Secretary for Financial Services and the Treasury Christopher Hui said on Tuesday Hong Kong investors in Portugal will no longer be subject to higher taxes – as the city is set to be removed from its "blacklist of tax havens" from the start of next year.

The news of the imminent move came after the SAR urged Portugal to take the city off the blacklist "in light of the city's continuous efforts in supporting global cooperation".

Hui also raised such concerns when he met with Portuguese officials to exchange views over global tax cooperation and mutual investments in a trip to Lisbon in June last year.

Currently, Hong Kong is included in Portugal's "tax haven list", meaning that Hong Kong enterprises and investors will face increased taxation and special anti-abuse measures in Portugal.

But following the removal, Hui noted that SAR investors and businesses can see their property taxes in Portugal decline by up to 7.2 percent while enjoying certain waivers for non-resident capital gains taxes – with potential savings amounting up to 28 percent.

Transactions between Hong Kong and Portugal will also no longer be subject to strict transfer pricing rules, he added.

"We will continue to support international tax cooperation, maintain close communication with overseas tax jurisdictions, and actively expand the network of tax treaties to further consolidate Hong Kong's position as an international leading business and investment hub," he said.

Along with the SAR, Liechtenstein and Uruguay will also no longer be on the list, with the removal set to take effect from January 1.

In February last year, the city was also removed from the European Union's watch list on tax cooperation, which Hui said demonstrated the efforts that the city had taken to comply with international tax standards and address concerns emanating from Brussels.