EDP Faces โขโฌ335 Million Tax Bill Following Dam Sale
Lisbon, Portugal – November 6, 2025 โ – Energias โdeโฃ Portugal (EDP) has been ordered too pay โฌ335 โขmillion in taxes related to theโค 2022 sale of its hydroelectric dams toโข the consortium formed by the โsovereign wealthโฃ fund of Abu Dhabi and Engie, a French energy company.The ruling, delivered by Portuguese โฃtax authorities, โขcenters on the capital gains realized from the transaction.
The substantial โtax assessment impacts EDP’s financial outlook and underscores the government’s scrutinyโค of major corporate transactions. The dispute revolves around the valuation of the assets sold and the applicable tax โrate on the profits generated.this decision follows a prolonged examination into the โฌ2.5โ billion dam sale, which โคinvolved a complex financial structure. EDP โmaintains it fulfilled all tax โobligationsโฃ and โขis prepared to โcontest the ruling,possibly leading to a legal battle.
The sale, completed in December 2022, โtransferred control of EDP’s hydroelectricโ assets – including dams on the Douro, Tรขmega, โฃand โTejo riversโ – toโข the new ownership.At theโฃ time, EDP stated the proceeds would be reinvestedโ in renewable energy projects and debt reduction. The Portuguese โคgovernment, however,โ initiated anโฃ auditโ shortly after the deal closed,โค questioning whether the โappropriate โฃtaxes had been paid onโข theโข capital gains.
Antรณnio Mexia, โEDP’s โCEO, has previously defended the transaction, assertingโ its strategic alignment with the โcompany’s focus on โขgreen energy. The tax authority’sโข assessment alleges underreporting of taxableโค income derived from the dam โsale. The outcome of any appeal could โset a precedent for future โlarge-scale asset disposals by Portugueseโ companies.