Payment Terms Legislation In Portugal

Decree-Law 62 of 2013 on measures against delays in the payment of commercial transactions enacts the EU Late Payment Directive (see European Union for details).

Law 118/2010 defines maximum payment terms for the supply of food in portugal. This was amended by Law 76/2021 to enact the EU UTP in the supply chain directive (see European Union for details). In addition non-perishable goods between suppliers of turnover less than €2m and buyers of turnover more than €2m, as well as suppliers of turnover between €2m and €10m to buyers of turnover greater than €10m, are also restricted to 30 days. This excludes catering and drinks companies.

The Code of Good Business Practice for the Agri-Food Supply Chain by The Portuguese Association of Distribution Companies promotes cooperation and transparency.

The Prompt Payment Commitment is a national code where large company leaders commit to pay suppliers on the agreed date and reduce late payments.

See European Union for the Directive on Unfair Trading Practices in the Food Supply Chain which was adpoted on 30 April 2019.

Default interest on late payment for commercial transactions is set by the General Directorate of Treasury and Finance and published semi-annually. For commercial transactions the rate of interest cannot be lower than the European Central Bank refinancing rate plus 8%.