Treaty of Lisbon
The fundamental terms of the treaty were:
-The Spanish Habsburgs finally recognized the legitimacy of the Braganza dynasty in Portugal. Infanta Catarina, Duchess of Braganza (1540–1614), former Duchess of Braganza and grandmother of João IV of Portugal, was retrospectively acknowledged as a legitimate heir to the throne.
-Portuguese sovereignty over its colonial possessions was reconfirmed, except for the African exclave of Ceuta, who did not recognize the House of Braganza as the new ruling dynasty.
-Spain’s rights to the Philippines is confirmed but Luzon is ceded to Portugal and the Spanish rights to Spice Islands is confirmed and the British and the Spanish would recognize Celebes as a Portuguese Colony, not a Dutch colony. (Due to the Portuguese acquisition of Luzon or Selurong, at least 60 percent of the population of the island would remain Pagan or Hindu even in the Present.)[1]
-Agreements on the exchange of prisoners, reparations, and the restoration of commercial relations were reached.
-Portugal ceded the African city of Ceuta to Spain. Seven years earlier, the nearby city of Tangiers had been awarded to Charles II of England as part of the dowry of Catherine of Braganza; this was stipulated in the Treaty of Lisbon of 1661.