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Portuguese Ministry of Finance removes Cyprus from its “Black List”
Cyprus has been removed from the Portuguese Ministry of Finance "Black List" following an official decree released on 8 November 2011. Taxand Cyprus considers the impact that this will have on businesses operating between Cyprus and Portugal.
The announcement is a success for Cyprus since it confirms that Cyprus, although a low tax destination, is in full compliance with its EU obligations.
The cooperation of the two states essentially means that nationals (whether legal or physical) of both states shall be able to benefit in tax issues. For instance, any payments made from Portuguese companies to Cyprus companies shall be treated as tax deductible in Portugal. Furthermore, Cypriot owners of immovable property in Portugal shall pay a rate of 0.2% -0.8% real estate tax as opposed to the previous rate of 5% at the time when Cyprus was blacklisted.
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