Foreign bank accounts, especially with digital banks, are more and more common. But can a Portuguese company use only an account opened abroad?
The Autoridade Tributária (AT), the Portuguese tax authority, has recently clarified its position on article 63-C of the Lei Geral Tributária (LGT), the general tax law.
What does the law say?
Companies subject to IRC — Portuguese corporate income tax — and IRS taxpayers — personal income tax — who keep organised accounts must hold at least one bank account used exclusively for their business.
The main business transactions must go through that account: payments, receipts, shareholder loans (suprimentos) and other movements between the partners and the company.
Is a foreign account enough?
According to the AT’s published position, the article 63-C obligation must be met with an account held:
- with a Portuguese bank; or
- with a foreign bank that operates in Portugal and is subject to Portuguese law.
An account held only with an institution located abroad is therefore not enough, in the AT’s view, to meet this obligation.
Can the company keep its foreign accounts?
Yes. Nothing prevents a company from holding or using foreign accounts. It simply has to make sure it has at least one account that meets the requirements of article 63-C of the LGT.