Portugal: Termination of Double Taxation Treaty with Sweden
The Double Taxation Treaty (DTT) between Portugal and Sweden was terminated by Sweden on 2 June 2021 and ceased to have effect on 1 January 2022.
No confirmation has yet been officially published by Portugal. If confirmed, the DTT benefits will no longer apply and only the provisions of Portuguese domestic law will be applicable to Swedish residents receiving income from Portuguese securities.
For customers of Clearstream Banking Luxembourg (CBL), the main impact is the non-application of the full exemption on bonds distributions to Swedish residents that will no longer be considered as eligible as no more a resident of a DTT or Tax Information Exchange Agreements (TIEA) country.
We continue to monitor the Portuguese market for new developments and will provide more information as it becomes available.
This Taxflash is intended to provide customers with general information gathered from different sources that are generally believed to be reliable. Clearstream Banking S.A. does not guarantee the accuracy or completeness of the information and does not undertake to keep it up to date. Use of the information made available in this Taxflash is at the customer’s own risk and Clearstream Banking S.A. its subsidiaries and affiliates expressly disclaim any liability for any errors or omissions