Few events in financial history are as astonishing as the Portuguese Bank Note Scandal of 1925. It was a real-life story of deception so extraordinary that it almost sounds like fiction. At the center of the plot was a man named Artur Virgílio Alves Reis, a clever and ambitious Portuguese fraudster who managed to convince one of the world’s most respected printing companies to produce legitimate Portuguese banknotes based on forged documents. The result was a wave of chaos that shook Portugal’s economy, toppled political stability, and helped pave the way for a new dictatorship.

What follows are fifteen incredible facts about this unbelievable episode in Portuguese history.

1. Artur Alves Reis started out as a poor young man with big ambitions.

Born in Lisbon in 1896, Reis grew up in a modest household but dreamed of a life filled with wealth and influence. He briefly attended engineering school but dropped out after his first year. He later forged a diploma from a fake institution called the “Oxford Polytechnic School of Engineering” so he could present himself as a legitimate engineer.

2. His first major crime happened in Angola years before the bank note scheme.

Before he became famous for his financial deception, Reis was already dabbling in fraud. While living in Portuguese Angola, he forged checks and manipulated accounts to gain control of a company called Companhia Ambaca. He was eventually caught and arrested but managed to secure an early release after only a few weeks in jail. During his time behind bars, he began to develop the outline for what would become one of the boldest crimes in world history.

3. The core of his plan was not to counterfeit money but to print real notes using forged authorization.

Unlike typical counterfeiters, Alves Reis realized that he did not need to print fake notes if he could trick the right people. He forged a contract that appeared to be from the Banco de Portugal. This authorized him to print new 500-escudo bank notes for use in the colony of Angola. This document looked completely authentic and included fabricated signatures and stamps from bank officials and the Portuguese government. Alves Reis took the forged papers to the respected London printing company Waterlow & Sons, which at the time printed official Portuguese currency. Believing the documents were real, the company agreed to produce the notes.

In other words, Alves Reis was not counterfeiting money in the traditional sense. The notes were real, printed on the same paper with the same ink and equipment as the legitimate ones, but they were ordered under false pretenses.

4. The amount of money printed was so large that it equaled nearly one percent of Portugal’s economy!

The contract authorized the printing of about 200,000 banknotes, each worth 500 escudos. That amounted to a total face value of 100 million escudos, which was close to one percent of Portugal’s entire gross domestic product at the time! The enormous scale of this scheme made it one of the most damaging financial crimes ever attempted in Europe.

5. He created a fake development bank to launder the money.

To move the new cash into circulation without raising suspicion, Alves Reis established a front company called the Banco de Angola e Metrópole. Officially, it was meant to promote investment and development between Portugal and its African colony, Angola. In reality, it was a way to distribute and launder the illicitly printed money. Reis and his partners used the funds to buy property, invest in businesses, and even acquire shares in the Banco de Portugal itself. His ambition was so vast that he hoped to take control of the central bank from within.

6. For months, the scheme worked perfectly.

The forged notes flowed freely into the Portuguese economy. Because they were identical to genuine notes, banks and merchants accepted them without hesitation. Reis used the cash to fund numerous ventures, including real estate, transportation, and agriculture. He even became known for his generosity and charm. He donated to charities, hosted elegant parties – what was not to like? Lisbon’s elite began to view him as a rising financial genius. Nobody suspected that his growing empire was built on deception.

7. The discovery of duplicate serial numbers exposed the entire plot.

The downfall of the operation came from an unavoidable detail: serial numbers. Because the fake notes were printed using real templates, they duplicated serial numbers already assigned to legitimate currency. Eventually, bankers noticed two identical 500-escudo notes with the same serial code. When the Banco de Portugal began to investigate, the shocking truth emerged. A large portion of the nation’s circulating currency had been illegally printed!

8. The scandal caused a nationwide panic and a financial crisis.

Once news of the duplicated banknotes spread, public trust in the Portuguese financial system collapsed. People rushed to withdraw their savings, and the value of the escudo plummeted. The Banco de Portugal was forced to recall every 500-escudo note in circulation within a few weeks. Businesses struggled to determine which bills were valid and which were part of the forgery. The crisis sent shockwaves through Portugal’s economy and shattered confidence in the country’s institutions.

9. The British printing company was sued and forced to pay huge damages.

The Banco de Portugal filed a lawsuit against Waterlow & Sons in the British courts, claiming that the company had printed the notes negligently. After a long and complicated legal battle, the court ruled in favor of Portugal. Waterlow & Sons was ordered to pay damages of more than £600,000, which was an enormous sum at the time. The case became one of the most famous corporate lawsuits in British legal history.

10. The scandal contributed to the fall of Portugal’s First Republic.

The fraud came at a moment of growing political instability. The Portuguese public was outraged, not only at the deception but also at the government’s apparent incompetence in preventing it. In 1926, only a year after the scandal broke, a military coup overthrew the fragile First Republic and began a new era of authoritarian rule. The chain of events eventually led to the long dictatorship of António de Oliveira Salazar, who would dominate Portuguese politics for decades.

11. Artur Alves Reis lived like a king during his short reign as a fake millionaire.

While his scheme lasted, Reis enjoyed incredible luxury. He purchased mansions in Lisbon, filled his home with fine art, and drove expensive automobiles. He even built a collection of properties in the countryside and funded numerous public works to boost his public image. He became known as one of the wealthiest men in Portugal, admired by many who had no idea that his fortune was based on fraud.

12. His partners came from across Europe and included diplomats, traders, and businessmen.

Reis did not act alone. His closest associates included José Bandeira, a Portuguese trader who used his diplomatic connections to add legitimacy to the forged documents. Others included a Dutch businessman named Karel Marang and a German trader named Adolph Hennies. Each played a role in distributing the money and managing the growing network of fake investments. When the fraud was discovered, some fled the country while others faced prison sentences alongside Reis.

13. The press exposed the scandal after months of rumors.

In the fall of 1925, Portuguese journalists began noticing strange financial activities surrounding the Banco de Angola e Metrópole. Reporters from the Lisbon newspaper O Século launched an investigation and found irregularities in the company’s operations. On December 5, 1925, the paper published a front-page article revealing the massive fraud. The next day, authorities raided the bank, seized documents, and arrested Alves Reis. The front-page headline declared, “The Country in Crisis,” capturing the public shock that followed.

14. Alves Reis was sentenced to twenty years in prison but served only ten.

His trial began in 1930 and attracted huge attention. Despite his confident defense, the evidence was overwhelming. He was sentenced to twenty years in prison, the maximum penalty for fraud in Portugal at the time. After serving ten years, he was released in 1945 for good behavior. In his later years, he lived quietly and never regained his former influence. He died of a heart attack in Lisbon in 1955 at the age of 59.

15. The scandal remains one of the most extraordinary frauds in modern history.

The Portuguese Bank Note Scandal is remembered not just for its size but for its sheer audacity. Alves Reis did not rely on crude counterfeiting. Instead, he exploited weaknesses in bureaucracy and trust. He proved that confidence, paperwork, and presentation could be as powerful as ink and paper. The affair has since been studied by economists, historians, and criminologists as an example of how fragile financial systems can be when oversight and verification are weak.

Why This Story Still Matters

The story of Artur Alves Reis is both fascinating and frightening. It demonstrates how an ambitious individual with a deep understanding of systems and psychology can manipulate entire institutions. By exploiting trust, bureaucracy, and colonial politics, Reis created chaos that reached from Lisbon to London and beyond.

The scandal revealed how vulnerable financial institutions can be when checks and balances fail. It also showed that economic crimes do not just hurt banks. They can also alter the political course of a nation. In Portugal’s case, the resulting loss of public faith helped usher in decades of authoritarian rule.

Today, collectors still hunt for the infamous 500-escudo notes, which are prized relics of one of the boldest crimes ever attempted. The story endures as a reminder that the most dangerous frauds are not the ones printed in secret basements, but those committed in plain sight, wrapped in the appearance of legitimacy.

The Portuguese Bank Note Scandal remains an almost unbelievable tale of ambition, intelligence, and deception so daring that it nearly brought a nation to its knees. It is truly one of the greatest financial stories you’ve probably never heard before and surely one that Portugal would like to forget forever.

Portugal happens to have some very peculiar and specific rules. Some keep beaches and roads safe, some protect heritage and natural landmarks, but a few laws in Portugal are so uniquely Portuguese that they might just surprise you. Here are 27 laws that are currently in force in Portugal that you need to know. Let us know which one was surprised you the most.

Please keep in mind that these regulations can be updated at any time by local authorities or government agencies. Always check posted signs or follow official guidance on the spot.

1. Removing historical tiles from a façade is tightly controlled.

Portugal treats azulejos as national heritage. Removing tiles from a façade requires a municipal license and is only allowed in specific cases where the removal can be justified. Lisbon put protective rules into place in 2013, and Portugal as a whole made this law in 2017.

2. Ignoring the red flag at the beach can get you fined.

On protected beaches in Portugal, the flag system is not a suggestion. Green means you can bathe, yellow means you must not swim, and red means you cannot enter the water. Disobeying the flags or lifeguard instructions is an offense that can get you fined under the current rules in Portugal.

3. Lifeguard zones and beach rules are set nationally each season.

Every beach season, the Portuguese maritime authority issues an official beach edict that sets rules about signage, lifeguard posts, and safety equipment. Concessions must comply, and beach-goers must respect the marked swimming areas and corresponding instructions.

4. Official naturist beaches must be clearly sign-posted, and, yes, naturist beaches are legal in Portugal.

The law requires signage at access points so visitors know they are entering an authorized naturist area (otherwise known as “nudist” beaches to those not familiar with the “naturist” term). If it’s not sign-posted, do not assume naturism is permitted.

5. Night-time “quiet hours” are protected by national noise law.

Portugal’s General Noise Regulations went into effect in 2007 and restrict noisy activities during nighttime hours and gives authorities tools to sanction disturbances including in residential buildings and outdoor venues. The hours deemed as “nighttime” are officially from 11:00 pm to 7:00 am. Please keep it down during these hours.

6. Recreational sea fishing requires a license.

Casting a line from the rocks or beach is popular, but you still need a recreational maritime fishing license, with different types depending on where and how you fish. Exceptions are made for people fishing by hand without any tools, and for children under 16 if they are accompanied by a licensed adult

7. Metal detectors for archaeological purposes are broadly restricted without a license.

Using or even transporting unlicensed metal detectors for archaeological purposes is prohibited. Licenses are handled by the national cultural heritage authority, which also supervises detection in research contexts.

8. You must be 18 or older to buy any alcoholic drink.

Portugal set the minimum age at 18 years old for the legal consumption of any alcoholic beverages. Selling or supplying alcohol to minors is prohibited in public places and places open to the public.

9. Some places cannot sell alcohol at all.

There are blanket bans on selling alcohol in certain locations, such as inside health facilities and a few other sensitive settings defined by law. Bars and shops must refuse alcohol sales to intoxicated people, and staff can be sanctioned for selling to obviously intoxicated individuals. Establishments must comply with posting and layout rules that support responsible sales.

10. Smoking is banned in enclosed public spaces and several child-focused outdoor areas.

The tobacco law restricts smoking in enclosed public places and extends protections to spaces intended for minors, such as playgrounds. Fines can apply to venues that fail to post required notices and to individuals who violate the ban.

11. Hotels and short-term rentals must register foreign guests with authorities.

Whether you stay in a hotel or a licensed short-term rental, your host must collect your details and report your stay electronically to the government within a short deadline. This rule applies to all foreign nationals including EU citizens. Failing to submit those guest forms can lead to fines.

12. You must be 18 to drive and keep passing medical checks as you age.

In Portugal, the minimum age to hold a standard car license (Category B) is 18 years old. Younger teens can drive mopeds or scooters under specific light-vehicle categories starting at 16, but they cannot drive regular cars until they reach 18.

There is no upper age limit that automatically bans older drivers. However, once you turn 70, your license must be renewed more often and you’ll need to provide a medical certificate proving you’re still fit to drive. For professional categories like truck or bus drivers, the rules are even stricter, requiring earlier and more frequent health checks.

13. Driving without a reflective vest and warning triangle in your car is illegal.

Portuguese road rules require a high-visibility vest and a hazard triangle in the vehicle. Forgetting either can cost you. Keep them handy.

14. Drones must follow EU open-category rules and national guidance.

Planning to film cliffs and castles? Drone operations in Portugal follow EU rules on registration, categories, distances and no-fly zones, with national aviation authority guidance layered on top.

15. Wild camping is restricted, especially in protected or high-risk areas.

Portugal tightened its wild camping rules in 2021 through updates to its Road Code, particularly Articles 48 and 50-A, effectively banning camping outside authorized areas and limiting overnight stays in vehicles. Today, pitching tents or setting up camp in public spaces, beaches, or protected zones is illegal unless you have explicit permission. Overnight parking in a motorhome or campervan is only allowed for up to 48 hours within the same municipality, provided no camping behavior is shown (like chairs, awnings, or barbecues). Staying overnight is often tolerated between 9:00 pm and 7:00 am, but local municipalities can impose stricter bans or fines—especially in coastal and nature areas. Travelers are encouraged to use official campsites, designated motorhome service areas, or private properties with permission to stay fully within the law.

16. During the critical fire period in Portugal, outdoor fires and certain grills are prohibited.

Each year the rural fire law sets a “critical period.” Lighting fires, burning yard waste, and using grills or equipment in or near forested areas can be restricted or banned, and there are heavy penalties for violators.

17. Dangerous or “potentially dangerous” dog breeds come with special obligations.

Owners of listed breeds, or cross-breeds with similar traits, must have a municipal license, keep liability insurance, and follow strict handling rules. These dogs must use a functional muzzle and a short leash in public, and there are age and suitability rules for handlers. Housing and signage requirements are part of the safety regime. Municipalities and veterinary authorities can enforce compliance, and non-compliance can trigger sanctions.

18. You can get fines for insulting the national flag or anthem.

Portuguese criminal law protects national symbols. Outrage or desecration of the flag or the national anthem is a criminal offense. So please be respectful at official ceremonies.

19. Portugal bans wild animals in circuses.

Portugal passed a landmark animal welfare law in 2018 that prohibited the use of wild animals in traveling circuses. The legislation was approved by Parliament in October 2018 and granted circuses a six-year transition period to comply, with a complete ban taking effect in 2024. The law covers about 40 species, including lions, tigers, elephants, camels, and primates.

During the transition, circus owners were required to register all wild animals in a national database and arrange for their transfer to sanctuaries or licensed care facilities.

20. Funerals must happen very quickly after death.

In Portugal, the timeframe from death to burial or cremation is tightly regulated. Typically, a funeral (burial or cremation) takes place within around 48 to 72 hours of death, or 48 hours after a post-mortem if one is required. That means that, if someone dies, arrangements are often expected to be made and executed very quickly compared to many other countries. This quick turnaround reflects both practical and legal frameworks in the country.

21. Prostitution is legal, but organized sex work and third-party profiteering are illegal.

In Portugal, the act of selling sexual services by consenting adults is legal, as surprising as that might sound. However, it is illegal for third parties to profit from, promote, encourage, or facilitate the prostitution of another person (for example, running brothels or pimping). Organized prostitution rings and exploitation are criminal offenses. You also cannot rent an apartment to a sex worker, but working on the streets is legal.

22. Pornography is legal but strictly regulated.

Pornography is legal in Portugal for adults, yet it sits within a framework of tight regulation. You must be 18 or older to buy, view, or distribute any pornographic material. Stores and websites that sell adult content must clearly display age warnings and cannot sell or show explicit material to minors. However, producing or distributing violent, coercive, or child-related content is a serious criminal offense with severe penalties. Overall, although adult entertainment is legal, it is heavily monitored and clearly separated from general media.

23. Possessing small amounts of drugs has been decriminalized, but it is not technically legal.

Portugal made global headlines in 2001 for decriminalizing the personal possession and use of all drugs including marijuana. This means that if you’re caught with a small quantity intended for personal use (roughly a ten-day supply, such as about 25 grams of cannabis or 5 grams of hashish), you will not be arrested or prosecuted as a criminal. Instead, you may be referred to a “Commission for the Dissuasion of Drug Addiction,” which can recommend counseling or small fines. However, dealing, trafficking, or cultivating cannabis without authorization remains a serious criminal offense that can lead to prison time. Decriminalization isn’t legalization. It simply shifts the focus from punishment to public health.

24. You can vote at 18 but only if you’re mentally and legally capable.

The voting age in Portugal is 18, and all Portuguese citizens have the right to vote except in rare cases of legal incapacity. Voting is voluntary, not mandatory, which surprises many foreigners used to compulsory voting systems.

25. You must be at least 21 years old to rent a car.

Rental agencies in Portugal generally require drivers to be 21 or older, and many charge an extra fee for drivers under 25.

26. The legal age to buy cigarettes is 18.

It is illegal to sell tobacco products to anyone under 18. Shops can be fined heavily if they fail to verify age. Cigarette machines even require an ID card or age-verification system before dispensing them.

27. You can drink in public – with some restrictions.

In Portugal, drinking alcohol in public is generally tolerated as long as you behave responsibly. You can walk around with a drink bought from a bar or café in many areas, but being visibly intoxicated, disruptive, or drinking where it’s expressly prohibited can lead to fines or police action. Local rules vary. Some municipalities restrict public drinking or limit alcohol sales for street consumption particularly at night. For example, Porto introduced a ban on drinking alcohol in the streets between 9:00 pm and 8:00 am in certain zones in 2025. Always check posted signs, especially in parks, beaches, or historic districts, since some areas like parts of Lisbon enforce additional restrictions.

Final Thoughts

Portugal has a long list of uniquely specific laws designed to protect its culture, environment, and public well-being. The nation also leads in progressive reforms decriminalizing personal drug use in 2001, banning wild animals in circuses by 2024, and legalizing prostitution under tight conditions while outlawing third-party profiteering. Although Portugal’s regulations may seem unusual to outsiders, together they reveal a country that balances freedom while also continually monitoring its best practices to protect its citizens.

When people first learn that Portugal has both a President and a Prime Minister, it can be confusing to understand how their roles differ. Unlike countries that have only one leading figure (such as the United States with its President or the United Kingdom with its Prime Minister), Portugal divides executive power between the two. The arrangement stems from its history as a young democracy that wanted to balance leadership, avoid authoritarianism, and ensure stability.

To understand how Portugal is governed today, it helps to explore what each of these leaders does, how they are elected, and why this system exists at all.

Portugal’s Semi-Presidential System

Portugal is a semi-presidential republic. This means that the President serves as head of state, while the Prime Minister is the head of government. Power is shared between them but in distinct ways.

The President’s role is largely constitutional and supervisory. This ensures that laws and institutions function properly. The Prime Minister, on the other hand, handles the country’s daily governance, running ministries, implementing policies, and working closely with Parliament.

This structure has existed since the Constitution of 1976, which followed the Carnation Revolution of 1974, the peaceful movement that ended nearly five decades of dictatorship. The framers of the new Constitution wanted a system that could never again allow power to become concentrated in the hands of one person. The result was a balance between two powerful offices: one representing the unity and permanence of the nation and the other driving its political direction.

The President of Portugal

The President of the Republic is the symbolic and constitutional guardian of Portugal. Though not involved in everyday government decisions, the President has important powers that can shape national politics.

The President appoints the Prime Minister after parliamentary elections, typically selecting the leader of the party or coalition that can command a majority in the Assembly of the Republic. The President also has the authority to dissolve Parliament and call new elections, but this power is used sparingly, usually during times of political deadlock or crisis.

Another significant power of the President is the ability to veto legislation or request a review by the Constitutional Court if a law appears to violate the Constitution. This function helps ensure that no government action undermines the country’s democratic principles.

The President also represents Portugal internationally, ratifies treaties, and serves as the Commander-in-Chief of the Armed Forces. While this title is mostly ceremonial, it reinforces the idea that the President stands above party politics and represents the nation as a whole.

Presidents in Portugal serve five-year terms and are directly elected by the public. If no candidate receives more than half the votes in the first round, a runoff is held between the top two candidates. The most recent presidential election took place in January 2021, and the next one is scheduled for January 18, 2026, with a possible second round on February 8 if no candidate wins outright.

The Prime Minister of Portugal

The Prime Minister, known in Portuguese as the Primeiro-Ministro, is the country’s chief executive. The Prime Minister leads the government, sets national policies, and coordinates the work of all ministries.

Unlike the President, the Prime Minister is not directly elected by voters. After legislative elections, the President appoints a Prime Minister. This is usually the leader of the party with the most seats in Parliament. The Prime Minister must then maintain the confidence of the Assembly of the Republic, Portugal’s unicameral legislature. If the Assembly passes a vote of no confidence, the government falls, and the President may call new elections.

The Prime Minister’s duties include leading the Council of Ministers, preparing the national budget, proposing new laws, and overseeing their implementation once approved. The Prime Minister also represents Portugal at European Union meetings and international summits.

A Prime Minister’s term is not fixed in the same way as the President’s. Parliamentary terms last up to four years, and the Prime Minister remains in office as long as their government retains parliamentary support. If that support collapses, the Prime Minister may resign or face an early election.

The most recent legislative election was held on May 18, 2025, following a period of political instability. Under normal circumstances, the next election would be expected by 2029, unless the President dissolves Parliament earlier.

Comparing Their Powers

The easiest way to understand the difference between the two offices is to think of the President as a constitutional overseer and the Prime Minister as the chief operator.

The President ensures the proper functioning of democratic institutions, appoints or dismisses the Prime Minister, and can dissolve Parliament if necessary. The President can also veto laws or refer them to the Constitutional Court.

The Prime Minister, in contrast, is responsible for running the government day to day. This includes managing the economy, overseeing ministries, and ensuring that policies are executed. The Prime Minister proposes legislation and represents Portugal in international policymaking arenas, especially within the European Union.

While the President holds significant power, especially during crises, it is the Prime Minister who wields practical authority in the daily administration of the country. Portugal’s system depends on cooperation and mutual respect between these two figures, as conflict between them can paralyze the government.

How Elections Work

The Presidential election is straightforward: all Portuguese citizens can vote directly for their chosen candidate. The process is similar to other direct elections in Europe, and voter turnout tends to be high, which reflects the importance of the role.

The Prime Minister, by contrast, is a byproduct of parliamentary elections. Voters choose members of the Assembly of the Republic, and the leader of the party or coalition that wins the most support is typically invited by the President to form a government. This indirect system means that Portuguese voters effectively choose their government by voting for parties rather than individual prime ministerial candidates.

Why Portugal Has Both

The dual structure of President and Prime Minister was deliberately created to prevent the rise of authoritarian power after the fall of the Estado Novo dictatorship in 1974. The new democratic Constitution sought to balance authority and accountability between two offices with each able to act as a check on the other.

The President provides a stabilizing influence during political turbulence, while the Prime Minister ensures effective governance. This system also guarantees that the armed forces and national symbols remain separate from party politics, a key concern after decades of one-party rule.

In short, Portugal’s dual-leadership model was designed to ensure stability, accountability, and democratic resilience. It allows flexibility during crises and helps prevent any single branch of government from dominating the political landscape.

When the System Began

The current structure of Portugal’s government began with the Constitution of 1976, two years after the revolution that ended the Salazar-Caetano regime. The framers of the new Constitution borrowed elements from both presidential and parliamentary systems to create a uniquely Portuguese model of semi-presidentialism.

Over time, constitutional reforms in the 1980s and 1990s refined this balance. The President’s role became less about daily government interference and more about upholding the Constitution, moderating conflicts, and preserving stability. Meanwhile, the Prime Minister and the Assembly of the Republic became the engines of policymaking and legislation.

Today, Portugal’s democratic institutions are considered among the most stable in Southern Europe, largely because of this power-sharing design.

What’s Next for Portuguese Politics

As of now, the next presidential election will take place in January 2026, while the next parliamentary election is expected by 2029, unless the President calls one earlier. These elections often define Portugal’s political rhythm with the President setting the constitutional tone and the Prime Minister steering the country’s daily course.

Understanding these distinctions can help anyone living in or following Portugal grasp the subtleties of Portuguese politics. When news headlines mention the President’s remarks or the Prime Minister’s new policy, each comes from a different layer of leadership. One represents the country’s spirit and the other guides its steps.

The Bottom Line

Portugal’s political structure may seem complex at first, but it is a carefully balanced system designed to protect democracy. The President is the guardian of the Constitution and the face of the nation, elected directly by the people for a five-year term. The Prime Minister leads the government, serves up to four years depending on parliamentary support, and manages national policy and administration.

This balance of power created in the aftermath of dictatorship ensures that Portugal remains a democracy with both strength and restraint. The President symbolizes unity and oversight, while the Prime Minister embodies direction and action. Together, they form the heart of Portugal’s democratic leadership.