Portugal–France tax treaty in English
Convention between Portugal and France for the Avoidance of Double Taxation and the Establishment of Rules of Reciprocal Administrative Assistance with respect to Taxes on Income. Article by article, in English, with the Portuguese alongside: 215 aligned provisions.
Signature, entry into force and texts
- Signed
- 14 January 1971, Paris
- Approved by
- Decreto-Lei n.º 105/71, de 26 de Março (Diário do Governo, I série, n.º 72, 26 March 1971), approving the Convention for ratification; French approval by loi n° 72-534 of 30 June 1972
- In force
- 18 November 1972
- Takes effect
- Taxes due at source: chargeable events on or after 1 January 1973; other taxes: income of calendar year 1973 and financial years ending in 1973 (Art. 32(2)); Article 8 (shipping and air transport) from income of 1963 (Art. 32(3)).
- Authentic languages
- Portuguese, French
- Amending protocol
- 25 August 2016, Lisbon: Replaced Article 2(1) and (3) (taxes covered), Article 3(1)(f) (competent authority), Article 20 (government service) and Article 27 (exchange of information); added Article 27 bis (assistance in collection) and Article 31 bis (anti-abuse). Applies in Portugal from 1 January 2018 (Article 20 from taxable periods beginning on or after 1 January 2013; Article 27 from years or periods beginning on or after 1 January 2018). Merged into the articles concerned. (in force 1 December 2017 (Aviso n.º 143/2017, de 14 de Dezembro))
- English text
- Our translation of the Portuguese text, reviewed by a second tax translator
Treaty rates for dividends, interest and royalties
The maximum tax the State where the income arises may charge when the beneficial owner is resident in the other State. The article reference opens the provision.
| Income | Rate | Condition | Article |
|---|---|---|---|
| Dividends | 15% | All dividends (gross amount); no reduced rate for substantial holdings | 11(2) |
| Dividends | 15% | Tax on distributions of profits by a permanent establishment of a company resident in the other State (branch levy), by reference to Article 11(2) | 10(1) |
| Interest | 12% | General limit (amount of interest) | 12(2) |
| Interest | 10% | Interest on bonds issued in France after 1 January 1965 | 12(2) |
| Royalties | 5% | Gross amount of royalties (definition includes equipment rentals) | 13(2) |
Treaty rates are maxima; domestic law may be more favourable. Between France and Portugal, intra-group dividends and interest/royalties may be exempt from withholding tax under the EU Parent-Subsidiary and Interest and Royalties Directives as implemented domestically (e.g. Portugal: Article 14(3) and 14(12) CIRC; France: Article 119 ter CGI for dividends), subject to holding-period and anti-abuse conditions. The MLI does not apply Article 8 (dividend holding period) to this Convention; the principal purpose test (Art. 31 bis(2) as replaced by MLI Art. 7(1)) applies to all treaty benefits, and under Art. 31 bis(1) benefits may be denied where the recipient is not the beneficial owner and the arrangement gives the beneficial owner a lower tax burden than if it had derived the income directly. Unlike Articles 11(2) and 13(2), Article 12(2) refers to the amount of interest without the word “gross”. Rates confirmed by the AT Quadro resumo das convenções 2026 (Art. 11: 15%; Art. 12: 10% for bonds issued in France after 1-1-1965 / 12%; Art. 13: 5%).
To apply a treaty rate at source in Portugal, the recipient gives the Portuguese payer a form certified by its own tax authority before the tax is due (Article 98 CIRC); otherwise the excess tax can be reclaimed afterwards.
Has the MLI changed this treaty?
The Convention is a Covered Tax Agreement for both France and Portugal and is modified by the MLI as shown in the synthesised text published by the French Direction générale des Finances publiques (reflecting France’s positions deposited on 26 September 2018 and Portugal’s on 28 February 2020). The MLI adds the anti-abuse preamble, replaces the main-purpose rule in Article 31 bis(2) with the principal purpose test, introduces the 365-day/50% real-estate-rich company rule in Article 14(1), the anti-fragmentation rule and closely-related-person definition in Article 5, corresponding adjustments in Article 9, the MLI mutual agreement procedure standards in Article 26 (three-year time limit) and mandatory binding arbitration under Part VI, subject to both States’ reservations. Articles 4 (dual-resident entities), 5 (methods), 8 (dividend transfer transactions), 12 (commissionnaire arrangements) and 14 (splitting-up of contracts) of the MLI do not modify the Convention. Portugal’s Tax and Customs Authority summary table does not reproduce MLI changes; no Portuguese synthesised text was located.
- From when
- MLI in force for France on 1 January 2019 and for Portugal on 1 June 2020; effective for this Convention for taxes withheld at source where the chargeable event occurs on or after 1 January 2021, for other taxes for taxable periods beginning on or after 1 December 2020, and for arbitration for cases presented on or after 1 June 2020.
- Provisions applied
- Art. 6(1)-(2) (preamble)
- Art. 7(1) (principal purpose test, replacing Art. 31 bis(2))
- Art. 9(4) (real-estate-rich entities, replacing the third sentence of Art. 14(1))
- Art. 13(4) (anti-fragmentation, Art. 5(3))
- Art. 15(1) (closely related person, Art. 5)
- Art. 16 (MAP: 3-year time limit, implementation notwithstanding domestic time limits, interpretation difficulties, Art. 26)
- Art. 17(1) (corresponding adjustments, Art. 9)
- Part VI, Arts. 18-26 (mandatory binding arbitration), with reservations under Art. 28(2)
Every article of the treaty
How this edition is made
The Portuguese text
Reproduced from the official publication and compared line by line with it. Where a protocol replaced or added a provision, the article shows the wording in force and a note names the protocol.
The English text
Our translation of the Portuguese, in the wording of the OECD Model Tax Convention wherever the treaty follows it, checked by a second tax translator against the Portuguese and the partner State’s authentic text for rates, conditions and cross-references.
What it is not
Not tax advice. Whether a treaty rate applies depends on residence, beneficial ownership, anti-abuse rules and the paperwork; domestic law may give a better result.
Unofficial English translation prepared by BCA Portugal for reference. The Convention was done in Portuguese and French and only those texts are authentic. The Portuguese text is reproduced from the official publication. Editorial notes are ours and are not part of the Convention.
Treaty relief between Portugal and France, claimed correctly
Treaty rates are not automatic in Portugal: the recipient must give the payer a form certified by its own tax authority before the tax is due, or claim a refund afterwards. We check which article applies, the rate and the paperwork.