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Portuguese Ministry of Finance removed Cyprus from “Black List”

Tuesday, November 22, 2011
Following an official decree released on 8 November 2011 the Portuguese Ministry of Finance has removed Cyprus from the “Black List”.

Verdun Group (Cyprus) believe this 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.

Example 1: Any payments made from Portuguese companies to companies in Cyprus shall be treated as tax deductible in Portugal.

Example 2: Cypriot owners of immoveable 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.

The Portugues move is a welcoming move for Verdun Group (Cyprus) following Italy's move on removing Cyprus from its black list in 2010.