LUSA 11/06/2025

Lusa - Business News - Portugal: Mayors pleased wth decision to collect taxes on dam transaction

Miranda do Douro, Portugal, Nov. 5, 2025 (Lusa) - The mayors of the municipalities affected by the sale of the six dams in Trás-os-Montes by EDP to Engie on Wednesday welcomed the decision by the Public Prosecutor's Office to order the collection of €335.2 million in "unpaid taxes" for this transaction.

At a press conference today in Miranda do Douro, in the Bragança district, which brought together the mayors of Miranda do Douro, Mogadouro, Torre de Moncorvo, Alfândega da Fé and Carrazeda de Ansiães, the mood was one of "victory".

"This fight has now had its first victory," according to a joint statement from the mayors present, to which Lusa had access.

The Public Prosecutor's Office (MP) dismissed suspicions of tax fraud in the sale of six EDP dams to Engie, but concluded that the state is owed €335.2 million in "missing taxes".

Speaking to journalists, the president of the Baixo Sabor Municipal Association, Eduardo Tavares, and also spokesman for the five mayors present, said that this stance on the MP's decision is "an expression of rejoicing, and satisfaction, that justice has been done in a process that took five years".

"As it was a sale, and as we all pay taxes, we believe that EDP should also pay them. It was a process that took five years, but we are very satisfied, because we haven't given up, because this money comes to the territory," he said.

As for the dismissal of the suspicions of tax fraud, Eduardo Tavares said that this process was never "a settling of scores" against anyone or any company, but only to defend the interests of the region.

"What we're pleased about is the MP's decision to demand payment of the taxes owed on the sale of the six dams in Trás-os-Montes," said the mayor of Alfândega da Fé.

Eduardo Tavares added that the next step is to ask the Tax Authority (AT) to collect these taxes within a year.

"This is a decision by the Public Prosecutor's Office that can be appealed and, for this reason, we appeal to EDP's social responsibility so that, once and for all, it doesn't use taxpayers' and electricity consumers' money to litigate these lawsuits," he emphasised.

Initially, the municipalities affected by the dams claimed €400 millionin tax payments, but they say that the €335.2 million indicated by the Public Prosecutor's Office is "a victory".

At issue are the payment of Stamp Duty (€120 million), IMT (Municipal Transaction Tax) (€99 million) and income tax (€114 million), which add up to a debt of €335.2 million, plus interest on arrears.

António Preto, the lawyer for the 10 municipalities affected by the sale of the six dams, said that '"€335.2 million belongs to Portuguese taxpayers, of which €221 million belongs to the people of Terra de Miranda, Baixo Sabor and Foz Tua".

"With this decision, it was possible to bring a great colossus like EDP to its knees," he emphasised.

The lawyer recalled that former Environment Minister Matos Fernandes, accompanied by former Secretary of State for Tax Affairs Mendonça Mendes, went to Miranda do Douro to say that no taxes would be levied on the sale of the six dams.

'Now, let Matos Fernandes tell us if he doesn't have a guilty conscience with this decision to tax the Portuguese to the tune of €335.2 million,' he emphasised.

At issue is the sale of the Miranda, Bemposta and Picote dams and the Foz Tua, Baixo Sabor and Feiticeiro dams, which the Portuguese electricity company sold for €2.2 billion to a French Movhera consortium, made up of Engie (40%), Crédit Agricole Assurances (35%) and Mirova - Natixis Group (25%).

The Central Department of Investigation and Criminal Action (DCIAP) concluded that the operation was not criminal and dismissed suspicions of tax fraud.

However, the Public Prosecutor's Office believes there are unpaid taxes and, according to the last part of the order to which Lusa had access, it orders the AT to "proceed with the collection of the unpaid taxes".

FYP/ADB // ADB.

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