The 23-year-old centre-back joins the Eagles on a season-long loan deal, with the option to make the transfer permanent at the end of the campaign.
Fonte's younger brother Rui is on the books at Arsenal, and Taylor revealed that played a part in completing the signing.
"I am quite excited about this one because he is a young player, as well as a good centre-back and a good footballer," said Taylor.
"There were other clubs in for him, but his brother plays for Arsenal and he wants to come to London, so we have been quite fortunate there."
Fonte said: "I'm very happy to be here. Now I hope the fans and supporters all like me and I will work hard for that.
"I want to show my value and what I'm capable of, to work hard and help this club."