DoubleTaxationUnited States – Portugal tax treaty: residence, 183 days, rates
Convention between the Government of the Portuguese Republic and the Government of the United States of America for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, with Protocol, signed at Washington on 6 September 1994 (Portugal: Resolução da Assembleia da República n.º 39/95 of 12 October 1995; Aviso n.º 35/96, DR 09.01.1996)
- Signed: 1994-09-06
- Official text
If both countries treat you as resident
- A dual-resident individual is deemed to be a resident only of the State in which he has a permanent home available to him; if he has a permanent home available in both States, of the State with which his personal and economic relations are closer (centre of vital interests). Art. 4(2)(a) of the Portugal–United States Convention
- Portugal shall treat a United States citizen or an alien admitted to the United States for permanent residence (green-card holder) as a resident of the United States only if he has a substantial presence in the United States, or would be a resident of the United States and not of a third country under the principles of Art. 4(2)(a) and (b). Protocol to the Portugal–United States Convention, para. 3(c) (with reference to Art. 4(1))
- If the State of the centre of vital interests cannot be determined, or if he has no permanent home available in either State, he is deemed to be a resident only of the State in which he has an habitual abode. Art. 4(2)(b) of the Portugal–United States Convention
- If he has an habitual abode in both States or in neither, he is deemed to be a resident only of the State of which he is a national (c); if he is a national of both States or of neither, the competent authorities settle the question by mutual agreement (d). Art. 4(2)(c), (d) of the Portugal–United States Convention
Income: who taxes it
| Income | Treaty rule | Article |
|---|---|---|
| Salary (employment) | The country where the work is done may tax it. Exempt if all apply: no more than 183 days in any 12-month period; the employer is not resident there; the pay is not borne by its permanent establishment there. | Art. 16(2) |
| Self-employment, business, services | Country of residence; the other country taxes profits of a permanent establishment (fixed base) there, or if your stay there reaches 183 days in any 12-month period. | Art. 7; Art. 15(1), Art. 15 |
| Pension | Only the country of residence. | Art. 20(1) |
| State pension (social security) | The source country may tax; the country of residence relieves double taxation. | Art. 20(1) |
| Government service | Usually only the paying country; exception: service in the other country by its national. | Art. 21(1)-(2) |
| Government service pension | Usually only the paying country; exception: service in the other country by its national. | Art. 21(1)-(2) |
| Rent from real estate | The country where the property is located may tax; the country of residence relieves double taxation. | Art. 6(1) |
| Dividends | Source country: at most 15%; the country of residence relieves double taxation. | Art. 10(2) |
| Interest (deposits, bonds, loans) | Source country: at most 10%; the country of residence relieves double taxation. Other rates or exemptions apply in some cases (see the article). | Art. 11(2)-(3) |
| Royalties (copyright, licences) | Source country: at most 10%; the country of residence relieves double taxation. | Art. 13(2) |
| Sale of property or shares | Real estate: the country where it is located may tax. Shares of companies deriving their value mainly (over 50%) from real estate: the same. Other property, including shares: only the country of residence. | Art. 14 |
| Other income | The source country may tax; the country of residence relieves double taxation. | Art. 24(1) |
How double taxation is relieved
- Portugal: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 25(3)(a), (c)
- United States: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 25(1)-(2)
Data checked: 2026-11-10. A short summary for individuals; the full conditions, exceptions and protocols are in the treaty text. General information, not legal advice.