Effective July 1st, Portugal has introduced a new tax directed at business aviation. If you are operating an aircraft with 19 seats or less, you’ll have to pay the hefty new tax – a G650 operating Lisbon-Newark will get a bill for around €2,000 (US$2,200).
It’s billed as a “Carbon Tax” – ostensibly to mirror the same regulation that has applied since 2021 to airline passengers. However, an airline operating the same route with 250 passengers will only pay €500, despite having a fuel burn three times higher.
As such, it’s better labeled as a Punishment Tax for business aviation.
If you are planning a tech stop in the Azores (LPLA/Lajes or LPAZ/Santa Maria, for example) – think again. The Azores is “Portuguese Territory” and so covered by the new tax, and the exemption for “technical reasons” doesn’t mean tech stops. So, if you divert in with a fire warning, no tax. If LPAZ or LPLA is your destination, however, you can add about $2,000 USD to your invoice. Its a new private jet tax.
WHEN IS THE TAX APPLICABLE?
Any flight leaving Portgual using an aircraft with 19 seats or less (aka all business jets)
Irrelevant if commerical or private ops – all must pay
WHEN IS THE TAX NOT APPLICABLE
Fully electric aircraft (If you see one flying, let us know)
PSO flights (A European thing where governments give you money to operate unpopular routes, so they would be charging themselves)
State flights (The government exempting themselves again)
Medevac, training, SAR flights, and diversions for unforeseen events
Thank you to The Ops Group for the candid article! https://ops.group/blog/portugal-punishment-tax/