Space law in Portugal is a fairly undeveloped field of law, which combines (i) key international legal instruments drafted in the past century, (ii) a (still recent) national space law implementing the international commitments of the Portuguese state while striving to address key topics of the space sector without stifling its potential for growth, and (iii) a myriad of non-legally binding sources arising from the country’s membership of international and regional organisations setting key norms regarding the manner in which space activities are to be carried out.

Until recently, the advancement of space law to address the current make-up of the space sector (a private sector riddled by issues regarding space debris, utilisation of space resources and overall responsible behaviour in orbit) seemed condemned to occur only through soft law, ie, non-legally binding instruments with quasi-legal effects (eg, codes of conduct, guidelines and standards).

However, the weaponisation of space and increasing fragility of space regulation (eg, activities in orbit and use of resources) witnessed in recent years has brought an awareness of the need for stronger regulations for space, which, at least at regional level, will be behind key legal changes.

As an example, for EU member states, the EU Space Act (formerly designated the EU Space Law) on safety, resilience and sustainability of space activities is tabled as a key initiative in the European Commission work programme for Q2 2025.

While a draft Act has not yet been published at the time of writing, the European Commission’s work programme envisages the EU Space Act as a mandatory common framework for EU member states, regulating the conduct of European space operators, and also addressing space debris and the environmental impact of space activities. Of course, under that specific framework, it is expected that Portugal will be required to review and adapt its internal rules and regulations on space activities.

Also, the intersection of space activities with key technologies and key concerns driving significant legal and regulatory progress at EU level (eg, artificial intelligence, quantum technologies, critical infrastructures, digital services, overall resilience, security and data governance and access) has a spillover effect on space law that will trigger necessary advances in space law and regulations for EU member states, including Portugal.

The Government continues to be the key driving force for a dynamic space sector in Portugal, not only as a member of the European Space Agency (ESA) and the EU Space Programme, but also through having a significant stake in space-related projects in the context of Portugal’s Recovery and Resilience Plan.

Indeed, one of the key space-related projects thereunder will be to develop new capabilities, services and products, and new businesses in the country, all making use of space tech, fostering and strengthening a strategic downstream space sector in the country. PoSat 2, the first of a 12-strong constellation of communications satellites to be launched in that context, was launched on January 2025.

Also, through Portugal Space, the Portuguese space agency (the “Space Agency”), the Portuguese state continues to support research and development (R&D) in the space sector and foster the integration of Portuguese industries into the global space economy. An example is the signature in May 2025 of a memorandum of understanding between the Space Agency, the National Innovation Agency and Axiom Space, establishing a framework for co-operation in connection with opportunities available in low Earth orbit.

And while the country has had in place a space strategy since 2018 (Space 2030), the Space Agency will be conducting in 2025 a large assessment of the Portuguese space economy, with a view to identifying key areas of intervention in order to reinforce the competitiveness and sustainability of the sector.

The focus of Portugal on fostering a space sector in the country is becoming fruitful. Preliminary assessments by the Space Agency found that between 2019 and 2023 there was a 43% increase in the number of companies operating in the space sector in Portugal, with operational revenues of the sector also increasing by 65% between 2019 and 2023.

Also, the licensing of one launch centre on Santa Maria Island in the Azores to be operated by the Atlantic Spaceport Consortium is currently under way, with a view to starting operations in 2026.

Thus, while legal work has been more focused on and driven by public stakeholders, there is the expectation that the development of new business models, products and services (notably in the downstream sector) will foster developments in legal work and contractual processes with respect to the space sector in Portugal.

The Portuguese space industry is composed mostly of small and medium-sized companies geared towards aerospace engineering (systems, materials, etc), understandably given the sector’s historical genesis as an R&D sector, fostered mostly by Portugal’s membership of ESA.

Nowadays, with the surge of NewSpace, the Portuguese space industry (or ecosystem) has seen significant growth, taking on board the development of new services and products using space data, services and/or systems, but also upstream activities.

The country’s investment in the sector has heavily contributed to these developments, notably through:

• the creation of a national legal framework for space activities in 2019, with the setting up of a Space Authority (currently, ANACOM, the communications regulator) tasked with licensing and supervising space activities, and the setting up of a Space Agency (Portugal Space) tasked with fostering the development of the Portuguese space sector. The Space Authority’s role in licensing of space activities is gaining pace, with four licences for launch and command and control operations being issued in 2024;
• the expansion of the country’s role within ESA’s projects (eg, the implementation of satellite tracking stations in the country and the expectation that the country will be the landing site for Space Rider’s maiden flight);
• the country’s commitment to investment in the development of its own space assets (among others, the development, production and launch by a private consortium helmed by Portuguese companies of Earth observation (EO) satellite constellations under the country’s Recovery and Resilience Plan, including notably the Atlantic Constellation and the EO data platform Digital Planet); and
• the acquisition by GeoSat in 2021 of two EO satellites, becoming one of the biggest EO satellite operators in Europe and the first Portuguese company to own EO satellites.

It is further expected that developments at the EU level (or fostered through the EU’s policies and programmes), in connection with its overall strategy for the space sector, will also contribute to the overall expansion of Portugal’s space industry.

A more detailed view of the country’s space industry (and overall ecosystem) is available in the country’s space catalogue, published by the Space Agency.

The Portuguese space legal system, which is based on civil law, comprises both national and international sources of law and regulations.

International sources of law and regulations applying to the Portuguese space legal system include, notably:

• the United Nations Space Treaties, which are the main international legal instruments applicable to space activities. Portugal has ratified or has acceded to the Outer Space Treaty, the Liability Convention, the Rescue and Return Agreement and the Registration Convention, but not the Moon Agreement;
• international “soft law”, consisting notably of UN resolutions pertaining to the exploration and use of outer space, as well as other resolutions and codes of conduct and guidelines. These instruments, though non-legally binding, have quasi-legal effects;
• the International Telecommunication Union (ITU) Constitution, Convention and Radio Regulations, which address topics relating to spectrum and orbital slots, all matters relevant for the space sector; and
• the EU Space Programme Regulation (Regulation (EU) 2021/696) and the Union Secure Connectivity Programme Regulation (Regulation (EU) 2023/588).

The principles and rules of international space law have been reflected in national law, which comprises three main legal frameworks:

• the national Space Act, Decree-Law 16/2019 of 22 January, as amended by Decree-Law 20/2024 of 2 February and rectified by Rectification Declaration 19/2024/1 of 22 March;
• the Space Regulation, Regulation 697/2019 of 5 September, as amended by Regulation 1206-A/2024 of 21 October and rectified by Rectification Declaration 1025/2024/2 of 28 November; and
• the Insurance Order, Order 279/2023 of 11 September.

The Space Act contains provisions for the launching and return, and the command and control, of space objects. The Space Act aims, among other purposes, to respond to the provisions of the Outer Space Treaty under which activities of non-governmental entities in outer space require authorisation and continuing supervision by the appropriate State Party to the Treaty, and that State Parties are internationally liable for damage caused by a space object (a point further developed in the Liability Convention). The national framework already contains provisions that aim to facilitate recent trends in space, including small satellites and constellations of satellites. Recent amendments integrated into the law the licensing of the operation of launch centres.

The Space Regulation contains detailed provisions for obtaining a licence and pre-qualification for space operations. Currently, the Space Regulation also includes detailed provisions for obtaining a licence for the operation of launch centres.

The Insurance Order establishes the conditions for civil liability insurance and the limits for the right of redress of the state in case of damage caused by a space operation pursued by a licensee.

The Autonomous Region of the Azores also approved a space legal framework: Regional Legislative Decree 9/2019/A, as amended by Regional Legislative Decree 24/2021/A (Azores Regional Space Act) and Regional Implementing Decree 6/2020/A (Azores Space Regulation). However, this regional framework seems to no longer apply in light of Decree-Law 20/2024 of 2 February (which amended the national Space Act).

At the national level, spectrum topics are covered in national law in the Electronic Communications Law (Law 16/2022 of 16 August) and the framework on radioelectric licensing (Decree-Law 151-A/2000 of 20 July). The national frequency allocation plan also contains information relating to spectrum allocation.

In addition to the legal framework specifically dedicated to space activities, the Portuguese space legal system must consider other rules applying to the space sector, including those regarding cybersecurity, sustainability, data access and sharing, personal data, cloud computing and platforms, contracts, consumer protection, intellectual property, artificial intelligence, imports and exports, among others.

Finally, the envisaged EU Space Act (a draft of which has not yet been made available at the time of writing) is expected to impact the national legal framework.

The Portuguese state acts as a facilitator, participant and regulator of space activities through the following main entities:

• Portugal Space, the Space Agency, was set up in 2019. It is a private, non-profit association comprising only members from the public sector. The Space Agency is responsible for executing the Portuguese Space Policy (Portugal Space 2030) and for developing the national space sector. The Space Agency also serves as an ESA hub. As a result of the 2024 amendment to the national Space Act, the Space Agency now has a significant intervention in the process for issuing space licences: in relation to space operations (launch and/or return, and command and control), the Space Agency shall issue a prior opinion relating to their licensing and shall further, in certain circumstances, be notified of the performance of licensed space operations. In relation to launch centres, the Space Agency is responsible for directing the process of prior approval, by the Government, of licences for the operation of launch centres, and for issuing its opinion in this scope.

• ANACOM (the communications regulator) is, temporarily, under the Space Act, the entity competent for issuing licences and supervising space activities.
• The Ministry of Defence is the body responsible for managing the national Space Surveillance and Tracking (SST) programme and is the designated national entity in the EU SST system.

At ministerial level, and without prejudice to defence and SST matters, the competent Secretary of State for space is the Secretary of State for Science and Innovation, whose office is, at the time of writing, within the Ministry of Education, Science and Innovation.

Space operations are subject to authorisation and may further benefit from pre-qualification. They are also subject to supervision. Registration of space objects shall further be carried out.

Authorisation

Space operations performed within the national territory, as well as space operations performed abroad by Portuguese operators or operators established in Portugal, are subject to licence issued by the Space Authority.

Space operations consist of the following:

• launch and/or return operations – the activity whereby space objects are intended to be sent or launched into space (below, to or beyond orbit), and the return of space objects in orbit to the Earth’s surface. The launch and/or return operator performs the launch and/or return operations; and
• command and control operations – the activity of exercising control over a space object in outer space, whether temporarily or in transit. Where the space object cannot be controlled or guided, the command and control operation will be deemed to be the hiring of the launch or the exploitation of the space object, as notified to the Space Authority. The command and control operator performs the command and/or control operations of space objects.

There are three types of licences:

• an individual licence, applicable to a single space operation;
• a blanket licence, applicable to a series of space operations of the same type or to a series of space operations of different types, performed by the same operator; and
• a joint licence, applicable to space operations of the same type or different types, performed by more than one operator, in which the licence is granted to only one of the operators involved in the operations at stake. The joint licence can further be “integrated” (where the licence covers one launch and/or return operation of the launcher and one or more launches of space objects from that launcher, and can further cover the command and control of such objects) and “multiple” (where the licence covers a series of launch and/or return operations of one or more launchers and one or more launches of space objects from those launchers, and can further cover the command and control of such objects).

The variety of types of licences aims to grant flexibility to space operators, allowing them to choose how best to license their space operations.

Licences are subject to the procedure defined by the Space Authority in the Space Regulation, and the decision to grant a licence or not shall be issued within 90 days. Upon issuance of a licence, the relevant space activity may be commenced within five years as from the date of such issuance.

A special licensing framework, which may involve shorter deadlines or streamlined procedures, may be established by the Space Authority, notably when:

• the applicant is a public entity or an international organisation acting under international agreements concluded with the Portuguese Republic;
• the intended space operation is performed exclusively for scientific, R&D, educational or training purposes, or consists in experimental activities with demonstrable low risk for the Earth’s surface, airspace and outer space, including for public health and safety of people and assets; or
• the space operation is performed outside national territory by Portuguese operators or operators established in Portugal.

In practice, the Space Regulation simply indicates that the applicant may request to the Space Authority the application of a simplified procedure (which may involve the waiver of the delivery of certain information or documentation deemed not reasonable to request or irrelevant) and the Authority will decide on the request within ten days, notifying the applicant of the reduced timelines or simplified procedures that will apply.

The national Space Act also addresses circumstances wherein a licence for space operations has been obtained in another country.

Pre-Qualification

The Space Act created a specific approach under which space operators may apply for pre-qualification issued by the Space Authority, aimed at verifying:

• that the launch and/or return operator and the command and control operator have the technical, economic and financial capacity for the space activities they intend to perform;
• regarding the launch and/or return operator and the command and control operator, the features and specifications of the respective space object; and
• regarding the command and control operator, the systems and processes implemented for command and control.

Pre-qualification streamlines the process for obtaining a licence, given that it waives the submission of the information set out in the pre-qualification certificate in the licensing procedure. In accordance with the Space Regulation, the pre-qualification certificate shall be issued or refused within 60 days (which can be extended for an additional 60 days in cases of high complexity).

Supervision

Supervision of space activities is carried out by the Space Authority, without prejudice to the inspection powers of other competent entities.

Operators are subject to obligations relating to the Space Authority’s supervision and inspection powers, including the following:

• allowing and facilitating free access to the facilities and their annexes, as well as to their devices and instruments;
• providing all information and assistance required for the performance of the supervision and inspection; and
• maintaining in their facilities in Portugal a duly organised and updated file containing all relevant documents and records relating to the space activities they perform and to the licensing and pre-qualification procedures.

The Space Act also contains a set of provisions for incident and accident reporting, which include the obligation of operators to notify incidents that occurred in their premises or within the scope of their space activity, as well as any manoeuvre, malfunction or anomaly of the space object, or other circumstances arising from or in connection with the space activity that may result in an incident or serious accident.

Infringements of the Space Act are administrative offences that may lead to the application of penalties of between EUR250 and EUR44,891.81, depending on whether the operator is a natural or a corporate person and on the gravity of the offence. There are also ancillary penalties, consisting of the prohibition upon performing space activities for a certain period of time and the suspension of licences.

Registration

The Space Act establishes that space objects for which Portugal is the launching state are subject to registration with the Space Authority, in accordance with Portugal’s international commitments. The elements to be registered broadly correspond to those specified in the Registration Convention.

In addition, the Space Act provides that the following must be registered with the Space Authority:

• space objects whose launch, return or command and control are licensed in Portugal;
• the transfer of ownership of any space objects whose launch, return or command and control is licensed under the Space Act;
• the end of the useful life of a space object whose operation and control is licensed in Portugal; and
• any incident or serious accident suffered by a space object.

The Space Regulation provides further details on registration, whereby information for registration shall be submitted in two days from launching or from the occurrences indicated above.

The national framework applicable to spectrum is established in the Electronic Communications Law and the framework on radioelectric licensing. In addition, the national frequency allocation plan contains information relating to spectrum allocation.

Despite the above, Portugal does not have a specific procedure for receiving requests and assisting in the ITU process for assignment of radio frequencies and orbital slots. According to the latest information, a specific framework for the assignment of the pre-allocated orbital slots under ITU Regulations 30, 30A and 30B (under which Portugal has two pre-allotted orbital slots: −37.00 and −10.60) is being developed.

In any case, ANACOM, the communications regulator – which is the entity competent for radio frequencies and orbital slots – has a set of competences to manage and co-ordinate frequency allocations to avoid interferences, at both national and European levels. Notably, ANACOM is responsible for creating a specific regulatory framework for use of spectrum (including protection against harmful interference) and for co-operating with other EU member states with a view to co-ordinating the use of harmonised radio spectrum for electronic communications networks and services. As the use of radio frequencies for electronic communication networks and services depends on the attribution of a right of way, ANACOM is entitled to revoke such right of way (or to impose changes) in case of non-compliance with the applicable obligations, which include the obligation to adopt the technical and operational conditions necessary for the non-production of harmful interference and the protection of public health against electromagnetic fields.

Following changes in 2024, both the national Space Act and the Space Regulation now include a specific framework for the operation of launch centres, comprising authorisation, pre-qualification and supervision.

Authorisation

The operation of launch centres in Portugal is subject to licensing from the Space Authority.

Entities interested in operating a launch centre in Portugal must submit a detailed application to the Space Authority, including, among other things, information concerning (i) designated launch and return corridors and dispersion areas, (ii) the types of space vehicles to be launched or returned, the expected frequency of launches and whether multiple vehicles can be handled simultaneously, (iii) launch pads, control centres, storage for hazardous materials and support systems, and (iv) how the centre will interface with clients and communicate launch schedules to relevant authorities.

The Space Authority will then assess, among other things, the technical feasibility and financial viability of the launch centre, as well as the safety and security of its operations. Indeed, there is a strong emphasis on safety and security of people, property and the environment, with applicants being required to identify all potential risks associated with launch operations, including those relating to hazardous materials, explosions and accidents, and provide comprehensive risk assessments, including the likelihood and impact of incidents.

Issuance of a licence by the Space Authority is subject to prior approval from the members of the Government responsible for the areas of defence, the sea (when the launch centre is deployed in the national maritime space), and science and technology. The aim is to ensure that national security and interests are respected and that the international commitments of the country are not breached. When the launch centre is to be installed in the Autonomous Region of Madeira or of the Azores, that region shall be heard and issue a binding opinion also.

Issuance of the licence is also conditional on the applicant obtaining all other licences that may be required for the installation and operation of the launch centre, with the Space Authority acting as a one-stop shop in that regard if requested by the applicant.

The Space Authority must decide on whether to issue the licence within 240 days. Licences have a maximum initial term of 15 years, with possibility of renewal for successive terms of a maximum 15 years each.

Upon the granting of the licence, its holder, with regard to the Santa Maria Flight Information Region or the Lisbon Flight Information Region, must initiate, with ANAC (the Portuguese civil aviation authority), the process for requesting an analysis of the airspace volume to be allocated to the activities to be carried out in the launch centre.

Transfer of the licence is subject to the consent of the Space Authority, which has 120 days to decide on such a request, with prior approval being required from the Government or the Space Agency (if powers are delegated to it by the Government).

Pre-Qualification

The launch site operator may pre-qualify that it has the technical, economic and financial capacity for the activity it intends to perform. This pre-qualification aims to streamline the process for obtaining a licence for space operations.

Supervision

Operators are subject to obligations relating to the Space Authority’s supervision and inspection powers. For further details, see 2.4 Role of the State in the Licensing Process for Space Activities.

A list of the entities that hold a licence for operation of a launch centre under this framework must be made available online by the Space Authority. Currently, there is no operator licensed to that effect; however, the licensing of a launch centre on Santa Maria Island in the Azores to be operated as an open launch centre by a private entity is currently under way.

In addition to the UN Space Treaties (not including the Moon Agreement), Portugal is also a signatory to the Treaty Banning Nuclear Weapon Tests in the Atmosphere, in Outer Space and under Water; the Convention Relating to the Distribution of Programme-Carrying Signals Transmitted by Satellite; and the Tampere Convention on the Provision of Telecommunication Resources for Disaster Mitigation and Relief Operations.

In that context, Portugal is involved in several forums concerning outer space.

Notably, Portugal is a member of the UN Committee on the Peaceful Uses of Outer Space (UNCOPUOS), where is has been quite active. For instance, in May 2025, the UN–Portugal Outer Space Fellowship was launched, an international capacity-building programme to support developing countries in formulating and implementing space strategies, between Portugal, UNOOSA and UNITAR.

The principles and rules of the UN Space Treaties, especially when it comes to responsibility and liability, are reflected in national law. Other important principles and rules of international space law, including those on sustainability (such as the ones arising from the UN Guidelines for the Long-Term Sustainability of Outer Space), are also reflected in national law – the 2024 amendments to the Space Act and the Space Regulation expressly mention that the legal framework aims, among other objectives, to ensure that space activities are sustainable in accordance with applicable international principles, whilst debris minimisation is a condition of licence issuance (for more details, see 5.3 Orbital Debris).

Portuguese rules on insurance of, and liability for damages arising from, space activities follow the country’s commitments as a party to the Outer Space Treaty and the Liability Convention, and account for key international concerns on the safety of space operations.

In respect of liability for damages, liability of space activities’ operators is on a fault basis, except for damage caused on the Earth’s surface or to aircraft in flight by a space object, in which case strict liability applies. If the Portuguese Republic is held liable, pursuant to its international commitments, for any damage caused by a space object, the state has a right of recourse against the operator that is responsible for that space object, capped at the amounts defined by the Insurance Order. The cap corresponds to the total amount of the insured capital applicable to the licensed space operation that caused the damage. The cap will not apply in certain cases, including in the event of liability for damage due to wilful misconduct or gross negligence, or if the operator fails to comply with its licensing obligations. The liability regime of the national Space Act is, of course, without prejudice to other liability regimes that are provided for under Portuguese general law (eg, in connection with environmental matters or the use of hazardous materials).

Space activities licensed under the Space Act must be insured. In particular, civil liability insurance covering both fault-based and no-fault-based liability (as described above) arising from the space activities being carried out is a condition for the issuance (and non-revocation) of the relevant licence, and failure to obtain such insurance carries a fine that can exceed EUR44,891.81.

• Minimum insured capital: Currently, the minimum insured capital is determined based on the mass of the space object, with different thresholds corresponding to different amounts of insured capital. The insured capital can also be calculated based on the maximum probable damage (as calculated by the Space Authority), if lower than the minimum insured capital required in accordance with those thresholds. If the relevant space activities are licensed under a blanket licence, the minimum insured capital shall correspond to the sum of 70% of the minimum insured capital required for each of the activities benefiting from such licence. However, if the relevant space activities are licensed under a joint licence, no such reduction applies. Note that the Insurance Order has not, at the time of writing, been revised in light of the 2024 amendment to the Space Act, which introduced a licensing regime for launch centres. Thus, although the Space Act mentions that licensed operators shall be insured (seemingly also including launch centre operators), the Insurance Order only seems to contain conditions for space operations.
• Policy exclusions and deductibles: The insurance policy exclusions are indicated in the Insurance Order. Among others, these include claims for criminal, administrative or disciplinary liability and claims that may expose the insurer to sanctions or restrictions. Damages caused to specific individuals or groups related to the policy holder may also be excluded. In any case, the policy may provide for a deductible of up to 10% of the insured capital, which the insurer can claim solely from the policy holder.
• Time barring of policy: The insurance policy must cover claims for compensation submitted up to two years after its termination, provided that they are not covered by another valid subsequent insurance contract.

The requirement to be insured may be waived entirely (or the minimum insurance requirements reduced) by the Space Authority for:

• the launch, return, command and control operations of small space objects;
• space operations carried out solely for scientific, R&D or educational and training purposes;
• space operations that carry small risks only; or
• space activities in respect of which the operator has delivered another form of financial collateral that is accepted by the Space Authority.

High-altitude flights are not addressed in Portuguese space law. However, the amendments made to the national Space Act in 2024 clarified, within the definition of launch and/or return operations, that a space object can be sent or launched below, to or beyond orbit – this points to the Space Act applying to activities below orbit, but still in outer space. The Space Act, however, does not indicate where it considers that outer space begins, though it is expected that the Space Authority will follow the general approach of the Karman line, under which approach outer space is considered to begin 100 km above sea level.

Regulation of high-altitude flights that do not reach outer space has been discussed by the Space Authority and the Space Agency. The development of a legal framework in this respect was announced by the Minister of Science and Technology in September 2023, yet, at the time of writing, no dedicated law exists on this topic.

We note that, at the EU level, it is the European Union Aviation Safety Agency (EASA) that has been mostly addressing higher airspace operations (HAO). EASA published the HAO Roadmap in 2023 and, at the time of writing, is looking at how to address HAO from a legal point of view, including which HAO are to be subject to air law (or space law, or both) and be under the competence of the EU. The European Parliament also proposed a preparatory action for a regulatory framework for HAO (PA 02 24 03), to be led by the Directorate-General for Mobility and Transport. However, these actions seem to be especially focused on how to address HAO under the EU competence for air transport.

The general rules on space activities established in the national Space Act, the Space Regulation and the Insurance Order apply to all space operations and to launch centres (with the particularities seen in 2.8 Insurance and State Measures on Liability for Damages relating to insurance), regardless of the purpose of the space operation or the features of the launch centre.

An important point in this respect relates to the conditions for issuing a licence, which include, among others, compliance with public safety rules and debris minimisation. These concerns correspond broadly to what the envisaged EU Space Act will address, ie, safety and sustainability. However, resilience, including cyber resilience, a point to be addressed in the EU Space Act, is not expressly mentioned in the Portuguese legal framework for space. Yet, it is important to recall that the NIS2 Directive (Directive (EU) 2022/2555 of 14 December) and the CER Directive (Directive (EU) 2022/2557 of 14 December) apply for the first time to the space sector, ie, to operators of ground-based infrastructure, owned, managed and operated by EU member states or by private parties, that support the provision of space-based services.

Portugal does not have specific legal frameworks for Earth observation, suborbital flights, space mining or space tourism. Though the national Space Act can be interpreted to include suborbital flights of space objects, a dedicated set of rules would be welcome to bring more clarity to the requirements and obligations that apply to these types of flights.

The Portuguese space legal framework establishes a set of conditions for issuing a licence that aim to ensure non-interference with other space activities.

For space operations, the space operation must be compatible with applicable public safety rules, including those relating to public health and the safety of persons and assets. What is more, other authorisations necessary for the space operation must have been issued by the corresponding competent entities (eg, for use of airspace). The Space Regulation sets out a set of items that must be specified by an applicant for a licence. For the launch, these include, among others, the expected date and place of launch; the planned nominal flight, including the point of the flight at which the carried space object is no longer under the control of the licensee; the various flight stages and associated manoeuvres; the air corridors to be used; and information about the re-entry of stages. For the command and control of the space object in space, the information to be provided by the applicant includes, among other things, orbital parameters including nodal period, inclination, apogee and perigee (whether for parking, transfer or final orbit purposes) or trajectory; and the types of command and control operations foreseeable over the operational life of the space object.

For the operation of launch centres, the location intended for the launch centre, its installation, as well as its infrastructure and operation, must ensure the safety of the launch and/or return operations and be compatible with applicable public safety rules, including those relating to public health and the safety of persons and assets. Indeed, when applying to obtain a licence for operation of a launch centre, applicants are required to put in place detailed safety management structures and implement ongoing co-ordination with national authorities, including aviation and emergency services, to ensure safe and secure operations. When assessing the application, the Space Authority will also consider information concerning designated launch and return corridors and dispersion areas, the types of space vehicles to be launched or returned, the expected frequency of launches and whether multiple vehicles can be handled simultaneously, and how the centre will interface with clients and communicate launch schedules to relevant authorities.

The above provisions are without prejudice to non-interference rules arising from the communications framework (see 2.5 Role of the State in Co-Ordinating the Use of Radio Frequencies and Audio Slots).

Licensed space operators are subject to a set of obligations under the national space framework:

• Launch/return and command and control operators are under the obligation to (i) comply with and abide by international principles for the use of space, notably pursuant to the space treaties binding on the Portuguese Republic, including in relation to peaceful use, safety and minimisation of space debris; (ii) register the space objects they launch or control, identifying the respective owners; (iii) take out and maintain mandatory civil liability insurance; (iv) duly foresee and safeguard against any damage to Earth or to space, directly or indirectly, in accordance with the applicable national and international obligations; and, lastly, (v) comply with all legal and regulatory provisions in force, as well as with the conditions set out in the relevant licence. They shall further, notably, report in a timely manner the occurrence of incidents and accidents, as well as keep a record of all occurrences of their activity, and submit a report to the Space Authority upon completion of each licensed space operation with the description of space activities carried out, mentioning any failures, warnings or risks identified.
• In turn, the operator of a launch centre must abide by all legal provisions in force, as well as the conditions established in the licence. Among other requirements, operators of launch centres are required to: (i) put in place detailed safety management structures; (ii) comply with relevant safety, quality and environmental standards and certifications; (iii) implement ongoing co-ordination with national authorities to ensure safe and secure operations; and (iv) put in place procedures concerning accident and incident prevention, mitigation and recovery (including investigation and reporting of accidents and incidents), site security (including access control and surveillance, but also protection measures against natural phenomena and human disasters), the security of critical systems (those the disruption of which would harm safety and security, including cybersecurity), and protection of staff, visitors and the surrounding environment (including periodic monitoring of environmental risks, specifically relating to air quality, biological and coastal resources, noise, vibration, visual impact and effluent treatment).

An important point in this respect relates to compliance with ESG objectives by the space sector. The rules applicable in this regard in Portugal derive from EU law on ESG, with no dedicated rules or guidelines for the space sector. However, it should be noted that several activities comprised within the space operations life-cycle may be eligible under the EU Taxonomy framework (such as, for instance, data processing, hosting and related activities, the provision of IT/OT data-driven solutions, the manufacture of electric and electronic equipment, and the provision of services such as preparation for reuse of end-of-life products, including spacecraft and related machinery, where spacecraft includes, in accordance with NACE Rev. 2, launch vehicles, satellites, planetary probes, orbital stations and shuttles). This therefore determines the application of several reporting obligations under the aforementioned framework.

There is no dedicated national space data/Earth observation legal framework addressing the collection, protection and dissemination of space data. However, the cross-sector provisions on data sharing arising from the EU framework (notably, the Open Data Directive – Directive (EU) 2019/1024 of 20 June; the High-Value Datasets Regulation – Commission Implementing Regulation (EU) 2023/138 of 21 December; the Data Governance Act – Regulation (EU) 2022/868 of 30 May; the Data Act – Regulation (EU) 2023/2854 of 13 December; the Regulation on the free flow of non-personal data – Regulation (EU) 2018/1807 of 14 November; and the INSPIRE Directive – Directive 2007/2/EC of 14 March) all apply to sharing of space data, including data held by public entities, held by private entities, and made available notably through data intermediation services and data altruism services. Rules on data processing services have been established as well.

The above framework contains relevant provisions for the space sector, including:

• it addresses dynamic data and high-value datasets, which notably include satellite data (Open Data Directive);
• it addresses B2B data sharing, prohibiting certain contractual terms relating to access and use of data, liability and remedies for breach, and termination of data-related obligations (Data Act);

• it addresses data sharing obligations with certain public entities in case of exceptional need (Data Act), which may potentially include satellite data;
• it addresses the availability of data through data intermediation service providers (including obligations when it comes to interoperability) and data altruism organisations. Data made available by such entities may also comprise satellite data, which does, however, raise the issue of the extent of the application of the rules to satellite data protected by copyright (as the legal obligations do not apply to data intermediation services that focus on the intermediation of copyright-protected content) (Data Governance Act);

• it addresses data processing services (such as Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS)), which may also benefit the space sector (Data Act). In this scope, with a view to facilitating data portability and interoperability (either in switching or in in-parallel use of data processing services), most providers must make available open interfaces and ensure compatibility with common specifications or harmonised standards for interoperability of data processing services published in the EU;
• it addresses transfers of data to a third country (Data Governance Act and Data Act); and
• it establishes that the processing of data can be made in any EU country; ie, unless justified on grounds of public security, national law cannot impose the processing of data in the territory of a specific member state (Regulation on the free flow of non-personal data).

Likewise, protection of space data follows general intellectual property rules: specifically, to the extent the requirements for copyright protection are met, then space data (most notably, analysed data and, to some extent, processed data) would be protected. The exclusive use of artificial intelligence for data processing impacts such conclusion to the extent that there is no human intervention.

The legal provisions applicable to Data Spaces arise from EU law, and the EU approach to Data Spaces is addressed in EU policy (including when it comes to principles and requirements, notably on technical data infrastructure, governance, data control, openness and legal compliance), namely in the 2020 European Strategy for Data, the 2022 Commission Staff Working Document on Common European Data Spaces and the 2024 Commission Staff Working Document on Common European Data Spaces. The Data Act further notably addresses the interoperability of Data Spaces.

A set of sectoral Data Spaces – common European Data Spaces – have been proposed and established. At the time of writing, dedicated space Data Spaces have not been listed in the above-mentioned EU documents; however, this is an ongoing process, with the possibility for additional common European Data Spaces in new sectors or domains to be created in the future. What is more, space data can clearly contribute to many of the current Data Spaces, such as those on the Green Deal.

In Portugal, at the time of writing, a Data Space for space is being developed as a pilot under the New Space Portugal Agenda, with a view to encouraging data sharing and access. The exact design and governance structure of the Data Space is being analysed under a feasibility study with a view to assessing how to ensure its development and seamless integration in other Data Space initiatives being taken, including by ESA.

The Space Regulation requires certain information to be submitted as a condition for obtaining a licence, which is relevant for security purposes: in relation to the launcher, the applicant shall submit information on the control systems relating to the hardware and software of the launcher and information on the mission control systems and processes, as well as submitting a safety plan for the launch and/or return which shall include the description of the cybersecurity strategy of networks and systems used in the launch and/or operation. In relation to the satellite, the applicant shall submit information on the control of the satellite in outer space, as well as submitting a safety plan of command and control which shall include the cybersecurity strategy of the network and systems used in the command and control operation, including definition of levels of access to the command and control system.

In relation to launch centres, the applicant shall also identify potential risks and submit a description of procedures and measures including in relation to the protection of critical systems whose interruption would seriously impact cybersecurity.

It is important to recall, in addition, that cybersecurity obligations arising from the NIS2 Directive and the CER Directive apply to the space sector – to operators of ground-based infrastructure, owned, managed and operated by EU member states or by private parties, that support the provision of space-based services. At the time of writing, the NIS2 Directive has not yet been transposed into national law.

The envisaged EU Space Act is also expected to address resilience in the space sector.

The sustainability of space activities is one of the central topics of the Portuguese space legal framework.

In this scope, the national Space Act establishes, as a condition for obtaining a licence for space operations and as obligations of the licensee, that (i) the space operation shall duly safeguard against damage to the Earth’s surface, airspace and outer space and (ii) the space operation shall ensure the use of the minimal amount of space. The licence can specify additional conditions, including on environmental matters. Those requirements are also reflected in the conditions for a licence for the operation of a launch centre, which, in addition, expressly indicate that the location intended for the launch centre, its installation, its infrastructures and its operations shall ensure environmental protection and waste management.

Further requirements concerning minimisation of space debris are set out in the Space Regulation (see 5.3 Orbital Debris).

Apart from the provisions for environmental protection set out in specific space legislation, it should be highlighted that the implementation of projects for the development of space activities may also be subject to specific licensing procedures and provisions under the general environmental legal regimes. Other environmental legal provisions may be applicable, notably those concerning air emissions, water quality, chemicals and hazardous substances, and soil contamination.

A last brief note to refer to the recent Critical Raw Materials Regulation (Regulation (EU) 2024/1252 of 11 April): Among other aspects, the Regulation requires EU member states to identify the large companies operating on their territory that manufacture strategic technologies using strategic raw materials. These companies are subject to a set of obligations, including the requirement to carry out a risk assessment of their supply chain of strategic raw materials. Rocket launchers and satellites are expressly mentioned therein. The Act also makes express reference to the role of critical raw materials in the space sector. In addition, the Regulation contains provisions relating to the declaration of the environmental footprint of critical raw materials and provisions for the recognition, by the European Commission, of certification schemes related to the sustainability of critical raw materials (though there is no requirement for the stakeholders to resort only to certified critical raw materials).

Portugal does not currently have specific legislation or government initiatives focused on the extraction or use of critical space minerals, such as helium-3 or other resources found on celestial bodies. The Space Act does not address space mining or the exploitation of extraterrestrial resources. However, Portugal is actively involved in international discussions on the governance of space resources, particularly through its participation in ESA and UNCOPUOS.

Portugal has been committed to achieving the UN Sustainable Development Goals since their adoption in 2015, as well as responding to the EU climate ambitions including as arising from the European Climate Law (Regulation (EU) 2021/1119 of 30 June) and the EU Strategy on Adaptation to Climate Change. It is worth noting that these instruments acknowledge the role of space data in achieving their goals. In this scope, the Portuguese Framework Law on Climate (Law 98/2021 of 31 December, as amended), as well as the National Strategy for Adaptation to Climate Change, the National Action Programme for Climate Change Adaptation and the Strategic Framework for Climate Policy, highlight the importance of accurate information and monitoring systems, an area where space data and services can play a central role. Likewise, space data and services can make an important contribution to achieving the objectives of the national Roadmap for Carbon Neutrality.

Several initiatives cross-cutting several sectors have further been put in place to support sustainable development and climate action. Though none of the initiatives currently in place is specifically tailored for space activities, the space sector may assume a significant role, notably in supporting entities implementing projects in environmental fields. For instance, Earth observation data plays a notable role in supporting sustainable forest management, including monitoring land use changes and managing forest health, thereby ensuring compliance with environmental regulations and certifications to maintain sustainable practices.

Additionally, from a public standpoint, space services and, specifically, Earth observation are at the cornerstone of the development of the activities of several Portuguese governmental authorities for the protection of the environment, the combating of climate change and the promotion of sustainable development. Concretely, space data is used by entities such as the Portuguese Ministry of Environment and Energy, the Portuguese Environment Agency (APA) and the Institute for the Conservation of Nature and Forests (ICNF) in the performance of their duties, such as on climate monitoring and action, biodiversity conservation and management of rural fires.

While there is no standalone, comprehensive national law or plan targeting or addressing orbital debris, the issue is incorporated into and addressed within the broader Space Act and Space Regulation. Indeed, the sustainability of space activities (including debris mitigation) was a key objective behind the 2024 amendments to the Space Act and the Space Regulation.

In particular, when licensing space activities, the Space Authority is required to assess the safety of those activities, notably by confirming that the envisaged activities adequately safeguard against potential damage to the Earth’s surface, airspace and the outer space (for space operations) and the safety of the launch and/or return operations (for launch centres) and ensure that space debris is minimised.

To that effect, in accordance with the Space Regulation, the applicant shall submit a plan with elements evidencing that the space operation under consideration guarantees the mitigation of space debris to the greatest possible extent. The space debris mitigation plan may refer to international best practices and principles, especially those provided for in the ISO 24113:2011 standard (Space systems – Space debris mitigation requirements), in the “IADC Space Debris Mitigation Guidelines” and in the “Space Debris Mitigation Guidelines of the Committee on the Peaceful Uses of Outer Space”. In addition, a safety plan must be submitted which, among other aspects, shows that the space operation is compatible with applicable environmental rules. The Space Regulation further details the information that the safety plan shall contain, including, among other things, (i) for the launch and/or return, the identification of the geographic area and risks for the environment resulting from elements of the space object falling on the Earth’s surface and atmosphere and from the debris of products of atmospheric and extra-atmospheric combustion; (ii) for the command and control operation, the risks deriving from orbital space debris caused by the space object, intentional destruction of the space object in orbit, including in case of re-entry into the atmosphere, deorbiting manoeuvres and passivation activities.

The provisions on the Space Regulation described above apply only expressly to space operations. However, when applying for a licence for the operation of a launch centre, the applicant must identify all potential risks arising from the operation of the launch centre, including those arising from testing and launches, and also set out the procedures to be put in place to minimise such risks. Thus, debris mitigation should, to a certain extent, also be assessed and addressed in this context.

These concerns correspond broadly to what the envisaged EU Space Act will address, ie, safety and sustainability. Accordingly, it is expected that, with the enactment of the EU Space Act, additional requirements on debris mitigation will be imposed upon Portuguese space activities.

The tax system for space activities is currently not well defined or harmonised at the international level. There are no specific, common or multilateral tax rules or conventions that address the taxation of space activities.

In Portugal, the national Space Act establishes that fees and levies that may be charged by the relevant Space Authority to operators conducting space activities may be defined by Decree-Law, with a view to promoting the economic and financial sustainability of the activities of the Space Authority. A specific fee regime was also provided in the Azores space framework, which, however, seems to have been repealed (see 2.2 Legal System and Sources of Space Law and Regulation). At the time of writing, no fees are applied by the Space Authority.

Beyond the economic and financial regime for space activities outlined in the Space Act, Portugal’s approach to taxing space activities does not deviate from its standard taxation system. Instead of imposing specific taxes for space activities, Portugal applies its conventional tax regime, which encompasses a broad spectrum of taxes. Consequently, space activities within Portugal are subject to the same tax obligations as any other economic activity under the prevailing tax laws, depending on the nature and location of the activities and the entities involved.

Some other aspects of the Portuguese tax system may be relevant for space activities, such as the definition of tax residence or the taxation of foreign source income. Moreover, Portugal has a network of tax treaties with more than 70 countries aiming to avoid double taxation and providing for reduced withholding rates on dividends, interest and royalties paid between residents of the contracting states. However, treaties might not cover certain types of income or transactions related to space activities. Additionally, Portugal has rules implementing EU regulations on the control of exports of dual-use items, which may affect the sale or transfer of space items to other countries.

Portugal offers a range of tax incentives for investors in general, which may also apply to space investors, depending on the nature and characteristics of their activities and projects. Some of these incentives are the following:

• The regime of tax benefits for productive investments grants corporate income tax credits (10% to 25% of the relevant applications), exemptions from other taxes such as stamp duty, property transfer tax and municipal property tax, and simplifications of customs procedures. This is subject to acceptance by the competent bodies, for projects that meet certain requirements and contribute to the economic development of the country. However, some limitations exist, such as non-cumulation with other tax benefits of the same nature, whether automatic or contractual.
• The regime of tax benefits for research and development grants a deduction from the corporate income tax payable, under certain conditions, of expenses from R&D. The measure is also not cumulative, with respect to the same expenses, with tax benefits of the same nature, including contractual ones.
• The patent box regime incentivises R&D by offering tax deductions for income from certain IP rights, including patents and software copyrights.
• The tax regime for amortisations and depreciations allows deductions of the costs of acquisition or production of tangible or intangible fixed assets used in the activity, according to different methods and rates.
• The participation exemption regime offers an exemption for companies deriving dividends or capital gains from certain types of equity investments.
• The tax regime for the scientific patronage allows deductions from taxable income for donations to entities engaged in scientific activities. Accreditation confirming the scientific nature of the activity is required.
• The tax incentive for scientific research and innovation offers a special 20% personal income tax rate on the net income from categories A and B (employment and self-employment) earned from teaching, research or innovation activities that are important for the national economy, for taxpayers who become tax residents in Portugal and have not been tax residents for any of the five previous years.
• The Golden Visa regime grants a residence permit to foreign investors who make certain types of investments in Portugal. Qualifying options focus on capital transfers to scientific research institutions, job creation, and investment in qualifying funds or companies.
• The tax incentive for the acquisition of shares in start-ups, including those in the space sector, provides that gains from stock options or similar rights granted by qualifying start-ups and certain innovative small and medium-sized enterprises are taxed on only 50% of their value, provided the rights are held for at least one year. Among other limitations, this benefit is not cumulative with other tax benefits.

Space-related activities and transactions, namely in relation to assets in outer space, are not explicitly within the scope of Portuguese taxes; however, the general principles of taxation may apply to sales, transfers and other supplies of space assets in outer space, as well as to the income derived from these activities. Moreover, it is important to note that the taxation of space-related activities is also influenced by international agreements and EU law. Portugal adheres to treaties and EU directives and regulations that may impact the taxation of space-related activities, though they are not adapted to the specificities of some of such activities and despite the lack of clarity and consensus on how to define and allocate taxing rights over them. Therefore, taxation of space-related activities relating to space assets in outer space is subject to complexity, and potential double taxation or non-taxation, depending on the circumstances and jurisdictions involved.

For income tax purposes, Portugal generally taxes the worldwide income of its tax residents, while non-residents are taxed on their Portuguese-sourced income. If a Portuguese resident individual or corporate entity earns income from space assets, this income would typically be subject to Portuguese income tax, unless an exemption or relief applies. The complexity arises from determining the source of the income and the application of any relevant tax treaties that may exist between Portugal and other countries when assets are in outer space.

VAT in Portugal is applied to the supply of goods and services within the country, as well as to imports, unless an exemption or relief applies. Supplies of space assets would be subject to VAT if deemed to be supplied within the country or imported into it; otherwise, they would be outside the scope of Portuguese VAT. The taxation of services related to space assets would also be subject to VAT if these services are deemed to be supplied in Portugal. The VAT place of supply rules are thus crucial in determining whether a supply is outside or within the scope of VAT and, in the latter case, whether it is chargeable and at what rate.

In addition to the above, the transfer of space assets can impact national security due to their dual-use nature. Portugal has implemented EU regulations for controlling the export of dual-use items. The export control regime requires prior export authorisation for eligible controlled products. The regime also applies to intangible technology transfers. The export authorisation may be specific, global, union general or national general, depending on the type and destination of the items. The validity of the export authorisation may vary from six months to four years, depending on the type of authorisation. Exporters must keep detailed records of exports, including descriptions, quantities and end-use information. Non-compliance with the export control rules can result in criminal and administrative liability, including imprisonment, fines, loss of goods, and prohibition on requesting licences or certificates.

NewSpace’s focus on the development of services, products and systems leveraging space assets and data allows for the evolution of new business models with different risk profiles that are usually more attractive/accessible to non-public investors.

Indeed, Portugal has seen private funding be directed in recent years to companies that are in the space sector, even if space activities are quite marginal to their business. With the increase of NewSpace enterprises, we are now witnessing tentative interest from private players (notably, venture capital) in enterprises that have space activities at their core, even in their pre-seed phase.

However, public funding is still the key funding source for space activities in Portugal.

Space activities in Portugal are still mainly financed through public funding.

Indeed, key dedicated funding for space activities derives from:

• the contributions that Portugal makes as a member state to ESA, under the geographical return principle (currently Portugal is discussing increasing its funding to 1% of ESA’s budget); and
• Portugal’s (EU-funded) Recovery and Resilience Plan. This funding, which is granted on a co-funding logic, requires the mobilisation of relevant private funds into the Portuguese space sector.

At a much lower scale, the yearly budget of the Space Agency (estimated to be around EUR9.25 million until 2027) has also been earmarked to fund R&D space activities in the country.

Additionally, non-dedicated funding has been enjoyed by Portuguese companies in the space sector. Mostly consisting of public subsidies, in particular through EU structural funds and other EU programmes, but also through other public-backed financing (eg, through public guarantees), non-dedicated public funding has been important in the funding of space activities and the space sector in Portugal.

Private funding/financing is still marginal (totalling around EUR10 million in 2023, after an extraordinary high of around EUR30 million in 2022).

Historically, private funding came mostly from venture capital (with Connected, Neuraspace, SpaceO, Spotlite and Azulfy being some companies in the space sector that have received private investment under venture capital schemes). However, now, with the co-funding required under the Portuguese Recovery and Resilience Plan, we are seeing more private funding coming into space activities, mostly through corporate investments.

Since 2019, the Portuguese state has been concerned with creating a competitive space sector in the country, being mindful of the significant benefits the sector can bring to the development of the country’s economy.

That goal has been, for instance, behind the manner in which space activities are regulated in the country, as well as the creation of a Space Agency mandated to promote business and investment in the sector. Additionally, the state increased its (indirect) spending on the sector (notably, by increasing its contributions to ESA).

More recently, with the approval of space-related projects in the context of the country’s Recovery and Resilience Plan, which operates on a co-funding basis, the country is aiming to increase private funding of the sector. While the public funding parcel is significant, it is expected that the success of those projects will increase sponsors’ and investors’ willingness to invest (and expertise) in the space sector. Indeed, we are seeing additional private funding coming into space activities, though mostly through corporate investments.

Tax incentives also play a significant role in attracting space activities to the country (see 6.2 Tax Incentives for Space Investors).

Foreign investment in space activities in Portugal is not yet subject to dedicated rules. However, it could still be caught under the Portuguese FDI Act (enacted by Decree-Law 138/2014 of 15 September), and accordingly, an acquisition of (direct or indirect) control over undertakings or assets could be blocked by the Portuguese Government if:

• control is acquired by entities from non-EEA states;
• control is acquired over strategic assets (ie, the main infrastructure and assets allocated to national defence and security or to the provision of essential services in the domains of energy, transportation and communications); and
• the operation is considered to entail a plausible and sufficiently serious risk to national security or to Portugal’s security of supply in essential services.

However, it is noteworthy that changes at EU level will clearly bring space activities into the scope of foreign investment screening at national level.

We refer, in particular, to the proposal that is currently under discussion for an EU Regulation on the screening of foreign investment in the EU. Viewing FDI screening as a tool against economic security risks, this proposal requires notably that all member states screen foreign investments:

• in companies that participate in projects or programmes of EU interest (including, without limitation, the EU Space Programme and Horizon Europe); and
• in companies active or intending to be active in the design, development, extraction, processing, prediction, recycling or supply of the technologies, materials, assets, facilities, equipment, networks, systems, services and economic activities listed in Annex II to the Regulation (areas of particular security or public order interest to the EU), which include (among others) dual-use items subject to export controls, dedicated space-focused technologies, ranging from component to system level, space surveillance and Earth observation technologies, space positioning, navigation and timing, secure communications including low Earth orbit connectivity, and propulsion technologies, including hypersonics and components for military use, generative AI systems trained in a significant part on biological/genomic data, or designed to be used in a biotechnological, space or defence context, and critical raw materials. The aerospace manufacturing industry, including the production, maintenance and operation of aircraft, as well as their engines, propellers, parts, non-installed equipment and equipment, also fulls under the transport industries, technologies and infrastructure components of critical importance category within this proposed regime.

Screening will be conducted on the grounds of security or public order, including economic security. The concept of foreign investment will also be broadened to encompass any manner in which a foreign investor makes capital available to an EU target (in the context of aiming to establish or to maintain lasting and direct links with said EU target) in order to carry out an economic activity in an EU member state.

On a separate point, the Foreign Subsidies Regulation (enacted by Regulation (EU) 2022/2560, already in force) may play a noteworthy role in imposing limitations on foreign investment in space activities that is made through financial contributions to those companies. Indeed, under said Regulation, the European Commission is allowed to investigate and impose commitments or redressive measures whenever it finds that a foreign financial contribution that distorts the internal market is being made to an undertaking engaging in an economic activity inside the EU.

Fundraising for space activities and in particular for NewSpace ventures is usually done in the context of venture capital investments and tends to follow the process and adopt the documentation that is typical for venture capital investments in any tech-based and/or data-based enterprise (eg, preparation of the business plan and pitch deck, drafting and negotiation of a preliminary heads of terms for the investment, carrying out a due diligence on the target of the investment, negotiation and drafting of any investment agreements, subscription agreements, shareholder agreements, management incentive plans, etc).

Indeed, private funding/financing in the Portuguese space sector is usually directed at companies that are in the very early stages of their development, usually testing out concepts and business models, and particularly focused on downstream activities.

Accordingly, key issues associated with activities and business models that are not yet mature are of particular importance in this context – usually, investors come on board with very aggressive commercial positions in terms of pricing of the investment and exit protections for the investor, but also in terms of the control/supervision that the investor may have over the management and the contractual demands that may be imposed over founders and other key personnel for the project.

Thus, the technical complexity, regulatory environment, risk profile and market dynamics that are specific to tech-based or data-based product/service/business models are the key drivers in connection with fundraising for NewSpace, more than the circumstance that we are dealing with NewSpace per se.

NewSpace ventures usually involve highly technical and specialised products or services that will be the core of the investment valuation, and thus detailed technical and operational due diligences are required. Moreover, legal due diligences are also required as we may be dealing with heavily regulated products/services/business models (especially if they are dual-use or data-based or rely on complex supply chains).

As noted, investors’ liquidity events in the context of NewSpace fundraisers of M&A transactions are associated with the typical exit strategies implemented for investments in tech-based companies (and therefore depend on the type of operation at stake and the level of development of the company).

In any case, we are also seeing private investors making early-stage investments via convertible instruments, such as convertible notes or SAFEs, which convert into equity at a later round or liquidity event only.

Given the low prevalence of private funding of space activities in Portugal and the make-up of the sector, consisting mostly of small and medium-sized companies, the securities markets do not play a direct role in space financing in Portugal.

As such, and although there is strong (theoretical) potential for funding through the securities market, the maturity level of the Portuguese enterprises with space activities at their core does not yet render the securities market as a real, viable funding avenue for them.

Concerning the protection of inventions, Portugal’s patent law system is very much aligned with the rules provided for in the European Patent Convention and international agreements such as the WIPO Patent Cooperation Treaty. As such, inventions that are new, involve an inventive step and have industrial application can in principle be the subject of a patent. On a national level, the National Industrial Property Office (INPI) is the entity responsible for assessing whether patent applications submitted before it meet these patentability requirements.

The publication of patent applications takes place 18 months as of the application date, or as of the oldest claimed priority, thus becoming generally accessible to the public.

In terms of enforcement of patents, the Intellectual Property Court has jurisdiction to assess, among others, cases of alleged infringement of national patents (or classic European patents validated in Portugal), for infringing acts taking place in the Portuguese territory.

As regards other means of protection, such as copyright and trade secrets, these are also provided, under the general terms, in national legislation.

Although there are no specific intellectual property rules that apply to space activities and assets in Portugal, as a signatory of the Outer Space Treaty and as a member of ESA, Portugal is committed to contributing to the global pool of knowledge derived from space activities, particularly where research is conducted in partnership with other ESA members or international organisations.

See 4.1 Data Protection Regulation and Space and 4.2 Space Data Spaces on space data access and protection.

Although there are a limited number of companies operating in this sector, NewSpace companies generally adopt the protection measures available in other hi-tech industries, depending on the innovation at stake. One of the most common means of protection is through patents, notably on innovations such as satellite hardware, propulsion systems and communication technologies. Protection through patent will be mostly sought in those cases where reverse engineering will be feasible. However, for innovations such as proprietary algorithms, artificial intelligence systems for space data analysis and advanced engineering processes, some NewSpace companies opt for trade secret protection rather than patenting, as this avoids public disclosure. Finally, software systems are often protected through copyright.

Concerning protection through patents, some of these companies tend to seek protection in the launching states, although enforcement might not always be feasible or effective in those jurisdictions.

Portugal does not have specific intellectual property enforcement rules that exclusively apply to space activities and assets. Therefore, the enforcement of intellectual rights related to space activities in Portugal will be governed by the applicable national rules, notably those arising from the Industrial Property Code (concerning patents, for example) and the Copyright and Neighbouring Rights Code, as well as other scattered legislation, covering, for example, the protection of computer programs (software).

Considering the territorial nature of intellectual property rights, the enforcement of such rights under Portuguese law will apply, in general terms, to activities conducted within Portugal (eg, space facilities located in the Portuguese territory).

Notwithstanding the Permanent Court of Arbitration’s optional rules for arbitration of disputes relating to outer space activities, these provisions have not significantly influenced the arbitration legal community in Portugal. However, the Portuguese legal community is, in general, receptive to including arbitration agreements in contracts. Lisbon is often selected as the seat of arbitration, with commonly used institutions including the ICC and the Commercial Arbitration Centre of the Portuguese Chamber of Commerce and Industry.

There are no public records of claims lodged by foreign investors against the State of Portugal in space-related arbitration matters. Similarly, no such claims involving private companies in the space sector have been recorded. More broadly, Portugal has a limited number of publicly known arbitration cases. If arbitration occurs between private entities, it is typically resolved through private settlement or remains confidential.

Space-related litigation in Portugal is still limited and emerging. Historically, there have been no significant disputes directly involving space law or satellite-related contracts. Publicly available cases mainly concern the use of satellite-based GPS evidence in labour disputes, focusing on the legality of such evidence rather than space-specific issues.