Finland has signed a bilateral agreement allowing it to impose taxes on private-sector pensions paid to its citizens living in Portugal, reports Talouselämä.
“I am very pleased with the contents of the tax agreement signed today,” Petteri Orpo (NCP), the Minister of Finance, comments in a press release after signing the agreement with his counterpart from Portugal, Mário Centano, on Monday.
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“The new agreement will allow for the taxation of pensions paid to Portugal under the tax conventions of Finland,” he adds.
Finland is currently only able to impose taxes on pensions paid to former public-sector employees living in Portugal. The agreement would thereby expand the authority of the country to tax pensions paid to people living in Portugal, if it receives the necessary approval from both the Finnish and the Portuguese Parliament.
The issue came to the fore after it was reported that a number of retired business executives have moved from Finland to Portugal in pursuit of more favourable tax treatment.
Aleksi Teivainen – HT
Photo: Roni Rekomaa – Lehtikuva
Source: Uusi Suomi