# Australian expat tax in Portugal [Moving to Portugal](/moving-to-portugal/) Guide Updated 8 October 2026 Law as at 15 June 2026 4 min read Signed by our advisers · 4.7 on Google, 43 reviews Under the ordinary rules, Portugal taxes a periodic Australian super pension paid to a resident of Portugal even when it is tax-free in Australia, because residents are taxed on worldwide income. Until the Australia-Portugal convention signed on 30 November 2023 takes effect, Portugal relieves any Australian tax on that income only by a credit capped at the Portuguese tax attributable to it. Before moving, establish your Australian departure date, your Portuguese residence start date and the treatment of each asset or pension payment. These dates need not coincide. Next step **Moving to Portugal, or already here with income from abroad?** Before the move, we assess your Portuguese tax position and work with your adviser abroad; once you live here, we prepare and file your Portuguese return. [Your annual return](/services/annual-portugal-tax-return-expats/) ## What changes when you move from Australia to Portugal Australia and Portugal signed their first income-tax treaty on 30 November 2023. Signature, entry into force and the date a provision applies to a particular tax are separate steps. A treaty rate should be used only once the relevant provision applies to the payment or tax year. ## Check the treaty’s effective date for your payment The Australian Treasury announcement confirms signature on 30 November 2023. Before using a reduced withholding rate, pension allocation or residence tie-breaker, check the Treasury treaty-status register and the treaty’s commencement article for the relevant tax. Where a treaty provision is not yet effective, domestic law and any available unilateral relief govern that item. Where it is effective, apply its allocation and relief provisions alongside domestic law. ## Ceasing Australian residency and the capital-gains exit charge CGT event I1 can deem assets within its scope to be disposed of at market value when Australian tax residence ends. Exclusions go beyond Australian real property and include specified permanent-establishment assets and related rights or options. Temporary-resident and pre-CGT rules also require checking. An eligible individual may choose to disregard all relevant I1 gains and losses, with the affected assets treated as taxable Australian property until disposal or a return to Australian residence. The event itself still occurs when residence ends. Discount and rate consequences depend on acquisition date, residence periods, and asset type. ## Superannuation: tax-free in Australia does not mean tax-free in Portugal Australian super concessions do not bind Portugal. Portuguese treatment of each payment depends on whether it is pension income, capital, or another category, so progressive pension taxation is not automatic for every payment. Lump sums are treated differently and can remain taxable in Australia, and a lump sum with an untaxed element (typically from a government or public-sector fund) can be taxed in Australia even after 60. ## Australian dividends, property, and withholding Franked dividends carry credits for company tax already paid; those franking credits are not refundable or usable by non-residents, and a fully franked dividend generally suffers no further Australian withholding, but an Australian concession does not establish a Portuguese exemption. Where Portugal taxes the dividend, any credit for eligible Australian tax is subject to Portuguese and treaty limits and cannot exceed the Portuguese tax attributable to the dividend. Unfranked dividends suffer Australian withholding under the applicable domestic rules unless an effective treaty provision reduces it. Australian real estate can remain taxable in Australia after the move. For covered contracts from 1 January 2025, foreign-resident capital-gains withholding is generally 15% of the price or relevant market value, subject to an approved variation. Claim the withholding as a credit in the Australian return; only an excess over assessed tax is refundable. A clearance certificate is for an Australian-resident seller, while a non-resident should check the variation process. ## Coordinating the ATO and Finanças Australia runs a July-to-June tax year while Portugal uses the calendar year, which complicates the timing of foreign-tax credits in both directions. An Australian return may still be required for rental income, taxable disposals or other assessable Australian income. Holding shares or super does not by itself establish a filing obligation; some dividend withholding is final. ## Frequently asked questions ### Is there a tax treaty between Australia and Portugal? Australia and Portugal signed an income-tax treaty on 30 November 2023. Domestic law and available unilateral relief apply until the relevant treaty provision is effective. ### Do I pay tax when I cease Australian residency? Possibly. CGT event I1 can apply at market value when Australian tax residence ends, subject to asset exclusions and temporary-resident and pre-CGT rules. An eligible individual can choose to disregard all relevant I1 gains and losses, retaining the affected assets in the Australian CGT net. ### Is my Australian super taxed in Portugal? Australian tax concessions do not automatically carry over to Portugal. A periodic payment classified as pension income is normally subject to the Portuguese pension rules, while lump sums, contributions and untaxed elements need separate classification. ### Does IFICI cover my Australian super pension? No. IFICI, the regime that replaced NHR, does not exempt pensions. A periodic Australian super pension or other pension that Portugal taxes is taxed at normal Portuguese rates. Lump sums and untaxed public-sector elements can be different. ### Are my franked dividends taxed in Portugal? Australian franking credits do not create a Portuguese exemption. Where Portugal taxes the dividend, only eligible Australian tax actually paid can support a foreign-tax credit, subject to Portuguese and applicable treaty limits and the Portuguese tax attributable to that income. This guide is by **[Telmo Ramos](/about/)**, our founder, an economist and member no. 16379 of the Ordem dos Economistas. ## Related guides - Guide · Law as at 19 October 2026 ### [How Portugal taxes foreign pensions in 2026](/guides/portugal-pension-tax-guide/) Portugal taxes a resident's foreign pension as Category H income at the progressive IRS rates, after the standard specific deduction of EUR 4,587.09 per recipient in 2026. - Guide · Law as at 19 October 2026 ### [Foreign income in Portugal: Anexo J step by step](/guides/portugal-foreign-income-tax/) A Portuguese tax resident is taxed on worldwide income, including income obtained abroad. - Guide · Law as at 13 June 2026 ### [Moving to Portugal: tax checklist for 2026](/guides/moving-to-portugal-tax-checklist/) Plan the tax steps before and after a move to Portugal: home-country departure, tax residence, NIF, income records, IFICI and your first return. ## Tell us about your situation For people living in Portugal with ties to Australia: we answer your questions, prepare your Portuguese return with your income from Australia and work with your adviser there. We reply within 2 working days with the right service, its price and how to start. ## Tax Consultation A 30-minute call with your adviser, then a follow-up memo within 3 working days after the call. [Book a Tax Consultation](/book/) --- Source: https://taxbordr.com/guides/australian-expat-tax-portugal/ General guidance only. Individual facts govern.