Decree-Law No. 167/2026 of 17 August has been published, approving the new Tax Regime for Cultural Patronage, broadening access to tax benefits associated with cultural donations and clarifying the eligibility criteria for beneficiary organisations, the limits on deductibility and the applicable procedures.
We highlight the following changes:
- Extension of the concept of a donation
In addition to the transfer of goods, the temporary secondment of employees and the provision of services free of charge that form part of the patron’s normal business activities now qualify as donations in kind. The value of the donation corresponds to (i) the cost recognised for tax purposes, in the case of goods, (ii) the remuneration costs incurred, in the case of seconded employees, and (iii) the market value, in the case of services.
Symbolic considerations received by the donor are permitted, provided they do not compromise the spirit of liberality. Institutional disclosure of the name or company name is permitted, but must not be of an advertising nature nor include references to brands, products or services.
- Deductibility limits and surcharges
In the context of cultural patronage, donations are considered as expenses or losses for the financial year in accordance with Articles 62, 62-A and 62-B of the EBF.
Donations provided for in Article 62 (paragraphs 3 to 8), Article 62-A (paragraphs 3 to 6) and Article 62-B (paragraphs 15 and 16) may not, in aggregate, exceed 1 per cent of the turnover or the value of services provided during the financial year.
Within this limit, the following multipliers apply: (i) 140 per cent, as a general rule; (ii) 130 per cent, for donations to private entities referred to in Article 62-A; and (iii) 150 per cent, for donations to entities referred to in Article 62 intended to fund the measures listed therein.
This increase makes cultural patronage more attractive to companies subject to corporation tax and to individuals with Category B income for personal income tax purposes, although the overall 1 per cent limit requires a more selective management of the donation portfolio.
- Recognition titles: cultural entity status and cultural initiative status
The Decree-Law establishes the cultural entity status, awarded to beneficiary organisations, and the cultural initiative status, awarded to specific projects or initiatives, subject to compliance with the respective eligibility criteria.
Eligible beneficiaries include, amongst others, cultural organisations, non-profit organisations, public sector entities and individuals who carry out initiatives or projects in areas such as the performing arts, film and audiovisual media, literature, festivals, visual and digital arts, cultural heritage, museums, fashion, design and video game publishing.
The award is, as a general rule, subject to a decision by the Government minister responsible for culture, following an opinion from the Office for Cultural Strategy, Planning and Evaluation (OCSPE), barring specific exceptions.
The cultural entity status is valid for five years; the cultural initiative status is valid for the period specified in the decision. Failure to meet the conditions for recognition, as well as any irregularities in tax or social security payments, will result in the titles lapsing.
- National Patronage Platform
An electronic platform is established for the management, processing and promotion of cultural patronage, under the responsibility of OCSPE, which will maintain a public list of registered organisations.
The functionalities, technical requirements and user categories will be defined by ministerial order. Until the platform becomes operational, applications must be addressed to OCSPE.
The new regime strengthens the tax incentive for cultural patronage and makes it more accessible, transparent and predictable. It is recommended that corporate patrons and cultural organisations review (i) their internal donation policies in light of the broader concept of donations in kind, (ii) the limits and surcharges applicable to each type of beneficiary, and (iii) the procedures for obtaining and maintaining certificates.
.
