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On 2nd September 2010 through the Decree nr. 91/2010, the President of the Republic ratified the Convention between the Portuguese Republic and the Republic of Moldova for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.
Our purpose is to inform you about this convention and its particularities, which increases the network of conventions of this nature concluded by Portugal, improving the competitiveness of the International Business Centre of Madeira as well as its capacity to attract foreign investment.
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PORTUGAL CONCLUDES A CONVENTION WITH THE REPUBLIC OF MOLDOVA FOR THE AVOIDANCE OF DOUBLE TAXATION
On 11th February 2009, in Lisbon, the Convention between the Portuguese Republic and the Republic of Moldova for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income was signed. The convention was approved by the Portuguese Parliament on 16th July 2010, through the resolution nr. 106/2010 and ratified by the President of the Republic on 2nd September 2010, through its Decree nr. 91/2010.
With this new convention, Portugal increases its network of conventions for the avoidance of international double taxation. Actually, the conclusion of conventions of this nature, contributes for the competitiveness and capacity to attract foreign investment to Portugal.
From the convention, we can emphasize the limitation to 5% on the taxation of dividends payments, if the beneficial owner of the dividends is a company that owns at least 25% of the capital of the company paying the dividends, and 10% in other cases. Also on royalties, the tax shall not exceed 8%, if the beneficial owner is a resident of a Contracting State.
Under this convention, capital gains earned on the sale of shares shall be taxable only in the Contracting State of residence, as long as more than 50% of its value isn’t from immovable property located in the other Contracting State.
Consult all the conventions concluded by Portugal at:
double taxation agreements
New Madeira, an independent corporate services provider with a vast experience attracting inward foreign investment to Madeira, has provided all professional services related to the evaluation, implementation and management of business-related structures in the International Business Centre of Madeira, since 1990.
Please feel free to consult our website at www.newmadeira.com.
Should you require further clarification on the above or to discuss any other specific structure, do not hesitate to contact us.
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