Portugal removes Andorra from the list of Tax Havens

From 1st January 2021, Andorra ceased to be included in the list of countries and territories that Portugal classifies as tax havens, according to an ordinance published in Portaria no. 309-A/2020 of 31 December.

The Principality of Andorra made the request to the Portuguese Government to review the aforementioned list from 2017, contributing to this outcome the fact that there is an Agreement on the Exchange of Information in Tax Matters (ATI), in force since December 2016, and a Convention to Avoid Double Taxation and Prevent Tax Evasion (CDT), in force since April 2017.

Ministry of Finance in Portugal referred to ''the full adherence of the Principality of Andorra to the Multilateral Agreement of Competent Authorities for the Automatic Exchange of Financial Account Information'' and also indicated that Andorra is a member of the Global Forum on Transparency and Information Exchange for Tax purposes ''and that, according to the assessment carried out by that OECD body, it was considered 'largely compliant', not even being included in the list European Union of non-cooperative tax jurisdictions, adopted by the Council, in its most recent version, on October 06, 2020''.