The Double Taxation Treaty (DTT) between Portugal and Switzerland guarantees three essential benefits for those who receive income from both countries:

1️⃣ Elimination of double taxation

The treaty prevents the same income from being taxed in full in both countries. Portugal applies:

• Tax credit (deduction of tax paid in Switzerland)

• or Exemption with progressivity (excludes income, but considers it for the rate)

This ensures fiscal neutrality and avoids penalties.

2️⃣ Clear rules by type of income

DTT objectively defines:

• where AVS/AHV pensions, 2nd and 3rd pillar are taxed

• when wages are taxed in Switzerland or Portugal

• Withholding Limits for Dividends, Interest, and Royalties

• Switzerland's exclusive taxation for real estate situated there

This predictability reduces fiscal risk and facilitates planning.

3️⃣ Reduction of withholding taxes

The treaty imposes maximum rates that Switzerland can automatically withhold on:

• Dividends

• Interest

• Royalties

The result: more net income and a lower anticipated tax burden.

Summary

DTT offers protection, predictability and tax efficiency for residents in Portugal with Swiss income – especially pensions, salaries and investments.

⚖️ Important Note

This information is of a general nature and does not dispense with the consultation of a tax expert or the competent tax authorities, since each situation may have particularities that alter the applicable framework.