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Signature of an amendment to the Franco-Portuguese tax treaty.



August 25, 2016, Christian ECKERT, Secretary of State for the french Budget, traveled to Lisbon to sign with his counterpart, Fernando António Portela Rocha de Andrade, an amendment to the tax treaty of 14 January 1971.

This amendment allows two major evolutions consistent with the principles set by the OECD (Organisation for Economic Co-operation and Development).


Avoid Double Taxation

It will first help to resolve difficulties of hundreds of French citizens resident in Portugal who receive public remuneration, in particular the staff of the Agency for French Education Abroad based in Lisbon and Porto . They will now be taxable only in France and will not, as in the past, pay tax in both countries before making a request for avoidance of double taxation.

The text envisage retroactive application to taxable periods starting form 1 January 2013.


Fight against tax evasion and fraud

This amendment also serves to put the bilateral agreement in accordance with the best standards in the fight against tax evasion and fraud.

The agreement will now include an information exchange device updated, a new mechanism of assistance in recovery of taxes, and an anti-abuse clause in accordance with the OECD principles to ensure that treaty benefits be diverted from their objective by fixtures with the exclusive purpose of avoiding tax.


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