Finland redundancies in Finland and Portugal tax treaty. Finland has adopted a new tax treaty, but the Portuguese did not accept it in the time limit, which means that countries between January 2019 from the beginning of the tax agreement.
the Agreement has ended, with Finland the right to tax the Portuguese paid to the private sector pensions. Previously, the finns were able to get in Portugal, ten-year tax-free pension.
Hundreds of Finnish pensioners has changed in recent years in Portugal, when the word tax freedom precedes. Especially very low income seniors are recommended by the Portuguese tax freedom.
the tax administration, according to information in Portugal is now living about 600 people who receive a pension in Finland. Average Portugal paid a pension is a pension security centre, according to 3560 euros per month.Dozens of phone calls every day
the Portuguese living in Finnish advice of a lawyer Alexander von Hellensin the phone has been ringing closely in recent weeks. Calls have come to him ten days, when the finns have been asking frantically what the tax treaty termination means in practice and what they should do now.
Von Hellensin according to the part of the zero tax of the district of consider now whether back to Finland.
Vague the situation is, especially among the Portuguese resident in Finnish, which is not a zero tax. The tax exemption came into force in 2010 but only in 2013 was von Hellensin according to legal certainty on the tax freedom.
tax free couldn't get, if from abroad, transforming the pensioner had lived in the country five migration of the previous year. These pensioners have paid tax in Finland received their pensions in Portugal, but now also the English started to tax the same pension.
– May have to pay the two countries. How double tax can be removed in Portugal, there is a curious Finnish, von Hellens told.Headaches
Portugal, the Algarve, Finland-follow for has become pensioners of the dozens of issues on tax treaty termination. The club gave its members a matter of general advice.
the Company has about 800 members, most of whom are pensioners.
No one knows exactly how to use them, who are already in pay over their taxes i.e. they have zero tax. Finland began to arrest the pensions tax, and despite that, they have to make tax declaration in Portugal of the same income. This comes to them certainly quite a lot of headache, tell the club director of operations Maija Katila .
it is no Longer possible to remove the double taxation tax agreement.
– 2019 from the beginning, in Portugal, resident pays principle in Finland, the pension taxes as well as Finland and Portugal. It is possible that in some cases, the double taxation of a person remains, at least partially, to pay, told the inspector general Multi Väänänen the tax administration.
If a Portuguese resident paying the pension tax, including Portugal, will he get in finland, the pension received in respect of the elimination of double taxation in the Portuguese tax administration. The Finnish tax cannot be taken into account in Finland received a pension from the Portuguese paid taxes.When prime minister Juha Sipilä (centre), the government began to speak in 2015 the Portuguese tax free deletion, Finnish pensioners muuttobuumi Portugal began to quiet down. Jenni Gästgivar