In this judgment of the ECJ regarding exit taxation, the Court has largely followed the AG’s opinion and the judgment of National Grid Indus. Portuguese legislation does not offer any alternative to the requirement of immediate payment of tax on capital gains relating to transfers to another Member State of a company’s place of management or assets of a permanent establishment of a company not resident in Portugal. This was considered an unjustified breach of the freedom of establishment. Member States should offer the choice of immediate payment of the tax or deferred payment together with interest.

Where there has been a cessation of activity on Portuguese territory the Court concluded that there is no difference in treatment between a situation falling under art 49 TFEU and a purely domestic situation. Thus, there was no infringement of art 49 TFEU in this respect.