In Portugal, individuals (IRS taxpayers) can claim tax relief on charitable donations through a tax credit under the Estatuto dos Benefícios Fiscais (EBF), primarily Article 63. This is a direct credit against your IRS tax liability (dedução à coleta), not a deduction from taxable income.

Main Rules for Individuals

  • Tax credit: Generally 25% of the donated amount.
  • Limit: For most entities, the credit is capped at 15% of your IRS tax liability (coleta).

Example: If you donate €1,000 to a qualifying charity, you get a €250 tax credit (reducing your tax bill by €250), so the net cost to you is €750 (assuming you have enough tax liability).

Eligible Recipients (Mecenato)

Only donations to recognised entities qualify. Main categories include:

  • Social (Mecenato social): IPSS (Instituições Particulares de Solidariedade Social), equivalent bodies, public utility entities focused on charity, assistance, beneficence, social solidarity, and social cooperatives.
  • Religious: Churches, religious institutions, and non-profit entities linked to religious confessions (these often get a 30% uplift, effectively treating the donation as 130% for calculation purposes in some contexts).
  • Cultural, scientific, educational, environmental, and sports: Museums, universities, research institutes, NGOs, schools, sports federations, etc., under specific public utility or recognised statutes.

The recipient must issue a proper receipt (recibo de donativo) with required details, including the legal framework (Estatuto do Mecenato), and report to tax authorities.

How to Claim

  • Keep receipts/proof of donation.
  • Declare in Anexo H, Quadro 6B of your Modelo 3 IRS tax return.
  • The tax authority (Autoridade Tributária) applies any uplifts automatically.

Donations over €200 in cash should preferably use traceable methods (e.g., bank transfer) for proof.

Other Ways to Support Causes

  • 0.5% Consignação do IRS — When filing your tax return, you can allocate 0.5% of your tax liability (not an extra cost) to a qualifying entity (social, cultural, etc.). This is separate from the deduction above and doesn’t reduce your refund or increase what you owe.

Corporate Donations (IRC)

Companies get more generous treatment:

  • Donations are deductible as expenses, often uplifted to 120–150% (commonly 130% for many social/cultural causes) with limits based on turnover or specific agreements.

Key Notes

  • Donations must be voluntary with no direct benefit to the donor.
  • Cross-border donations within the EU are possible but more complex and may require additional proof that the foreign entity qualifies equivalently.
  • Rules are stable as of 2026; always verify with the latest EBF or a tax advisor, as specific entities must be properly registered.

For the most accurate advice tailored to your situation, consult a contabilista certificado or check the Portal das Finanças, as eligibility depends on the exact recipient and proper documentation. This can be a tax-efficient way to support good causes.

Text generated by grok.com 4-05-2026