Bermuda Signs TIEA With Portugal

by Phillip Morton, Investors Offshore.com

11 May 2010

The Bermudan government has announced the signing of its 21st Tax Information Exchange Agreement (TIEA), with Portugal.

Commenting on the signing, Deputy Prime Minister and Minister for Finance, Paula Cox said:

“I am delighted today to sign this Tax Information Exchange Agreement with the Republic of Portugal, following the conclusion of negotiations in December 2009. This treaty is a significant step forward in Bermuda and Portugal’s long-standing close relationship.”

“At present, there are 70 entities in Bermuda with a Portuguese interest. It is undoubtedly the case that this agreement will garner benefits for Portuguese investors in Bermuda companies and help boost commerce between the two jurisdictions.”

“In addition, the cultural ties between Bermuda and the Republic of Portugal are strong, dating back to the 1840s when Portuguese settlers first started immigrating to Bermuda; today, Portuguese represent over 9% of our population.”

Bradley Kading, President of the Association of Bermuda Insurers and Reinsurers, welcomed the convention on behalf of the financial services industry: “Bermuda global reinsurers have an estimated 23% of the broker-placed reinsurance placed for Portugal’s domestic insurers. There are long standing cultural ties between Portugal and Bermuda and good business relationships have been developed. The TIEA will help encourage additional business relationships which will be good for both Portugal and Bermuda.”

Cheryl Packwood of Business Bermuda added: “Reaching this agreement with Portugal is an important development which reflects Bermuda’s broadening commitment to tax and regulatory transparency with European Union and its key member nations. This is another positive step that provides a new market for Bermuda to develop international business relationships and grow. The Ministry of Finance, the Government of Bermuda and others who have been active in reaching this agreement are to be commended. It is yet another example of Bermuda’s leadership and our consistent efforts to set the highest standards of business conduct and transparency.”

This agreement marks Bermuda’s 21st signed agreement with provisions for the exchange of information for tax purposes. In addition to Portugal, Bermuda has TIEAs with Australia, Ireland, New Zealand, the Netherlands, the Nordic Group (including Denmark, Finland, Iceland, Norway and Sweden and their associated territories the Faroe Islands and Greenland), the Netherlands Antilles and Aruba, Mexico and Japan. Further, Bermuda has a double taxation agreement with the Kingdom of Bahrain. Negotiations have been concluded with, among others, Canada, Spain and Belgium.

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