# Danish expat tax in Portugal [Moving to Portugal](/moving-to-portugal/) Guide Updated 8 October 2026 Law as at 15 June 2026 4 min read [Signed by our advisers](/about/) · 4.7 on Google, 43 reviews A Danish occupational or private pension paid to a Portuguese resident is taxable in Portugal and may also be taxed in Denmark (under the Denmark-Portugal convention). Denmark may do so where the pensioner deducted the contributions in Denmark or was not taxed there on the employer's contributions, and it then deducts the Portuguese tax from its own, so Portugal gives no foreign-tax credit on that pension. Coordinate the Danish rules, Portuguese residence, and the Denmark-Portugal treaty before either side files from the wrong assumptions. Next step **Moving to Portugal, or already here with income from abroad?** Before the move, we assess your Portuguese tax position and work with your adviser abroad; once you live here, we prepare and file your Portuguese return. [Your annual return](/services/annual-portugal-tax-return-expats/) ## What changes when you move from Denmark to Portugal The Denmark-Portugal treaty lets Denmark keep the right to tax many Danish pensions, the occupational and private pensions built up with Danish tax relief, even when you live in Portugal. Portugal also taxes the pension as your country of residence, and because IFICI does not exempt pensions, the two overlap, relieved by a credit rather than by one country standing back. On the way out, Denmark can charge an [exit tax](/guides/capital-gains-tax-portugal/) on certain assets and a separate charge on cashing in some pension schemes. ## Denmark kept its treaty with Portugal (unlike Sweden) The Denmark-Portugal treaty signed in 2000 remains in force. Denmark historically terminated its conventions with France and Spain, not its convention with Portugal. Because the treaty is in force, relief works through it, but the direction depends on the income category. For pensions covered by the treaty's special Danish pension rule, Danish guidance describes Denmark reducing Danish tax by Portuguese tax. For other Danish-source income, Portugal may relieve the overlap through its foreign-tax credit. In every case, the credit only relieves tax you have actually paid and can document. ## Danish pension tax and the direction of relief The treaty’s ordinary pension rule distinguishes social-security payments from private pensions. Denmark can tax qualifying private pension payments where contributions received Danish deductions or employer contributions were untaxed, under the treaty’s source-country pension exception. Portugal can also tax the pension as the residence country. For a Portugal resident receiving a pension that Denmark may tax under the ordinary pension rule, the treaty uses reverse credit: Denmark gives credit for Portuguese tax, within the Danish calculation. If Portuguese tax is lower, a Danish balance can remain. A zero Portuguese liability does not create a credit for tax never paid. Government-service pensions have a separate treaty rule. See Skattestyrelsen’s Portugal treaty explanation. ## Ceasing Danish tax residency: the exit tax and pension afgift Danish full tax liability generally rests on having a home available in Denmark, and it does not end until that home is no longer available to you. A retained dwelling can keep you fully taxable in Denmark and create real dual taxation, while Danish guidance treats a holiday home used only for holidays differently. After departure you usually move to limited tax liability, under which Denmark still taxes Danish-source income, including Danish pensions. Two Danish charges to plan for: share exit tax can arise when Danish taxing rights end, including a transfer of treaty residence abroad while domestic full liability continues. The ordinary scope includes the DKK 100,000 share-value threshold and the seven-of-ten-year tax-liability condition, subject to statutory exceptions; and a separate charge can apply if you terminate or cash in certain capital or old-age pension schemes. On the other side, once full Danish liability ends you can usually apply to stop the Danish tax on pension-fund returns. ## Danish dividends and property The rules below are the ordinary Portuguese treatment; for an eligible [IFICI](/guides/ifici/) beneficiary, Danish dividends, interest, rents and gains are generally exempt in Portugal. Danish dividends to non-resident individuals normally suffer 27% withholding. A refund may be needed to reach the applicable final rate, while approved net withholding is available in qualifying cases. Danish real estate can remain taxable in Denmark. Under ordinary Portuguese rules, rent and gains must also be considered in Portugal, with relief subject to the treaty and Portuguese foreign-tax-credit limits. ## Coordinating Skat and Finanças Keeping Danish pensions, shares, or property usually means Danish filings as a non-resident alongside Portuguese filing, with the treaty deciding who taxes what and which country gives relief. The work is planning the residency cessation and the exit charges, getting the pension and dividend treatment documented, and making both filings rely on the same facts so the credit is given for the right amount. ## Frequently asked questions ### Did Denmark terminate its tax treaty with Portugal? No. The Denmark-Portugal treaty remains in force. Denmark historically terminated its conventions with France and Spain, while Sweden terminated its convention with Portugal. ### Where is my Danish pension taxed? In many cases, both countries. The treaty's general rule is residence-taxation, but it lets Denmark keep taxing a Danish occupational or private pension built up with Danish tax relief, which is typical, while Portugal also taxes it as your country of residence because IFICI does not exempt pensions. A Danish public-service pension is taxable only in Denmark under the government-service pension rule, whatever the recipient's residence or nationality. ### Do I pay a Danish exit tax when I leave? Danish share exit tax can arise when Danish taxing rights end, including a transfer of treaty residence abroad even if domestic full liability continues. ### Does IFICI cover my Danish pension? No. IFICI, the regime that replaced NHR, does not exempt foreign pensions; Portugal taxes them at progressive rates. ### How is double taxation relieved between Denmark and Portugal? By a treaty credit, so the same income is not taxed twice in full. For Danish pensions covered by the treaty’s special pension rule, Danish guidance describes Denmark reducing Danish tax by Portuguese tax. This guide is by **[Telmo Ramos](/about/)**, our founder, an economist and member no. 16379 of the Ordem dos Economistas. ## Related guides - Guide · Law as at 19 October 2026 ### [How Portugal taxes foreign pensions in 2026](/guides/portugal-pension-tax-guide/) Portugal taxes a resident's foreign pension as Category H income at the progressive IRS rates, after the standard specific deduction of EUR 4,587.09 per recipient in 2026. - Guide · Law as at 19 October 2026 ### [Foreign income in Portugal: Anexo J step by step](/guides/portugal-foreign-income-tax/) A Portuguese tax resident is taxed on worldwide income, including income obtained abroad. - Guide · Law as at 13 June 2026 ### [Moving to Portugal: tax checklist for 2026](/guides/moving-to-portugal-tax-checklist/) Plan the tax steps before and after a move to Portugal: home-country departure, tax residence, NIF, income records, IFICI and your first return. ## Tell us about your situation For people living in Portugal with ties to Denmark: we answer your questions, prepare your Portuguese return with your income from Denmark and work with your adviser there. We reply within 2 working days with the right service, its price and how to start. ## Tax Consultation A 30-minute call with your adviser, then a follow-up memo within 3 working days after the call. [Book a Tax Consultation](/book/) --- Source: https://taxbordr.com/guides/danish-expat-tax-portugal/ General guidance only. Individual facts govern.