View source for Finance:Portugal's list of tax havens

Under '''Ministerial Order n. 150/2004''' of 13 February, issued by the Portuguese Ministry of Finance and consequently updated, Portugal defines an official [[Blacklisting|blacklist]] of countries and jurisdictions considered for legal and tax purposes as [[Finance:Tax haven|tax haven]]s.
{{Infobox legislation
| short_title = Ministral Order n. 150/2004
| legislature = Ministry of Finance
| image = Coat_of_arms_of_Portugal.svg
| long_title = Ministral Order n. 150/2004 - Approves a list of countries, territories and regions with privileged tax regimes which are clearly more
favorable
| citation = 
| territorial_extent = Portugal
| enacted_by = Portugal's Ministry of Finance
| date_enacted = 
| date_assented = 
| signed_by = Vasco Jorge Valdez Ferreira Matias
| date_commenced = February 13, 2004
| administered_by = Portuguese Tax and Customs Authority
| bill = 
| bill_citation = 
| bill_date = 
| introduced_by = 
| 1st_reading = 
| 2nd_reading = 
| 3rd_reading = 
| amends = Ministerial Order n.150/2004<br />Ministerial Order n. 292/2011 <br />Ministerial Order n. 345-A/2016<br />Ministerial Order n. 309-A/2020
| related_legislation = Personal Income Tax Code<br />Corporate Income Tax Code<br />Municipal Property Tax Code<br />Municipal Property Transfer Tax Code<br />Stamp Duty Tax Code<br />Tax Benefits Statutes
| summary = Approves the official list for legal and tax purposes of jurisdictions deemed as tax havens.
| keywords = [[Finance:Tax haven|Tax Havens]], [[Finance:Offshore financial centre|Offshore Financial Centre]]
| status = in force
}}

== Blacklisted Jurisdictions ==

=== Current Blacklisted Jurisdictions ===
{| class="wikitable sortable"
|+
!Blacklisted Jurisdiction
!Type
!Notes
|-
|{{AIA}}
|British Overseas Territory
| -
|-
|{{ATG}}
|Country
| -
|-
|{{AHO}}
|[[Earth:Constituent state|Constituent Country]]
|The Netherlands Antilles were dissolved in 2010.
|-
|{{ABW}}
|Constituent Country
| -
|-
|{{SHN}}
|British Overseas Territory
| -
|-
|{{BHS}}
|Country
|
|-
|{{BHR}}
|Country
|Portugal has signed an Agreement to Avoid Double Taxation with the country.<ref>{{Cite web|url=https://dre.pt/home/-/dre/75367959/details/maximized?p_auth=hQOxged9|title=Resolução da Assembleia da República 196/2016, 2016-09-22|website=Diário da República Eletrónico|language=pt|access-date=2019-11-13}}</ref>
|-
|{{BRB}}
|Country
|Portugal has signed an Agreement to Avoid Double Taxation with the country.<ref>{{Cite web|url=http://www.ministeriopublico.pt/es/instrumento/convencao-entre-republica-portuguesa-e-barbados-para-evitar-dupla-tributacao-e-preveni-0|title=Convenção entre a República Portuguesa e Barbados para Evitar a Dupla Tributação e Prevenir a Evasão Fiscal em Matéria de Impostos sobre o Rendimento {{!}} Portal do Ministério Público - Portugal|website=www.ministeriopublico.pt|access-date=2019-11-13}}</ref>
|-
|{{BLZ}}
|Country
| -
|-
|{{BOL}}
|Country
| -
|-
|{{BRN}}
|Country
| -
|-
|{{CRI}}
|Country
| -
|-
|{{FJI}}
|Country
| -
|-
|{{MDV}}
|Country
| -
|-
|{{MNP}}
|Commonwealth
| -
|-
|{{MHL}}
|Country
| -
|-
|{{flag|Mauritius}}
|Country
| -
|-
|{{flag|Monaco}}
|Country
| -
|-
|{{CXR}}
|Australian external territory
| -
|-
|{{PLW}}
|Country
| -
|-
|{{SLB}}
|Country
| -
|-
|Unincorporated internal area of Norway
|Portugal has signed an Agreement to Avoid Double Taxation with the country but the agreement does not include these territories.<ref>{{Cite web|url=http://www.ministeriopublico.pt/instrumento/convencao-entre-portugal-e-noruega-para-evitar-dupla-tributacao-em-materia-de-impostos-0|title=Convenção entre Portugal e a Noruega para Evitar a Dupla Tributação em Matéria de Impostos sobre o Rendimento e sobre o Capital {{!}} Portal do Ministério Público - Portugal|website=www.ministeriopublico.pt|access-date=2019-11-13}}</ref>
|-
|{{TCA}}
|British Overseas Territory
| -
|-
|{{VGB}}
|British Overseas Territory
| -
|-
|Unincorporated and organized U.S. territory
| -
|-
|{{JAM}}
|Country
| -
|-
|{{JOR}}
|Country
| -
|-
|{{KWT}}
|Country
|Portugal has signed an Agreement to Avoid Double Taxation with the country.<ref>{{Cite web|url=http://www.cciap.pt/index.php?id=131|title=CCIAP|last=CCIAP|website=CCIAP|access-date=2019-11-13}}</ref>
|-
|{{DJI}}
|Country
| -
|-
|{{DMA}}
|Country
| -
|-
|{{ARE}}
|Country
|Portugal has signed an Agreement to Avoid Double Taxation with the country.
|-
|{{GMB}}
|Country
| -
|-
|{{GIB}}
|British Overseas Territory
|Portugal has signed an agreement of exchange of tax information with the territory.
|-
|{{GRD}}
|Country
| -
|-
|{{GUY}}
|Country
| -
|-
|{{HND}}
|Country
| -
|-
|{{HKG-CHN}}
|Special Administrative Region
|Portugal has signed an Agreement to Avoid Double Taxation with the territory.<ref>{{Cite web|url=http://www.ministeriopublico.pt/instrumento/acordo-entre-republica-portuguesa-e-regiao-administrativa-especial-de-hong-kong-da|title=Acordo entre a República Portuguesa e a Região Administrativa Especial de Hong Kong da República Popular da China para Evitar a Dupla Tributação e... {{!}} Portal do Ministério Público - Portugal|website=www.ministeriopublico.pt|access-date=2019-11-13}}</ref>
|-
|{{GUM}}
|Unincorporated and organized U.S. territory
|Portugal has signed an Agreement to Avoid Double Taxation with the country.<ref name=":0">{{Cite web|url=http://www.ministeriopublico.pt/instrumento/convencao-e-o-protocolo-entre-republica-portuguesa-e-os-estados-unidos-da-america-para-1|title=Convenção e o Protocolo entre a República Portuguesa e os Estados Unidos da América para Evitar a Dupla Tributação e Prevenir a Evasão Fiscal em... {{!}} Portal do Ministério Público - Portugal|website=www.ministeriopublico.pt|access-date=2019-11-13}}</ref>
|-
|{{KIR}}
|Country
| -
|-
|Crown dependency
|Portugal has signed an agreement of exchange of tax information with the territory.<ref name=":2">{{Cite web|url=https://www.pwc.pt/en/pwcinforfisco/tax-guide/2019/tax-havens.html|title=Tax havens|last=PricewaterhouseCoopers|website=PwC|language=en-pt|access-date=2019-11-13}}</ref> The Isle of Man was briefly whitelisted between January 1, 2017 and December 31, 2018.
|-
|{{NIU}}
|Country
| -
|-
|{{PCN}}
|British Overseas Territory
| -
|-
|{{IRI}} (Qeshm Island)
|County
|Only the county of Qeshm, more specifically the island of Qeshm has been blacklisted by the Portuguese government.<ref name=":2" />
|-
|Overseas collectivity of France
|Portugal has signed an Agreement to Avoid Double Taxation with the country but the agreement does not include this territory.<ref>{{Cite web|url=http://www.ministeriopublico.pt/instrumento/convencao-entre-portugal-e-franca-para-evitar-dupla-tributacao-e-estabelecer-regras-de-0|title=Convenção entre Portugal e a França para Evitar a Dupla Tributação e Estabelecer Regras de Assistência Administrativa Recíproca em Matéria de... {{!}} Portal do Ministério Público - Portugal|website=www.ministeriopublico.pt|access-date=2019-11-13}}</ref>
|-
|{{TKL}}
|Dependent territory of New Zealand
| -
|-
|{{NFK}}
|Australian external territory
| -
|-
|{{Flag|Labuan}}
|Malaysian Federal Territory
| -
|-
|{{LBN}}
|Country
| -
|-
|{{LBR}}
|Country
| -
|-
|{{LIE}}
|Country
| -
|-
|{{MUS}}
|Country
| -
|-
|{{MCO}}
|Country
| -
|-
|{{MSR}}
|British Overseas Territory
| -
|-
|{{NRU}}
|Country
| -
|-
|{{PAN}}
|Country
| -
|-
|{{PYF}}
|Overseas country and collectivity of France
|Portugal has signed an Agreement to Avoid Double Taxation with the country but the agreement does not include this territory.
|-
|{{PRI}}
|U.S. Commonwealth and Unincorporated and organized U.S. territory
|Portugal has signed an Agreement to Avoid Double Taxation with the country.<ref name=":0" />
|-
|{{QAT}}
|Country
|Portugal has signed an Agreement to Avoid Double Taxation with the country.<ref>{{Cite web|url=http://www.ministeriopublico.pt/es/instrumento/acordo-entre-republica-portuguesa-e-o-estado-do-qatar-para-evitar-dupla-tributacao-e|title=Acordo entre a República Portuguesa e o Estado do Qatar para Evitar a Dupla Tributação e Prevenir a Evasão Fiscal em Matéria de Impostos sobre o... {{!}} Portal do Ministério Público - Portugal|website=www.ministeriopublico.pt|access-date=2019-11-13}}</ref>
|-
|{{YEM}}
|Country
| -
|-
|{{VUT}}
|Country
| -
|-
|{{ASM}}
|Unincorporated and unorganized U.S. territory
|Portugal has signed an Agreement to Avoid Double Taxation with the country.<ref name=":0" />
|-
|{{WSM}}
|Country
| -
|-
|{{LCA}}
|Country
| -
|-
|{{KNA}}
|Country
| -
|-
|{{SMR}}
|Country
|Portugal has signed an Agreement to Avoid Double Taxation with the country.<ref>{{Cite web|url=https://dre.pt/web/guest/pesquisa/-/search/58851815/details/maximized|title=Resolução da Assembleia da República 95/2014, 2014-11-13|website=Diário da República Eletrónico|language=pt|access-date=2019-11-13}}</ref>
|-
|{{TUV}}
|Country
| -
|-
|{{BMU}}
|British Overseas Territory
|Portugal has signed an agreement of exchange of tax information with the territory.<ref name=":2" />
|-
|{{CAY}}
|British Overseas Territory
|Portugal has signed an agreement of exchange of tax information with the territory.<ref name=":2" />
|-
|Australian external territory
| -
|-
|{{COK}}
|Country
| -
|-
|{{GGY}}
|Bailiwick
|Portugal has signed an agreement of exchange of tax information with the territory.<ref name=":2" /> 
|-
|{{JEY}}
|Bailiwick
|Portugal has signed an agreement of exchange of tax information with the territory.<ref name=":2" />
|-
|Other Pacific Islands
|Non-specified
|The Portuguese Government considered "other Pacific Islands" all the islands in the [[Earth:Pacific Ocean|Pacific Ocean]] not mentioned in the list.
|-
|{{FLK}}
|British Overseas Territory
| -
|-
|{{VCT}}
|Country
| -
|-
|{{SYC}}
|Country
| -
|-
|{{SWZ}}
|Country
| -
|-
|{{OMN}}
|Country
|Portugal has signed an Agreement to Avoid Double Taxation with the country.<ref>{{Cite web|url=http://www.ministeriopublico.pt/es/node/19966|title=Convenção entre a República Portuguesa e o Sultanato de Omã para Evitar a Dupla Tributação e Prevenir a Evasão Fiscal em Matéria de Impostos sobre o... {{!}} Portal do Ministério Público - Portugal|website=www.ministeriopublico.pt|access-date=2019-11-13}}</ref>
|-
|{{TON}}
|Country
| -
|-
|{{TTO}}
|Country
| -
|-
|{{URY}}
|Country
|Portugal has signed an Agreement to Avoid Double Taxation with the country.<ref>{{Cite web|url=http://www.ministeriopublico.pt/instrumento/convencao-entre-republica-portuguesa-e-republica-oriental-do-uruguai-para-evitar-dupla|title=Convenção entre a República Portuguesa e a República Oriental do Uruguai para Evitar a Dupla Tributação e Prevenir a Evasão Fiscal em Matéria de... {{!}} Portal do Ministério Público - Portugal|website=www.ministeriopublico.pt|access-date=2019-11-13}}</ref> Uruguay was briefly whitelisted between January 1, 2017 and December 31, 2018.
|}

=== Former Blacklisted Jurisdictions ===
{| class="wikitable sortable"
!Jurisdiction
!Type
!Date of Whitelisting
!Notes
|-
|{{AND}}
|Country
|January 1, 2021
|Portugal has signed an agreement of exchange of tax information and an Agreement to Avoid Double Taxation, in force since April 23, 2017, with Andorra.<ref>{{Cite web|last=|first=|date=|title=Convenção entre a República Portuguesa e o Principado de Andorra para Evitar a Dupla Tributação e Prevenir a Evasão Fiscal em Matéria de Impostos sobre o Rendimento|url=https://www.ministeriopublico.pt/instrumento/convencao-entre-republica-portuguesa-e-o-principado-de-andorra-para-evitar-dupla|archive-url=|archive-date=|access-date=February 4, 2021|website=Ministério Público}}</ref>
The Government of the Principality of Andorra sent a formal request under Article 63d(3) of the Portuguese General Taxation Law to review the country's place on the Portuguese blacklist, which was then subject of a positive opinion issued by the Portuguese Tax and Customs Authority, and the conditions for excluding the Principality of Andorra from the blacklisted were approved by the Ministry of Finance.<ref>{{Cite web|title=Andorra removed from blacklist {{!}} Madeira Corporate Services|date=7 January 2021 |url=https://mcs.pt/andorra-removed-from-blacklist/|access-date=2021-02-04|language=en-US}}</ref><ref>{{Cite web|last=Crisóstomo|first=Pedro|title=Portugal retira Andorra da "lista negra" de paraísos fiscais|url=https://www.publico.pt/2021/01/01/economia/noticia/portugal-retira-andorra-lista-negra-paraisos-fiscais-1944774|access-date=2021-02-04|website=PÚBLICO|language=pt}}</ref><ref>{{Cite web|last=Lusa|first=Agência|title=Portugal retirou Andorra da lista de paraísos fiscais|url=https://observador.pt/2021/01/05/portugal-retirou-andorra-da-lista-de-paraisos-fiscais/|access-date=2021-02-04|website=Observador|language=pt-PT}}</ref>
|-
|{{flag|Cyprus}}
| rowspan="2" |EU Member State
| rowspan="2" |November 9, 2011
| rowspan="2" |Portugal has signed an agreement of exchange of tax information and an Agreement to Avoid Double Taxation, in force since August 16, 2013, with Cyprus.<ref>{{Cite web|last=|first=|date=|title=Convenção entre a República Portuguesa e a República de Chipre para Evitar a Dupla Tributação e Prevenir a Evasão Fiscal em Matéria de Impostos sobre o Rendimento|url=https://www.ministeriopublico.pt/instrumento/convencao-entre-republica-portuguesa-e-republica-de-chipre-para-evitar-dupla-tributacao|archive-url=|archive-date=|access-date=February 4, 2021|website=Ministério Público}}</ref> Under EU Law Portugal could not discriminate fellow Member-States nor prevent the [[Organization:European Single Market|free movement of capital]].<ref name=":1">{{Cite web|title=Portaria 292/2011, 2011-11-08|url=https://dre.pt/web/guest/pesquisa/-/search/146525/details/normal?p_p_auth=TCZxvR0y|access-date=2021-02-04|website=Diário da República Eletrónico|language=pt}}</ref> 
|-
|{{flag|Luxembourg}}
|}

== Sanctions ==

=== National sanctions ===
The Portuguese Tax Code foresees aggravated withholding tax, 35% tax rate, on capital income (interests and dividends) deriving from black listed jurisdictions and an aggravated municipal property tax of 7% on property owned by entities located in said jurisdiction. Portugal's "blacklist" is defined by decree issued by the Minister of Finance and taking into account confidential reports issued by the Portuguese Tax and Customs Authority.

In addition, non-habitual residents (NHRs) status holders do not benefit from personal income tax exemption on interests, dividends, capital gains, income from immovable property (rents), royalties, intellectual property income and business income) if: these are sourced from black-listed jurisdictions.<ref>{{Cite web|url=https://mcs.pt/expat-services/non-habitual-resident-nhr-regime|title=Non-Habitual Resident (NHR) Regime - MCS|website=mcs.pt|language=en-US|access-date=2020-04-01}}</ref> Therefore, taxation of such income will be subject to the normal rates or to the 35% rate depending on the type of income earned by the NHR status holder.

=== European Union Sanctions ===
On December 16, 2019, the EU Code of Conduct Group (Business Taxation) (CCG), under the Economic and Financial Affairs Council, published a new guidance<ref>{{Cite web|url=https://data.consilium.europa.eu/doc/document/ST-14114-2019-INIT/en/pdf|title=Report 14114/19 from the Code of Conduct Group (Business Taxation)|last=|first=|date=December 25, 2019|website=Council of the European Union|archive-url=|archive-date=|access-date=December 17, 2019}}</ref> on sanctions to be applied by EU Member States against blacklisted 'non-cooperative' jurisdictions by the end of 2020. These [[Finance:European Union tax haven blacklist#Sanctions|sanctions]] were immediately backed<ref>{{Cite web|url=https://www.internationalinvestment.net/news/4008313/eu-roll-sanctions-blacklisted-jurisdictions|title=EU to roll out sanctions against blacklisted jurisdictions|date=2019-12-17|website=www.internationalinvestment.net|language=en|access-date=2019-12-18}}</ref> by the Finish Presidency of the [[Organization:Council of the European Union|Council of the European Union]] who labelled them as "defensive-measures"  that are recommended to EU Member States to take against blacklisted jurisdictions.<ref>{{Cite web|url=https://www.consilium.europa.eu/media/41647/st14851-en19.pdf|title=OUTCOME OF THE COUNCIL MEETING - 3736th Council meeting|last=Lintilä|first=Mika|date=December 5, 2019|website=Council of the European Union|archive-url=|archive-date=|access-date=December 18, 2019}}</ref> Implementation of such sanctions by Portugal are expected to occur on January 1, 2021.

== Criticism ==
The list has been said to have violated EU Law by discriminating against a former EU-Member State's territory such as [[Place:Gibraltar|Gibraltar]], therefore violating the principle of [[Organization:European Single Market|free movement of capital]]. Furthermore, the list does not take into account whether Portugal has in place a double taxation agreement with the blacklisted territory.<ref name=":3">{{Cite web|url=https://www.jm-madeira.pt/opinioes/ver/2761/Hipocrisia_Tributaria|title=Hipocrisia Tributária|date=2019-08-01|website=JM Madeira|language=pt-PT|access-date=2019-11-13}}</ref><ref name=":4">{{Cite web|date=2017-08-01|title=Problemas de uma Lista Negra|url=https://jornaleconomico.sapo.pt/noticias/problemas-de-uma-lista-negra-193321|access-date=2021-02-05|website=O Jornal Económico|language=pt-PT}}</ref><ref>{{Cite web|date=2021-01-14|title=Portugal, a Venezuela da Europa|url=https://www.jm-madeira.pt/opinioes/ver/4581/Portugal__a_Venezuela__da_Europa|access-date=2021-02-05|website=JM Madeira|language=pt-PT}}</ref>

Critics also point out that the list is not clear<ref name=":3" /><ref name=":4" /> given the fact that it makes no provisions regarding the dissolution of the Netherlands Antilles nor if countries such as {{wipe|Japan}}, {{wipe|Australia}} or [[Earth:New Zealand|New Zealand]] fall under the category of "other Pacific Islands." In addition, the Portuguese list does not mirror the [[Finance:European Union tax haven blacklist|list adopted by the European Union]] regarding tax aggressive and non-cooperative jurisdictions.<ref>{{Cite web|title=Offshore Company Formation|url=https://www.tba-associates.com/incorporating-offshore/|access-date=2021-08-21|website=www.tba-associates.com|date=April 2015 |language=en}}</ref>

== References ==
<references />

[[Category:International taxation]]
[[Category:Economic globalization]]
[[Category:International finance]]
[[Category:Offshore finance]]
[[Category:Tax avoidance]]
[[Category:Corporate tax avoidance]]
[[Category:Tax evasion]]

{{Sourceattribution|Portugal's list of tax havens}}