Tax considerations for international clients: how to report foreign-sourced income.

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Legal Guidance with complex cross-border situations

We have extensive experience advising both national and international clients on tax matters, including complex cross-border situations where income falls under two different tax systems — for example, a client residing in Portugal earning income in the United Kingdom.

We assist foreign clients living in Portugal who have applied for the Non-Habitual Resident (NHR) regime and have questions about reporting income earned abroad, as well as Portuguese citizens living overseas. In such cases, the General Tax Law requires the appointment of a fiscal representative in Portugal.

All types of income recognised under the Portuguese Personal Income Tax Code (IRS) must be declared in Portugal. However, declaring foreign income does not automatically result in double taxation. Mechanisms to avoid double taxation include international agreements between Portugal and other countries, or domestic legislation providing either the tax credit or exemption method.

Annex J of the IRS declaration is the primary instrument for reporting income earned abroad, requiring information such as the country where the income was earned, the amount in euros, and the payer's details. Taxpayers should retain supporting documentation — such as employment or service contracts, lease agreements, and proof of foreign tax payments — as the Portuguese Tax Authority may request additional information to verify reported facts.

Foreign taxpayers must also declare any income earned in Portugal during the fiscal year and comply with the same deadlines and obligations as Portuguese residents.

We support clients with income from multiple countries and remain available to provide tailored guidance to ensure compliance and optimise tax obligations. Contact us to find out how we can assist you.

We are dedicated to making Portuguese tax legislation easier to navigate, offering practical and tailored solutions for clients earning income across multiple countries. Contact us to find out how we can assist you.

We are dedicated to making Portuguese tax legislation easier to navigate, offering practical and tailored solutions for clients earning income across multiple countries. Contact us to find out how we can assist you.

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