Portuguese law for Finns: EU residence, courts, family, inheritance, no treaty

Why Finns ask about Portuguese law

Finland is the EU country that terminated its tax treaty with Portugal — from 1 January 2019 — over the taxation of Finnish pensions under Portugal’s old non-habitual resident regime. The result is unusual: two EU states with full free movement, coordinated social security and no double-tax convention, so a Finnish pension received in Portugal is taxed in both countries with a credit. The rest of the legal relationship is ordinary EU law: registration instead of a visa, apostilles, judgments that circulate under the Brussels regulations, inheritance under the Succession Regulation.

• No tax treaty since 1 January 2019: Finnish pensions taxed in Finland and in Portugal, with a Portuguese credit
• EU citizen: registration certificate after three months; naturalisation after seven years
• Inheritance: Finland taxes heirs from 30 000 € at 7–19 % (close family) or 19–33 %; Portugal charges 10 % stamp duty outside the direct line
• Dual nationality accepted by Finland since 2003 and by Portugal without condition

Status and papers

A Finn needs no visa: after three months the right of residence under Lei n.º 37/2006 is formalised by a registration certificate from the municipality on a declaration of work, study or sufficient means, valid up to five years and followed by a permanent residence certificate from AIMA. Tax number, social security number and health number first — the legal services hub explains each. Finnish public documents are accepted with an apostille (Finland has been in the Hague Convention since 1985); Portuguese documents for Finland are apostilled by the Procuradoria-Geral da República for 10,20 €. Finnish and Swedish documents need a certified Portuguese translation.

Courts

Portugal’s civil justice runs through 23 district courts, five courts of appeal and the Supreme Court of Justice, with julgados de paz — small-claims courts with mediation — for civil disputes up to 15 000 €; a lawyer is compulsory above 5 000 €, and civil appeals need a claim above 5 000 € (30 000 € for a second appeal). Legal aid is granted by Social Security on proof of economic insufficiency, decided within 30 days, and a Finn resident here qualifies as an EU citizen. A Finnish judgment is enforced in Portugal, and a Portuguese one in Finland, under the Brussels I Regulation without any declaration of enforceability; family maintenance under the EU Maintenance Regulation.

Marriage, divorce, inheritance

Portugal marries you by default under community of acquisitions — what either spouse earns or buys during the marriage is shared, prior and inherited property stays separate (Civil Code art. 1717.º); a spouse of 60 or more is put under separation of property (art. 1720.º). Divorce by mutual consent is done at the civil registry without a court (art. 1775.º); contested divorce goes to the family court on grounds that include one year of de facto separation (art. 1781.º). For marriages since 29 January 2019 both Finland and Portugal apply the EU matrimonial-property regulation, so a couple can choose Finnish or Portuguese law.

On death, Portuguese law reserves two thirds of the estate for the spouse and children together (art. 2157.º–2159.º). Under the EU Succession Regulation a Finn habitually resident in Portugal is governed by Portuguese law unless a will chooses Finnish law (art. 22). Tax is separate: Portugal charges 10 % stamp duty on Portuguese assets, from which the spouse, descendants and ascendants are exempt; Finland taxes inheritances above 30 000 € per heir from 2026 — close family (bracket I) at 7 % rising to 19 % above one million euros, others at 19 % to 33 % — on the worldwide estate of a Finnish-resident deceased and on Finnish property in any case.

Tax and social security

Finland gave notice on the 1970 convention in 2018 and the treaty ceased to apply on 1 January 2019; a new convention signed in 2016 was ratified by Finland but never by Portugal, so none is in force. Consequences for a Finn living in Portugal:

• Finnish pensions — earnings-related, national and most others — are taxed in Finland as Finnish-source income of a non-resident, and again in Portugal as a resident’s income at the progressive rates after the 4 587 € deduction; Portugal deducts the Finnish tax under its unilateral credit (IRS Code, art. 81.º), up to the Portuguese tax on the pension. The Finnish Tax Administration says plainly that Finnish tax is not reduced by Portuguese tax.
• Dividends, interest, rents from Finland: Finnish withholding at domestic rates, Portuguese tax at 28 % (rents 25 %) with the same credit.
• Salary for work done in Portugal: Portuguese tax; Finland taxes only Finnish-source income of a non-resident.

Social security is unaffected: Regulation 883/2004 applies between two EU states — one system at a time, A1 postings, pension periods added together, and Kela’s S1 for a Finnish pensioner’s health care in Portugal. The accounting hub has the Portuguese rates and regimes; NHR, the cause of the dispute, closed on 1 January 2024.

Driving, nationality

A Finnish licence is an EU licence — valid until expiry with residence registration at the IMT within 60 days (free), exchangeable for 30 €. Finland has accepted multiple citizenship since 1 June 2003 and Portugal never requires renunciation; naturalisation in Portugal takes seven years of residence for an EU citizen under the 2026 Nationality Act, with a language and culture test.

Steps

Questions from Finnish clients