Case Study: Non-Habitual Resident (NHR) Portugal

In this case study, we are looking at the specific example of a French resident planning to move to Portugal to benefit from the NHR regime. In addition to the general advantages of the NHR regime, the client is entitled to a range of further benefits when subscribing or co-subscribing our Portuguese compliant life insurance solution before moving to Portugal:

• No exit tax: no exit tax due upon transfer of residence to Portugal (i.e. art 167 bis CGI) for life insurance contracts
• Efficient succession planning: optimal wealth planning solution to pass the wealth to the next generation. May benefit from the French life insurance tax regime upon death of the policyholder(s)/life assured (applicable to  the beneficiaries resident in France if the contract is signed before the age of 70, no inheritance tax but beneficiary tax due)
• Better net performance: Favourable tax regime on passive incomes generated within the life insurance contract (i.e. tax deferral). The client can therefore benefit from a better net performance of his portfolio
• Larger choice of investments: the insurance premium can be invested in a wide range of assets which are deposited with and managed by financial institutions/asset managers according to the investment strategy selected by the client
• Profit from the Luxembourg triangle of security: one of the strongest asset protection mechanisms in the European Union.
• Higher flexibility: surrenders are allowed, the contract can be pledged or used as collateral, the beneficiary clause can be modified during the lifetime of the contract.
• Benefit from impatriation regime: may benefit from the French “impatriation” tax  regime upon transfer of residence back to France after 10 years or more
• Compliance: the solution complies with Portuguese legislation.