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What is the double tax treaty with the UK and Portugal?

Movingto Editorial Team
Answered 
December 23, 2022

The double tax treaty between the United Kingdom and Portugal is an agreement between the two countries that aims to prevent double taxation of individuals and businesses that are resident in both countries. The treaty applies to taxes on income and capital, and sets out the rules for determining which country has the right to tax certain types of income.

Under the double tax treaty, individuals who are resident in both the UK and Portugal may be taxed in either country, but not in both. The treaty also provides for the exchange of information between the two countries to ensure that individuals and businesses are properly taxed.

The double tax treaty between the UK and Portugal applies to the following taxes:

In the UK: Income tax, corporation tax, and capital gains tax.

In Portugal: Personal income tax, corporate income tax, and municipal surtax.

Overall, the double tax treaty between the UK and Portugal helps to ensure that individuals and businesses are not subject to double taxation when operating in both countries. It also helps to promote economic and trade relations between the two countries.

If you own a company in the UK, live in Portugal and have and NHR, you could pay yourself in dividens for "0" tax, yes, that is right, zero tax.

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