Questions advisers must ask before clients move to Portugal
By Kirsten Hastings, 2 Aug 17
UK advisers with clients looking to move to Portugal and make the most of tax-efficient opportunities but avoid costly mistakes need to consider seven key questions, according to international wealth and tax management firm Blevins Franks.
Expats need to establish when they will become resident in Portugal and therefore liable to Portuguese taxation on their worldwide income and gains.
Tax residency usually kicks in after someone spends 183 days in Portugal, but can start earlier if they have a permanent home there – at which point they could be considered resident from the day they arrive.
Also, they need to be wary of UK tax residence rules – just 16 days back home could unintentionally trigger UK tax residency and bring them in line for British taxes.
With careful planning and some flexibility, advisers can help clients time residency switches to minimise tax liabilities – and maximise opportunities – in both countries.
Tags: Blevins Franks | Currency | Investment Strategy | Portugal
