Illustrative case studies for Portuguese clients

A French national has decided to retire and move to Portugal, to benefit from the Portuguese Non-Habitual Residents regime (NHR).

Applicable also for Golden VISA program

Needs

• A solution that complies fully with all regulatory and taxation rules
• Wealth planning for the future and protection of his family
• Remaining flexible for estate planning, should he decide to return to France after a couple of years

Solution

• Taxation. The contract will be subject to the beneficial Portuguese rules for life insurance contracts instead of ordinary capital income taxation.
• Estate Planning. Efficient and fast transfer of assets to heirs. No probation period, no collection of worldwide assets, no inheritance declaration.
• Geographic Mobility. Policy can (with few exceptions) be kept active should the policyholder decide to change his country of residence (for example, moving back to France) – subject to amendments.
• Simplified Reporting Obligations. Only the policy value to be included in his tax return.
• Investment Flexibility. Handling different securities the client wishes to invest in – subject to approval.
• Asset Protection. As the assets will no longer belong to him but to the insurance company (subject to rules for the avoidance of creditors’ defrauding). 

A Portuguese national tax resident and successful entrepreneur, owns a large portfolio which is divided between several banks.

Needs

• A simplified way to manage the portfolio
• Flexibility of accessing the assets
• A solution that complies fully with all regulatory and taxation rules

Solution

• Local Solution. Portuguese life insurance solution and transfer of the assets to this contract.
• Multiple Custodians. The contract can have multiple custodian banks for additional asset diversification and protection measurement.
• Investment Flexibility. Handling different types of securities the client wishes to invest in – subject to approval.
• Taxation. The contract will be subject to the beneficial Portuguese rules for life insurance contracts instead of ordinary capital income taxation.
• Estate Planning. Efficient and fast transfer of assets to heirs. No probation period, no collection of worldwide assets, no inheritance declaration.
• Simplified Reporting Obligations. There is no need to keep detailed records of all transactions, and calculate profit/loss, dividends, and interest income for tax purposes.
• Full Access. The client is entitled to withdrawals at any time, and has full access to the underlying assets.