Minister Mário Centeno, Portugal’s former finance minister, has signed a landmark protocol to avoid double taxation, significantly impacting emigrated taxpayers. This protocol, involving agreements with multiple countries across various continents, aims to prevent individuals from paying taxes on the same income in two different nations.
The primary objective of these agreements is to eliminate the financial burden on emigrated taxpayers who often find themselves liable for taxes in both their country of residence and their home country. By addressing this issue, the protocol seeks to promote fair taxation and ensure that income is only taxed once, thereby reducing financial stress on taxpayers and fostering a more favorable economic environment.
Negotiations for this protocol began last year and have progressed constructively, leading to a comprehensive text that addresses Portugal’s primary concerns. In a statement to the press, Centeno emphasized that the protocol focuses on combating tax evasion and eliminating double taxation on income taxes. This, he noted, will deepen economic and commercial bilateral relations, providing a robust framework for cooperation between Portugal and its international partners. And highlighted the importance of such agreements in strengthening the economic ties between Portugal and other countries.
The successful conclusion of these negotiations marks a significant step towards more equitable and efficient tax systems, reflecting Portugal’s commitment to fostering international cooperation and economic growth.
OportoAccounting also helps foreign companies to assist with our exceptional banking assistance, and we conduct regular tax efficiency reviews throughout the financial year, ensuring that your business is being run in the most tax efficient way and it’s complying with the Portuguese law and regulations, including helping to set up a company in Portugal,
OportoAccounting.com
