Accompanied by a high level delegation, the Prime Minister of Timor-Leste, H.E. Kay Rala Xanana Gusmão, has visited
Portugal on a trip to strengthen relations and sign a series of agreements. Prime Minister Gusmão met with Portugal's
Prime Minister Pedro Passos Coelho and other members of the Portuguese Government in lengthy bi-lateral meetings to
discuss ways in which the two countries could ensure closer ties.
Portugal and Timor-Leste have long and historic ties, with Portuguese being one of two official languages spoken in
Timor-Leste. Timor-Leste continues to be proudly imbued with Portuguese culture and tradition.
Included in these agreements was a Double Tax Agreement to promote greater investment opportunities. H.E. Kay Rala
Xanana Gusmão promoted Timor-Leste as the gateway to Asia for Portugal, encouraging Portuguese to utilize the double tax
agreement by making long term and viable investments while taking advantage of the low tax base in Timor-Leste. The
Double Tax agreement ensures Portuguese businesses only pay tax in one country; thereby making the investment
opportunities more profitable for Portuguese citizens. The Government of Portugal was pleased with Timor-Leste’s
willingness to make the double tax agreement available to their citizens; especially considering the opportunities under
the Strategic Development Plan for rebuilding the nation. Prime Minister Gusmão encouraged Portuguese and
Timorese-Portuguese Citizens to take part in the development process. Memorandums of Understanding were also signed in
many sectors including security, defence, education and the infrastructure sector.
Prime Minister Gusmão also addressed the Timorese diaspora warmly welcoming them to return to their homeland, now a
nation rising from a past of conflict into a new era of longterm peace and stability. The audience was encouraged by the
presentations showing Timor- Leste’s high economic growth, increase in human development and decrease in poverty and was
heartened by the opportunities now available across all sectors for participation in the development of the country with
new business opportunities for both Portuguese and Timorese ex- pats.
The Timorese delegation made several trips with Portuguese counterparts both within and outside Lisbon visiting
Government offices and universities and meeting with varying interest groups. Prime Minister Gusmão noted that the
relationship between Portugal and Timor-Leste has never been stronger and extended his warmest regards to the Portuguese
Government and People on behalf of the Government and People of Timor-Leste.
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