The double taxation treaty between France and Portugal

The double taxation treaty between France and Portugal was created to prevent citizens from paying taxes twice on the same income, once in the country of origin and once in the country of residence. This tax treaty was initially signed in 1971 and recast in 2017.

🧾 How does the convention work?
If a French pensioner lives in Portugal and receives a pension from France, he will not have to pay tax twice on that income.

The tax is usually paid in the country of origin of the pension (France), and Portugal recognizes this payment, avoiding new taxation.

France grants the beneficiary a tax credit corresponding to the tax paid in Portugal, if applicable.

📌 How to activate the convention?
It is necessary to fill out the Form Model 21-RFI, available on the Finance Portal.

This form allows you to request a total or partial exemption from the withholding tax of Portuguese tax.

📉 Taxes covered by the convention
In France:

Income tax (impôt sur le revenu)

Corporate tax (impôt sur les sociétés)

Social contributions (CSG, CRDS)

Withholding Taxes

In Portugal:
Personal Income Tax (IRS)

⚠️ Attention to exceptions
French civil servants may be subject to different rules. Taxation can vary depending on the type of income and residence status.

🧮 Simulation 1: General Regime Pension (CNAV)

Profile: French retiree who receives a pension from the CNAV (Caisse Nationale d'Assurance Vieillesse) and resides permanently in Portugal.

• Taxation in France: Yes, the pension is taxed at source.

• Taxation in Portugal: No, as long as the pensioner does not have habitual resident status and the convention is applied.

• Solution: Fill out the 21-RFI template to avoid double taxation.

• Result: The tax is paid only in France, and Portugal recognizes this payment.

🧮 Simulation 2: Private Supplementary Pension (e.g. AGIRC-ARRCO)

Profile: Pensioner who receives a supplementary pension from a French private fund and lives in Portugal.

• Taxation in France: Yes, with withholding tax.

• Taxation in Portugal: It can be taxed at 10% if the retiree has the status of non-habitual resident (NHR).

• Solution: Apply for NHR status and apply the convention.

• Result: Reduced taxation in Portugal, with possible tax credit in France.

🧮 Simulation 3: French Civil Servant

Profile: Retired from the French civil service (e.g. teacher, military) who moves to Portugal.

• Taxation in France: Yes, mandatory.

• Taxation in Portugal: No, the convention confers the exclusive right of taxation on France.

• Solution: No action required, but there is no tax benefit in Portugal.

• Result: Pension taxed only in France, with no possibility of exemption in Portugal.

🧮 Simulation 4: Retiree with Non-Habitual Resident (NHR) Status

Profile: Retired person who obtained NHR status before 2020.

• Taxation in France: Yes, depending on the type of pension.

• Taxation in Portugal: Total exemption for 10 years (old regime).

• Solution: Maintain tax residence in Portugal and comply with NHR requirements.

• Result: Maximum tax benefit, but no longer available to new residents.

🧮 Simulation 5: Retired with NHR Status after 2020

Profile: Retired person who obtained NHR status after the 2020 tax reform.

• Taxation in France: Yes.

• Taxation in Portugal: Fixed rate of 10% on foreign pensions.

• Solution: Apply for NHR status and apply the convention.

• Result: Reduced taxation in Portugal, still advantageous compared to the French system.