Portugal and Spain recently signed agreements aimed at developing and strengthening mutual assistance in tax matters, and at permitting a direct exchange of tax information between the two countries. This is important as part of the worldwide initiative to combat tax evasion and also because of specific regional concerns such as the problem of tax evasion by cross-border workers.
The accords are intended to ensure “closer and more effective cooperation” between the tax authorities of Portugal and Spain, intensifying the “automatic and spontaneous” exchange of information in order to uncover various types of prevalent tax evasion.
Furthermore, the agreements aim to clamp down on tax fraud involving the fictitious location of companies in Spain with Portuguese partners and directors.
