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The Portugal–Norway double tax treaty: what Norway keeps, what Portugal takes

Signed in Lisbon on 10 March 2011 and in force since 15 June 2012, the convention replaced a 1970 treaty and, for Norwegian retirees, drew the line the Norwegian tax administration now publishes for Portugal: pensions from private-sector work are taxed here, the basic state pension and public pensions stay Norwegian.

Updated Facts checked against official sources (listed at the end)


Portuguese passport on a desk with business documents

Residence (art. 4)

A person resident in both countries under domestic law — Norway’s three-year emigration rule against Portugal’s 183 days or habitual home — is treaty-resident where the permanent home is, then where personal and economic relations are closer, then where they habitually live, then by nationality. Norway applies the treaty only on a Portuguese certificate of residence stating residence under the treaty; Norwegian appeal rulings denied that status to NHR residents whose Portuguese liability was limited, so ordinary Portuguese residence is the condition for everything below.

  • Art. 18: pensions for past employment taxable only in the residence state
  • Art. 19: public-sector pensions in Norway, unless the pensioner is a Portuguese resident and citizen
  • Art. 22: the basic NIS pension and non-employment pensions — Norway keeps taxing at 15 %, Portugal credits
  • 5 % / 15 % — 10 % — 10 % on dividends, interest, royalties

Pensions: the list

Norwegian incomeArticleNorwayPortugal
Supplementary NIS pension (tilleggspensjon), occupational and company pensions from private-sector employment18exempt on a treaty residence certificatetaxed at the progressive rates after the 4 587 € deduction
Basic NIS pension (grunnpensjon), NIS disability benefits2215 % withholdingtaxed, with credit for the 15 %
Public-sector pensions (state, municipal, KLP/SPK)1915 % — exempt if the pensioner is a Portuguese citizenexempt with progression (taxed here if Portuguese citizen)
Pensions from previous business activity, private pensions not linked to employment, annuities2215 %taxed, with credit
Disability benefits from private occupational schemes18exempttaxed

Skatteetaten issues a tax-exemption card or a reduced-rate card on application; without the certificate, all pensions are taxed at 15 % in Norway and Portugal credits what the treaty allows.

Dividends, interest, royalties (art. 10–12)

Source tax capped at 15 % on dividends (5 % when the beneficial owner is a company holding at least 10 % for twelve months), 10 % on interest and 10 % on royalties. Norway’s domestic 25 % dividend withholding falls to 15 % on a refund claim or at source with a residence certificate; Portugal’s 28 % falls to 15 % on Modelo 21-RFI. The residence state taxes and credits.

Capital gains (art. 13)

Property and property-rich shares where the property is; other gains in the residence state. Norway’s exit tax on latent gains above NOK 3 million (moves from 20 March 2024) is charged before departure and is not removed by the treaty; Portugal taxes the later real sale at 28 % from the original cost.

Employment and business (art. 5, 7, 15)

Salaries where the work is done, with the 183-day exception; a fixed place of business, a building site of more than twelve months or a dependent agent creates a permanent establishment. The convention has a specific article on offshore activities: work on the Norwegian continental shelf for more than 30 days in a year is taxable in Norway.

Relief (art. 23)

Portugal credits Norwegian tax on income the treaty lets Norway tax, up to the Portuguese tax on that income (IRS Code, art. 81.º). Norway credits Portuguese tax on Portuguese-source income of its residents and exempts with progression where the treaty gives Portugal the exclusive right.

Using the treaty

Certificate of residence under the treaty

From Finanças; it must state residence under the Norway–Portugal convention, not merely a Portuguese address.

Exemption or reduced-rate card

Application to Skatteetaten with the certificate and the pension details; renewed when pensions change or you move.

Portuguese return

Annex J: each Norwegian pension under its heading, with the 15 % Norwegian tax on the taxable ones for the credit.

Dividends

Residence certificate to the Norwegian payer or a refund claim; 28 % in Portugal with the 15 % credited.

We obtain the treaty certificate, prepare the Norwegian exemption application with your adviser, and file the Portuguese return with the pensions classified under articles 18, 19 and 22. Ask about your pensions.

Questions

Why does Norway tax the basic pension but not the supplementary one?

Skatteetaten treats the supplementary pension as remuneration for past employment (article 18, residence state only) and the basic pension as other income (article 22), which the convention leaves to Norway as well. Both are declared in Portugal; only the basic part carries a Norwegian credit.

I am a Norwegian civil servant retiring to Portugal. Where is my pension taxed?

In Norway (article 19), at 15 % withholding, and exempt in Portugal with progression — unless you are a Portuguese citizen, in which case Portugal taxes it instead.

Does the treaty stop the Norwegian exit tax?

No. The exit tax is charged on the latent gain up to the day before you leave, when you are still Norwegian-resident; the treaty governs the later sale, which is taxed in Portugal only.

Sources and official references

  1. Diário da República — Convention between Portugal and Norway (Res. AR 44/2012): art. 4, 10, 11, 12, 13, 15, 18, 19, 22, 23 — checked 18.9.2026
  2. Autoridade Tributária — treaty table 2026: Norway (in force 15.6.2012; dividends 5 % / 15 %, interest 10 %, royalties 10 %; 1970 treaty until 14.6.2012) — checked 18.9.2026
  3. Skatteetaten — Portugal: pensions taxable and exempt in Norway under articles 18, 19 and 22; certificate of residence under the treaty required — checked 18.9.2026
  4. Skatteetaten — ruling: tax residence of NHR-status persons under the Norway–Portugal treaty — checked 18.9.2026
  5. Código do IRS, artigo 81.º — foreign tax credit — checked 18.9.2026
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