THE DEFINITIVE GUIDE TO NON HABITUAL RESIDENCY IN PORTUGAL

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1 THE DEFINITIVE GUIDE TO NON HABITUAL RESIDENCY IN PORTUGAL

2 Why Us? We are expats just like you. We are familiar with the challenges you face when you move to or live in a foreign country. We understand that securing your financial future ranks highly in your list of priorities. You want peace of mind. You value certainty. You seek a reliable financial provider. We We are are affiliated to to Gibraltar s oldest oldest legal practice, legal practice, Isolas 1892, Isolas established 1892, established more than 125 more years than ago. 125 We years believe ago. in We the believe positive benefits in the positive that continuity benefits and that close continuity personal relationships and close personal bring. relationships bring. We know you are anxious to make the right choices and take advice from people you can trust. That s exactly how we feel. We understand the importance of building long term relationships and are motivated by a desire to make a real difference to your financial future as well as those of your loved ones. We want to help you achieve your financial objectives by developing a deeper understanding of your requirements and taking a genuine interest in your financial affairs. We established a financial services practice because we are passionate about serving the British expatriate community. We too share your frustrations at the practices adopted by some advisers. We too are determined to challenge the status quo. What we love about our company is that we think and act differently. We have a great desire to change the face of financial services by overcoming the large disconnect that exists between the expectations of the expatriate community and actual service delivery. We want to shake up financial services for expatriates by solving client problems in a more intelligent way. We genuinely want to help people the best way we can. We believe in long term mutually beneficial relationships based on the principle of winwin. If what we have said has touched you deep inside. If you share our beliefs and value our service. If you are interested in working together for the common good. If you feel we are the right company to support you; then please make contact. 2

3 What Do We Offer? We are specialists in helping you create, preserve and transfer your wealth in a tax efficient manner to your loved ones. We offer a suite of products and services all of which support these three key objectives. It s very simple really. We seek to optimize tax efficiency in order to help you build, protect and pass on your wealth to the next generation. What is Non Habitual Residency? Portugal first introduced the Non Habitual Residency programme in 2009 aimed at attracting EU residents into the country. Qualification means satisfying a residency test and not having been a tax resident of Portugal in the last five years. To be resident under the scheme you need to spend 183 days a year in Portugal or own a residence there with the intention of making it your habitual residence. What Are The Tax Advantages? The scheme basically gives those who become resident in Portugal the opportunity to benefit from a tax exemption on certain types of income for a period of 10 years provided residency requirements are met each year. In other words 0% Portuguese tax on income sourced outside of the country. CONTACT US CALL US TODAY ON: Find out the answers to these questions by speaking to a residency specialist: 1. Will I pay income tax in Portugal? 2. Will I still be subject to UK IHT? 3. How will my pension income be taxed in Portugal? 4. How many days do I need to spend in Portugal each year? 5. Do I need to buy a property? What Types of Income Are Covered? Qualifying income includes pensions, interest, dividends and royalties sourced outside of Portugal. What About Pensions? Foreign pension income, for example from UK pension funds, is exempt from Portuguese tax provided it is taxed in another country under the terms of the tax treaty, or is not regarded as Portuguese source income under domestic legislation. However the UK/Portugal treaty states that pension income should be taxed in the country of residence and therefore no tax will be due - in other words a double exemption. Similarly a pension transferred to a Malta QROPS will benefit from the fact that Maltese rules allow the QROPS to be taxed in the country of residence provided a double taxation agreement exists. Therefore under the NHR 0% tax will be levied. 3

4 Investment Investment income including dividends, interest, rental income and royalties, earned outside Portugal are exempt from tax provided it may be taxed in the state of source under a tax treaty, or it may be taxed under the terms of the OECD Model Tax Convention and is not regarded as arising in Portugal. UK dividends, for example, will be tax free in Portugal under the NHR regime since the UK/Portugal treaty provides that they may be taxed in the UK (even though in practice they may not actually be under the disregarded income rules). Note that this tax-free income option does not apply to income generated in a blacklisted tax haven such as the Channel Islands. What About Earned Income? Portugal is keen to attract highly skilled workers and the NHR scheme offers a flat income tax rate of 20% for certain Portuguese employment and selfemployment source income which further increases the attractiveness of Portugal and demonstrates the Portuguese commitment to attract the best international talent, as well as wealthy individuals and their families. Are There Any Other Tax Benefits of Living in Portugal? Surprisingly Portugal has a reasonably benign tax regime. There is no wealth tax and inheritance tax between spouses, ascendants and descendants is 0%. Can You Obtain Formal Residency for Me? Yes, subject to you satisfying the conditions for residency, this is a specific service our residency department offer. We will guide you through the process, make the application through an associated law firm in Portugal and obtain your residency certificate. Can You Help Find a Property, Obtain Health Insurance and Everything Else? We provide a one-stop shop that offers clients a menu of options in addition to our residency service. As a division of the leading provider of cross border tax and wealth management services to expatriates our in house specialists can assist you with a complete range of financial planning and investment management options. 4

5 Can You Assist in Other Jurisdictions? Yes we provide residency services for clients wishing to move to Portugal, Spain, Gibraltar and Malta as well as for clients relocating or moving back to the UK. Is Your Service Restricted to British Nationals? Not at all, during the last twelve months we have dealt with residency enquiries from various parts of Europe and beyond. Fiduciary Wealth is not a faceless name nor an internet only company where your details may get passed from pillar to post, you will be dealing with real people whose skill and knowledge is built around looking after predominantly, but not exclusively, residency needs of British expatriates like yourselves. Fiduciary Wealth, affiliated to Isolas 1892, Gibraltar s oldest legal practice, also has offices in Spain, Portugal and London. We provide a one stop shop when it comes to Portuguese Residency and clients can relax knowing that all their financial needs, residency, investments, retirement planning, property search and insurance are all taken care of under the same roof. Let us arrange a 30 minute consultation at our expense to discuss your requirements in more detail to see how we can assist you with your NHR application. TALK TO OUR TEAM London Spain Gibraltar Portugal

6 Many of our clients love our company for being different and have been touched by our passion to make a real difference to people s financial futures In considering my residency options I visited the residency website of Fiduciary Wealth and subsequently contacted the office. The advice I received was second to none and the team could not have been more helpful, fully explaining the process and making all the necessary arrangements to secure my residency certificate and assist with tax and ancillary matters relating to my move. D.C. Fiduciary handled the residency application with efficiency and I was very pleased with the service I received. R.J. When contemplating retirement last year I was drawn to the Fiduciary Wealth Website which I found was well laid out, easy to navigate and thoroughly informative. Having left my contact details I was contacted by the office within a very short time and soon set up a face to face meeting in which the benefits of such a move and path to residency were clearly explained. The process was expertly handled by Fiduciary Wealth, keeping me informed of the progress every step of the way and always available for additional consultation as necessary. The residency service was accompanied by comprehensive financial advice without any pressure. Tax planning experts were on hand for complex international tax issues and meetings arranged in short order. I have no hesitation in thoroughly recommending Fiduciary Wealth to make the residency process completely stress-free and provide a one-stop shop for comprehensive service for anyone contemplating the move to this delightful location. M.H. 6

7 Talk to our Team This is your opportunity to have a thirty minute consultation at our expense to discuss the financial issues affecting you and how we might help you resolve them. You can contact us on any of the following numbers or by enquiries@fiduciarywealth.eu London Gibraltar Spain Portugal Regulated by the Gibraltar Financial Services Commission - Licence No. FSC00962b. This guide is provided for general information only and the information contained herein should not be acted upon without professional independent advice. Fiduciary Wealth accept no responsibility for any loss occasioned to any person as a result of or in consequence of action taken or refrained from in reliance of the contents herein. Not all of the services referred to in this document are regulated. 7