Double Taxation - Practical Examples?

I just posted this in another part of the forum. I thought it was a general taxation subforum but it seems that every country has its own taxation forum and mine is not explicitly Portugal related. Apologies for the double post.

Hi.

I have a question on how double taxation works in practice. Let's say I am Irish and living in Ireland. An asset that I plan to sell has a 40% tax rate. In Portugal, this asset is only liable for 5% tax (for example).

In Ireland, you are "ordinarily resident" for 3 fiscal years after you are no longer "resident"'/leave the country. My understanding (which could be wrong) from reading online is that if I was to move to Portugal and become resident there immediately upon leaving Ireland (job, house etc.) then the double taxation treaty would come into effect.

How does double taxation work with this example in mind, however? Would it mean that I would only pay the 5% Portuguese taxes, or does double taxation work such that Id pay 5% to Portugal and 35% to Ireland?

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