There is the Comitê TAX3, a special committee on financial crimes, tax evasion and tax avoidance. The TAX3 final report devotes a point to the Madeira Free Zone, referring to an investigation that is being conducted to subjects like the tax exemption granted by Portugal to companies which have a free zone that are in compliance with the commission decisions on 2007 and 2013, as well as with the defined EU statistics rules. The commission is verifying that Portugal has fulfilled the requirements of the schemes. This is to say whether the profits of companies benefiting from income tax reductions came from excluding activities in Madeira and whether the beneficiary companies created and maintained jobs in Madeira.
How could the European Parliament’s urge to phase out RBI and CBI programs impact my application in Portugal?
In light of the European Parliament adopting the TAX3 Committee’s February report, how can my application in Portugal be impacted? Should I be worried?
The TAX3 Committee's report recommends that EU countries phase out RBI and CBI Programs. It doesn't imply that they follow the recommendation. In fact, most member-states do not agree with the recommendation, nor does the Investment Migration Council, which responded to the report informing that these programs are a 20-billion industry that generates significant societal and economic benefits, including job creation and notable contributions to GDP. In this sense, we don’t believe that this recommendation will follow through. However, what will most likely happen is that member-states will properly ensure that enhanced customer due diligence on applicants for citizenship or residency through these schemes is duly carried out. This means that RBI and CBI programs all over Europe will ensure that the due diligence carried out on an applicant, both by banks and immigration entities, will become stricter in order to prevent the concerns the EU Parliament refers in its report (CRS circumvention and tax evasion).