Five things you should know about estate planning in Portugal
By International Adviser, 14 Feb 17
For British expats living in Portugal, or for those with Portuguese assets, the local equivalent of inheritance tax maybe relatively straightforward, says director of Blevins Franks Jason Porter, but succession law is very different. If advisers do not understand the rules, their client’s estate may not be distributed in line with their wishes or could attract more taxation than necessary.
Even if you have lived in Portugal for years, as a UK national you could still be considered UK-domiciled by HM Revenue & Customs. This could put you in the firing line for UK inheritance tax of 40% on your worldwide assets, in addition to Portuguese stamp duty (although measures are available to avoid double taxation on the same asset).
Domicile law is extremely complex so take specialist advice to establish your position and plan accordingly.
Ultimately, it is important to understand how Portuguese succession rules apply to your personal objectives and unique situation, and how they affect your UK liability. You should also consider how your legacy will be received by your heirs – an extra gift you can leave them is having their inheritances structured in a tax-efficient way to maximise their value.
With careful planning, you can get peace of mind that you have the most suitable approach in place, for yourself and your chosen heirs.
Tags: Blevins Franks | Estate Planning | IHT | Portugal
