Tax Credits for charitable gifts for individuals are based on the “Estatuto de Mecenato” (Patronage Statutes), which divides contributions according to the nature of the charity.

The amount of the gift is enhanced for tax purposes by a stipulated percentage, then a tax credit of 25% is conceded on that amount. Like other credits in 2017, the upper ceiling of the tax credit is limited, in this case to €100. Donations above €200 should be made by cheque or bank transfer.

Charitable Gifts - (Estatuto do Mecenato . DL 74/99 de 16.03)

Type of Organisation Amount Tax Credit
• State
• Autonomous Regions social solidarity:
(Azores / Madeira) 140% 25% of donation
• Town Councils no upper limit)
• State Foundations educational, sports, scientific,
• other recognised Foundations cultural, environmental: 120%

• non-profit organisations¹
• cultural and sport centres 120% 25% of donation²
• recognised private charities¹
if charities support social solidarity:
•infancy; old age
• addiction; aids; cancer; diabetes 140% 25% of donation²
• social reinsertion; job opportunity

• cultural associations; cooperatives¹
• museums and libraries¹ 120% 25% of donation²
• environmental organisations¹
• sport associations¹

• religious institutions¹ 130% 25% of donation²

¹ organisations must be registered and recognised for any donations to qualify for tax credit.
² up to 15% of tax

Question: I give regularly to my church. Can I get tax relief?

euroFINESCO: Yes, but only if you can substantiate your gift with a proper receipt. In other words, if the donations that you put into the collection plate cannot be substantiated, they would not ordinarily qualify. On the other hand, if your church issues you a receipt, you can report 130% of that amount and receive a tax credit of 25% of that amount. It goes without saying that such a practice would be both in the best interest of the church as well as the donor. Nevertheless, don’t forget to take into account the new upper limits to tax credits.

Question: I give to charities in my home country. Can I claim these donations in Portugal?

euroFINESCO: No, tax credits are only for Portuguese-based entities. If you are giving to an international organisation, it must have an office in Portugal in order for the donation to qualify for a Portuguese tax credit.

Dennis Swing Greene is an International Tax Specialist and Chairman of euroFINESCO s.a.