The treaty, signed in September 2025, aims to prevent double taxation and will replace the 1968 Portugal–UK tax agreement.
Portugal’s Council of Ministers approved the ratification of the new income and capital tax treaty with the UK on 11 December 2025.
Portugal and the UK signed an income tax treaty on 15 September 2025. The agreement aims to prevent or reduce double taxation between the two countries. When in force, it will supersede the 1968 Portugal–UK tax treaty.
In Portugal, the agreement will take effect from 1 January of the calendar year after it enters into force. In the UK, it will apply from 1 January following its entry into force for withholding tax, from 1 April for corporate tax, and from 6 April for income tax and capital gains tax.
