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.
In Portugal, succession law works very differently from the UK. Unless action is taken, ‘forced heirship’ rules could automatically pass half of someone’s worldwide estate to their direct family, whatever the original intentions.
Advisers should take care to understand their clients’ options and any tax implications.
The local version of inheritance tax is fixed at 10% and only applies to Portuguese assets passed on to non-family members.
However, Portugal’s traditional view of the family means unmarried partners and step-children could be liable.
Note also, if someone remains UK domiciled – as many expatriates are – they continue to be liable for UK inheritance tax. Advisers should plan to reduce this liability for your heirs.
Tags: Blevins Franks | Currency | Investment Strategy | Portugal
