Does Portugal have a Double Taxation Treaty with India?

Yes, Portugal and India 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.

Portugal › Expat Guides › India

🇮🇳

India Expats in Portugal — Tax Guide 2026

Q: How is India employment income taxed when living in Portugal?

Indian-source employment: India applies TDS. Portugal taxes worldwide; IFICI for Portuguese qualifying roles. FTC for Indian TDS.

Q: How are India pensions taxed in Portugal?

NPS/EPF: Portugal taxes distributions as Cat. H. Indian TDS may apply; FTC in Portugal.

By Taxpert Editorial · Last reviewed: 26 April 2026

India has a DTT with Portugal (1999). Indian nationals moving to Portugal — particularly in the tech sector — need to manage both their Non-Resident Indian (NRI) status with Indian income tax authorities and their new Portuguese tax obligations. Many Indian tech professionals qualify for IFICI.

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

Key facts

India-Portugal DTT signed 1999
NRI status: Maintained if Indian days <182 per year (Indian domestic rule)
EPF (Employee Provident Fund): Contributions exempt in India; Portugal may tax withdrawals as Cat. H
Indian dividends: Taxed in India at 10% TDS; treaty may reduce Portugal tax
Indian rental income: TDS applied in India; Portugal Cat. F; FTC applies
Indian capital gains: India applies STT (Securities Transaction Tax) + LTCG/STCG rates

Income type treatment

Employment

Indian-source employment: India applies TDS. Portugal taxes worldwide; IFICI for Portuguese qualifying roles. FTC for Indian TDS.

Pension

NPS/EPF: Portugal taxes distributions as Cat. H. Indian TDS may apply; FTC in Portugal.

Dividends

Indian dividends: India 10% TDS → treaty may reduce Portuguese tax liability. Portugal 28%. FTC for Indian TDS.

Rental income

Indian rental: India TDS 30% for NRI. Portugal Cat. F; FTC.

Capital gains

Indian LTCG (>1 year): 12.5% in India. STCG: 20%. Portugal 28%. FTC reduces double taxation.

Watch-outs for India expats

⚠

FEMA compliance: Foreign Exchange Management Act — Indian nationals moving abroad must comply with FEMA regulations for maintaining NRE/NRO accounts and remitting funds.

⚠

EPF withdrawal: Taxable in India on withdrawal for NRIs above certain thresholds. Portugal also taxes as Cat. H. Plan timing carefully.

⚠

NRI bank accounts: Maintain NRE (Non-Resident External) accounts for foreign remittances. NRO (Non-Resident Ordinary) accounts for Indian-source income. Interest on NRE accounts is exempt in India but taxable in Portugal.

Recommended regimes

IFICI (highly relevant for Indian tech workers in Portugal)
Standard IRS

IFICI regime

20% flat rate for qualifying professionals

→

NHR Legacy

For existing holders before Jan 2024

→

Model your Portugal IRS

Use the free calculator to estimate your IRS under different regimes — enter your income types, select a regime, and compare scenarios instantly.

Open the Portugal tax calculator →

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