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Foreign Tax Credit (DTT)

Legal basis

Art. 81 CIRS

Benefit key

foreignTaxCredit

What it does

Where a double-taxation treaty applies, foreign tax already withheld on foreign-source income may be credited against the Portuguese IRS due on the same income — capped at the Portuguese tax that would otherwise apply.

When this saves money

For investors with significant foreign-source dividends, interest, or salary where the source country has already withheld tax. Without this credit you would be taxed twice on the same income.