MOVING TO PORTUGAL SEMINAR. Planning for a Tax Efficient Future

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1 Pestana Chelsea Bridge Hotel, 22nd March 2018

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3 VI.. MOVING TO PORTUGAL SEMINAR I. EDGE EDGE is the leading Portuguese law firm advising UK individual and corporate clients on their investments 6 offices worldwide including Lisbon and London with 50 multi lingual lawyers Practice and specialize in the following areas: Tax Planning Foreign Investments & Tourism Property Banking & Insurance Private Clients Residency by Investment Family & Probate Employment Corporate & Commercial Litigation & Dispute Resolution Geoffrey Graham Gonçalo Figueira E: ggraham@ E: gfigueira@ www.

4 II. Destination Portugal In recent years, Portugal has attracted an increasing number of new residents who come to invest or make it their new home Portugal is the 3 rd safest country in the world according to the Global Peace Index 2017 Its investor friendly environment has helped make it the new home of the Web Summit held in Lisbon starting from 2016 The Non-Habitual Tax Resident, Golden Visa, Urban Rehabilitation and Start-up programmes created by the Portuguese Government have been key components in the country s financial recovery www.

5 III. General Overview The Non-Habitual Tax Residency 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, bank account interest and royalties originating in a non-portuguese source being exempt from, or being subject to a preferential rate of, personal income tax Salaries for High Added Valued Activities ( HAVA ) will be taxed at 20% 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 No minimum investment required, open to all nationalities www.

6 IV. Legal Information Successful NHR applicants will be exempt from personal income tax on qualifying income if subject to tax in the country of source under an existing Double Tax Treaty If no Tax Treaty exists the income will be exempt if it were subject to tax in another jurisdiction and is not considered as Portuguese source income under domestic rules A 20% flat rate is applicable for certain types of income arising from highly qualified activities subject to a subsequent request to the Portuguese Tax Authorities Examples of HAVA include medical and I.T. specialists www.

7 V. Requirements To become a Non-Habitual Resident it is necessary to be a Portuguese tax resident i.e.: have habitual domicile in Portugal; spend more than 183 days in Portugal in the tax year; or have a dwelling in Portugal at 31 December of that year with intention to hold it as habitual residence, and not having been a tax resident there for the past 5 years The application process can take less than a week Residency Permit of 5 years as part of the application Offers residency solutions for British citizens post-brexit www.

8 VI. NHR a Brexit solution Part of our service includes obtaining the EU Residency Certificate Therefore, as part of the process, residency in Portugal is granted As a result, even in a hard Brexit scenario, this would require replacement with an equivalent document Also part of our services includes registration at that local Health Centre We also assist with the registration of driving licences www.

9 VII. Entrepeneurs and Start-ups Lifestyle increasingly affecting location choice due to increased mobility Portugal very receptive to outside investment: workforce; telecommunications; infrastructures Network of tax treaties facilitates the use of tax efficient structures Straightforward company set-up Grants/benefits available for start-ups (average of 31,000 new start-ups per year in Portugal) www.

10 VIII. Our Services We will provide you with a complete range of legal services for the application to NHR status, enabling clients to deal with all legal matters under one roof. Includes NHR application, any 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 these Authorities; regular updates in relation to the process; and other related advice. www.

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12 WORLDWIDE LISBON Praca Duque de Saldanha, 1 Edif. Atrium Saldanha, 7 th floor Lisbon, Portugal P.(+351) I F.(+351) info@ PORTO Avenida da Boavista, 722 Edif. Boavista Prime, Porto, Portugal P.(+351) I F.(+351) porto@ ALGARVE - Almancil Avenida José dos Santos Farias, 137-A Almancil, Portugal P.(+351) I F.(+351) algarve@ ALGARVE - Lagos Rua Dr. José Francisco Tello Queiroz Lote 3, Loja R Lagos, Portugal P.(+351) I F.(+351) algarve@ UK 33 Cavendish Square London W1G 0PW, United Kingdom P.(+44) I F.(+44) info-uk@ CAPE VERDE Po Box 138, Ed. Garantia, 1º F Av. Amilcar Cabral, Santa Maria, Sal, Cape Verde P. (+238) I F.(+238) info-cv@