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.
New residents can enjoy significant tax benefits for their first 10 years through Portugal’s non-habitual residency (NHR) regime. To qualify, they cannot have been resident within the last five tax years and should apply through the local tax office soon after arrival.
In addition to offering a fixed 20% income tax rate to those employed in ‘high value-added’ professions, NHR lets people receive some foreign income – such as UK pensions – tax-free and there could also be no Portuguese tax due on gains from UK property.
Even outside of NHR, Portugal can be highly tax-efficient for expats. While income is taxable at progressive income tax rates up to 48%, under certain conditions up to 85% of UK pension income could be tax free.
Portugal also offers opportunities to enjoy extremely favourable tax treatment on capital investments.
Tags: Blevins Franks | Currency | Investment Strategy | Portugal
