violation of rules or ANACOM's instructions is considered a severe administrative infraction.

As opposed to the initial version of the bill presented by the Government in May 2022[12], the ECL does not include provisions for individual liability of members of management bodies and company directors.

Alongside a comprehensive list of violations for which operators are liable, under the ECL, a severe or very serious administrative offence occurs whenever an operator issues its employees, agents, or business partners with guidelines, recommendations, or instructions likely to result in a breach of rules on ANACOM's instructions.

It should be noted that this type of provision is rare within Portuguese law and seems to be a compromise when compared to the bill submitted to Parliament[13] that would have made company directors and senior staff operators personally liable. Considering the broad and ambiguous nature of these sanctioning provisions, we expect to see a rise in disputes and the consolidation of case law concerning how sanctions should be applied.

8. Open Internet Principle

The open internet principle ensures that citizens of the European Union have unrestricted access to online content and services, regardless of their location or time, without discrimination or interference from internet service providers.[14]

In Portugal, this principle is reflected in national law through the ECL, which states that any actions taken to maintain the quality of internet access must comply with Regulation (EU) 2015/2120 of the European Parliament and of the Council of 25 November 2015.

The open internet principle is crucial today, where information is widely accessible online. It ensures that individuals and businesses have unrestricted and equal access to online content and services. For instance:

• internet service providers are prohibited from blocking or slowing down their competitors' content, applications, or services, except in limited circumstances, such as maintaining network security and integrity. Under this principle, e.g., internet providers must prevent unjustifiable blocking or slowing down content, applications, or services, except in limited cases, such as to maintain network security and integrity; and
• similarly, service providers must provide equal access to online content and services, free from undue interference driven by their interests and cannot prioritise traffic on their networks based on payments from a specific source.

In conclusion, it's important to note in cases of violation of the open Internet provisions, EU Member States are obligated to enforce sanctions that are effective, proportional, and dissuasive. Service providers found in breach may face both administrative and financial penalties.

Introduction

The new Portuguese Cybersecurity Legal Framework, approved by Decree-Law No. 125/2025 of 4 December (Regime Jurídico da Cibersegurança – RJC), entered into force on 3 April 2026, marking a significant step in the transposition of Directive (EU) 2022/2555 of 14 December 2022 (NIS 2 Directive) into Portuguese law.

This framework is complemented by the draft implementing regulation of the RJC, which was submitted for public consultation by the National Cybersecurity Centre (Centro Nacional de Cibersegurança – CNCS) on 10 March 2026, with the consultation period running until 22 April 2026.

In this context, determining the personal scope of the RJC is particularly important, as it identifies which entities are subject to the new regime and on what legal basis.

At European Union level, the NIS 2 Directive lays down the objectives and outcomes that Member States must ensure in order to achieve a high common level of cybersecurity across the Union. The RJC transposes the NIS 2 Directive into Portuguese law by defining, inter alia, the entities falling within its scope, the relevant institutional architecture, the categories of entities subject to the regime, and the obligations relating to identification, registration, notification and compliance. The draft implementing regulation of the RJC further specifies the practical application of the regime, in particular as regards the operation of the electronic platform, the minimum cybersecurity measures, the compliance levels and the notification procedures.

Whether an entity is subject to the regime does not depend solely on its sector of activity or place of establishment but rather requires an integrated assessment of the legal criteria applicable to private and public entities, including the relevant sectoral or organisational framework, the territorial connecting factors, the entity’s size, its criticality and its final classification as an essential entity, an important entity or a relevant public entity.

This study analyses the personal scope of the new regime and the qualification framework applicable to private and public entities potentially falling within the scope of the RJC.

WHICH ENTITIES FALL WITHIN THE SCOPE OF THE RJC?

Private entities

1.does the entity fall within a type listed in annex i or annex ii to the rjc?

If not
→ in principle, outside the personal scope

If yes
→ proceed to the territoriality assessment

 

2. Is there a territorial connection to Portugal?

If not
→ it is not subject to the Portuguese legal framework
If yes
→ proceed to the substantive assessment

 

3. Does it provide services or carry out activities in the European Union?

If not

→ it is not covered under the default rule
If yes

→ proceed to the size assessment

 

4. Is it a medium-sized enterprise or does it exceed the thresholds for a medium-sized enterprise?

An entity’s subjection to the regime does not depend solely on having a registered office in Portugal. It may also result from the way in which the service is provided, the place where cybersecurity risk-management measures are decided, and, in certain cases, the need to protect national territory.

Is any special criterion met even if the size criterion is not?

Even if the size criterion is not met, an entity of a type listed in Annex I or II may still fall within scope if it:

If the entity falls within scope, is it an essential or important entity?

Why transform the way we work?

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Legal Translations with AI

Use Case I: Translate

The challenge

Legal translations are complex and difficult because precision in the translation of legal concepts is crucial.

1. Introduction

In any EU single-currency economy, a GDP growth of 2.4%, an increase of 2.8% in employment, and inflation close to the European Central Bank’s 2% target are generally the hallmarks of a good year. However, the decline of 2.6 p.p. in the debt-to-GDP ratio, persistent budget surpluses, increased public investment and political stability made the Portuguese economy a top performer among its peers in 2025.

In such an environment, the technology, media, and telecommunications (TMT) sector broadly reflected the overall economic performance. Investment levels were significant, particularly in fibre deployment and the reinforcement of mobile broadband, while major operators recorded favourable revenue growth and maintained positive business margins.

The year was also marked by relevant technological and regulatory developments. The continued rollout of next-generation networks, the increasing relevance of digital services and data, and the growing focus on cybersecurity and network resilience influenced both market activity and public policy. These developments took place within a regulatory framework increasingly shaped by ever-changing European legislative initiatives.

This report analyses the key developments in the TMT sector in Portugal in 2025, focusing on the primary economic, technological and regulatory factors that characterised the year and are likely to influence the sector’s future outlook.

Lastly, a final chapter has been included to provide an outlook for 2026, based on the key trends expected to shape the market’s evolution. This section places particular emphasis on regulatory developments, investment dynamics, and technological transformation.

2. Market overview

2.1. Communications Network Evolution

Taking the mobile services segment as an example and using the latest available data from ANACOM, the National Regulatory Authority, for the third quarter of 2025, the number of base stations equipped with 5G technology increased to 14,890. This represents a 40.6% increase compared to the same period in 2024 and reflects the installation of approximately 11.8 new 5G-enabled mobile stations per day over the preceding 12 months.

As a result, around 75% of the country’s 3.091 parishes (“freguesias”) across the national territory are now served by 5G mobile base stations, with a density of 144 5G stations per 100.000 inhabitants.

Regarding fixed networks, efforts to expand high-speed fibre infrastructure continued throughout the year. By year-end, fibre coverage of households and business premises reached approximately 96%, complemented by an additional four million households and commercial locations served by coaxial cable networks, as reported by operators.

With regard also to network development — albeit of a different nature — 2025 was marked by the landing of the 2Africa submarine cable in Carcavelos, notwithstanding the lack of immediate impact on end-user services. Launched in 2020, this system connects three continents and more than 33 countries, with the completion of its core infrastructure reached in 2025. With a total length of approximately 45.000 km (forty-five thousand kilometres), it is currently the world’s largest submarine cable system. Its connection to Portugal strengthens the country’s position as an Atlantic connectivity hub, aligning with the objectives set out in the National Data Centres Strategy published in the same year.

Finally, also with regard to submarine connectivity, the year was also marked by the reprogramming of the CAM submarine cable project, a ring linking mainland Portugal, the Azores and Madeira. This decision ensures the continuity of the project, with completion remaining scheduled for 2027. For further details on this topic, please refer to our newsletter.

2.2. Market Dynamics of the communications sector

Following the market adjustments triggered in the previous year by the commercial launch of a new operator capable, on its own, of competing with the three incumbent players, 2025 witnessed not only the materialisation of consolidation trends but also a series of significant transactions. These included the integration of NOWO into DIGI, the acquisition of Claranet by NOS, and the sale of MEO’s Covilhã data centre to Asterion Industrial Partners. Taken together, these transactions amounted to an estimated total value of approximately €420 million[1].

No annual review would be complete without reference to developments in retail pricing. While, from a structural perspective, the year did not bring major surprises, price behaviour proved unexpectedly volatile, particularly between the first and second halves of the year.

Accordingly, whereas the first half of 2025 reflected the lingering effects of imported inflation from the previous year, the second half saw a historically significant deflationary trend in the sector.

In October and November 2025, telecommunications prices fell to such an extent that, compared with the corresponding months of the previous year, they decreased by 2.7%, while the average rate of change in telecommunications prices over the preceding twelve months stood at -0.6%.

2.3. Media markets

On the content side, 2025 was marked by the consolidation of a “hybrid news ecosystem”, in which traditional linear platforms – namely television and radio – continued to secure significant audience shares, while digital-native models, streaming services and AI-integrated newsrooms continued to make their way into the economics of content production and distribution.

The defining event of the year was the continuation of market restructuring, illustrated by the entry of MFE-MediaForEurope into the Portuguese market through the acquisition of a strategic stake in Impresa, the sustained leadership of Media Capital in the television ratings war, and the launch of the “News Now” channel by the Medialivre group.

Simultaneously, the regulatory environment became increasingly active, with the government introducing a 30-measure Media Action Plan (PACS)[2], designed to address long-term sustainability challenges, ranging from the gradual removal of advertising on the public broadcaster, RTP, to enhanced support for local and regional journalism.

Television remains the primary vehicle for mass information and entertainment in Portugal, reaching more than 90% of the population on an annual basis. Despite growing competitive pressure from Over-the-Top (OTT) streaming services, linear television still represents close to 90% of total viewing time, largely sustained by live events, fiction programming and strong public demand for 24-hour news coverage.

The Portuguese radio market remained resilient in 2025, attracting more than seven million weekly listeners, alongside an estimated 2.4 million podcast downloads. By early 2025, 42,2% of Portuguese residents subscribed to at least one streaming platform, with total usage reaching 52% of the population.

This surge coincided with the first decline in traditional pay-TV subscriptions in 19 years, as reported by ANACOM in Q1 2025. While the Portuguese market had historically been relatively insulated from cord-cutting – largely due to the aggressive bundling strategies adopted by MEO and NOS – the entry of DIGI, offering high-speed internet without mandatory cable packages, appears to have triggered a structural shift in market dynamics.

2.4. The oportunity and risks of AI in media markets

Digital advertising in Portugal is valued at approximately €0.9 billion, accounting for a substantial share of the TMT economy. Businesses are increasingly shifting budgets toward data-driven, targeted advertising, although the rise of ad-blocker usage (affecting 30% of users) poses a €150 million revenue risk for the sector.

AI has been integrated into the "back office" of most major media groups, with the Medialivre group reporting that around 75% of its content is automatically classified using AI tools, enhancing newsroom efficiency. However, the Reuters Institute's 2025 report highlights that "Trust in News"[3] has fallen to its lowest point in a decade (54%), largely due to the public’s fear of AI-generated disinformation and the cuts in newsroom staff.

2.5. Digital Technologies

The most profound transformation in the Portuguese digital technologies market in 2025 occurred in the data centre segment. Until then, Portuguese data centres - mostly operated by communications companies like MEO or NOS and utilities such as REN (the national electrical grid operator) - were smaller and, as such, did not support the higher densities required by modern AI.

Thus, the inauguration of the first unit of the Start Campus project in Sines (SIN01), along with new projects such as AI Campus (Edged/Merlin Properties) and AtlasEdge (Lisbon), was not a complement to the old market but a replacement infrastructure designed for the AI and hyperscale cloud economy.

On the other hand, NOS’s acquisition of Claranet Portugal for €152 million demonstrated another evolution worth mentioning. By integrating Claranet’s competencies in cloud, cybersecurity, and AI, NOS positioned itself not just as a provider of connectivity, but as a key player in the digital technologies market.

2.6. Threats

In 2025, Portugal offered one of the greenest electrical grids in Europe, with 87.5% of net electricity production coming from renewable sources a very positive feature of the national market. However, this proved to be a double-edged sword when, on 28 April, the electric grid was operating using mostly renewable sources in Portugal and Spain and suffered a severe instability, triggering a shutdown. This shutdown caused a blackout of the Spanish electricity grid, which cascaded across Portugal and brought large parts of the country to a standstill for several hours[4].

This near-unprecedented event placed the resilience of communications networks under severe and unexpected stress, testing both their ability to continue operating and to recover under extreme conditions. The debate it triggered continues into 2026 and is likely to remain relevant for years to come.

3. Main regulatory developments

3.1. Overview

Developments in 2025 focused on the reinforcement of cybersecurity and critical infrastructure resilience through the transposition of the NIS2 and CER Directives, as well as on the development of new infrastructure supporting data transmission and electronic communications, notably through strategic investment in submarine cable systems aimed at strengthening connectivity and international data flows.

Regulatory action addressed key aspects of the electronic communications framework, notably through the approval of the number portability regulation, strengthening consumer protection by allowing end users to change providers more swiftly and at no additional cost, while lowering barriers to effective competition[5].

3.2. Network Connectivity and Infrastructure

In 2025, submarine cable infrastructure was elevated to the status of strategic national asset, embedded within long-term state planning and recognised as critical to international connectivity and systemic resilience. The year was marked by:

• Reinforcement of multi-year public expenditure authorisations for major Atlantic connectivity systems.
• Launch of preparatory studies for a complementary Azores ring cable system, expressly subject to open wholesale access obligations.
• Integration of enhanced cybersecurity and redundancy requirements into the design and operation of the infrastructure.

3.3. Cybersecurity and Critical Infrastructure Governance

Cybersecurity reform represented the most structurally transformative development of 2025. Portugal adopted a comprehensive framework aligned with the NIS2 Directive and introduced a national regime governing the resilience of critical entities. The new model is characterised by:

• Identification and categorisation of essential and important entities.
• Mandatory implementation of risk management measures covering technical, organisational and governance dimensions.
• Strict incident notification obligations with compressed reporting timelines.
• Reinforced supervisory and investigative powers for competent authorities.
• A strengthened sanctioning regime.

Cybersecurity compliance is no longer confined to technical departments. It now entails board-level oversight, documented risk governance structures and demonstrable operational resilience.

Telecommunications operators, digital infrastructure providers and certain technology service providers face sustained regulatory scrutiny and increased enforcement exposure.

3.4. Consolidation of Existing Regulations

Rather than introducing a new regulatory paradigm, 2025 deepened and operationalised the existing electronic communications framework. Key developments included:

• Standardisation of the methodology for calculating revenues relevant to the annual regulatory contribution.
• Introduction of a mandatory electronic declaration model subject to enhanced audit mechanisms.
• Adoption of a more detailed and operationally precise number portability regime, strengthening switching procedures and inter-operator cooperation.
• Clarification of the regulatory qualification of international wholesale traffic carrier services.
• Updating of technical rules concerning electromagnetic field monitoring, radiocommunications stations and reduced-area wireless access points, reflecting technological developments such as 4G and 5G deployment.

Compliance now depends on detailed adherence to operational standards and reporting obligations, with reduced space for interpretative flexibility.

3.5. Data Governance and Intermediation

The European data governance framework became fully operational at national level during 2025. Competent authorities were formally designated and supervisory powers over data intermediation services were attributed to the telecommunications regulator.

The regime introduces:

• Regulatory oversight of providers facilitating controlled data-sharing environments.
• Organisational and neutrality requirements applicable to data intermediation services.
• A specific sanctioning framework applicable to non-compliance.

This development expands the regulatory perimeter beyond traditional telecommunications or hosting activities. Digital platforms and entities acting as neutral intermediaries in data ecosystems are now subject to structured national supervision, particularly where they enable trusted data-sharing mechanisms.

3.6. Data Centres, AI-Oriented Infrastructure and Digital Sovereignty

Portugal continues to lack a dedicated data-centre statute. Data centres remain subject to general legal regimes, with the applicable framework depending on the services provided and on whether the operator also performs electronic communications functions.

However, 2025 marked a significant policy inflection point. The Government announced a National Strategy for Data Centres, with particular emphasis on infrastructure designed to support artificial intelligence workloads. The strategy includes:

• Creation of pre-licensed zones to facilitate rapid deployment of large-scale digital infrastructure.
• Development of a sovereign cloud for public-sector services, reinforcing trust in local data storage.
• Positioning Portugal as a destination for AI-driven investment and large-scale compute facilities.

Data centres may fall within the scope of electronic communications law where they operate network elements and may qualify as essential or important entities under the strengthened cybersecurity framework, depending on scale and activity.

4. 2026 Outlook

The year 2026 will unfold against the proposed overhaul of the European electronic communications framework. In early 2026, the European Commission presented a proposal for a Digital Networks Act intended to replace the European Electronic Communications Code with a directly applicable Regulation. If adopted, this reform will shift the EU model from directive-based harmonisation to a more centralised regulatory structure.

In Portugal, 2026 is therefore expected to focus less on new legislation and more on enforcement and implementation of frameworks adopted in 2025.

• Cybersecurity. With the national NIS2-aligned regime, 2026 is expected to focus on supervisory activity and compliance verification. Essential and important entities will be required to demonstrate the effective implementation of risk-management systems, supply-chain controls, incident-response mechanisms and governance structures.
• Network infrastructure and submarine cables. Following the designation of certain submarine cable systems as strategic digital infrastructure, 2026 will focus on implementation, notably investment execution and enhanced security integration. International connectivity will remain sensitive amid growing geopolitical scrutiny. The key challenge will be balancing open access with reinforced security and resilience requirements.
• Data centres. The continued expansion of hyperscale and AI-oriented data-centre facilities is expected to remain one of the most structurally relevant developments in the Portuguese TMT landscape. Operators providing electronic communications services or managing signal transmission will remain subject to the electronic communications framework, while large-scale facilities may fall within the scope of enhanced cybersecurity supervision. Data-protection compliance will increasingly intersect with operational design, particularly in cloud-based and AI-supported environments.
• Data governance and digital intermediation. With the national implementation of the European data governance framework now operational, 2026 is likely to bring closer scrutiny of data intermediation services. Entities facilitating controlled data-sharing environments may face increasing attention regarding neutrality, organisational separation and transparency obligations.
• Artificial intelligence regulation. Although the AI Act primarily regulates developers and deployers of high-risk systems, 2026 is expected to reveal its indirect impact on infrastructure providers. Data-centre operators and cloud-service providers may face heightened contractual demands relating to availability, auditability, traceability and security. The interaction between AI compliance, cybersecurity governance and data-protection requirements is likely to increasingly influence contractual structures and operational standards, even where infrastructure operators are not directly regulated as AI system providers.

AI and consolidation. The media market primary challenge is integrating AI while maintaining trust and achieving the scale needed to compete with Big Tech. The MFE-Impresa connection signals a strategic consolidation aimed at ensuring the survival of local players through increased market presence. On the State’s initiatives, the success of the Media Action Plan will undoubtedly depend on fostering a diverse, financially independent ecosystem that can sustain Portugal’s democratic discourse.

1. Introduction

In 2025, Portugal's renewable energy sector experienced robust growth, driven by solar expansion and supportive policies. Renewable sources met 68% of electricity demand, with total production reaching a record 37 TWh. Electricity consumption hit an all-time high of 53.1 TWh, up 3.2% from 2024. Installed solar capacity surged to around 6.8 GW by year-end, reflecting significant increases in both utility-scale and decentralized systems. Self-consumption installations, primarily solar PV, saw notable additions, contributing to energy decentralization. Market players have expanded through new investments and projects, with foreign firms like Neoen assuming greater roles alongside domestic leaders, despite the Portuguese energy sector remaining anchored by strong domestic and Iberian players.

2025 saw the adoption of several legislative and regulatory measures in Portugal with impact on the renewables market. Among the most relevant was the abolition of the clawback mechanism. Introduced in 2013, the clawback consisted of a financial compensation charged to electricity producers, intended to offset perceived distortions in the Iberian electricity market resulting from differences between Portuguese and Spanish taxation, and which has been widely contested by market players. Its repeal, effective as from the 2025 financial year, puts an end to a long-standing charge on producers and represents an important step towards improved investment conditions in the Portuguese renewable market.

Alongside the end of this long-standing mechanism, national lawmakers and regulators adopted several measures of relevance to renewable energy projects, including the launch of new licensing and competitive procedures for biomass power plants, important clarifications on the environmental and licensing framework applicable to energy storage projects, the approval of a new legal and regulatory framework for electric mobility, as well as initiatives addressing grid capacity constraints, energy efficiency and the mitigation of energy poverty.

This report provides an overview of the Portuguese renewables market in 2025, highlighting the main transactions that took place in the year and those that are still unfolding, and reviews the legal and regulatory developments of 2025.

In the last chapter we give our outlook for 2026, analysing the main trends expected to define the market’s evolution, with particular emphasis on system flexibility, storage deployment, demand growth and grid integration challenges.

2. Market overview

2.1. Production growth

In 2025, renewable sources generated 37 TWh of electricity in mainland Portugal, supplying 68% of national electricity demand, the highest share ever recorded in the Portuguese power system.  This surpassed the 2024 record of 36.7 TWh, despite grid?security constraints following the 28 April blackout and related curtailments.

For the first nine months of 2025, renewables covered around 70% of demand, with hydropower at ~28%, wind at ~24%, and solar at ~13%, complemented by bioenergy and other small?scale sources.  In July 2025, renewables reached 71.4% of mainland generation, driven by strong wind and solar output.

Some other interesting facts occurred in 2025:

• While Portugal has historically been a "wind and water" country, 2025 was the year Solar PV (Photovoltaics) moved from a supporting role to a protagonist. For the first time, monthly solar generation surpassed wind. This is significant because wind power is often erratic, whereas solar provides a predictable "baseload" during daylight hours. Of course, this massive solar influx led to extremely low (and sometimes negative) energy prices during the day, which pressured the profitability of older power plants.
• A huge chunk of this growth came from UPACs (Self-Consumption Units). Portuguese households and industries installed record numbers of rooftop panels, reducing their dependence on the national grid and lowering prices during peak sun hours.

2.2. Increase in production capacity 

By end?2025, total installed capacity from renewable sources in Portugal was around 21.1 GW, up from roughly 19 GW at end?2023, implying a cumulative increase of about 2.1 GW over two years.  Solar PV capacity alone reached 6.17 GW by May 2025, with 499 MW added between December 2024 and May 2025, split between utility?scale (264 MW) and distributed (235 MW).

Solar generation grew strongly, with 10,759 GWh produced from January to September 2025, up from 8,544 GWh in the same period of 2024, representing a year?on?year increase of about 26%.  Wind and hydro also expanded, with wind output rising around 10% year?on?year in the third quarter and hydro up 23%, reinforcing the diversification of the renewable mix.

Renewable Electricity Production by Market Participantes (2025)

Rank	Producer	Main Source(s)	Estimated Production (TWh)
1	EDP Renováveis	Hydro, Wind, Solar	16.0 (Hydro: 12.5; Wind: 3.0; Solar: 0.5)
2	Iberdrola	Hydro, Wind	3.7 (Hydro: 1.8; Wind: 1.9)
3	Finerge	Wind	2.0
4	Ventient Energy	Wind	1.5
5	Industrial Self-Consumption (Aggregated)	Solar	1.5
6	TrustEnergy (ENGIE/Marubeni JV)	Wind	1.5
7	Galp	Solar	1.5
8	Residential Self-Consumption (Aggregated)	Solar	1.5
9	Neoen	Solar	0.5
10	Acciona	Wind	0.3

2.3. Market context: demand, imports, and prices 

Total electricity consumption reached 53.1 TWh in 2025, an increase of 3.2% year?on?year (or 2.3% in weather? and calendar?adjusted terms). This increase was mainly driven by higher demand from data centres and industrial consumers, alongside continued economic activity. Portugal remained a net importer of electricity, with net imports of 9.3 TWh. Although this represented an 11% decrease compared to 2024, imports still accounted for around 17% of total electricity demand.

Wholesale prices were volatile, with notable spikes (e.g., a 77.6% month?on?month price rise in February 2025), but the high renewables share helped contain overall system costs, with renewables estimated to have saved around €5 billion in wholesale?market expenditures in the first seven months of the year.

3. Main events

3.1. The new PNEC 2030 objectives

Portugal continued in 2025 to implement the National Energy and Climate Plan 2030 (PNEC 2030), which was updated and reinforced in 2025 to reflect higher ambitions in renewables, electrification, and sector coupling.  The plan now targets[1]:

• Renewable?based electricity from 20.8 GW of installed solar PV by 2030 (up from roughly 6.1–6.2 GW at mid?2025) and 10.4–12.4 GW of wind capacity, implying a substantial pipeline of onshore projects and early?stage offshore planning.
• Overall renewable share in final energy: The PNEC 2030 envisages renewables covering around 80% of electricity consumption and a significant increase in renewable share in heating/cooling and transport, supported by electrification and green hydrogen.

Several policy levers linked to PNEC  2030 have been implemented in 2025:

• Auction?driven deployment: While no large-scale solar or wind auctions were launched in 2025, the PNEC 2030 framework continued to rely on competitive procedures as a core deployment tool. In this context, specific tender mechanisms were advanced or prepared, including new competitive procedures for biomass power plants, the announced competitive process for battery energy storage systems focused on system services, and the preparatory work for the first offshore wind tender.
• Permitting and grid?access reform: The government continued to pursue reforms aimed at streamlining environmental and grid?connection procedures, including digitalisation of licensing and clearer timelines, to absorb the surge in solar and wind projects without further congestion.
• Sector coupling: The PNEC?aligned strategy promotes green hydrogen and advanced biofuels, notably around industrial hubs such as Sines, where Galp and other players are developing large?scale projects.

3.2. The April 2025 blackout 

The major blackout of 28 April 2025, which originated in Spain and propagated into Portugal, triggered a comprehensive grid?security and resilience package announced in late July 2025. This technical incident was a wake-up call for the Iberian electrical system and highlighted several structural vulnerabilities.

• System inertia: As the electricity system continues to shift away from conventional synchronous generation (coal and gas-fired plants) towards inverter-based renewable technologies such as solar PV and wind, overall system inertia has been progressively reduced. The April 2025 incident demonstrated that, under certain conditions, the grid has become more sensitive to sudden frequency disturbances;
• Reliance on thermal generation for system stability: In the aftermath of the blackout, the Portuguese transmission system operator (REN) was required to maintain gas-fired generation online more frequently than initially planned in order to ensure frequency control and operational security. As a result, despite record levels of installed renewable capacity, natural gas generation remained an important component of the electricity mix in 2025.

The core measures within this package are:

• Launch of a 750 MVA BESS auction to provide fast-response reserves and other system services, including frequency and voltage support during contingency events.
• €137 million allocated to modernise operational and control capacity of the transmission and distribution networks, including advanced SCADA/EMS systems and improved monitoring tools.
• Reinforcement of cross?border interconnections with Spain and the wider European grid, to reduce vulnerability to single?point failures and improve coordinated restoration.
• Doubling the number of black?start?capable plants from two to four, by adding Baixo Sabor and Alqueva to the existing Tapada do Outeiro and Castelo de Bode hydro plants.
• A €25 million grant programme for backup infrastructure (including BESS and diesel?gensets) at hospitals, water utilities, and energy?sector facilities, to ensure continuity of essential services.

The post-blackout response package has accelerated investment in energy storage and grid modernisation, positioning hybrid wind and solar projects combined with battery energy storage systems (BESS) as a central component of the current investment pipeline. At the same time, the 75% renewable charging requirement, together with relatively limited support levels, has exposed a degree of tension between security-of-supply objectives and the economics of purely merchant storage projects. This tension has, in turn, intensified calls from market participants for greater regulatory clarity and further evolution of market-design arrangements.

3.3. The 750MW BESS auction

In July 2025, the Portuguese government announced its intention to launch a competitive tender for up to 750 MVA of battery energy storage capacity, as part of a broader €400 million package aimed at strengthening grid resilience and system security. The tender is primarily designed to procure system services and flexibility resources, including fast-response reserves, frequency control and other ancillary services, with the objective of reducing reliance on gas-fired generation for balancing and contingency support.

The announced target is 750 MVA of BESS capacity, with installations expected to be connected at both transmission and distribution levels, depending on system needs. Unlike previous storage-support discussions, the envisaged mechanism is not primarily intended to promote the hybridisation of storage with renewable generation assets, but rather to secure standalone or functionally dedicated flexibility resources capable of supporting system operation.

Although the tender was expected to be launched before January 2026, the corresponding implementation proposal and tender documentation had not been published as of year-end 2025. Market expectations nevertheless remain that the competitive procedure will be launched during the first half of 2026.

While the mechanism is expected to improve the bankability of storage projects focused on system services, its overall support levels are anticipated to be more limited than comparable schemes in other European jurisdictions - such as Spain’s PERTE-storage programme. This has fuelled industry concerns regarding the revenue stack available to storage projects, particularly considering the 75% renewable-charging requirement, and has reinforced calls for greater clarity on long-term, market-based remuneration frameworks for flexibility resources.

3.4. The end of the Clawback Tax

Introduced in 2013, the clawback mechanism consisted of a financial charge imposed on electricity producers, originally intended to offset perceived distortions in the Iberian electricity market (MIBEL) arising from differences between Portuguese and Spanish taxation. Although conceived as a corrective tool in a crisis context, the mechanism proved complex, unpredictable and economically marginal, and was widely contested by market participants for generating regulatory uncertainty and discouraging investment.

Over time, the clawback increasingly revealed structural shortcomings. In particular, it introduced a bias in favour of electricity imports, penalising domestic generation and running counter to the objectives of energy autonomy, renewables deployment and electrification enshrined in the National Energy and Climate Plan 2030 (PNEC 2030). These effects became more pronounced as the Portuguese electricity system evolved towards higher renewable penetration and deeper Iberian market integration.

Against this background, Decree-Law No. 139-B/2025 formally repealed the clawback mechanism, with effect from the 2025 financial year. In accordance with the principle of legal certainty, the repeal does not affect settlements relating to 2024, which remain payable. The elimination of the clawback represents a meaningful step towards regulatory simplification and enhanced predictability in the Portuguese electricity sector.

From a market perspective, the repeal removes a long-standing cost component from the electricity production chain, with the potential to contribute, over time, to more stable and competitive electricity prices. More importantly, it improves the overall investment climate by reducing regulatory risk, thereby reinforcing Portugal’s attractiveness for renewable energy and flexibility investments.

The measure was welcomed by industry stakeholders, including the Portuguese Renewable Energy Association (APREN), as a decisive signal in favour of regulatory stability and cost efficiency. Analysts and specialised consultancies have likewise underscored its positive implications for market competitiveness and long-term investment, viewing it as a shift away from complex corrective mechanisms towards a more transparent and market-oriented regulatory framework.

4. Main regulatory developments

4.1. Overview

The main legislative developments in the Portuguese energy sector in 2025 included new licensing procedures for electricity storage facilities with pre-allocated grid injection capacity; benefits for electro-intensive consumers; new biomass production and electric mobility frameworks and the new OMIP bilateral contracts’ negotiation platform. You can find below more detailed information on these regulatory developments[2].

4.2. BESS access to the national grid

Access to grid remains today a challenge for BESS project developers in Portugal, as there is not yet a clean regulatory path to obtain it. Still, in 2025 we saw Ministerial Order No. 1859/2025 allowing the use for BESS of previously allocated injection capacity in the public electricity grid. It applies to:

• Technology changes in unbuilt solar power plants with an injection capacity reservation title (Título de Reserva de Capacidade – “TRC”); and
• Standalone or co-located storage with previously allocated injection capacity reservation in the public grid for a renewable energy power plant.

Under this framework, the TRC holder may request the conversion of an existing solar TRC into a storage TRC by submitting an application to the Portuguese energy authority (DGEG). The request is assessed by the relevant grid operator and by the system operator (REN), which issue opinions on charging power and operational constraints within defined timeframes. Once approved, the modified TRC is issued by the grid operator following DGEG authorisation.

Pre-allocated injection capacity reserved under a TRC for renewable generation may also be used to apply for production licences for autonomous or co-located storage facilities connected at the same grid connection point (in the National Transmission Grid) or circuit (in the National Distribution Grid).

In such cases, the TRC holder must submit an application to DGEG—together with the explicit authorisation of the storage project holder—accompanied by the documentation listed in Annex I to Decree-Law No. 15/2022. The application must also include a description of the intended operating conditions of the storage facility, notably maximum charging and injection power through the public grid, as well as a written coordination agreement between the storage and generation project holders governing operational coordination and energy injection.

DGEG assesses compliance and requests opinions from the relevant grid operator and from the system operator regarding maximum charging capacity and any applicable operational restrictions. Where the opinions are favourable, DGEG is required to issue the production licence within 30 days.

The storage facility may not be simultaneously coordinated with more than one autonomous storage installation. However, it may benefit from injection capacity reserved under multiple renewable generation projects, subject to compliance with applicable grid and operational constraints.

4.3. Electro-Intensive customers

The European Commission has finally approved in 2025 Portugal’s aid scheme for electro-intensive industries, completing the implementation of the Electro-Intensive Consumer Statute (“ECS”)[3]. This scheme includes:

• Partial reduction (up to 85%) in costs of general economic interest (“CGEI”) on grid-supplied electricity.
• Full CGEI exemption on self-consumed energy delivered through the public grid.
• Risk hedging mechanism (minimum 10%) for renewable-sourced electricity under long-term contracts.
• Waiver of proximity requirements between self-consumption units and facilities.

Beneficiaries must invest at least 50% of the aid in carbon intensity reduction projects and ensure that at least 30% of their electricity consumption comes from renewables (via contracts, self-consumption, or sustainability initiatives).

The benefits are applicable to sectors like ceramics, glass, metalworking, and textiles. To benefit from them, requirements include: (i) to have an annual electricity consumption exceeding 1 GWh; (ii) that at least 40% of the consumption occurs during off-peak periods; and (iii) that the electro-intensity is equal to or greater than1 kWh per euro of gross value added (three-year average).

4.3.1. The new standard agreements

In June 2025, DGEG approved draft standard adhesion agreements for the ECE, applicable to all adhesion requests filed from 2025 onwards.

Applications must be submitted to DGEG by 15 June of each year, together with the required supporting documentation. DGEG is required to issue its decision within 30 days of submission, and successful applicants receive a draft adhesion agreement for signature within five days.

Standard adhesion agreements are valid for four years and may be renewed for successive four-year periods upon submission of a renewal request. Conditional adhesion agreements—applicable to facilities with less than three years of operation—are valid for three years and require a subsequent application for conversion into a standard adhesion agreement.

In both cases, failure to submit a renewal or conversion request by 15 June of the final year of validity results in termination of the agreement.

4.3.2. Grid Access Tarifs

In 2025 Portugal’s Energy Services Regulator (“ERSE”), approved network access tariffs for facilities qualified as intensive electricity consumers (“ECE”). These new rules provide benefits for ECE facilities, including a 75% or 85% reduction in the General Economic Interest Costs of the network access tariffs, as well as a full exemption in the case of self-consumption, even if supplied via the public grid.

4.4. Biomass power plants

In October 2025, the Portuguese Ministry of Environment and Energy adopted Ministerial Order No. 358/2025/1, implementing Decree-Law No. 64/2017 and setting out the procedural framework for applying for production and operation licences for biomass power plants. The regime applies in particular to new forest biomass plants promoted by municipalities, intermunicipal entities or municipal associations

The Ministerial Order clarifies the documentation required at each licensing stage, namely:

• Production Licence: an  opinion from the Portuguese Institute for Nature Conservation and Forests (ICNF) confirming biomass sustainability and availability, copies of biomass supply contracts, the Single Environmental Title (TUA) and the design of the carbon capture project.
• For the operation Licence: The documentation listed in Article 33(3) of Decree-Law No. 15/2022.

Requests for an ICNF opinion must include, in particular, a 10-year biomass supply forecast, installed capacity, estimates of available forest and agricultural biomass, and measures to ensure sustainability, local coordination and traceability of biomass sources.

As regards the carbon capture requirement, the Ministerial Order allows for a waiver upon submission of a duly justified request to the DGEG, supported by an independent technical assessment demonstrating technical or economic infeasibility. The decision is issued by the Ministry and is valid for up to three years.

4.5. Electric Mobility

A revised legal framework for electric mobility was introduced by Decree-Law No. 93/2025, aligning Portuguese law with EU Regulation 2023/1804 (“AFIR”)[4]. The new regime represents a structural liberalisation of the electric mobility sector, replacing the previous centralised model with a market-based framework aimed at accelerating the deployment of charging infrastructure, enhancing competition and ensuring universal and non-discriminatory access to charging services.

Key changes compared to prior scheme include:

• Full liberalisation of charging infrastructure deployment and operation: The centralised network-management model is abolished, allowing charging point operators and mobility service providers to independently install, own and operate charging networks, while ensuring non-discriminatory access for all users.
• Elimination of the “electricity supplier for electric mobility” role: Operators may now procure electricity directly from the market, through bilateral contracts or self-consumption arrangements, and freely contract with other mobility service providers, aligning electric mobility with general electricity market principles.
• Mandatory ad hoc charging and smart charging functionalities: Public charging points must allow contract-free access via bank cards or QR codes. The framework also promotes smart and bidirectional charging, including vehicle-to-grid solutions, enabling electric vehicles to actively support the electricity system.
• Interoperability and cross-border integration: The regime facilitates interconnection with international charging networks, enabling seamless cross-border charging and payment solutions.
• Introduction of tradable “avoided CO?” certificates: Certificates linked to the use of renewable electricity in electric mobility are created to support decarbonisation objectives.
• Data governance and transparency: Operators are required to submit operational data to a neutral electric-mobility data aggregator, which forwards the information to the national access point managed by the Institute for Mobility and Transport (IMT).
• Streamlined licensing and digitalisation: Authorisation procedures are simplified, with reduced timelines, the introduction of prior notification and potential tacit approval mechanisms, and full digitalisation through the Single Digital Services Portal.

A transitional period applies until 31 December 2026, allowing market participants to progressively adapt from the former regulated model to the new liberalised framework.

4.6. OMIP PPA Platform

Power Purchase Agreements (“PPAs”) have become increasingly relevant as instruments for price stabilisation and for financing renewable energy projects. In Portugal, however, their use has historically been limited when compared to other European markets, mainly due to reduced transparency on prices and contractual conditions, lack of standardisation and legal uncertainty, particularly in contracts involving final consumers.

To address these shortcomings and promote the development of a PPA market, Decree-Law No. 99/2024 established the basis for bilateral energy registration and contracting. This framework was further developed by Ministerial Order No. 367/2024/1, which established a dedicated electronic platform managed by OMPI, S.A. (the “OMIP Platform”)[5] and by the Procedures Manual for the Activity of Registration and Bilateral Contracting of Electrical Energy, enacted by ERSE through Directive No. 11/2025.

Registration of PPAs on the OMIP Platform is mandatory for bilateral physical PPAs that cumulatively meet the following criteria:

• Involve physical delivery of electricity;
• Have a term exceeding one year, or a shorter duration combined with automatic renewal clauses;
• Have a minimum hourly nominal capacity of 1 MW and an annual volume of at least 1.5 GWh;
• Involve at least one counterparty domiciled in the Portuguese electricity system; and
• Are concluded between a producer (or its representative/aggregator) and a buyer (acting as supplier, aggregator or final consumer).

PPAs must be registered within five business days of execution through the submission of key information on the parties, the entity responsible for energy scheduling, the development status of the project and the main commercial terms.

While registration is mandatory, the use of the OMIP Platform for negotiation and execution of PPAs is voluntary. The platform may be used to publish and consult contractual terms, exchange information through a confidential messaging channel and negotiate PPAs, with access to model clauses and draft contracts that support contractual standardisation and promote more balanced and legally robust agreements, particularly for smaller or less experienced market participants.

The OMIP Platform represents a significant step towards increased transparency, standardisation and liquidity in the Portuguese PPA market. By combining mandatory registration with optional negotiation and contracting tools, it balances regulatory oversight with contractual freedom, while reducing legal uncertainty and facilitating the matching of supply and demand in long-term renewable energy contracting.

5. 2026 Outlook

After a record year for renewable output and a stress-test event for system security (the April 2025 blackout), 2026 is expected to be less about announcing new targets and more about integrating large volumes of variable renewables into a constrained grid. The key market theme is therefore flexibility, understood as the power system’s capability to absorb excess energy output, manage congestion, and maintain frequency and voltage stability, placing energy storage and other flexibility resources at the centre of system operation and regulatory focus.

This integration challenge will be compounded by continued growth in electricity consumption, particularly driven by large-scale data centres and other electrification trends, as well as by the expected preparation and possible launch of the first offshore wind tender.

• Storage and system flexibility will move to the centre of the electricity system. The rapid expansion of solar generation in recent years, combined with increasing grid congestion and reduced system inertia, has made flexibility a structural requirement of the Portuguese power system. While storage deployment to date has focused predominantly on co-located solutions, leveraging injection capacity previously allocated to renewable generation projects, the integration challenges exposed in 2025 have highlighted the need to enable standalone storage at scale. In this context, Portugal’s post-blackout resilience agenda has placed storage at the core of system operation, with the government announcing a competitive procedure for up to 750 MVA of battery energy storage, primarily aimed at the provision of system services—including fast-response reserves, frequency control and grid-stability support—and expected to be launched before January 2026. This mechanism reflects a policy focus on security of supply rather than on merchant storage or pure energy-arbitrage models. Looking ahead to 2026, the central issue for storage deployment will be the availability of effective and bankable grid-access pathways for standalone BESS, beyond co-located configurations. These pathways are expected to include (i) participation in capacity auctions dedicated to system services, (ii) the repurposing or shared use of previously allocated injection capacity (including the conversion of solar capacity reservation titles into storage or their use for autonomous storage at the same connection point), and (iii) the possible allocation of dedicated grid capacity for standalone storage projects where justified by system needs. In parallel, contractual grid-access arrangements with predefined operational restrictions are likely to remain relevant in constrained areas. Overall, 2026 is expected to shift the focus from recognising the importance of storage to enabling its practical deployment, with storage playing a decisive role in curtailment mitigation, frequency and voltage control, and the integration of both new renewable generation and large-scale consumption installations.
• Surging Demand - Data Centres. The continued expansion of data centres, particularly hyperscale and AI-driven facilities, is expected to remain one of the most significant developments affecting the Portuguese electricity system in 2026. In this context, the Start Campus project in Sines represents a structural shift in the national demand profile, introducing a gigawatt-scale data-centre campus model. Publicly available information and grid-access requests indicate that projects in the Sines area alone may require electricity capacity of up to approximately 1.2 GW at full build-out, with phased deployment already corresponding to several hundred megawatts of new demand in the short to medium term. This magnitude is material when compared with Portugal’s electricity system, where peak demand typically ranges between 9 GW and 10 GW and annual electricity consumption stood at around 53 TWh in 2025. As a result, large-scale data-centre developments are expected to have a direct impact on grid planning, reinforcement schedules and capacity-allocation decisions. In particular, they increasingly rely on the exceptional grid-access mechanisms applicable to High-Demand Zones, which were introduced to manage structurally congested areas where available grid capacity is insufficient to accommodate all consumption requests under the general access regime and have already been applied in locations such as Sines. At the contractual level, the scale, continuity and predictability of data-centre demand are expected to further stimulate the Portuguese PPA market, accelerating the use of long-term physical and financial PPAs, as well as hybrid supply structures and dedicated or co-located renewable generation combined with storage.
• Strengthening of the PPA market. PPAs are expected to assume a more prominent role in 2026 as tools for price stabilisation and for the financing of renewable generation and flexibility projects. Although historically underdeveloped in Portugal, the PPA market is now being reshaped by a combination of regulatory reform and structural growth in electricity demand. Since late 2025, the OMIP Platform has been in operation, providing a structured framework that facilitates PPA development and reduces transaction frictions. Looking ahead to 2026, PPA activity is expected to accelerate primarily in response to rising demand from large electricity consumers—most notably data centres—together with increased price volatility and persistent grid constraints. In this context, market participants are likely to make wider use of long-term physical and financial PPAs, as well as hybrid supply structures combining renewable generation with storage. The OMIP Platform is expected to support this expansion by improving transparency and contractual standardisation, thereby contributing to the gradual consolidation of a more liquid and bankable PPA market in Portugal.
• Electrification of Transport will continue to expand, increasing pressure on distribution networks. 2025 marked a tipping point for electric vehicles (EVs) in Portugal, as the deployment of charging infrastructure began to catch up with sales volumes, leading to a more widespread and intensive use of the electricity distribution grid. This trend is expected to continue in 2026, further increasing electricity demand at local and regional levels.
  Following the approval in 2025 of a revised legal and regulatory framework for electric mobility, which liberalised the installation and operation of charging infrastructure and replaced the previous centralised model with a market-based approach, 2026 is expected to focus on implementation and market adjustment. The steady increase in EV penetration, combined with the expansion of public and private charging networks, will require closer coordination between charging deployment and grid reinforcement, as well as the practical application of new rules of access, interoperability, data management and smart and bidirectional charging. While electric mobility does not generate demand volumes comparable to large data centres, it represents a structurally growing and geographically dispersed load that increasingly interacts with self-consumption, storage and local flexibility mechanisms.
• Offshore Wind will remain strategically relevant, though operation uncertainty remains. Offshore spatial allocation plan and the model for the first competitive procedure were approved in 2025, defining a centralised and sequential tender structure combining the allocation of maritime use rights (TUPEM) with subsequent grid-connection capacity and remuneration mechanisms. The framework covers the main offshore areas identified along the Atlantic coast—namely Viana do Castelo, Leixões, Figueira da Foz and Sines—and targets around 2 GW of installed capacity to be operational by 2030, within a longer-term ambition of up to 10 GW. Under the tender model approved in April 2025, the competent authorities were expected to prepare the detailed implementation proposal within 60 days and to complete the tender documentation within 180 days, i.e. by October 2025. These deadlines were not met, and uncertainty therefore remains regarding the timing of the first offshore wind tender, the sequencing of maritime zones and the allocation of grid-connection and onshore reinforcement costs.
• Renewable hydrogen will progress selectively, with limited short-term impact on the electricity system. Hydrogen and other renewable or low-carbon gases are expected to continue evolving in 2026, mainly in the context of industrial decarbonisation, sector coupling and targeted support mechanisms. Development efforts are likely to focus on securing offtake, implementing auction-based or contractual support schemes and addressing practical issues related to licensing, grid injection and environmental permitting. While hydrogen may provide an additional outlet for surplus renewable generation, particularly in industrial hubs, its contribution to addressing near-term electricity system constraints is expected to remain secondary when compared to storage solutions and demand-side flexibility.