From now on, in 2022, the Swedish tax authorities will be able to charge income tax to retirees who receive a pension paid by Sweden and who reside in Portugal.
In a notice published in Diário da República on February 1, 2022, the Portuguese Ministry of Foreign Affairs confirms that Sweden communicated on 16 June, 2021 that it denounced the bilateral convention aimed at “avoiding double taxation and preventing tax evasion in the field of income taxes”, signed in Helsinborg on 29 August 2002.
The Swedish parliament voted in favour of the denunciation of the tax treaty it had with Portugal last year. The tax agreement ended on 31 December, 2021, which means that from 1 January, 2022, Sweden can levy tax on pensions paid by Sweden to residents of Portugal.
The proposal was sent by the Swedish Government to the country's parliament, with the aim of denouncing the convention to avoid double taxation with Portugal, and the Portuguese Government was informed of this step. At the origin of this Swedish Government bill is the fact that until now, Portugal has not ratified the protocol of the double taxation agreement signed by the two countries in May 2019.
“We waited a long time. We made an agreement in 2019. We waited two years and our patience has ended”, explained Magdalena Andersson, then Minister of Finance, in an interview with Público newspaper.
Portugal is dragging its feet. Finland gave notice to Portugal five years for the same thing. Governments negotiated an agreement in 2018. Finland signed but Portugal has not yet - four years later. Why? Portugal, which is best at almost everything.
By Jan Lindroos from Algarve on 04 Feb 2022, 13:45
PortugalNews!
Swedes who have retired in Portugal pay only 0% (10% after 20210101) on Swedish private pensions from private companies !!!!
On ALL other pensions we pay 25% in tax.
As you write in your article, you say that it´s 0% on all pensions, which is WRONG!
By Hans Gren from Other on 05 Feb 2022, 09:48
After having read your article called Sweden´s patience is over I note that you have missed one important aspect. Swedes living in Portugal but not qualified for the NHR regime will from now be double taxed in both countries with the lack of a valid double taxation agreement. That could be worth some journalistic attention.
By Bengt Forss from Alentejo on 05 Feb 2022, 12:27