Portugal

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Persons who are not tax resident in Norway shall pay tax on pensions and disability benefits paid from Norway. The tax is 15 per cent of the gross pension/disability benefit  and it will be deducted by the one that pays the pension/disability benefit.

Withholding tax on pensions and disability benefits applies to:

  • pension from the National Insurance scheme
  • public occupational pensions
  • private occupational pensions
  • other private pensions
  • disability benefits from the National Insurance Scheme
  • disability benefits form other schemes

No withholding tax is to be paid on children's pensions to children under the age of 17.

The following exemptions from the tax liability apply for persons resident in Portugal:

  • Persons who can document that they are resident in Portugal pursuant to the tax treaty between Norway and Portugal are entitled to tax exemption in Norway for pensions and disability benefits linked to previous work in the private sector.
    - The tax exemption also applies to pensions and disability benefits linked to previous work in the Norwegian public sector if the recipient is a Portuguese citizen.
  • Persons who have not earned pension points or accumulated pension reserves in the Norwegian National Insurance Scheme are not liable for tax on pensions and disability benefits from private occupational pension schemes and other private pension schemes and war veteran pensions.

The tax treaty between Norway and Portugal

The tax treaty between Norway and Portugal regulates the right to tax pensions and disability benefits in articles 18, 19 and 22.

The following pensions and disability benefits are liable to tax in Norway:

  • basic pensions from the National Insurance Scheme
  • disability benefits from the National Insurance Scheme
  • pensions  and disability benefits linked to previous work in the Norwegian public sector if the recipient is not a Portuguese citizen
  • pensions and disability benefits linked to previous business activity
  • pension and disability benefits from private pension schemes which are not linked to previous employment and annuities
  • war veteran pensions.

The following pensions/disability benefits are not liable to tax in Norway:

  • pensions linked to previous work in the private sector. This applies both to supplementary pensions paid by the Labour and Welfare Service (NAV) and pensions from private occupational pension schemes and company-paid pensions
  • pensions and disability benefits linked to previous work in the Norwegian public sector if the recipient is a Portuguese citizen.
  • disability benefits from private occupational pensions schemes.

Only persons who can document that they are liable to tax in Portugal as residents pursuant to the tax treaty can be granted tax exemption for pensions/disability benefits that are not liable to tax in Norway pursuant to the tax treaty. You must therefore be able to submit a Certificate of Residence issued by the Portuguese tax authorities and explicitly stating that you are tax resident in Portugal pursuant to the tax treaty with Norway.

A person who is unable to document that he/she is tax resident in Portugal pursuant to the tax treaty cannot be granted a tax exemption. All pensions/disability benefits will then be liable to tax in Norway.

A person who has the status "not-regular resident" ("Residente Näo Habitual") in Portugal, is not entitled to tax exemption for pensions and disability benefits in Norway as he does not fulfill the condition of being resident in Portugal pursuant to the tax treaty.

Deduction of withholding tax for the income year 2018

If you are of the opinion that all or part of your pension/disability benefit is tax exempt in Norway pursuant to the tax treaty with Portugal, you must submit an application for a tax exemption card or a tax deduction card with a lower tax rate than 15 per cent.

When applying for a tax exemption card/tax deduction card in 2018, you must:

  • state who pays the pension/disability benefit
  • state whether you have worked for a Norwegian public sector employer and, if so, how many years you have been employed in the public sector and how many years you have been employed in the private sector and/or been self-employed. This applies when you receive a pension.
  • document how much of your pension is not to be taxed in Norway when the pension is paid by The Norwegian Labour and Welfear Administration (NAV). You can for example enclose a copy of a payment slip from one of the last months from NAV.
  • enclose a Certificate of Residence from the Portuguese tax authorities
  • enclose documentation stating that you do not have the status "not-regular resident" ("Residente Näo Habitual") in Portugal.

The Certificate of Residence must be issued by the Portuguese tax authorities and explicitly confirm that you are tax resident in Portugal pursuant to the tax treaty. The certificate must be an original and no more than three months old.

Applications for a tax exemption card or a tax deduction card with a lower tax rate than 15 percent will be processed as they are received. You will receive information about your tax deduction card (Tax Deduction Notice) instead of a tax deduction card. In this notice you will find information on the estimated tax deduction rate/tax exemption. If only part of the pension/disability benefit is tax exempt, you will receive a tax deduction card with a withholding rate lower than 15 per cent. You are not to send this notice to the payers of the pension/disability benefit. They collect the tax deduction card/tax exemption card online from the tax authorities. The Tax Deduction Notice will be sent to your registered address in the National Registry. If you are an eUser you will receive the Tax Deduction Notice in your mailbox in Altinn.

If you had a tax exempt pension/disability benefit in 2016 and/or you received a tax exemption card or a tax deduction card with a lower tax rate than 15 per cent for the income year 2017, you do not need to apply for a tax exemption card/tax deduction card for the income year 2018. The tax office will issue a new tax exemption card on the basis of the information the tax office has about your tax liability.

The tax office may request that you submit documentation stating that you do not have the status "not-regular resident" ("Residente Näo Habitual") in Portugal before they issue a tax exemption card or a tax deduction card with a lower tax rate than 15 per cent.

You must apply for a new tax deduction card when you:

  • you move from Portugal or your tax liability to Portugal ceases for other reasons
  • receive a new pension/disability benefit from Norway

    • This also applies when you receive a different pension/disability benefit from the same payer as your current pension/disability benefit

When you have had more tax deducted than stated in the tax deduction card you can apply for a new tax deduction card. If the whole pension/disability benefit is tax exempt and you have  received a tax exemption card, you can apply for refund of the tax deducted.

When you have had tax deducted with a higher rate than stated in the tax deduction card you can apply for a new tax deduction card. If the whole pension/disability benefit is tax-free and you have  received a tax exemption card, you can apply for refund of the tax deducted. For more information, see the article "Refunding of paid withholding tax on pensions".

The tax assessment for the income year 2017

Persons covered by the provisions on withholding tax on pensions and disability benefits will receive a Norwegian tax return in April 2018.

If you are of the opinion that all or part of your pension/disability benefit is tax exempt in Norway, you must submit the tax return and state which income is tax liable to tax in Norway.

The tax office may request that you submit a Certificate of Residence that explicitly confirms that you are tax resident in Portugal pursuant to the tax treaty with Norway. The tax office may also request that you submit documentation stating which part of your pension/disability benefit that is tax exempt in Norway.

The Certificate of Residence must be issued by the Portuguese tax authorities. It must be an original and no more than six months old. You can submit a Certificate of Residence issued by the Portuguese tax authorities before they have finished the tax assessment for 2017.

A person who has the status "not-regular resident" ("Residente Näo Habitual") in Portugal, is not entitled to tax exemption for pensions and disability benefits in Norway as he does not fulfill the condition of being resident in Portugal pursuant to the tax treaty. The tax office may request that you submit documentation stating that you do not have the status "not-regular resident" ("Residente Näo Habitual") in Portugal.

If you do not submit the tax return and documentation, a 15 per cent tax will be calculated on your pension/disability benefit in the tax settlement notice. This also applies when you have had a tax exemption card or a tax deduction card with a lower tax rate than 15 per cent.

If you have not received the Norwegian tax return before 15 April 2018, you can contact Tax Administration Norway.

Special provisions for persons resident in an EU/EEA country

If you are resident in an EU/EEA country and liable to pay tax in Norway on at least 90 per cent of your income you may request that your tax be calculated pursuant to the same provisions that applies to persons resident in Norway.

Read more in the brochure Withholding tax on pensions and disability benefits.

Persons who have not earned pension points or accumulated pension reserves in the Norwegian National Insurance Scheme and have private pensions/disability benefits or war veteran pensions

If you have not earned pension points or accumulated pension reserves in the Norwegian National Insurance Scheme you are not liable to pay tax in Norway on pensions and disability benefits from private occupational pension schemes and other private pension schemes. Nor are you liable to tax on war veteran pensions.

You must contact the one that pays the pension/disability benefit to notify that you believe the payment not to be liable to tax in Norway.If you receive a war veteran pension you must contact the tax office.

If you receive only a war veteran pension you can apply for a tax exemption. If you also receive an old-age pension you can apply for a tax deduction card with a lower tax rate than 15 per cent. You must then document how large a proportion of the pension the war veteran pension amounts to.

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The provisions on withholding tax on pensions and disability benefits only apply to you who have emigrated from Norway for tax purposes. If you are still tax resident in Norway pursuant to the Tax Act your tax will be assessed pursuant to the ordinary provisions. The provisions in the tax treaty apply to you also.

All enquiries about withholding tax on pensions and disability benefits should be addressed to:

Skatt nord
Postboks 6310
NO – 9293 Tromsø

Calling from abroad: +47 22 07 70 00
Calling from Norway    800 80 000
e-mail: You must go to www.skatteetaten.no/sendepost if you want to send us an e-mail

Please remember to quote your national ID number or D number in any communication with the Tax Administration.

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