Final Presentation 12Nov - Copy · 1. Property selection providing a great lifestyle, good return...

Christina Hippisley Portuguese Chamber of Commerce in the UK

LIVING IN PORTUGALPROPERTIES

BRUCE HAWKER FROM FINE & COUNTRY - ALGARVEBRUCE HAWKER FROM FINE & COUNTRY - ALGARVE

MOEZ GALIBDIN FROM REMAXPLATINA - LISBON & PORTOMOEZ GALIBDIN FROM REMAXPLATINA - LISBON & PORTO

YESSI GONÇALVES FROM YOUR PRIVATE PROPERTY - MADEIRAYESSI GONÇALVES FROM YOUR PRIVATE PROPERTY - MADEIRA

MODERATOR - CHRISTINA HIPPISLEYMODERATOR - CHRISTINA HIPPISLEY

LIVING IN PORTUGAL -MORTGAGESCorinne Ferreira, UCI

A financial institution specializing in mortgage solutions.

UCI belongs to a solid group that hasbeen working for more than 60

years with the real estate industry.

solid.

international project.

UCI Groupis present in Portugal,Spain, Greece andBrazil.

dedicated manager.

A unique person, specialized and focused on the client, that supports you on every step of the mortgage process.

Thinking of buyinga property in Portugal?

Start out by paying less at the beginning, when you most need

interest rate.Variable Interest Rate

Mixed Interest Rate

Fixed Rate Mortagage

Pay the same amount during a given period of time

Pay the same amount from the beginning to the end of the mortgage term

Our Key Features.A team of highly experienced and qualified staff speaking your language

A wide range of mortgage solutions

A strong and close partnership with real estate agents and mortgage brokers

A simple and transparent process

Free mortgage analysis that allows the client to check their financial affordability

Interest rate.Variable Interest Rate

Mixed Interest Rate

Fixed Rate Mortgage

Pay a lower instalment, reviewed every 6 months

Pay the same amount during a fixed period of time

Pay the same amount from the beginning until the end of the mortgage

Our Mortgage.. Finance up to 70% of the purchase price

. Different options of mortgage solutions

. Long term mortgage, up to 30 years

. Maximum age of 75 at end of the mortgage

. Early redemption fee of 0.5% charged on the amount repaid during the variable rate and 2% during the fixed rate

.A complete mortgage insurance offer that guarantees extra protection

Purchase Price 500.000 euros

Financing example.

Mortgage 350.000 euros (70% LTV)

Term 30 years

Fixed Rate (30 years)

1.402,96 euros

1.206,97£

(Nominal Rate: 2,60%)

Mixed Rate (10 years) Variable Rate

1.287,00 euros

1.107,21£


1.149,83 euros

989,20£


95%Global Level of UCI

Customers Satisfaction

2018 data

98%Recommendation rate of

UCI Customers

2018 data

97%Satisfaction Rate with UCI Account Manager

2018 data (2nd semester)

customer satisfaction.

2,8 daysAverage UCI time until decision

2018 data

47 daysAverage UCI time until

the final deed.

2018 data

www.uci.pt707 78 00 [email protected]

INVESTMENT OPPORTUNITIES Patricia Casaburi, Global Citizen Solutions

WHO WE ARE

A citizenship-by-investment advisory agency assisting families diversifying their investments while obtaining an European residency or citizenship.

GCS in numbers

4 Offices Worldwide +25 international real estate experience and leading financing

rates

12 employees in Portugal

+44 20 7118 0778 . [email protected]

1. Property selection providing a great lifestyle, good return on investment, based on solid rental yields and strong capital appreciation.

2. Tax friendly regimes for non-habitual residents.

3. Attractive financing.

4. Access to top medical care, first class education and right to live, work and enjoy a new culture and lifestyle.

WHY INVEST IN PORTUGAL

+44 20 7118 0778 . [email protected]

THE ECONOMY

• Tourism: 22% in 2016, 12% in 2017

• Air passengers in Lisbon in 2017 : 26,7 million, + 18,8% of 2016

• Average occupancy rate Airbnb 85%

• 80% occupancy rate in hotels in Lisbon in 2017: Record

• Unemployment: 6.3%

• GDP: 1.9%

• Inflation: 0.4%

www.globalcitizensolutions.com


• Evidence of such sentiment is already noticeable in the market with a number of international companies setting up: Google, Mercedes, Uber, BNP Paribas, Huawei all announced 2017

• Start-up sector grew by x6 in 2016: Hub Criativo do Beato

• High quality of life for expatriates: Climate, security and gastronomy.

• Over 20 international schools

• Low cost of living relative to other European Capitals

• Strategic location in Western Europe

BUSINESS AND LIFESTYLE

The country has in place two very attractive initiatives for global families and professionals in mind.

• Non-habitual resident (NHR) status: a generous tax regime designed to encourage professionals of value-added occupations to set up residency in Portugal.

Foreign source income tax exemption Valid for 10 consecutive years

• The Portuguese Golden Visa Programme: residency and subsequent citizenship for individuals and their families for investments in the property.


INVESTOR-FRIENDLY PROGRAMMES

WHY USE GCS• Thorough understanding of the Portuguese property

market.

• Extended Network of Top-tier partners: Lawyers, Architects, estate agencies.

• Selection and vetting of high value investment opportunities to present.

• Analysis of business plan of project to help validate investment.

• Due diligence of titles and legal.

• Assist on negotiation for pricing efficiency.

• Advice on setting up of tax framework for fiscal efficiency.

• Assist on identifying government/EU initiatives to support investment.


WHY USE GCS

• 100% Independent advice.

• Find high value off-market opportunities.

• Save money on the purchase.

• Confidence to make a better/more thorough investment decision.

• Minimize time wastage.

• Work in strictest confidence andprofessionalism

[email protected]

NEW PROPERTIES

USED PROPERTIES

REHABILITATIONOF

OLD BUILDINGS

OFFICE SPACE AGRICULTURAL

LANDLAND TO BUILD


HIGH VALUE PROPERTY MARKET

The real estate bubble doesn’texist

Lisbons Avg 3,815 €/m² compared to:

• London – 15,538 €/m²• Paris – 13,374 €/m²• Barcelona - 4,308 €/m²

Real Estate Price Index 2000=100


THE MARKET

COUNTRIES UK FRANCE GERMANY PORTUGAL ITALY SPAIN

London Paris Berlin Lisbon Roma MadridCAPITALS [Greater London] [Centre]

2.0% - 3.6% 2.8% 4.9% 5.6% 4.8% 5.2%

OTHER EU

Manchester Lyon Frankfurt Porto Milan Barcelona

CAPITALS 5.9% 3.6% 4.1% 5.8% 4.0% 5.4%

AVER. 4.4% 3.2% 4.5% 5.7% 4.4% 5.3%


IS IT WORTH INVESTING?

WHERE TO LIVE

BragaEconomia:Braga é uma cidade extremamente dinâmica, com uma intensa atividade econômica nas áreas do comércio e serviços, ensino e investigação, construção civil, informática e novas tecnologias, turismo e vários ramos da indústria e do artesanato.Clima: Neve até 35°C

CoimbraEconomia: A cidade possui uma emergente indústria de alta tecnologia e serviços especializados na área da saúde. Também possui muitas empresas de tecnologia de informação de ponta ligadas à cultura, defesa, aeroespacial, financeira, indústria e telecomunicações.Clima: 0°C -35°C

Lisboa: Capital do paísEconomia : • 45% do PIB português;• A maioria das sedes das empresas multinacionais que

operam em Portugal estão concentradas na Grande Lisboa;

• Lisboa e seus populosos arredores também estão se desenvolvendo como um importante centro financeiro e um hub tecnológico dinâmico;

• Os fabricantes de automóveis têm construído fábricas nos subúrbios.

Clima: 5°C -35°C

Porto: Segunda cidade maior de Portugal. Economia: • Cidade que mais contribui para a exportação. Exporta

mais do que importa. O Porto de Leixões representa 25% do comércio internacional;

• O aeroporto é o melhor de Portugal em termos de espaço na aerogare;

• Na região central da cidade se situam a maioria das pequenas e médias empresas do país;

• Tem 50% do emprego industrial.Clima: Inverno: 5 °C e os 14 °CVerão: 15 °C e os 25 °C

Évora: Capital do Alentejo e o centro econômico e administrativo da região, que ocupa mais de 1/3 do país.Economia• Setor dos Serviços: grande peso da Universidade de Évora e dos

serviços descentralizados do Governo;• Eletromecânicos e construção;• Agricultura (laranja, vinho, aceite, curtiça);• Muitas empresas familiares.Clima: 9 °C no inverno até aos 40 °C no verao

Faro:Economia:1) Turismo2) Agricultura3) PescaClima: Clima temperado mediterrânico, caracterizado por invernos amenos e curtos e verões longos, quentes e secos.

+44 20 7118 0778 . [email protected]

PRICES PER M2

CITY PRICE PER M2 PRICE PER M2 IN CENTRAL LOCATIONS % CAPITAL APPRECIATION

Braga 675 1300 8%

Porto 2389 3850 Some areas up 30%

Coimbra 1115 2000

Lisbon 3615 5020 Some areas up 30%

Evora 1003 1800

Faro 1103 1900 5%

AVG RENTAL FOR T2 (70M2)

500 eur/m

1200 eur/m

700 eur/m

2000 eur/m

600 eur/m

800 eur/m

+44 20 7118 0778 . [email protected]

LISBON

LISBON

€2,734

€2,964

€3,720

€4,410

€5,034

€6,578

Average price – €/M2


Residential Campo de Ourique, Avenidas NovasAvg price: €4-5k/m2

PotentialAlcantara, Marvila Intendente/ Anjos Avg price: €3.5-5k m2

Trendy /tourist Chiado, Avenida da Liberdade, Princípe RealAvg price: €6-7k m2


WHERE TO INVEST IN LISBON

CASCAIS E LINHA DA PRAIA

CASCAIS E LINHA DA PRAIA

• 15-20 minutes to Lisbon• High concentration of international

schools• Beautiful beaches• Safe investment• Avg price per m2 €5.5k-9.5k

+44 20 7118 0778 . [email protected]

PORTO

• Elected best European tourist destination in 2012, 2014 and 2017

• One of the most important ports -Porto de Leixões

• Choice of International schools• Airport with connections all over

Europe and overseas• Industrial hub• 3 hours by car from Lisbon

Porto is considered by the Financial Times the third most interesting investment city in Europe

+44 20 7118 0778 . [email protected]

PORTOAverage price –1,789 €/M2

+44 20 7118 0778 . [email protected]

€801

€1.121

€1.249-€1,270

€1.601

€2,051

€3.850

ALGARVE

ALGARVE

• 3 hours drive from Lisbon

• Golden Triangle: Quinta do Lago, Vale do Lobo & Pinheiros Altos, Vilamoura: luxury real estate

• Choice of international schools

• Breathtaking beaches

• Avg price per m2 € 1,8k–8k

+44 20 7118 0778 . [email protected]

Thank you!If you need more information, come and see us next door!

Patricia Casaburi ‐ [email protected]

CURRENCY AND FOREIGN EXCHANGE Prem Raja, Currencies 4 You

Currencies 4 YouMoving To Portugal

Global payment specialists, always achieving you more for your money

www.currencies4you.com [email protected] +44(0)1322 319 550

Who Are Currencies 4 You?

Currencies 4 You was established in 2009 , has 4 international offices inEurope, Portugal Included.

Current Turnover is $350m saving clients $9‐15M every year.

4.8 Stars out of 5 with various independent consumer satisfaction surveys and98% of our clients are happy to recommend us.

Key Benefits of Using Currencies 4 You

Close To Interbank Exchange Rates (Banks charge up to 5%)

No Transfer Costs (Bank between £15 - £40 per transfer)

Same Day Currency Transfers (Banks can take up to 5 days)

Segregated Client Accounts (safeguarding your funds for the

Personal Relationship Manager

Spot and Forward Contracts (Fix a rate for up to 3 years)

full balance)

Market Analysis – helping you buy at the right times(Banks do not provide this)

Online Platform allowing you to arrange your own transfers anytime.

FCA authorised payment institution.

2019 Market Update

• UK has missed 3 deadlines to leave the EU this year (March, April, October)• Theresa May resigned as PM- Boris Johnson now PM • Parliament has now agreed on a Brexit deal (Subject to amendments) • GBPEUR has been as low as 1.06 and as high as 1.17 this year (Over 10%

movement from Easter until now)• ECB Cut Deposit Rate to -0.5% • General Election coming up in December (More Uncertainty)• A “No Deal” Brexit now looks very unlikely- Sterling has begun to stabilise.

But there is still more uncertainty ahead after the Election depending on who wins.

2017 General Election

Bank Comparison

Exchange Rate Comparison on 30/10/2019

Amount saved using Currencies 4 You£25,582.03 or €29,560.03

Currency Amount To Exchange Transfer FeeProvider Purchase In € Rate

Cost To Client In£’s

Currencies 4 You €500,000.00 1.1555 £0 £432,713.11

Best Bank Provider €500,000.00 1.0910 £25 £458,295.14

How It Works

3.Pay for your

currency

1.Open anaccount

2.AgreeRate

a

4. Payment received in your account same day, for you to enjoy your savings

We Watch The Markets So You Don’t Have To

Limit order costLimit Orderfor €500,000£416,666,67 @ 1.20

is

Stop Loss

Stop loss cost£434,782.61 @ 1.15

is

Waiting untilcompletioncould have cost£462,962.93 @ 1.08

Completion Date

Don’t Delay Act Today

Register today for free market reports & forecasts

Book an appointment to speak to an expert about your requirements

Start considering your budget now, even if you haven’t found a property

Currencies 4 YouSaving Client's Money Is What We Do

www.currencies4you.com

+44(0)1322 319 550

COFFEE BREAKPlease return in 20 min

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LEGAL STEPS TO BUYING PROPERTY & THE NON HABITUAL TAX REGIME Geoffrey Graham, Edge International

NON HABITUAL RESIDENT REGIMEAND

PROPERTY PURCHASE

MOVING TO PORTUGAL SEMINAR

International Department

‣ Pratice and specialize in the following areas:

MOVING TO PORTUGAL

‣ International Law Firm with over 25 years of experience in foreign investments

‣ Leading Portuguese firm advising individual and corporate clients on their investments

‣ 6 Offices Worlwide, including Lisbon, Porto, Algarve, United Kingdom and Cape Verde

I. EDGE

Planning Ahead

Residency by Investment

Family & Probate

Private Clients

Property

Banking & Insurance

Employment

Foreign, Investments & Tourism

Tax Planning Litigation & Dispute Resoluition

Corporate & Commercial

II. General

Overview

Moving to Portugal

‣ The regime was introduced in 2009 to attract individuals and their

families to Portugal by making it beneficial from a tax perspective to

become a tax resident

‣ NHR status can result in Pensions, Dividends, Interest royalties

originated in a non‐Portuguese source being exempt from, or being

subject to a preferential rate of, personal income tax

‣ The only requirement to benefit from the NHR status is become a

Portuguese tax resident, not having been a Portuguese tax resident in

the previous 5 years

‣ The NHR status can be maintained for 10 years

NON HABITUAL RESIDENT REGIME

‣ Successful NHR applicants will be exempt from personal income tax on

qualifying income if such income could be subject to tax in the country of

source (even if not effectively taxed) under an existing Double Tax Treaty

which permits.

‣ If no Tax Treaty exists, the income will be exempt if it could be subject to

tax in another jurisdiction and is not considered as Portuguese source

income under domestic rules.

‣ Special flat rate of 20% applicable for certain types of income arising from

higly qualified activities.

III. LegalInformation

Moving to Portugal


‣ To become a Non‐Habitual Resident it is necessary:

IV. Requirements

Moving to Portugal


To be a Portuguese tax resident, (have habitual domicile in Portugal; spend more than 183 days/year in Portugal)

Not to have been a tax resident in the previous 5 years

V. Our Services

Moving to Portugal

‣ We will provide you with a complete range of legal services for the application to

NHR status.

‣ Includes NHR application, further tax advice, related corporate structuring, advice

on property purchase/rental and on succession.

‣ This will also include: undertaking an initial fact find; due diligence on current tax

status; preparation and submission of initial application; representation before the

Portuguese Tax Authorities; regular contact with the Authorities; regular updates in

relation to the process; other related advice.

‣ Our services include a number of necessary administrative services, such as

registration at the Local Health Centre, registration of driving licences, opening of

local bank accounts, etc.

��


Property Land Registry Certificate and Tax Department Certificate ‐

description and all entries in force or pending on the register for the

property and the identification of the property at the Tax Authority

Confirm that the property in question is not subject to any encumbrance,

costs/charges or limitations and mortgages.

Legal Title: Ownership and powers of disposition of the property

Energy Performance Certificates – must be provided on the date of

acquisition of the property

Liaising with local Local Authorities (Town Hall, Tax Department)

Report on every detail regarding the property (areas, taxable value of the

property, previous owners)

Classification of the property

Tax liabilities (on the purchase and for the future)

Moving to Portugal

�� !"#�

VI. Pre‐contractual searches

A written contract should be signed by vendor and purchaser or theirrepresentatives, containing the usual Clauses: parties identification;

object; price and terms of payments; place and date of completion;breach of agreement

Pre‐emption right by Town Halls – depending on the location of the

property or historic and architectural relevance

Declarations and guarantees

Miscellaneous provisions

The parties may also agree to pay a part of the price ‐ deposit. In suchcircumstances, in the event of a default by the promissory purchaser,

the promissory vendor is entitled to keep any amounts already paidand in the event of a default by the promissory vendor, the

promissory purchaser is entitled to receive twice the amount it haspaid.

Moving to Portugal

�� !"#�

VII. The PromissoryContract of Purchaseand Sale

Mandatory documents to be presented on the signature of the final Deed:

Land Registry Certificate

Tax Department Certificate

Local Authority Utilization/Habitation License

Energy Certificate

Technical Data Sheet for Residential Property

Signing of the public deed or authenticated private document (the

definitive contract takes place in‐house in our Notarial and Registration

Department)

The moment at which the ownership of the property is transferred

Followed by the registration in favour of the buyer at the Land Registry and

Tax Department

Moving to Portugal

�� !"#�

VIII. Completion

‣ Property taxes due for acquisition and ownership

‣ Rate vary according to property type (residential, commercial, etc.)

‣ Property related taxes

IX. Portuguese Property TaxesGeneral Overview

Moving to Portugal

IMT (property transfer tax) Calculated on property pricePaid by buyer on purchaseStamp Duty

IMI Paid annually by property owners

�� !"#�

X. TaxesOn Acquisition ofProperty

Moving to Portugal

EDGE – PROPERTY PURCHASE

IMT ‐ Residential property (non residents)

Purchase Price Rate Amount to be deducted

Up to € 92,407 0% € 0,00

Over € 92,407 up to € 126,403

2% € 1.848,14

Over € 126,403 up to € 172,348

5% € 5.640,23

Over € 172,348 up to € 287,213

7% € 9.087,22

Over € 287,213 up to € 574,323

8% € 11.959,26

Above € 574,323 Single rate of 6%

IMT ‐ Non residential and building land

Single rate of 6.5%

IMT ‐ Rustic land Single rate of 5%

Stamp Duty Single rate of 0.8%

XI. Why EDGE?

Moving to Portugal

‣ International law firm of Portuguese lawyers and solicitors with native English

speakers;

‣ After an initial fact find, EDGE will be able to prepare all of the documentation

required to deal with the NHR application and property acquisition or rental;

‣ Therefore, after one meeting with EDGE, we should have all of the documents

required to act on your instructions without the necessity of further meeting;

‣ EDGE is both efficient and cost effective.

NON HABITUAL RESIDENT REGIME AND PROPERTY PURCHASE

XII. Contacts

Moving to Portugal

‣ EDGE is the leading Portuguese Law Firm advising on the

investments of both individuals and companies.

‣ For more information regarding the NHR regime please visit

us at www.nonhabitualresidents.com or www.edge‐il.com

and contact us:

Geoffrey Graham Gonçalo Figueira

E: ggraham@edge‐il.com E: gfigueira@edge‐il.com

NON HABITUAL RESIDENT REGIME AND PROPERTY PURCHASE

UKUK

London33 Cavendish Square London W1G 0PWUnited Kingdom

P. (+44) 203 875 17 96info‐uk@edge‐il.com

Algarve ‐ LagosRua Dr. José Francisco Tello Queiroz

Lote 3, Loja R 8600 ‐ 707 Lagos, Portugal

P. (+351) 282 038 678 I F. (+351) 282 038 678algarve@edge‐il.com

Algarve ‐ AlmancilAvenida José dos Santos Farias, 137‐A

8135‐167 Almancil, Portugal

P. (+351) 289 895 420 I F. (+351) 289 895 429algarve@edge‐il.com

PortoAvenida da Boavista, 722Edif. Boavista Prime, 3.24100 – 111 Porto, Portugal

P. (+351) 22 324 19 59 I F. (+351) 21 352 76 19porto@edge‐il.com

LisbonPraça Duque de Saldanha, 1

Edif. Atrium Saldanha, 7th floor1050 – 094 Lisbon, Portugal

P. (+351) 21 319 12 90 I F. (+351)21 352 76 19info@edge‐il.com

Cape VerdePo Box 138, Ed. Garantia, 1º F

Av. Amilcar Cabral, Santa Maria, Sal, Cape Verde

P. (+238) 242 20 61 I F. (+238) 242 12 62info‐cv@edge‐il.com

PP

LXLX

LGLG

CVCV

AA

nonhabitualresidents.com

Worldwide

THE NON HABITUAL TAX REGIME – CASE STUDIESLuis Filipe Sousa, PwC Portugal

Portugal:Europe’s bestkept secret

November 2019

pwc.pt

PwCPortugal - Europe’s best kept secret

73Novembro 2019

PwC

Portugal: Your choice?Portugal is not just lovely weather, sunny beaches, fantastic landscapes in the North, historical places and landmarks and the cosmopolitan cities of Lisbon and Porto. Those could be reasons to visit Portugal.

But have you considered Portugal as a locationto establish your tax residence? Find out what Portugal has to offer for business and for individuals.

PwC

Living in Portugal

Portugal - Europe’s best kept secret 74

November 2019

High standard of health care

services

Residencecard for Non EU and non-

EEE investorsGolden Visa

Taxstability

20% flat rate on highly-

specialisedemployment andself-employment

income

Widenetwork of 80 taxtreaties

Peaceful

High qualitypublic

and privateeducation

internationalschools

Friendlyresidence permitregime (allowing

for free movementwithin the

Schengen area)

Exemptionfrom taxation

of foreignincome

(dividends, pensions and

others)

Free remittanceof fundsabroad

Nowealth

tax

Tax exemptionfor inheritances

and gifts

Low costof living

PwC

Top 10 countries

The Non Habitual Tax Resident

Portugal - Europe’s best kept secret75

November 2019

Number of new beneficiaries by year

896828

680

Spain

Portugal

Brazil

France

3 352UK

Sweden

Italy

Germany

Belgium

6 925

Netherlands

3 2752 898

2 4152 055

1 307

18 166 285 384844

7 437

5 477

2009 2010 2011 201820172012 2013 20152014 2016

2 134

3 738

7 899

Total

29,901

PwC



November 2019

Home country of NHRs

29,901

11.21%

UnitedKingdom

8.08%Sweden

10.95%Italy

36.9%

Restof the world

9.69%Brasil

23.16%France

Portugal has already granteda favourable tax regimeto 29,901 taxpayers

PwC



November 2019

Portuguese Source Foreign Source

Employment Income Taxed at 20% (1)

Exempt with progression if:• The income is taxed in the country of source under a DTT; or• The income is taxed in the country of source under its domestic legislation

and is not from a Portuguese source.

Pension Income Taxed at progressive ratesExempt with progression if:• The income may be taxed in the country of source under a DTT; or• The income is not regarded as Portuguese-source income.

Self-employment Income Taxed at 20% (1)Exempt with progression if:• The income may be taxed in the country of source under a DTT; or• The income may be taxed in the country of source under its domestic legislation

and is not from a Portuguese source (offshores excluded)Capital Gains /Investment Income/Rental Income

Taxed at flat/progressive rates

(1) If arising from a “high value-added” activity.Pension income may be exempt in both countries!

PwC


Portugal - Europe’s best kept secret 78

November 2019

Example

Married couple

Employment income (“high value-added activities”)

EUR 120,000

UK pensionEUR 90,000

Interest from SwitzerlandEUR 10,000(taxed in Switzerland)

Rental income from the UKEUR 40,000(taxed in the UK)

Dividends from The NetherlandsEUR 15,000(taxed in The Netherlands)

PwC


79November 2019

2019

Portuguese tax liability Non-habitual resident Resident

Employment income EUR 22,358.40 EUR 44,004.43

UK Pension - EUR 33,003.33

Interest from Switzerland - EUR 2,800

Rental income from the UK - EUR 11,200

Dividends from the UK - EUR 4,200

Total tax liability EUR 22,358.40* EUR 95,207.76

Total Gross Income EUR 275,000 EUR 275,000

Net Income EUR 252,641.60 EUR 179,792.24

Portugal - Europe’s best kept secret

PwC

Things to remember....

80Novembro 2019

Tax regime grantedfor 10 years

20% flat tax rateon (self) employment income

No giftand inheritance tax

Exemption on foreign source income,like pension, interest, dividends and rents

No Wealth Tax

Climate, security, gastronomy, cultural heritage, golf,…

Critical to analyse the tax implications in the country of source before moving tax residence

Golden Visa


PwC

Find out more…

81Novembro 2019

www.pwc.pt/pt/fiscalidade/2016/pwc-europes-best-kept-secret.pdf www.pwc.pt/pt/fiscalidade/2016/pwc-golden-visa.pdf


Thank you

This communication is of an informative nature and intended for general purposes only. It does not address any particular person or entity nor does it relate to any specific situation or circumstance. PricewaterhouseCoopers & Associados-- Sociedade de RevisoresOficiais de Contas, Lda will not accept any responsibility arising from reliance on information hereby transmitted, which is not intended to be a substitute for specific professional business advice.

© 2019 PricewaterhouseCoopers & Associados - Sociedade de Revisores Oficiais de Contas, Lda. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers & Associados - Sociedade de Revisores Oficiais de Contas, Lda. which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.

pwc.pt

Leendert VerschoorPartner

[email protected]

Luis Filipe SousaSenior Manager

[email protected]

Martim GomesSenior Manager

[email protected]

Contacts

WEALTH MANAGEMENT & PENSIONS IN PORTUGALGavin Scott, Blevins Franks

Gavin ScottSenior Partner

Blevins FranksWho we are & what we do

Who we are

The leading international tax and wealth management

advisers to UK nationals living in Europe

Blevins Franks Group OFFICES IN EUROPE

Blevins Franks Group

Advising clients for over 40 years7 countries

23 Offices50 Partners and Private Client Managers

250+ Employees5,100 Families

€2.6 billion Funds Under Advice

The technical teams: Legal (cross border tax) Estate planning Pensions Investment

Our London Office

What we do

Tax driven, strategic financial planningand wealth management advice…

…to clients and their families.

Blevins Franks SPECIALIST ADVISERS

UK Nationals living in Portugal

Local

Supported by technical specialists

UK FCA Authorised

Brexit plans in place.

Non-Habitual Residence(NHR) & Pensions

Welcome to Portugal

Portugal believes that:

Low taxes attract people Who then spend money This boosts the economy Creates additional jobs for locals Results in more tax revenue.

Non-habitual residence ELIGIBILITY

Not resident in Portugal in last five years

High value-added occupation

Employed, self-employed, retired…

BUT it’s imperative to plan!31 March following year.

Non-habitual Residence BENEFITS

10-year period

Tax exemption for foreign source income investment income pension income etc…

20% flat income tax rate for pre-defined ‘high value-added’ scientific, artistic or technical professions.

So, what is the catch?

The income must be subject to tax in the source country; not from a tax haven

You must pass the residence test (here and ‘there’)

Precise planning needed (CGT & Income tax)

Tax residence

Straightforward in Portugal

183-days in any 12 month period

OR

making it your ‘habitual residence’i.e. simply making it your home.

What happens if resident in both countries?

Double tax treaties Tie breakers… Permanent home Centre of vital interests Habitual abode Nationality

UK Pensions

UK Pensions equation…

Tax relief on contributions

Tax free growth

Taxable income

However…

10 years tax exempt income

Tax relief on contributions

Tax free growth Tax exempt

UK Pensions in Portugal…

Post-Brexit…Overseas transfer charge – could be taxed at source…?

The Overseas transfer charge is a 25% exit tax:

deducted from pension transfer if transferor or scheme

is not EEA resident

In Summary

Portugal… Inside the EU Wants to attract long term retirees Does this through low taxes Risk to UK Pensions

No tax for 10 years on… Pension income Other tax planning opportunities

If planned correctly…

Talk to us…

SummaryOpportunities

Timing is critical

Our Guides

Informative e-newsletter

Talk to us…

Edition 8

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Thank You

The tax rates, scope and reliefs may change. Any statements concerning taxation are based upon our understanding of current taxation laws and practices which are subject to change. Tax information has been summarised; an individual should take personalised advice. All figures quoted in this presentation are for illustration purposes only.

These views are put forward for consideration purposes only as the suitability of any investment is dependent on the investment objectives, time horizon and attitude to risk of the investor. The value of investments can fall as well as rise, as can the income arising from them. Past performance should not be seen as an indication of future performance

Blevins Franks Financial Management Limited (BFFM) is authorised and regulated by the Financial Conduct Authority in the UK, reference number 179731. Where advice is provided outside the UK, via the Insurance Distribution Directive or the Markets in Financial Instruments Directive II, the applicable regulatory system differs in some respects from that of the UK. Blevins Franks Trustees Limited is authorised and regulated by the Malta Financial Services Authority for the administration of trusts and companies. Blevins Franks Tax Limited provides taxation advice; its advisers are fully qualified tax specialists. This promotion has been approved and issued by BFFM.

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