The legislation, which went live on 1 January, is the second update on the list since it was created in 2004.
The Portuguese ministry of finance stated that the three jurisdictions were taken off the list on the basis that agreements of exchange of information or double taxation agreements have now been signed with Portugal.
The jurisdictions are now regarded by the OECD as “largely compliant”, in the case of Jersey and Uruguay, or “compliant” in the case of the Isle of Man.
Geoffrey Graham, senior partner at international law firm Edge, likened the move to “New Year’s honours for Jersey and Isle of Man” after spending nearly 13 years on the blacklist.
He said the changes in status will open new possibilities for Portuguese tax residents receiving dividends or other types of income from these jurisdictions, or even for resident or non-resident individuals holding Portuguese property through a company domiciled in these jurisdictions.
Portuguese tax residents with income arising from, or with property held by a company located in a jurisdiction which is included in the Portuguese ‘black list’, will tend to have a heavier tax burden, he added.
“There is also a restriction on the access the diverse tax benefits available to Portuguese non- habitual tax residents. A number of other jurisdictions, such as Gibraltar, are also working hard with Portuguese officials in order to be removed from the list.”
