The new Double Taxation Agreement (DTA) aims to avoid the same income being taxed twice in both Portugal and the UK, while also creating clearer rules on how income and capital are taxed when individuals or companies operate in both jurisdictions.

The accompanying Agreement on Exchange of Information in Tax Matters reinforces transparency and cooperation between tax authorities, ensuring that both countries have access to relevant information to prevent tax evasion and improve compliance.

These agreements still need to go through the ratification process in both countries before entering into force. Once implemented, they are expected to facilitate cross-border investment, support business mobility, and bring greater certainty to taxpayers with interests in Portugal and the UK.

This initiative reflects Portugal’s continued effort to expand and modernise its network of international tax treaties, aligning with OECD and EU standards of transparency, cooperation, and fair taxation.

Tax Department

João Valadas Coriel | Sofia Quental | Inês Grácio | Catarina Amaral