Amendments to the Portuguese Blacklist of Tax Havens: Exclusion of Hong Kong, Liechtenstein, and Uruguay

António Pratas Nunes | Lawyer

On 5 September 2025, Ministerial Order No. 292/2025/1 was published, introducing amendments to the list of countries, territories, or regions considered by the Portuguese authorities as having “regimes fiscais claramente mais favoráveis” – commonly referred to as the blacklist of tax havens. This list was first established by Ministerial Order No. 150/2004, dated 13 February, and has since been amended several times.

Through this latest change, three jurisdictions were excluded: Hong Kong, Liechtenstein, and Uruguay. The Order entered into force on 6 September 2025, but its effects will only apply to income and transactions occurring as from 1 January 2026.

The Portuguese blacklist was created as a tool to combat international tax evasion and fraud. Jurisdictions included have long been subject to aggravated tax measures designed both to penalise Portuguese residents investing there and to discourage inbound investment in Portugal by individuals and companies resident or established in those jurisdictions.

From 2026, Hong Kong, Liechtenstein, and Uruguay will no longer be subject to these measures, which implies important changes in several areas:

1. Personal and Corporate Income Tax (IRS and IRC): capital income (dividends, interest, royalties) paid by entities in these jurisdictions will no longer be subject to the aggravated 35% withholding rate but instead taxed at the standard rates.
2. IFICI+ (Incentive for Scientific Research and Innovation): for taxpayers covered by this regime, income paid by entities located in blacklisted jurisdictions was subject to a 35% rate. Following the exclusion, the general rules apply; income from categories A, B, E, F, and G obtained in these jurisdictions will benefit from the exemption method, subject to mandatory aggregation for the determination of the progressive rate applicable to the remaining income.
3. Non-Habitual Residents (NHR): foreign-source income obtained in these jurisdictions could not previously benefit from the exemption method in the absence of a double taxation treaty and was therefore subject to aggravated taxation. From 2026, such income will qualify for the standard exemption regime available under the NHR framework.
4. Controlled Foreign Companies (CFC) rules: profits or income earned by non-resident entities located in these jurisdictions were attributed to Portuguese tax residents (individuals or companies) holding, directly or indirectly, at least 25% of the voting rights, capital, or income rights, and could therefore be taxed in Portugal. This automatic attribution, which led to taxation in Portugal, will no longer apply.
5. Real Estate (IMI and IMT):

• IMI (Property Tax): the aggravated 7.5% rate applicable to urban properties owned by entities resident in blacklisted jurisdictions will cease to apply; instead, the standard rates of 0.3%–0.45% will apply.
• IMT (Property Transfer Tax): acquisitions of real estate by entities from these jurisdictions will no longer be taxed at the special 10% rate; instead, the standard progressive rates of 0%–7.5% will apply.

The exclusion of Hong Kong, Liechtenstein, and Uruguay reflects the recognition by the Portuguese authorities of these jurisdictions’ alignment with international tax transparency standards. From 2026 onwards, aggravated taxation and compliance burdens will be removed, and investors, real estate developers, and companies will face the same treatment as those linked to other jurisdictions.

Taxpayers and investors with structures involving these jurisdictions should review their existing arrangements to ensure alignment with the new rules and to take advantage of the relief now available.

At LVP Advogados, we regularly assist clients with investment structures and tax planning. If you are considering new investments or have existing arrangements that may be affected by recent regulatory changes, our team can assess your situation and help you optimise your tax position.