What is changing in the sponsorship and donations regime in Portugal?
Sponsorship and donations constitute a mechanism through which companies and individuals can support entities, projects and initiatives of public interest while, under certain conditions, benefiting from tax incentives.
The changes introduced in 2026 aim to make the regime broader and more structured, while strengthening control, recognition and reporting mechanisms.
The main changes concern four areas: the broadening of the concept of a donation, the revision of limits and tax benefits, the creation of recognition titles, and the implementation of the National Sponsorship Platform.
1. Broadening the concept of a donation
One of the most significant changes concerns the definition of a donation.
For tax purposes, in addition to the transfer of goods, the following are now expressly recognised as donations in kind:
- the temporary and free-of-charge secondment of employees; and
- the free provision of services, provided that these services form part of the normal business activity of the sponsoring entity.
This change makes it possible to recognise for tax purposes forms of support that do not necessarily involve the traditional transfer of money or goods.
In the case of employee secondments, the value of the donation corresponds to the costs borne by the employer in respect of the employee’s remuneration during the period of the secondment, including mandatory Social Security contributions.
In the case of the free provision of services, the value to be considered corresponds to the normal value of the services, calculated in accordance with the rules laid down in the VAT Code.
This change may be particularly relevant for companies wishing to make their professional expertise, human resources or specialised services available to entities or projects eligible for the sponsorship and donations regime.
2. New limits and tax benefits
The new regime also revises the rules governing the tax deductibility of donations.
Within the scope of the sponsorship regime provided for in Article 62 of the EBF, certain donations are treated as expenses or losses of the financial year up to a limit of 1% of sales or services rendered.
In certain circumstances, donations may benefit from an enhanced tax deduction, being considered at 150% of their value, provided that the legally established requirements are met.
Specific rules have also been introduced for cultural sponsorship.
Under the new Article 62-B of the EBF, donations made to certain cultural entities may be treated as expenses or losses at 140% of their value, while other donations covered by the regime may benefit from the same enhancement up to the limit of 1% of sales or services rendered.
Where donations are made under multiannual agreements, with defined objectives for the beneficiary entities and predetermined amounts, the enhancement may reach 150%, while the 1% limit of sales or services rendered continues to apply.
3. An overall 1% limit
One of the changes requiring particular attention from companies is the introduction of an overall limit of 1% of sales or services rendered.
This limit applies to the combined amount of certain donations covered by the regimes provided for in Articles 62, 62-A and 62-B of the EBF.
Therefore, when determining the tax benefit, each sponsorship regime should not be considered in isolation. The donations covered by the overall rule laid down in Article 62 of the EBF must be considered together.
In practice, it is particularly important for companies to maintain adequate control over donations made during the financial year, identifying their respective tax treatment, beneficiary, nature and value.
4. New recognition titles for cultural sponsorship
The new regime creates two mechanisms aimed at strengthening the identification and qualification of beneficiaries of cultural sponsorship:
- Cultural Entity Status;
- Cultural Initiative Status.
Cultural Entity Status may be granted, among others, to entities responsible for cultural facilities, such as theatres, museums, libraries or archives, as well as certain cooperatives, institutes, foundations and associations involved in the protection of historical and cultural heritage.
Cultural Initiative Status, in turn, allows certain cultural projects or initiatives to be formally recognised and may cover public or private entities and, under certain circumstances, individuals.
Eligible initiatives cover a wide range of areas, including performing arts, film and audiovisual production, literature, festivals, visual and digital arts, cultural heritage, museums, archives, fashion, design and video game publishing, among others.
The granting of these titles is generally subject to recognition by the competent authorities and creates a more structured mechanism for identifying the initiatives and entities that may benefit from the cultural sponsorship regime.
5. Creation of the National Sponsorship Platform
Another major development is the creation of the National Sponsorship Platform.
The platform is intended to centralise procedures relating to the cultural sponsorship regime, allowing, among other functions, users to:
- submit applications;
- submit supporting documentation;
- monitor procedures;
- check the status of applications;
- register beneficiary entities;
- publicly consult eligible entities and initiatives;
- issue and verify Cultural Entity and Cultural Initiative Status;
- submit reports and financial information;
- notify changes relating to supported entities and initiatives.
Ministerial Order No. 437-A/2026/1 of 25 September regulates the operation of this platform, as well as the registration and recognition procedures and the reporting obligations applicable to beneficiary entities.
The platform is integrated into the gov.pt portal and provides for interoperability mechanisms with various public administration systems, including those of the Portuguese Tax and Customs Authority and Social Security.
6. Greater responsibility for beneficiary entities
The new regime does not merely strengthen tax benefits for sponsors. It also introduces new obligations for beneficiary entities and initiatives.
For certain cultural projects and initiatives, specific financial and documentary monitoring requirements apply.
For example, entities and individuals covered by certain forms of cultural sponsorship must have a bank account used exclusively for payments and receipts relating to the relevant project or initiative, as well as maintain simplified accounting records.
The amounts received must be properly allocated to the activities, projects or initiatives that justified the tax benefit. Where amounts remain unused under the conditions established by law, specific rules may apply regarding their allocation.
This aspect reinforces the importance of proper accounting and documentary organisation by beneficiary entities.
What should companies making donations do?
Companies using the tax sponsorship and donations regime should ensure that the support provided meets the requirements established in the EBF.
Among other matters, it is important to verify:
- whether the beneficiary entity or initiative is eligible;
- which sponsorship regime applies;
- whether the donation is monetary or in kind;
- how the value of the donation should be determined;
- which deductibility limits apply;
- which tax enhancement applies;
- whether the overall 1% limit is respected;
- whether appropriate supporting documentation is available;
- and whether the donation is correctly recorded in the accounts.
In the case of free-of-charge services or employee secondments, documentation and the calculation of the donation’s value become particularly important, as the tax benefit now extends to these forms of support.
What about entities receiving donations?
Beneficiary entities must also ensure that they meet the requirements necessary to benefit from the regime.
Within the scope of cultural sponsorship, the new system establishes eligibility, recognition, registration and reporting criteria. It is therefore essential to keep information up to date and maintain documentation demonstrating the proper use of the funds received.
The new National Sponsorship Platform is expected to play a central role in this process, contributing to greater transparency and traceability of the support provided.
An opportunity that requires greater tax rigour
The changes introduced in 2026 broaden the possibilities for certain forms of support to qualify under the tax sponsorship and donations regime, but they also reinforce the need for careful analysis before a donation is made.
For companies, the tax benefit does not depend solely on the intention to support a particular entity or initiative. It is necessary to verify in advance the applicable legal framework, the relevant limits and compliance with the documentation and evidence requirements.
For beneficiary entities, the new regime also represents an opportunity to strengthen their ability to attract private funding, but it requires greater administrative, accounting and documentary organisation.
Conclusion
The new tax regime for sponsorship and donations in Portugal represents a significant development of the rules applicable to cultural support and to other sponsorship regimes included in the Tax Benefits Code.
The broadening of the concept of a donation to include certain free-of-charge services and employee secondments, the revision of tax enhancements, the introduction of an overall limit, the new recognition titles and the implementation of the National Sponsorship Platform significantly change the way in which companies and beneficiary entities should assess and document this type of support.
Correct application of the new rules will be essential to ensure that tax benefits are properly obtained and that donations meet all legal and accounting requirements.
How can Nominaurea help?
Nominaurea supports companies and organisations in assessing and correctly applying the tax and accounting treatment of donations and support provided under the sponsorship regimes.
We can assist with assessing the tax treatment of donations, analysing the applicable limits and tax enhancements, accounting for the transactions and organising the documentation required to provide appropriate tax support.
For beneficiary entities, we can also provide support with the accounting and documentary organisation associated with projects funded through sponsorship and donations, helping to ensure compliance with their tax and accounting obligations.
In an increasingly structured and demanding regime, professional support can help companies and beneficiary entities reduce risks and make decisions with greater confidence.
Nominaurea is ready to help your company understand and apply the new rules governing the tax regime for sponsorship and donations in Portugal.
