HELSINKI: The tax arrangement between Finland and Portugal could be terminated if a consensus is not reached on its amendment, Finance Minister Alexander Stubb said on Friday.
Stubb held a discussion with his Portuguese counterpart Maria Luis Albuquerque on amending the tax treaty between the two nations. According to the tax treaty, Finland cannot levy taxes on payable pensions accumulated in private sector in Portugal leaving the right to levy tax solely on the country of residence.
“The goal is to negotiate on a new tax treaty which no longer presents kind of a tax incentive to move to Portugal,” Stubb said in a statement. Finland aims to conclude the negotiations this year. The current tax arrangement between Finland and Portugal has been effective since 1970.
