Hong Kong to be removed from Portugal’s tax haven list in January, cutting costs for investors

Hong Kong will be struck off Portugal’s privileged tax regimes blacklist starting January 1, eliminating unnecessary tax barriers for local investors and improving the business environment, said Secretary for Financial Services and the Treasury Christopher Hui Ching-yu.

Hui noted that Hong Kong investors will no longer face higher withholding and property taxes in Portugal, with property tax relief saving up to 7.2 percent, while certain non-resident capital gains taxes could be exempted, saving as much as 28 percent. Transactions between Hong Kong and Portugal will also no longer be subject to strict transfer pricing rules, Hui said. 

He credited the achievement to joint efforts between the business sector and the bureau in explaining Hong Kong’s tax regime to Portugal. The government will continue strengthening international tax cooperation and expanding its tax treaty network to reinforce Hong Kong’s role as a global investment hub, Hui said. 

Portugal removed Hong Kong, Liechtenstein, and Uruguay from the tax haven list on September 5, according to a government notice.