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Foreign Tax Credit (DTT)

By Taxpert Editorial · Last reviewed: 26 April 2026

Legal basis: Art. 81 CIRS
Benefit key: foreignTaxCredit

What it does

Where a double-taxation treaty applies, foreign tax already withheld on foreign-source income may be credited against the Portuguese IRS due on the same income — capped at the Portuguese tax that would otherwise apply.

When this saves money

For investors with significant foreign-source dividends, interest, or salary where the source country has already withheld tax. Without this credit you would be taxed twice on the same income.

Foreign tax credit in the glossary
Definition and how the credit is computed.
Double Taxation Treaty (DTT)
How treaties allocate taxing rights.
Expat tax guide
How foreign tax credits fit expat returns.
US expats in Portugal
FTC mechanics under the US–PT treaty.

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Foreign Tax Credit (DTT)

What it does

When this saves money

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