Does Portugal have a Double Taxation Treaty with Spain?

Yes, Portugal and Spain have a Double Taxation Treaty (DTT) signed in 1993. This treaty prevents most double taxation by allocating taxing rights between the two countries and allowing foreign tax credits.

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Spain Expats in Portugal — Tax Guide 2026

By Taxpert Editorial · Last reviewed: 26 April 2026

Spain and Portugal share the Iberian Peninsula and a long-standing DTT (1993). Many Spanish nationals and former residents of Spain (including non-Spaniards who lived in Spain) move to Portugal. Key considerations include the interaction of Spain's Beckham Law (similar to IFICI) with Portuguese tax, Hacienda's aggressiveness on residency claims, and the tax treatment of Spanish property for Portuguese residents.

Double Taxation Treaty: Yes (1993)
Tax relief mechanism: Treaty FTC

Key facts

Spain-Portugal DTT signed 1993
Spain's Hacienda applies a 183-day rule and 'center of economic interests' test — may conflict with Portuguese residency
Spain's Beckham Law (Ley Beckham) — similar to IFICI — cannot be combined with Portuguese IFICI
Spanish property rental: Taxed in Spain (source) and reportable in Portugal (FTC applied)
Spanish pension (pensión de jubilación): Treaty allocates to Portugal as residence state
Spanish withheld taxes: Hacienda withholds at source on Spanish-source income

Income type treatment

Employment

Spanish-source employment (remote): Spain taxes under Article 15. Portugal taxes worldwide; FTC for Spanish tax.

Pension

Spanish state pension: Portugal primary taxing right. Spanish withholding at IRNR (non-resident) rate. FTC applies.

Dividends

Spanish dividends: Spain withholds 19%–23% (non-resident rate from treaty reduces to 15%). Portugal 28%. FTC.

Rental income

Spanish rental income: Spain taxes at IRNR (non-resident rate, 19% for EU residents). Portugal as Cat. F; FTC.

Capital gains

Spanish real estate: Spain taxes gains. Portugal 28% on same gain. FTC reduces double taxation. Spanish shares: Portugal 28%; Spain IRNR 19%; FTC applies.

Watch-outs for Spain expats

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Spanish residency tenacity: Hacienda is known for challenging claimed departures from Spain. If you maintain significant economic interests in Spain (business, rental property), Hacienda may claim you remain Spanish-resident — creating a conflict with Portuguese residency.

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Centro de intereses económicos: Spain's secondary residency test — if your 'economic center of interests' (where you earn most income or have most assets) is in Spain, Spain may claim residency even if you're physically based in Portugal.

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Cross-border workers: If you live in Portugal near the Spanish border and work in Spain, specific frontier worker provisions in the treaty apply.

Recommended regimes

IFICI (for qualifying professionals earning Portugal-source income)
Standard IRS (for most scenarios)

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 Spain and Portugal change frequently. Always consult a qualified tax advisor with expertise in both Spain and Portuguese tax law before making tax decisions.