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Overview

Australia → Portugal · tax

In plain termsThere is a treaty on paper, but not yet in law. Until it enters into force, relief rides on Australia's Foreign Income Tax Offset — and the Australian exit traps do not wait.

Signed, not yet in force

The AU–Portugal Convention was signed on 30 November 2023 but is not yet in force (yes). So there is no operative Article 4 tie-breaker or reduced rate; relief runs through the domestic FITO (yes). Portugal's own residence door is more than 183 days — read Portugal tax residency.

Australia-side traps — Portugal does not delete them

Filed cells on this page

Evidence and sources6 dated facts for Australia–Portugal tax: treaty signed 2023 but not yet in force — relief runs on the FITO

The readable briefing above uses these cells. Open a source only when you need to verify a number, date, or legal gate.

  • AU–Portugal treaty is signed (30 Nov 2023) but not yet in force
    ATO 'Countries and jurisdictions that have a tax treaty with Australia' (Attachment A, published 29 May 2025) lists Portugal as 'not yet entered into force'; Treasury media release — the Convention between Australia and the Portuguese Republic was signed 30 November 2023 in Lisbon and will apply only after both countries exchange instruments of ratification
    yeschecked Aug 2026
  • No treaty tie-breaker or reduced rates yet — relief is via the domestic FITO
    Because the signed AU–Portugal Convention is not yet in force, there is no operative Article 4 tie-breaker or reduced withholding rates yet; until entry into force, double-tax relief for an Australian resident runs through the domestic Foreign Income Tax Offset (FITO), not the treaty
    yeschecked Aug 2026
  • Australia has a statutory 183-day-style residency test
    ITAA 1936 s 6(1)(a)(ii) — more than one-half of the year of income
    yeschecked Aug 2026
  • Ceasing AU tax residency triggers CGT event I1 (deemed disposal)
    ITAA 1997 s 104-160; ATO QC66059 How changing residency affects CGT
    yeschecked Aug 2026
  • DASP excludes Australian citizens and permanent residents
    ATO DASP eligibility — not an Australian or New Zealand citizen, or a permanent resident
    yeschecked Aug 2026
  • AWLR years for full portable Age Pension rate (from 2014)
    DSS Social Security Guide 7.1.1.10 — AWLR 35 years from 1 July 2014
    35 yearschecked Aug 2026

Common questions

Is there an Australia–Portugal tax treaty?

One is signed but not yet in force. Australia and Portugal signed the Convention on 30 November 2023 in Lisbon, and the ATO's treaty list still marks Portugal as 'not yet entered into force'. It applies only after both countries exchange instruments of ratification.

So how is double tax relieved right now?

Through Australia's domestic Foreign Income Tax Offset (FITO) for Portuguese tax you actually pay — not through the treaty. Until entry into force there is no Article 4 tie-breaker and no reduced treaty withholding rates.

Does moving to Portugal switch off Australian tax traps?

No. Ceasing Australian residency can trigger CGT event I1 (a deemed disposal); DASP excludes Australian citizens and permanent residents; and Age Pension portability still follows the 35-year AWLR rule. These are domestic and do not wait for a treaty.

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