Australia and Portugal have signed a new tax treaty, which following its entry into force, will represent the first tax treaty between the two nations.
The new tax treaty, the Convention between Australia and the Portuguese Republic for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance and its associated Protocol was signed on 30 November 2023 in Lisbon, Portugal by Her Excellency Indra McCormick, Australia’s Ambassador to Portugal.
A tax treaty with Portugal will encourage cross‑border trade and investment by reducing withholding tax rates on dividends, interest, and royalties. This will create new opportunities for Australian business by making it cheaper for Australian businesses to access Portuguese capital and technology. The treaty will also provide more certainty and reduced compliance costs for Australians and Australian businesses who earn income here and in Portugal.