On the 22nd of March 2011 Hong Kong signed an agreement (CDTA) with Portugal to avoid double taxation and the prevention of fiscal evasion with respect to income taxes.
The Secretary of Financial Services and the Treasury, Professor K C Chan, signed the agreement in Hong Kong on behalf of the Hong Kong Special Administrative Region government. The Consul-General of Portugal in Hong Kong, Mr. Manuel Carvalho, signed on behalf of the Portuguese government.
The CDTA clearly sets out the allocation of taxing rights between the two jurisdictions and the relief on tax rates on different types of passive income. This helps investors better assess their potential tax liabilities from cross-border economic activities, foster closer economic and trade links between the two places, and provide added incentives for companies in Portugal to do business or invest in Hong Kong, and vice versa.