Portuguese authorities carried out searches at two banks and several real estate companies as part of an investigation into suspected tax fraud worth more than €66 million, according to RTP.
The operation, named "Tax Free," is examining the suspected creation of property companies to secure exemptions from IMT, Portugal's municipal property transfer tax, in real estate transactions. RTP reports that the searches covered Banco Carregosa, Banco Angolano de Investimentos and real estate agencies.
Público reported that the Polícia Judiciária, Portugal's criminal investigation police, launched the searches over the alleged fraud, putting the losses to the state at €66 million. Diário de Notícias also named Banco Carregosa and Banco Angolano de Investimento as targets of the operation.
According to Jornal Económico, BAI Europa said it is cooperating with the Polícia Judiciária following the searches. Novum Canal reported that the police operation took place in Porto.
The case centres on whether companies were set up specifically to claim IMT relief on property deals they would not otherwise have qualified for. IMT is charged on the transfer of property in Portugal, and certain structures and transactions can be treated differently under the rules.
The investigation remains at the search stage, and no conclusions have been announced about the parties involved. Under Portuguese law, suspects are presumed innocent until proven otherwise.
What to watch next: whether the Polícia Judiciária announces arrests or formal charges, and how the banks respond publicly as the inquiry proceeds.
