Capital flows increased by more than €1 billion in one year
Transfers from customers with bank accounts in Portugal to financial institutions located in tax havens increased in 2024 to around €8 billion, according to data published on the Finance Portal. That’s an increase on 2023’s transfer of more than €1 billion.
The latest data from the AT Tax and Customs Authority shows that €8.0786 billion left bank accounts in Portugal last year, as opposed to €6.9255 billion in 2023
Banks must report to the AT every year how much each customer transfers to financial centres with a privileged tax regime whenever the amount sent exceeds €12,500 a year.
AT then compiles these amounts from the banks’ reports to combat fraud and tax evasion.
Last year, 17,289 customers with bank accounts at financial institutions in Portugal made 131,000 transfers. On average, each payer sent €467,300 to a financial centre with a privileged tax regime.
The amount of transfers made throughout 2024 is actually higher than in any of the previous four years, adds Lusa.
“In 2021, the amount transferred was €6.699 billion; in 2022, it increased to €7.410 billion; in 2023, it fell to €6.925 billion; and now it has grown again to € 8.079 billion. Both the number of clients and the number of transactions were the highest since 2021”.
Switzerland, Hong Kong and the United Arab Emirates remain the three jurisdictions that attract the most capital flows.
Switzerland is the primary destination, accounting for 40% of total transfers, exceeding €3.25 billion.
Hong Kong received more than €1.59 billion.
The United Arab Emirates received €762.2 million.
Macau ranked fourth with €356.3 million, followed by Singapore with €353 million and Liechtenstein with €174.8 million.
The main reasons for the transfers are payments to suppliers (€1.478 billion), writes Lusa, as well as other types of payments (€988.3 million), transfers related to cash management (€840.8 million), trade flows (€589.9 million), payments also relating to commercial settlements (€546.4 million) and payments between companies in the same economic group (€134.2 million).
In the case of accounts based in Switzerland, the reasons given by customers when ordering transfers include payments to suppliers, cash management transfers, and other payments.
Of the €8 billion sent to various territories, the largest share is taken up by companies and other collective entities. Legal persons (8,003 entities) ordered more than €7.1 billion in flows, while individuals (9,286) transferred €906.2 million.
Officially, the list of territories that Portugal considers tax havens is called ‘the list of countries, territories and regions with privileged, clearly more favourable tax regimes, comprising more than 80 jurisdictions that have financial centres where IRS or IRC taxation is especially low or nil, and that are considered non-cooperative countries for tax purposes’.
Source material: LUSA
