Presidential Decree no. 41/2020, 27 February, which approves the Bilateral Investment Treaty entered into between the Governments of the Angolan and Portuguese Republics, has been published in Angola.
The Treaty establishes bilateral and reciprocal obligations to encourage and protect the investments carried out in their territories by domestic investors of the other State, including:
- The generic adoption of a principle of no less favourable treatment than the one afforded to other foreign investors and, in certain cases, to domestic investors. Other benefits awarded through international agreements with other States shall remain in full force, as well as the application to such investments of the relevant domestic tax laws and regulations;
- Compensation for losses derived from war (or other forms of armed conflict), state of national emergency, insurrection and other similar situations under International Law;
- The prohibition of nationalization, expropriation or similar measures to investments of nationals of the other State, except if grounded on public interest and immediately, adequately and effectively compensated; and
- Free transfer, after fulfilling all tax related obligations, of investment related funds, such as profits, capital gains, dividends, interest or other income related to an investment.
The Treaty will be in force for periods of 10 years, which are automatically renewed.
*In collaboration with CMS Rui Pena & Arnaut.