• Bruce Hawker from Fine & Country (Algarve) orRobert Edwards from Cerro Novo Algarve Properties

• Moez Galibdin from Remax Platina (Lisbon & Porto)• Carlos Moura from Your Private Property (Madeira)

Moderation by: Christina Hippisley

LIVING IN PORTUGALMichael Reeve, AFPOP

Portugal’s Largest Foreign Residents Association

Michael ReeveCEO

Residency

Residency Certificate

• Same terms as now.

• 3 months to register.

• Proof of address and means of supporting yourself.

Permanent Residency card

• Residency Certificate Guaranteed to be exchanged

Health Care• Residency-based system

• Family Doctor at your local Centro de Saúde

• Cartão de Utente

State Pensioner

• Form S1

Not a pensioner

• Present your passport and Residency Certificate

afpop has an Information Bulletin for Members which explains all of the procedures and our staff are on hand to clarify any issues

Insurance• Health Insurance

• Vehicle Insurance

• Property Insurance

• Medal Seguros Lda - Alliance Partner

• Valid in Portugal until at least 31st December 2020

• Register your licence with the authorities (IMT)

Driving Licences

Car ImportationWithout paying importation tax

• Owned for 6 months

• Must have lived in that country also for 6 months

• Complete the process within 12 months of cancelling your residency in the UK

New date of registration of the vehicle

If you receive an Exemption of Import Tax and sell within one year, you pay the tax that would have been due

Ask yourself - is it a vehicle that you are attached to and is it left hand drive? If not, why are you taking it?

Again – afpop has an Information Bulletin on this.

Tips and Hints

• Speaking Portuguese

• Government offices can be reluctant to speak any other language than Portuguese

• Take everything that you think you might conceivably need or be asked for and always make copies of everything before you go

• Take a Portuguese-speaking friend!

Summary• Portugal is a good country to move to

• The Portuguese want you there - BRELCOME!

• They speak English

• It’s welcoming and friendly

• The crime rate is very low

• Wine

• Food

• Climate

• Roads

For a good and reliable source of information and assistance

Become a member

Welcome to Portugal!

Over 6,700 Members

www.afpop.com info@afpop.com

THE PROPERTY BUYING PROCESS - LEGAL STEPSMiguel Lorena Brito, FCB Legal

www.fcblegal.com

13

Property Buying Process Legal Steps

With you, wherever you are

Lisbon . Oporto . Faro . Luanda . Maputo

www.fcblegal.com

14

Full ownership (“freehold”)

• Most common

Limited ownership

• Surface right, right of use, time-sharing, etc.

Ownership Rights

www.fcblegal.com

15

Ownership Rights

Owners (Individuals or Companies) Asset

Single Ownership

One owner

Co-Ownership

Multiple owners

Single property

Unit: Condominium (horizontal property)

www.fcblegal.com

16

Applies to:

• Buildings (orgroups ofbuildings)

Composed by:

• Units

• Common areas(co-owned bythe owners of all units)

Involves:

• Condominium:

• Association

• Internal rules

• Costs(expenseswithcommonareas)

Horizontal Property

www.fcblegal.com

17

Type of transaction

Asset Deal Share Deal

Buying the real estateasset directly

More common for individuals buying for

personal use

Buying the shares of a company owning the

asset

More common in investment acquisitions of

high-value assets

www.fcblegal.com

18

Buying process – Steps

Find a property

Reserve / Make an offer

Due diligence

Promissory agreement

Closing – Sale and purchase deed

www.fcblegal.com

19

Buying process – Reservation

Letter of intent common in business or high value transactions

ReservationForm

Deposit

Very commonBUT requires

careful analysis

Usually a fixed amount€10.000 to €15.000

www.fcblegal.com

20

Buying process – Due Diligence

• Assess legal / tax situation of the property

• Identify encumbrances / charges / limitations that mayaffect the transaction or the rights of the future buyer

Why?

• Prior to the Promissory Purchase and Sale Agreement (PPSA) (preferably)

• After the PPSA but prior to closing (positive outcomeof the DD as a condition precedent)

When?

• High level vs Detailed

• Depends on the type, value and particulars of thetransaction

Scope

www.fcblegal.com

21

Buying process – Promissory Agreement

Sets the terms and conditions of the transaction Identification of the property Price & payment conditions Completion date Representation & warranties Termination, etc.

Down payment One or more instalments (usually from 20 to 50% of the price) Security should be agreed

Formalities Use permit Notarisation

www.fcblegal.com

22

Buying process – Promissory Agreement

Security for down payment

No Security: Buyer to provide a lower down payment

Bank Guarantee Escrow Account Provisional registration

Secure: Easy recovery of

the down payment

Relevant costs for Seller

Uncommon (for single

/small asset deals)

Secure: Easy recovery of the

down payment

Immobilisation of funds

Uncommon (for single /small

asset deals)

Very Common

Prospective buyer has a

priority in the acquisition of the property

does not guarantee the

recovery of the down payment

www.fcblegal.com

23

Buying process – Tax Identification

Before PPSA buyers need to obtain a taxpayer identification number from the Tax Authorities

Non-resident in the EU

◦ TAX REPRESENTATIVE

Also required to open a bank account at a local bank

Creates no tax obligations to the buyer

www.fcblegal.com

24

Buying process – Completion

Preemption-rights

• Seller to notifypublic / privateentities holding preemptive rights

Payment ofTaxes

• Transfer Tax

• Stamp Duty

PublicDeed

• Title oftransfer ofownership

Registration

• Makesownershippublic

www.fcblegal.com

25

Buying process – costs for buyer

Property Transfer Tax (“IMT”) Up to 6,5% (10% for companies located in tax

havens)

Stamp Duty (“IS”) 0,8%

Notary Fees Variable (approx. 1000€)

Registration Fees Variable (approx. 150€)

www.fcblegal.com

26

Buying process – costs for buyer

Example:

Apartment for residential purposes

with a purchase price of 500.000 €

Transfer Tax 29,000.00 €

Stamp Duty 4,000.00 €

Notary Fees 1,000.00 €

Registration Fees 150.00 €

Total 34,150.00 €

www.fcblegal.com

27

Alternative to buying: Lease?

• Period: from 1 to 30 years

• Favourable conditions for tenant to terminate before end of lease

• Presently more difficult to find long term leases (5 years or more) in certain locations

• Adequate for NHR but not for Golden Visa (requires investment)

www.fcblegal.com

28

Miguel Lorena Britomlb@fcblegal.com

www.fcblegal.com

2929

LisbonAv. da Liberdade, 249, 1º • 1250-143 Lisboa

t. +351 213 587 500 • fcb@fcblegal.com

OportoAv. da Boavista, 3265 - 2.8 • 4100-137 Porto

t. +351 228 346 740 • porto@fcblegal.com

FaroAv. 5 de Outubro, 14, 4º • 8000-076 Faro

t. +351 289 096 278 • algarve@fcblegal.com

LuandaEdifício Kaluanda, Rua José da Silva Lameira,

Piso 2, Escritório 2001 • Luanda, Angolat. +244 937 406 057 • angola@fcblegal.com

MaputoAv. Vladimir Lenine, 174, 1º

Edifício Millennium Park • Maputo, Mozambiquet. +258 21 359 520 • m. +258 21 359 501

mozambique@fcblegal.com

With you, wherever you are.www.fcblegal.com

COFFEE BREAKPlease return in 20 min

Free Wifi: PestanaChelsea-Internet | Password: PestanaGuest

CURRENCY AND FOREIGN EXCHANGEPrem Raja, Currencies 4 You

Currencies 4 You

Moving To Portugal

Global payment specialists, always achieving you more for your money

www.currencies4you.com info@currencies4you.com +44(0)1322 319 550

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Spot and Forward Contracts (Fix a rate for up to 3 years)

full balance)

Market Analysis – helping you buy at the right times(Banks do not provide this)

Online Platform allowing you to arrange your own transfers anytime.

FCA authorised payment institution.

Bank Comparison

Exchange Rate Comparison on 14/04/2019

Amount saved using Currencies 4 You£25,582.03 or €29,560.03

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Provider Purchase In € Rate

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+44(0)1322 319 550

THE NON HABITUAL TAX REGIME - How it WorksSara Sousa Rebolo, Caiado Guerreiro

Caiado Guerreiro is an International Law Firm founded in 1979 with

a general practice in all areas of law being ranked by Chambers and

Partners, Legal 500, IFLR and International Tax Review directories

among Portugal’s leading law firms.

Our clients include industrial and commercial companies from all

business sectors, from technologic to pharmaceutical companies,

insurance companies, banks and other financial institutions,

professional firms, public bodies and other organizations, as well as

individuals.

ABOUT CAIADO GUERREIRO

CG

CG

CG

CG

CG

Caiado Guerreiro has a strong international presence, thus having International Desks (English, Brazilian, Chinese, African, German, Russian, French and Italian), composed of lawyers who are native and fluent in their respective languages and who are familiar with local customs and jurisdictions.

LisbonOporto

Faro

WHERE YOU CAN FIND US

ssimoes@caiadoguerreiro.com mluis@caiadoguerreiro.com

NON HABITUAL TAX RESIDENCE (NHR) REGIME

WHAT IS THIS?

• It is a special tax regime created to improve Portugal’s international competitiveness,by seeking to attract qualified expatriates who perform high added value activities, aswell as other high net worth individual investors in the same conditions.

• This regime targets non-resident individuals who are likely to establish a permanent ortemporary residence in Portugal.

• It is open to anyone who has the right to reside in Portugal (an EU/EEA/Swiss citizenor the holder of a residence permit).

REQUIREMENTS FOR OBTAINING NHR STATUS

1. Not having been qualified as a tax resident in Portugal for the past 5

years;

2. Be regarded as a tax resident in Portugal, by:

(i) Staying more than 183 days, consecutive or interpolated, in any 12-month

period commencing or ending in the year concerned, or;

(ii) Having remained for less time, having in Portugal, at some point in the 12-

month period, housing conditions that assume a current intention to

maintain and occupy the property as an habitual residence.

NHR ADVANTAGES

• Program approved by the European Commission;

• Based on the application of Double Taxation Agreements;

• Generally without any taxation (0% tax) on dividends, interest, royalties,

capital gains on immovable property as well as foreign-sourced real

estate rents and pensions;

• Flat low rate of 20% on professional income earned in Portugal;

• Does not require minimum amounts of investment;

• Does not have citizenship limitations;

• Approval of the application in 24-48 hours.

This means that British expatriates can potentially receive UK pensions,

rental income, capital gains on real estate, interest, dividends and non-

Portuguese employment income tax-free.

TYPE OF FOREIGN INCOME TAXATION IN PORTUGAL

Dividends 0%

Interest 0%

Royalties 0%

Private Pensions 0%

Public Pensions 0%

Capital Gains 28%

Capital Gains from real estate located outside of Portugal 0%

Rental income 0%

Unit-linked28%. In case of redemption:a) If held for more than 5 years: 22,5%b) If held for more than 8 years: 11,2%

SICAV/SICAFIf it qualifies as:a) Interest/dividend: 0%b) Capital gains or other capital income: 28%

TAXATION FOR A NON-HABITUAL TAX RESIDENT (NHR)

NHR HIGHLIGHTS

• The regime is applicable for 10 years;

• The regime grants an individual tax status, meaning all the family members shall apply for it;

• Income from tax havens is taxed in Portugal;

• In Portugal there is no inheritance tax, nor gift tax between parents and children nor between spouses or

unmarried partners (10% between other parties);

• The status can be cumulated with other programs like Startup, Entrepreneurs Residency, Tech Visa or

the Golden Visa.

WHY PORTUGAL?

Portugal and England have numerousagreements signed centuries ago that are still inforce:

• Treaty of Windsor (1386) - pact of mutualsupport between the countries;

• Methuen Treaty (1703) - military andcommercial treaty;

• Treaty of Peace and Alliance (1810) - toextinguish the slave trade;

• Treaty of Navigation and Trade (1914) -commercial and economic relationships;

• Double taxation Convention (1968) - regardingto income and corporate tax, capital gains taxand surtax.

It is time to come to Portugal…Caiado Guerreiro provides a “one stop shop” service with a professional and personalized

team, combining technical excellence with commercial understanding and a pragmatic constructive approach, being able to assist you in the multiple perspectives from tax advice

to real estate acquisition, company incorporation or IT rights.

www.caiadoguerreiro.com

Sara Sousa Rebolosrebolo@caiadoguerreiro.com

THE NON HABITUAL TAX REGIME – Case StudiesLuis Filipe Sousa and Martim Gomes, PwC Portugal

Portugal: Europe’s best kept secret

May 2019

www.pwc.pt/tax

Portugal is not just lovely weather, sunny beaches, fantastic landscapes in the North, historical places and landmarks and the cosmopolitan cities of Lisbon and Porto. Those could be reasons to visit Portugal.

But have you considered Portugal as a location to establish your tax residence? Find out what Portugal has to offer for business and for individuals.

Portugal:

Your choice?

56

May 2019Portugal - Europe’s best kept secret

High standard of health care

services

Residencecard for Non EU and non-

EEE investorsGolden Visa

Taxstability

20% flat rate on highly-specialised

employmentincome and self-

employmentWide

network of 80 taxtreaties

Peaceful

Lowcost ofliving

High qualitypublic and

privateeducation

internationalschools

Living in Portugal

Friendly residencepermit regime

(allowing for free movement within the

Schengen area)

Exemptionfrom taxation

of foreignincome

(dividends, pensions and

others)

Free remittance

of fundsabroad

No wealthtax

Tax exemptionfor inheritance

or gift tax

57

May 2019Portugal - Europe’s best kept secret

The Non Habitual Tax ResidentHome country of NHRs

23.767

27.1%

France11.4%

United Kingdom

10.6%

Italy

8.6%

Sweden

8.4%

Brasil33.9%

Rest of the world

28

Portugal has already granted a favourable tax regime to 23,767 taxpayers, until September 2018

28 Registrations per working day as non habitual tax residents before the Portuguese tax authorities in 2017

58

May 2019Portugal - Europe’s best kept secret

The Non Habitual Tax Resident

PortugueseSource

Foreign Source

Employment Income Taxed at 20% (1)

Exempt with progression if:• The income is taxed in the country of source under a

DTT; or

• The income is taxed in the country of source under its domestic legislation and is not from a Portuguese source.

Pension IncomeTaxed at progressive

rates

Exempt with progression if:• The income may be taxed in the country of source under

a DTT; or

• The income is not regarded as Portuguese-source income.

Self-employment Income Taxed at 20% (1)Exempt with progression if:• The income may be taxed in the country of source under

a DTT; or

• The income may be taxed in the country of source under its domestic legislation and is not from a Portuguese source (offshores excluded)

Capital Gains /Investment Income/Rental Income

Taxed at flat/progressive rates

(1) If arising from a “high value-added” activity.

Pension income may be exempt in both countries!

59

May 2019Portugal - Europe’s best kept secret

The Non Habitual Tax Resident

Example

• Married couple.

• Employment income (“high value-added activities”): EUR 120,000.

• UK pension: EUR 90,000.

• Interest from Switzerland: EUR 10,000 (taxed in Switzerland).

• Rental income from the UK: EUR 40,000 (taxed in the UK).

• Dividends from The Netherlands: EUR 15,000 (taxed in The Netherlands).

60

May 2019Portugal - Europe’s best kept secret

The Non Habitual Tax Resident

2019

Portuguese tax liabilityNon-habitual

residentResident

Employment income EUR 22,358.40 EUR 44,004.43

UK Pension - EUR 33,003.33

Interest from Switzerland - EUR 2,800

Rental income from the UK - EUR 11,200

Dividends from the UK - EUR 4,200

Total tax liability EUR 22,358.40* EUR 95,207.76

Total Gross Income EUR 275,000 EUR 275,000

Net Income EUR 252,641.60 EUR 179,792.24

* It should be added the foreign tax lability

61

May 2019Portugal - Europe’s best kept secret

Tax regime granted for 10 years

20% flat tax rate on (self) employment

income

No gift and inheritance tax

Exemption on foreign source income, like pension, interest,

dividends and rents

No Wealth Tax

Climate, security, gastronomy, cultural heritage, golf,…

Critical to analyse the tax implications in the

country of source before moving tax

residence

Golden Visa

Things to remember....

62

May 2019Portugal - Europe’s best kept secret

Find out more...

https://www.pwc.pt/pt/fiscalidade/2016/pwc-europes-best-kept-secret.pdf

www.pwc.pt/pt/fiscalidade/2016/pwc-golden-visa.pdf

63

May 2019Portugal - Europe’s best kept secret

Thank you

Leendert VerschoorPartnerleendert.verschoor@pwc.com

This communication is of an informative nature and intended for general purposes only. It does not address any particular person or entity nor does it relate to any specific

situation or circumstance. PricewaterhouseCoopers & Associados - Sociedade de Revisores Oficiais de Contas, Lda will not accept any responsibility arising from reliance on

information hereby transmitted, which is not intended to be a substitute for specific professional business advice.

© 2019 PricewaterhouseCoopers & Associados - Sociedade de Revisores Oficiais de Contas, Lda. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers

& Associados - Sociedade de Revisores Oficiais de Contas, Lda. which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a

separate legal entity.

Luís Filipe SousaSenior Managerluis.filipe.sousa@pwc.com

Martim GomesSenior Managermartim.gomes@pwc.com

Contacts

WEALTH MANAGEMENT & PENSIONS IN PORTUGALAdrian Hook, Blevins Franks

Tax and wealth planning opportunities

Adrian Hook Partner | Portugal

Blevins Franks… Who we are, what we do

Brexit… A Key Message

Portugal... A Tax paradise within the European Union?

UK pension funds… A pre-Brexit opportunity.

Agenda

Who are Blevins Franks?

The leading international tax and wealth management

advisers to UK nationals living in Europe

Blevins Franks Group

Advising clients for over 40 years7 countries

22 Offices43 Partners and Private Client Managers

200+ Employees5,100 Families

€2.5 billion Funds Under Advice.

…tax driven

financial planning and wealth management advice

What do we do?

Comprehensive Financial Planning

Cross-BorderTax Planning

Investment Advice

Estate Planning

Pensions Advice and Planning

Blevins Franks Specialist Advisers

Deep understanding of UK Nationals living in Portugal

Cross-border expertise – chartered tax advisers

Based locally in the country where our clients live

Qualified and Regulated – UK & Portugal.

…in a world of fake news, focus on the facts.

What do they mean for you, living in Portugal?

PEACE OF MIND

BrexitA Key Message

Tax policy post Brexit

A Member State sets its own Tax Policy for its own Residents

Avoidance of Double Taxation

Governed by Tax treaties

These are bilateral agreements

PortugalTax paradise within the European Union!

Planning Steps

Apply for initial residence (Residencia)

Register as Tax Resident (Finances)

Register in the Portuguese healthcare system

Apply for Portuguese driving licence

Count your days and keep good records

Stay informed www.gov.co.uk

Talk to the people who know?

Arrange a meeting with a Blevins Franks advisor

Taxation

Portugal believes that:

Low taxes attracts people into a country

These people spend their extra money

This creates jobs for local nationals

Who in turn pay tax

Non Habitual ResidenceQualification

Not resident in Portugal in the last 5 years

Employed, self employed or retired

High value occupations.

Non Habitual ResidenceThe Benefits

Tax exemption for foreign source income

For a period of 10 years

Includes pension and investment income

…but needs planning

UK pension funds…a pre-Brexit opportunity?

UK Pension Freedoms (2015)

Flexible Access from age 55

Retention of ‘Tax Free’ Lump Sum (UK only)

Inheritance Tax Free

Ability to transfer to other schemes abroad without penalty

Exit Tax!

Tax relief on contributions

Tax free growth

Tax exempt

The Overseas transfer tax is a 25% exit tax:deducted from pension transfer if transferor or scheme is not EEA resident

UK Pensions overseas…

“I beg yourpardon?”

Tax relieved contribution

Tax freegrowth

Tax freepayout

NEW Exit tax?

Good news for EU residentsExclusion from charge if…

The pension

is EU resident

Remain EU resident for 5+ UK tax years

You are

EU resident

And what about Final Salary Schemes?

In Summary

Portugal… Inside the EU

Wants to attract long term retirees

Does this through a low taxes

Tax exempt for 10 years on… Pension income

Dividend income

…Other tax planning opportunities are available.

Edition 8Available now

Thank You

THANK YOU!

Any questions?Please go and talk to our speakers

and exhibitors next door.