Ana Bruno & Associados, Sociedade de Advogados, RL

On April 22nd, 2025, AIMA (Agency for Integration Migration and Asylum) announced through digital media that the rules for accepting applications for the granting and renewal of residence permits will become stricter. According to the statement, starting from April 28th, 2025, all the applications for the granting and renewal of residence permits will only be accepted by this Public Entity if they are completed. In other words, this means that if the applicant goes to AIMA without having all the documents required by Law 23/2007, July 14th, the application won’t be accepted at the time of the appointment. Therefore, AIMA recommends that the applicants have all the legally required documents with them when submitting their applications so that the process can be accepted in due course. Is this a suitable measure for the situation at AIMA? If, on the one hand, this measure aims to reduce the number of cases pending due to a lack of documents, since poorly instructed cases can result in the “clogging up” of the work carried out by this authority, on the other hand, it may prove to be illegal when confronted with the rules governing this type of procedure. In fact, let's look at the rules of the Code of Administrative Procedure (henceforth CPA) regarding the instruction of administrative procedures: the interested parties, applicants in administrative proceedings, have the right to attach documents to the file and opinions or request evidence useful for clarifying the facts that are relevant to the decision (see Article 116 (3)). Additionally, the person in charge of directing the procedure can order interested parties to provide information, procedure documents or things, submit to inspections and collaborate in other means of proof (see Article 117 (1)), and even collect such elements in advance, if subsequent collection may prove impossible or difficult (see Article 120). Interested parties have the right to be heard in the procedure before the final decision is taken, and must be informed, namely, of its probable direction, under the right to a prior hearing (see Article 121). Considering the combination of these rules with those that determine the time limits applicable to administrative procedures, applicants therefore have the right to be notified to submit documents, with a period of 10 working days to respond to the respective notification (see Article 86(1)). This body of law comes from a set of basic principles of administrative law, which have been positivized in the CPA itself, such as the principle of legality (Article 3), the principle of collaboration with private individuals (Article 11) and the principle of participation (Article 12). From an analysis of these precepts, it is not lawful to form an administrative act of refusal without the interested party being given the opportunity to know the intention of the administrative body (AIMA) and to be able to instruct their claim with the appropriate means of proof. In a similar vein, there is a violation of the constitutional rights on which the Portuguese rule of law is based. In fact, the right to identity, to the development of personality, to legal protection against any form of discrimination (as established in Article 26 of the Constitution of the Portuguese Republic - CRP), as well as the right to freedom and security (Article 27 of the CRP) are violated, since the applicants end up being afraid to move to other countries, whether for work or leisure, as they fear they will not be able to return to Portugal, the country in which they intend to establish their residence. Other rights that are also called into question are the right to a family (Article 36 of the CRP), the right to work (Article 58 of the CRP) and the right to education and culture (Article 73 of the CRP), since a refusal of service by AIMA on the grounds of a lack of documents means that applicants are unable to establish their residence in national territory and thus establish or be close to their family, have access to work and future employment contracts, and access to education. Thus, in what terms can this measure come into force? In view of the above, we believe that in order for this measure to come into force while protecting the above-mentioned guaranteed rights, the most balanced solution to this issue would be to reschedule the appointment for another date (even if not chosen by the person concerned), if the applicant presents themselves at AIMA without having all the documents necessary for their claim to be granted.  

On March 26, 2025, the Plenary Session of the Tax Litigation Division of the Supreme Administrative Court (STA) issued a ruling with decisive implications for the urban rehabilitation sector and for taxpayers who have applied the reduced 6% VAT rate to their construction contracts, under item 2.23 of List I of the VAT Code. The decision harmonizes case law in determining that the mere location of a project within an Urban Rehabilitation Area (ARU) is not sufficient to qualify for the reduced 6% VAT rate. According to the STA, it is also necessary for the construction contract to be part of an Urban Rehabilitation Operation (ORU), aligned with the strategic objectives defined for the ARU and compliant with the legal framework for urban rehabilitation (RJRU). The ruling clarifies three key points on the matter: Conditions for Applying the 6% VAT Rate The application of the reduced rate requires not only that the project be located within an ARU, but also that it is part of an ORU formally approved by the municipal assembly and with legal effect. Failure to meet this second requirement constitutes a breach of the tax legality principle. New Constructions Outside the Scope of Rehabilitation The newly harmonized case law excludes from the scope of item 2.23. the construction of new buildings on previously undeveloped land – even if within an ARU. The reduced VAT rate is therefore limited to the rehabilitation of pre-existing buildings. Probative Value of Municipal Certification The ruling dismisses the notion that a simple municipal certificate is sufficient to prove that a construction contract qualifies as an Urban Rehabilitation Operation. Formal approval of the ORU is required. This decision is binding on administrative courts and authorizes the Tax Authority to retroactively claim the difference between the 6% and the standard 23% VAT rates, within the four-year statute of limitations. As a result, construction companies may face large-scale tax adjustments on previously executed contracts. We believe this ruling may have a serious impact on real estate development and could trigger a wave of tax litigation.  

The regime that was approved after the revocation of the NHR, known as RIFICI or NHR 2.0, determines that taxpayers who hold qualified jobs and are members of corporate bodies in entities that carry out activities deemed as relevant to the national economy, duly recognized by AICEP, E. P. E., or by IAPMEI, I. P., may benefit from this regime. Notices no. 4812/2025/2 (IAPMEI) and no. 5309/2025/2 (AICEP) have been published in the Official Gazette stating the jobs and activities that will be eligible for the RIFICI. List of qualified jobs (codes from the Portuguese Classification of Professions): 112 – General director and executive manager of companies; 12 – Directors of administrative and commercial services; 13 – Production and specialized services directors; 14 – Hotel, restaurant, retail and other service managers; 21 – Specialists in physical, mathematical, engineering and related technical sciences; 221 – Doctors; 231 – University and higher education professors; 241 – Finance and accounting specialists (except, 2411); 25 - Information and communication technology (ICT) specialists; 2654 – Directors, producers and related directors, of cinema, theatre, television and radio; 31 – Technicians and professions in science and engineering, intermediate level. List of economic activities relevant to the national economy (Portuguese Classification of Economic Activities): a) Extractive industries - divisions 05 to 09; b) Manufacturing industries - divisions 10 to 33; c) Electricity, gas, steam, hot and cold water and cold air – division 35; d) Construction – division 42; e) Accommodation, food and similar – classes 5511 and 5512; f) Information and communication activities - divisions 58 to 63; g) Financial and insurance activities – classes 6420 and 6630; h) Consultancy, scientific, technical and similar activities – class 7010 and divisions 71 to 72; i) Administrative and support service activities - class 8211; j) Pedagogy – class 8542; k) Human health and social support activities – division 86 (except subclasses 86905 and 86906); l) Other economic activities carried out within the scope of investment projects recognized as being of Potential National Interest (PIN); m) Other economic activities carried out within the scope of projects recognized as Investment Projects for the Interior (PII). In general, we understand that the economic activities chosen, both for individuals and companies, apply both at the sector and profession level. This is a very positive note, as it will allow us to attract more talent and investment through RIFICI, thus filling the gap left by the elimination of the RNH regime. Prepared by Sónia Martins Reis (Partner).