International Agreements
2. Conventions to Avoid International Double Taxation
Conventions to Avoid International Double Taxation (CDT) are an important instrument of international tax law.
Given the absence of consistent international legislation, establishing residence in the country means that all income earned by nationals of other countries may be taxable in this country, thus giving rise to double taxation. This situation can only be eliminated by conventions executed between states to avoid double taxation. Thus, these conventions allow the income of a foreign national from a country with which Portugal has such a convention to benefit from lower withholding rates.
To date, Portugal has entered into several CDTs, according to the OECD Model, and many others are being negotiated, signed or approved for ratification.
Some of the countries covered by these agreements that Portugal has executed include: Germany, South Africa, Algeria, Austria, Belgium, Brazil, Bulgaria, Cape Verde, Canada, Chile, China, Korea, Cuba, Denmark, Slovakia, Slovenia, Spain, the United States, Estonia, Finland, France, Greece, Guinea-Bissau, the Netherlands, Hungary, India, Indonesia, Ireland, Iceland, Israel, Italy, Latvia, Lithuania, Luxembourg, Macao, Malta, Morocco, Mexico, Mozambique, Norway, Pakistan, Poland, United Kingdom, Czech Republic, Romania, Russia, Singapore, Sweden, Switzerland, Tunisia, Turkey, Ukraine and Venezuela.
The conventions used and a summary table of the CDTs executed by Portugal are available on the Finance Portal (Summary Table).