LISBON:Emigrated Finns in Portugal may lose the right to tax-free pensions, perhaps from the beginning of 2017, reported a Finnish language daily Helsingin Sanomat.
The Ministry of Finance plans to increase the tax of Finns living in Portugal to the same amount as those living in Finland. All Finnish residents in Portugal should be taxed regardless of the time of migration. Finland has, however, negotiated with the Portuguese on the 1970’s tax treaty for a long time.
“Although Portugal granted a ten-year tax exemption in Portugal, it appears that Finland no longer has the right to tax those emigrating from here,” said government advisor Antero Toivainen to the Ministry of Finance magazine.
If Portugal begins to slow down agreement renewals, the Finnish Parliament may just terminate the contract unilaterally.
