The Ministry of Foreign Affairs Portugal received the communication of the termination, by the Kingdom of Sweden, of the Convention between the Portuguese Republic and the Kingdom of Sweden for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income signed in Helsinborg on 29 August 2002.
In accordance with Article 30 of that Convention, the termination will take effect on 1 January 2022
A major tax impact on the NHR – non habitual residents will definitely be felt, especially with Swedish pensioners who benefited from an exemption of the taxation or a 10% tax rate in Portugal for pensions.
Sweden has also made a similar choice by terminating the double tax agreement with Greece as well.
We will now start to consider and feel the consequences in terms of taxes between the two countries since there are not only pensioners in Portugal we also have commercial arrangements between the two countries that will be impacted. These agreements are essential to the good function of a modern society where investments are made abroad and we have mobility for people.