Portugal signs double taxation agreement with UK

  • 29 September, 25

Portugal and the United Kingdom have signed two bilateral agreements on double taxation and the exchange of privileged or confidential information, Foreign Minister Paulo Rangel revealed today in London.

The formalisation took place during a meeting with her British counterpart, Yvette Cooper, who took office about 10 days ago, succeeding David Lammy, who became Deputy Prime Minister after a reshuffle in Keir Starmer’s government.

“We have two agreements, one on the exchange of privileged or confidential information, but the main one is the double taxation agreement, which had not yet been revised after Brexit [2020] and which is very important for the Portuguese living in the United Kingdom, for the British living in Portugal, and for companies, to promote investment,” Rangel told reporters.

The minister explained that, after the United Kingdom’s exit from the European Union, the need to change the rules regarding double taxation “with great urgency” was identified.

The negotiations were conducted throughout this year.

“It’s a significant improvement, an improvement in the situation of British citizens in Portugal, of Portuguese citizens in the United Kingdom, and also of companies. It’s a very important thing for investment. It’s undoubtedly an important step,” he assured.

Rangel highlighted the “symbolic value” of being the first foreign minister to be received in London by Yvette Cooper, something that reflects the oldest international alliance in force.

Anglo-Portuguese relations are ancient, but the diplomatic alliance was established by the Treaty of Tagilde (1372), confirmed by the Treaty of Peace and Alliance the following year, and reinforced in 1386 by the Treaty of Windsor.

After Brexit, Portuguese Prime Minister António Costa was received in London in 2022 by his then-counterpart Boris Johnson, and the two signed a “Joint Declaration on Bilateral Cooperation between Portugal and the United Kingdom.”

The document covers the areas of foreign policy, cooperation, research, environment, security, defense, science, investment, trade, research, education, and the protection of Portuguese residents in the United Kingdom and British residents in Portugal.

The declaration defines the framework for Portuguese-British bilateral relations after Brexit, although a large number of areas continue to be regulated within the framework of EU-UK relations.

Cre: theportugalnews

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