Does Portugal have a Double Taxation Treaty with Australia?

Yes, Portugal and Australia have a Double Taxation Treaty (DTT) signed in 1999. This treaty prevents most double taxation by allocating taxing rights between the two countries and allowing foreign tax credits.

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Australia Expats in Portugal — Tax Guide 2026

By Taxpert Editorial · Last reviewed: 26 April 2026

Australia has a DTT with Portugal (1999). Australians moving to Portugal face specific planning issues around superannuation (super), Australian franking credits (which don't transfer to Portugal), and the Australian CGT on departure if not an Australian tax resident.

Double Taxation Treaty: Yes (1999)
Tax relief mechanism: Treaty FTC

Key facts

Australia-Portugal DTT signed 1999
Superannuation: Australian super funds — Portugal taxes withdrawals as Cat. H
Franking credits (dividend imputation): Not recognized in Portugal — cannot be claimed as FTC
Australian CGT on departure: Deemed disposal on assets at date of ceasing Australian residency
Australian pension (Age Pension): Taxable in Portugal; Australia withholds at non-resident rates
Foreign investment fund rules (FIF) apply to some Portuguese funds from an Australian perspective

Income type treatment

Employment

Australian-source employment: Australia taxes under treaty Article 15. Portuguese IFICI for qualifying Portuguese roles.

Pension

Australian Age Pension: Portugal has primary taxing rights. Australian withholding at non-resident rates (10% with treaty). FTC in Portugal. Super fund distributions: Portugal taxes as Cat. H income; Australia may tax depending on fund type and age.

Dividends

Australian franked dividends: The franking credit (representing corporate tax already paid) is not available as an FTC in Portugal — only the 30% withholding tax is creditable. Portugal taxes at 28%. FTC applied for the 30% Australian withholding.

Rental income

Australian rental income: Australia taxes (property location). Portugal taxes as Cat. F; FTC for Australian tax paid.

Capital gains

Australian CGT 50% discount for assets held >12 months: Portugal does not apply this discount. Portugal 28% on full gain on Australian assets. Departure CGT: Australia may tax on departure.

Watch-outs for Australia expats

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Super: Accessing super early (before Australian preservation age) triggers significant Australian tax. As a non-resident, some early access conditions may be available. Portugal will tax the lump sum as Cat. H.

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Franking credits: Cannot be used as FTC in Portugal — this is a significant difference from most other treaty countries where withholding tax is creditable.

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Residency determination: Australia uses a 'resides test' and 'domicile test' for tax residency, which is fact-specific. Simply moving abroad does not automatically end Australian residency — formal steps are needed.

Recommended regimes

IFICI (for qualifying professionals)
Standard IRS (for most retirees and passive income earners)

IFICI regime

20% flat rate for qualifying professionals

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NHR Legacy

For existing holders before Jan 2024

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This guide is for general information only. Tax laws in both Australia and Portugal change frequently. Always consult a qualified tax advisor with expertise in both Australia and Portuguese tax law before making tax decisions.