Benefits of Life Assurance In Portugal
Compliant Tax Shield
The Portuguese life policy is designed to comply with all legal requirements to minimize taxation under personal income tax. As such, Portuguese resident clients have no income tax or capital gains tax liabilities on the income or gains accrued by the assets held within the policy as long as no surrender occurs.
Flexibility – The Key Word
Our Private Wealth Portfolio is a single-premium, unit-linked life insurance policy specifically designed for Portuguese residents.
Tax Benefits
Gross roll-up tax regime
Private Wealth Portfolio falls under the definition of an ICAE (instrumento de captacao de aforro estruturado” or “structured instrument for attracting savings”) as established in Article 206.1 of the Portuguese Law. This is a key advantage in Portugal compared to direct investments either held locally or abroad.
Efficient Tax Planning
A key feature of the Private Wealth Portfolio is the ability to determine when or if a liability to Portuguese tax arises.
Stamp Duty
Life insurance premiums are excluded from Portuguese Stamp Duty (imposto de selo) as per Article 7, paragraph 1 (b) of the Portuguese Stamp Duty Code.
Inheritance and Gift Tax
No inheritance or gift taxes are levied in Portugal. Instead, Stamp Duty is paid at a flat rate of 10% for gratuitous transfers, but transfers to spouses, descendants and ascendants, are exempt.
Product Benefits
Simplicity, flexibility and liquidity
Private Wealth Portfolio is set up in a quick and simple way, compared to the complexity and set-up costs of other vehicles such as SICAVs or SIFs.
Liquidity
Funds can be recovered at any time through total, partial or regular surrenders, thus offering total immediate liquidity (subject only to the liquidity of underlying assets)
Combination with Portugal residence permit
Private Wealth Portfolio is an optimal solution for non-habitual residents and beneficiaries of the Portugal residence permit (Golden Visa Programme) as they can also take advantage from the optimal tax treatment of the product for Portuguese residents.
Peace of Mind
Private Wealth Portfolio is immediately paid to beneficiaries, even if the inheritance takes years to be distributed, because Private Wealth Portfolio sits outside the Will and insurance proceeds are not part of the estate of the deceased. In this way the product ensures total confidentiality as well as the flexibility to swiftly appoint and change beneficiaries irrespective of the Will dispositions.
Clients Benefit from Choice
With Private Wealth Portfolio clients can propose a Portfolio Manager and/or custodian based in their country of choice while they are assured that the vehicle is fully compliant with Portuguese legal requirements and qualifies for the Portuguese life insurance regime.
Widest Range of Permissible Assets
Private Wealth Portfolio offers the widest possible range of permissible assets, such as deposits, bonds, shares, investment funds (including closed funds and private equity funds) and in general any bankable asset.