Finland has signed an income tax treaty with Portugal for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. The treaty was signed on 7 November 2016 in Brussels. The new treaty will be replaced by the existing Finland – Portugal Income and Capital Tax Treaty (1970) when it will in force and effective.
Under the treaty, the following withholding taxes will apply:
- 15% on dividends in general; 5% of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) which holds directly at least 10% of the capital of the company paying the dividends.
- 10% on interest, subject to exceptions; and 5% on royalties
