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Keeping the NHR Tax Regime Could Be Good for Portugal in 2018

It now looks like both existing expat residents as well as those on the cusp of making the move will continue to enjoy the NHR’s tax-free pension income status as well as tax-free interest, tax-free non-resident dividends and tax-free royalties; it is worth noting that the latter of these things is of particular interest to high profile expat entertainers and musicians such as Madonna, Monica Belluci and Eric Cantona.

So, as 2018 moves swiftly on, expats can feel reassured that they will continue to enjoy ten years of the following benefits from the NHR scheme:

  • No minimum investment requirement
  • Tax-free royalties, interest and dividends
  • Tax-free lump sum or regular income pensions
  • 20% flat rate tax on high value activity

Keeping Portugal appealing for expats

The apparent about-face regarding the NHR regime means that Portugal remains the leader when it comes to favourable wealth management and residency planning jurisdictions. It also means that the country has every reasonable expectation of again finishing at the top of the pile of an exhaustive list of the most desirable countries in the world to migrate to, following on from its success in topping a 2017 survey.

The survey, which was carried out for the third year in a row, was administered by Henley & Partners, a UK-based firm that specialises in fiduciary-based citizenship planning. It looked at the relative merits of various country’s immigration and residency programmes and then ranked them accordingly.

Although the Southern European archipelago of Malta outperformed all challengers when it came to the attractiveness of its investment schemes enabling citizenship in exchange for a minimum level of investment, Portugal’s golden visa scheme ensured it finished top of the list of countries which allow residence in exchange for investment.

Each country’s residency-by-investment attractiveness was based on scores out of 10 for the following categories:

  • Lifestyle
  • International standing
  • Visa-free access
  • Visa processing times
  • Quality of visa processing service
  • Financial and taxation requirements
  • Bureaucratic and financial transparency
  • Residency requirements
  • Compliance
  • Relocation flexibility
  • Physical visit requirements

Portugal’s outstanding candidacy was founded on the strength of its Golden Residence Permit Program and earned a score of 79 out of 100, meaning it finished one point ahead of Austria and two points ahead of Belgium.

Those who currently enjoy the many benefits of expat life in Portugal are likely to agree with the findings of the survey while also taking enormous relief from the fact that the Portuguese government has appeared to accept that expat money is invaluable to the country’s economy and that every accommodation should be made to ensure the influx of expats is encouraged.

However, the alarm provoked by the proposed changes to the NHR programme should remind expats in the country of just how quickly things can change. Whatever happens, sound wealth management advice remains the best way to plan for a secure and prosperous financial future.

Other News

Sweden Prepared to Manage Brexit in All Eventualities

Hand with Sweden flagIf you are an expat in Sweden, wealth management that takes account of your cross-border financial interests is a must.

However, with Brexit looming there is currently an added layer of concern, with the UK’s imminent separation from the EU undoubtedly relevant to certain components of any British expat’s wealth management strategy.

Fortunately, and despite a constant deluge of disturbing headlines that could easily have you believing otherwise, there is little chance that British citizens living in Sweden will need to make any fundamental changes to their outlook.

Read More

Premier FX collapse – What to do next for customers

Portugal Flag and EurosThe collapse of foreign exchange company Premier FX in the Algarve has caused shockwaves throughout the expat investor community in Portugal, with many customers now confused as to where they go from this point.

The death of founder Peter Rextrew on June 16 appears to have precipitated financial meltdown for the firm and on the 13 August administrators were appointed.

Customers who have their expat regular savings in Portugal tied up with the forex company and anyone who has sent money to the firm, should now provide as much information as possible to the administrators.

Read More

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