Bruce Hawker from Fine & Country (Algarve)...
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Transcript of Bruce Hawker from Fine & Country (Algarve)...
• 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 [email protected]
THE PROPERTY BUYING PROCESS - LEGAL STEPSMiguel Lorena Brito, FCB Legal
www.fcblegal.com
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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
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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
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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
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Buying process – Steps
Find a property
Reserve / Make an offer
Due diligence
Promissory agreement
Closing – Sale and purchase deed
www.fcblegal.com
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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
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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
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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
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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
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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
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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
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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
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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
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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
2929
LisbonAv. da Liberdade, 249, 1º • 1250-143 Lisboa
t. +351 213 587 500 • [email protected]
OportoAv. da Boavista, 3265 - 2.8 • 4100-137 Porto
t. +351 228 346 740 • [email protected]
FaroAv. 5 de Outubro, 14, 4º • 8000-076 Faro
t. +351 289 096 278 • [email protected]
LuandaEdifício Kaluanda, Rua José da Silva Lameira,
Piso 2, Escritório 2001 • Luanda, Angolat. +244 937 406 057 • [email protected]
MaputoAv. Vladimir Lenine, 174, 1º
Edifício Millennium Park • Maputo, Mozambiquet. +258 21 359 520 • m. +258 21 359 501
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 [email protected] +44(0)1322 319 550
Who Are Currencies 4 You?
Currencies 4 You was established in 2009 , has 4 international offices in
Europe, Portugal Included.
Current Turnover is $350m saving clients $9-15M every year.
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Segregated Client Accounts (safeguarding your funds for the
Personal Relationship Manager
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
Currency Amount To Exchange Transfer Fee
Provider Purchase In € Rate
Cost To Client In
£’s
Currencies 4 You €500,000.00 1.1555 £0 £432,713.11
Best Bank Provider €500,000.00 1.0910 £25 £458,295.14
How It Works
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We Watch The Markets So You Don’t Have To
Limit order costLimit Orderfor €500,000£416,666,67 @ 1.20
is
Stop Loss
Stop loss cost£434,782.61 @ 1.15
is
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could have cost
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Completion Date
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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
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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
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.
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?
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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
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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
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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
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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!
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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).
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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
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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....
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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
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May 2019Portugal - Europe’s best kept secret
Thank you
Leendert [email protected]
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 [email protected]
Martim GomesSenior [email protected]
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.
