Portugal and Double Taxation: What Expats Need to Know

If you’re earning income from more than one country, one of your biggest fears is being taxed twice. The good news? Portugal has strong safeguards in place to prevent that. In this episode, we break down how double taxation relief works for expats and international investors.

Key Frameworks for Relief:

1. Double Taxation Treaties (DTTs):

Portugal has signed DTTs with over 80 countries, most following the OECD Model Convention. These treaties decide which country gets taxing rights over specific income types—like dividends, pensions, or capital gains—so the same income isn’t taxed twice.

2. Unilateral Tax Credit:

Even if there’s no tax treaty, Portugal’s domestic law steps in with a unilateral foreign tax credit. This means taxes paid abroad can generally be credited against your Portuguese tax liability, ensuring you don’t pay double.

Why It Matters:

For expats, retirees, and global entrepreneurs, understanding how DTTs and unilateral relief work together is essential for avoiding over-taxation and optimizing international tax efficiency.

Key Takeaway:

Portugal’s system is designed to protect cross-border taxpayers—so long as you plan correctly and report consistently across jurisdictions.