Sweepstakes, Contests, and Giveaway Laws in Portugal

Prize promotions in Portugal: laws and legal requirements

Portuguese legislation governing prize promotions is particularly strict and requires several legal formalities, especially when a promotion includes an element of chance.

Companies planning to run a prize promotion in Portugal should carefully prepare all the required documentation and allow sufficient time for the approval process.

Prize draws in Portugal: required documentation

To organize a chance-based prize promotion in Portugal, promoters must submit extensive documentation to the competent authorities at least 15 days before the planned start of the promotion.

The required documentation generally includes:

• A bank guarantee or insurance bond covering the total value of the prize pool. This guarantee can only be requested by the promoter.
• Payment of an administrative tax, the amount of which may vary depending on the number of promotional mechanics described in the official rules.

Official authorization is mandatory

A prize promotion in Portugal cannot begin without official authorization from the Secretaria-Geral do Ministério da Administração Interna.

The authorization may be issued very close to the planned launch date. Furthermore, the Portuguese authorities may request additional documents or amendments at the end of the review period. If this happens, a new 15-day review period may begin, potentially delaying the campaign.

For this reason, companies are strongly advised to start the authorization process well in advance.

Skill competitions

Special attention should be paid when organizing skill competitions in Portugal.

A competition that appears to be skill-based must not include any element of chance. Otherwise, the authorities may classify it as a prize draw, requiring compliance with all legal obligations applicable to chance-based promotions, including prior authorization and financial guarantees.

Permitted prizes and taxation

Portugal places few restrictions on the types of prizes that may be awarded. Unlike many other jurisdictions, cash prizes are permitted.

However, prizes awarded in chance-based promotions are subject to taxation. The applicable tax treatment depends on whether the prize is awarded in cash or in kind.

👉 Did you know? Like Italy, Portugal requires organizers of prize promotions to provide a bank guarantee or insurance bond covering the total value of the prizes offered before the promotion can be authorized.

To promote their products and services in Portugal, companies can take advantage of our full assistance in relation to:

• Prize Promotions
• Gift with Purchase Promotions
• Trade incentives
• Loyalty programs

Our end-to-end services for managing prize competitions in Portugal include:

• A preliminary feasibility study
• Consultancy on the promotional mechanics in compliance with the specific regulations of the country
• Dealing with the paperwork in compliance with the regulations
• Checking the communication material according to the provisions of the law
• Tax consultancy concerning the prize events
• Consultancy on Privacy

As well as:

• Assistance at the draws with a notary on the spot
• Mail box to receive the postcards in case of traditional contests.