What is the rate and scope of Portugal's newly approved windfall tax on the oil sector?

Portugal has approved a 33% temporary windfall tax—officially named the 'Temporary Solidarity Contribution for the Oil Sector'—targeting the portion of 2026 profits that exceeds by more than 20% the average profit earned by oil exploration and refining companies in 2024 and 2025. The tax is exceptional and applies only to the 2026 fiscal year, with tax liabilities to be calculated and paid by the end of September 2027.

How will the revenue from Portugal's oil windfall tax be used?

The revenue from the tax will be allocated to subsidize households and the most vulnerable businesses, while also supporting investments aimed at reducing dependence on fossil fuels and advancing the economy’s transition toward greater sustainability.

Portugal Approves 33% Windfall Tax on Oil Sector

Aug 4, 2026

Portugal has enacted a temporary 33% windfall tax on oil companies for 2026, targeting profits exceeding 20% above historical averages. The measure primarily impacts Galp Energia, with revenue allocated to subsidies and sustainable energy investments.

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Portugal Approves 33% Windfall Tax on Oil Sector

Portugal Approves 33% Windfall Tax on Oil Sector

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