Page 9 - The Portugal News - Online Issue
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Advertiser’s Announcement                                       The Portugal News • 14 Sep 2019 9



      Death and Taxes in Portugal




      There are few sure things in life these days, but as Benjamin Franklin said (or perhaps it was Mark Twain, or Daniel Defoe, or
      Christopher Bullock), “nothing can be said to be certain, except death and taxes”.


                 hoever first  inheritance laws
                 coined this   applicable to that
                 much-quoted   jurisdiction. However,
       Wphrase was             depending on your
       surely foretelling the day  circumstances and who
       when death and          you wish to benefit from
       inheritance tax would be a  your estate, you might be
       serious concern for many,  better off having a
       especially the wealthy.  Portuguese Will that
       However, they did not see  recognises Portuguese
       the future for Portugal,  inheritance rules.
       where death can be more
       or less inheritance tax-free.  Everyone is different, and
                               what might be right for
       Expats in Portugal
       Expats in Portugal
       Expats in Portugal      one person may not be
       Expats in Portugal
       Expats in Portugal
       Whether you have        suitable for another, so it’s
       relocated to work or to  always a good idea to
       retire, as an expat in  seek appropriate, expert
       Portugal you can, with a  advice. Whatever you
       little planning and     decide to do, and
       foresight, leave your wealth  whichever country’s laws
       and assets to your family  you want applied to your
       and pay much less than  estate, drawing up a Will
       those who die as a UK   as soon as possible is
       resident or domicile. If you  always a sensible idea.
       are a Portugal resident,
                               Death and taxes in
                               Death and taxes in
                               Death and taxes in
       Portuguese inheritance  Death and taxes in
                               Death and taxes in
                               Portugal
                               Portugal
                               Portugal
                               Portugal
       law can be applied to your  Portugal
       estate when you die     In Portugal, there is a
       (thanks to EU regulation  system of “forced
       Brussels IV) and this may  heirship” which means
       prove beneficial.       legitimate heirs – your
                               spouse, your biological
       Portuguese succession   and adopted children,
       laws differ greatly when  and your ascendants – are
       compared to UK rules, so  the only people who can
       it’s important that you  inherit. An heir will be
       understand how they     entitled to a minimum of
       might affect your estate,  50% of the whole estate. If  part of your estate which  five years) you can apply  it’s true that humans  independent tax advice
       your beneficiaries and  there is more than one  passes to a non-        for non-habitual resident  usually do best when  should be sought. The
       where and when any      legitimate heir, this figure  legitimate heir will be  (NHR) status which  working together and that  above does not constitute
       relevant taxes will need to  rises to 60%. The  subject to a flat-rate 10%  means you will benefit  to make the most of  advice.
       be paid. It is also a good  remainder of the estate  stamp duty, known as  from certain tax      things, to thrive, we often
       idea to determine where  can be distributed as you  Imposto do Selo, on  reductions and          need help.
       you are domiciled as this  see fit.             Portuguese assets.      exemptions which are     Understanding the
       could affect how your                                                   very favourable. NHR     complexities of death and
       estate is taxed – if you are  Under Portuguese law  It’s also important to  status lasts for ten years  taxes in Portugal is
       considered by HMRC to   there is no inheritance tax  understand that lifetime  and provides tax  something that may be
       be UK domiciled even    (IHT) levied on any part of  gifts in Portugal will be  exemption on lifetime  difficult for one person
       after living in Portugal for  your estate when it passes  subject to taxes such as  gifts and inheritance to  alone, so it’s always best
       years, you could still face  to a legitimate heir. In the  property tax and capital  legitimate heirs, no  to seek help, advice and
       UK tax of 40% on global  UK, the standard rate of  gains tax if the estate is  wealth tax, flat-rate tax  to rely on the skill of others
       assets.                 IHT is 40% on all wealth  sold.                 (currently 20%) for some  when attempting to
                               above the threshold limit                       Portuguese income from   negotiate life’s difficult
                                                       Non-Habitual
                                                       Non-Habitual
                                                       Non-Habitual
                                                       Non-Habitual
       If you don’t want       (currently £350,000).   Non-Habitual            certain professions, and  inevitabilities.
                                                       Residents and tax
                                                       Residents and tax
                                                       Residents and tax
                                                       Residents and tax
       Portuguese laws to apply                        Residents and tax       tax exemption on almost
                                                       advantages
                                                       advantages
                                                       advantages
                                                       advantages
       to your estate, you can  As a resident in Portugal,  advantages  in in in in in  all foreign income.  Contact the Blacktower
                                                       Portugal
                                                       Portugal
                                                       Portugal
                                                       Portugal
       draw up a Will as if you  you can take advantage of  Portugal                                    team in Portugal today.
                                                                               No man is an island
                                                                               No man is an island
                                                                               No man is an island
                                                                               No man is an island
       were still in your home  the zero IHT rules     As a new expat in       No man is an island                               Article by: Antonio Rosa,
                                                                                                                                 Article by: Antonio Rosa,
                                                                                                                                 Article by: Antonio Rosa,
                                                                                                                                 Article by: Antonio Rosa,
                                                                                                                                 Article by: Antonio Rosa,
       country and your estate  applicable when your   Portugal (or if you have  While we’re quoting    Disclaimer: Blacktower   Joint Country Manager -
                                                                                                                                 Joint Country Manager -
                                                                                                                                 Joint Country Manager -
                                                                                                                                 Joint Country Manager -
                                                                                                                                 Joint Country Manager -
                                                                                                                                 Lisbon
                                                                                                                                 Lisbon
                                                                                                                                 Lisbon
                                                                                                                                 Lisbon
       will be distributed and  estate passes to a     not been a Portugal     famous people (that one  Financial Management is  Lisbon
       taxed according to the  legitimate heir. While any  resident for the preceding  belongs to John Donne),  not a tax adviser and
        ADVICE FROM BLACKTOWER
        ADVICE FROM BLACKTOWER
        ADVICE FROM BLACKTOWER
        ADVICE FROM BLACKTOWER
        ADVICE FROM BLACKTOWER
          The Blacktower Group was formed in 1986 and has earned its reputation providing wealth
        management and pensions planning advice to clients in the UK as well as those who are resident
        abroad. Our proven and bespoke service can help you accomplish your financial goals.
          With offices in the Algarve and Cascais and representatives servicing expats all over Portugal, we can
        help you today by calling 289 355 685 or 214 648 220 or email info@blacktowerfm.com. All companies
        under the Blacktower Group are Regulated/Licenced in the locations they are positioned. For full details
        on how and who we are regulated by please visit www.theblacktowergroup.com
                                                                                                              www.theblacktowergroup.com
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