Tax treaty · signed 1980

Portugal–Germany tax treaty in English (official text)

Convention between the Portuguese Republic and the Federal Republic of Germany for the Avoidance of Double Taxation with respect to Taxes on Income and on Capital. Article by article, in the authentic English text, with the Portuguese alongside: 211 aligned provisions.

Withholding ratesDividends: Article 10
English, Portuguese or side by side31 articles and the protocolFree, no sign-up
Maximum tax at source
Dividendsno reduced rate for holdings15%
Interest10%: bank loans; 0%: central banks10% · 15%
Royaltiesbeneficial owner resident in the other State10%
Multilateral Instrument (MLI): not yet in effect: Germany’s listing of Portugal is pending. Without the treaty, Portugal taxes these payments to non-resident companies at 25% (Article 87(4) CIRC).
Key facts

Signature, entry into force and texts

Signed
15 July 1980, Lisbon
Approved by
Lei n.º 12/82, de 3 de Junho (Diário da República n.º 126/1982, Série I, de 1982-06-03), approved for ratification; Assembleia da República 1982-01-28, promulgated 1982-04-13
In force
8 October 1982
Takes effect
Taxes withheld at source: income arising after 31 December 1982; other taxes: income and capital from calendar year 1983. Articles 8, 13(3) and 23(3) apply retroactively (Protocol, paragraph 9: the Portuguese text says from 1 February 1970, the English and German texts from 1 January 1970).
Authentic languages
Portuguese, German, English; the English text prevails if the Portuguese and German texts are interpreted differently
English text
Authentic, reproduced from the Diário da República publication (Law No. 12/82), checked against the print in Bundestag paper 9/897
Withholding tax

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.

IncomeRateConditionArticle
Dividends15%Beneficial owner resident in the other State (all dividends; no reduced rate for substantial holdings)10(2)
Dividendsdomestic rate (no treaty limit)Income from rights or debt-claims participating in profits (incl. German silent partnership income, partiarische Darlehen, Gewinnobligationen) where deductible for the payerProtocol 4
Interest0%Interest paid to the Banco de Portugal (German-source) or to the Deutsche Bundesbank (Portuguese-source); extendable to similar institutions by mutual agreement11(3)
Interest10%Interest on loans of any kind granted by a bank; for Portuguese-source interest only if the Portuguese Government considers the financed operation of economic or social interest (PT text: 'económico e social') - always met if within approved development plans11(2)(a)
Interest15%All other interest (beneficial owner)11(2)(b)
Interestdomestic rate (no treaty limit)Interest on profit-participating debt-claims deductible for the payerProtocol 4
Royalties10%Beneficial owner; includes payments for the use of industrial, commercial or scientific equipment12(2)

Treaty rates are maximum source-State rates on the gross amount. Under Protocol 5, Articles 10-12 apply in Portugal whether the income is actually paid or only attributed under Portuguese law. Within the EU, domestic implementations of the Parent-Subsidiary Directive (Portugal: art. 14 CIRC; Germany: § 43b EStG) and the Interest and Royalties Directive (Portugal: art. 14 CIRC; Germany: § 50g EStG) can give 0% withholding between qualifying associated companies, which beats the treaty rates. Germany withholds its full domestic rate and refunds the excess over the treaty rate through the Bundeszentralamt für Steuern. Germany credits Portuguese tax on dividends, interest and royalties at a deemed 15% (Art. 24(2)(c)); for income caught by the activity clause in Protocol 8(a) the deemed credit does not apply. The MLI does not yet apply (Germany's listing of the treaty is not yet effective; no PPT).

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.

Multilateral Instrument

Has the MLI changed this treaty?

Not modified by the MLI at present. Portugal (MLI in force for Portugal from 1 June 2020) lists the Convention with Germany as a Covered Tax Agreement. Germany's 2020 instrument listed only 14 treaties and not Portugal (OECD Sixth Peer Review Report on Treaty Shopping, 2024). Germany's Act of 1 June 2026 amending its MLI Act (BGBl. 2026 II Nr. 108, published 5 June 2026) adds further treaties to Germany's list of Covered Tax Agreements, including the Convention with Portugal (list no. 58). Listed by Portugal; Germany's listing is enacted domestically but not yet effective: the OECD list of MLI signatories and parties (status as of 15 September 2026) shows no notification by Germany after 1 June 2025, and the MLI modifies the Convention only after Germany notifies the Depositary of the extended list and of completion of its internal procedures for this treaty (MLI Art. 35(7)). No effective date can be given yet. Once effective, at least the BEPS minimum standard (preamble, Art. 6; principal purpose test, Art. 7; MAP, Art. 16) is expected to apply.

From when
Not applicable.
Contents

Every article of the treaty

  • PreTitle and preambleTítulo e preâmbulo
    • Chapter I · Scope of the ConventionÂmbito da aplicação da Convenção
    1. 1Personal scopePessoas visadas
    2. 2Taxes coveredImpostos visados
    Chapter IV · Taxation of capitalTributação do capital
    1. 23CapitalCapital
    Chapter V · Relief from double taxationEliminação da dupla tributação
    1. 24MethodsMétodos
    Chapter VII · Final provisionsDisposição finais
    1. 30Entry into forceEntrada em vigor
    2. 31TerminationDenúncia
    Sources and method

    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

    An authentic text of the Convention, copied from the Diário da República publication (Law No. 12/82), checked against the print in Bundestag paper 9/897 and aligned with the Portuguese paragraph by paragraph. Obvious printing errors are corrected only where another authentic text confirms the reading, and each correction is noted.

    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.

    The English column is an authentic text of the Convention, reproduced from the Diário da República publication (Law No. 12/82), checked against the print in Bundestag paper 9/897. The Convention was done in Portuguese, German and English, each text being authentic; the English text prevails if the Portuguese and German texts are interpreted differently. The Portuguese text is reproduced from the official publication. Editorial notes are ours and are not part of the Convention.

    Applying the law

    Treaty relief between Portugal and Germany, 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.

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