Jersey in talks with Portugal to prevent double taxation - but deal could "take years"

Tuesday 25 June 2024

Jersey is keen to create an agreement with Portugal and other European states to stop people and businesses being taxed twice on the same income.

During this week's States Assembly meeting, Deputy Montfort Tadier expressed concerns about former islanders living in Portugal being taxed twice on the same income.

Responding, External Relations Minister Deputy Ian Gorst said that his team was in "regular discussions" with Portuguese counterparts to create a double taxation agreement.

The aim of the move would be to help residents and boost international business by ensuring people and companies aren't taxed twice on the same income across both countries.

Video: The External Relations Minister spoke about his hopes to come to a tax agreement with Portugal in this week's States Assembly meeting.

While Jersey and Portugal have shared tax information since 2011, the Minister said that creating a double taxation agreement is less "straightforward" and could "take some time".

He said that Brexit has made it harder to create these agreements with EU countries, adding that the process could take between two and four years with a willing partner, but "decades" without one.

While the Minister acknowledged that without such an agreement, people might be taxed in both places, he pointed out that Jersey's tax laws offer some relief for taxes paid abroad and advised people to contact Revenue Jersey for guidance.