Finland to terminate tax treaty with Portugal, government warns

Finland’s government will notify Portugal on June 14 that it will terminate the 1970 Finland-Portugal tax treaty, the Finnish government today announced.

The Finnish government said the treaty not consistent with Finland’s current tax treaty policy because it restricts Finland’s right to tax private pensions received in Portugal from Finland.

While the two countries signed a new tax treaty fixing the problems in 2016, Portugal has yet to submit the new tax treaty to parliament for consideration.

Meanwhile, Finland’s parliament and the president approved the treaty in December 2016.

If Portugal notifies Finland of its approval of the new treaty before December the new treaty will govern pensions as of 2019; otherwise, no treaty will apply.