Tax efficient Investment Planning in Portugal

Any individual or company with fiscal tax residence in Portugal or an expatriate who becomes tax resident in a second country may wish to consider cross-border investments to manage their tax liability and/or control when tax charges are made. For example, in Portugal an International Life Insurance Wrapper held for longer than eight years are treated more favourably for taxation purposes than mutual funds and other similar investments, while investors looking for an actively managed proposition will find that their assets are sheltered from capital gains taxes in a Life Insurance Wrapper.

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Investments in a cross-border life product grow virtually free of tax throughout the time the product is held, suffering only a small amount of irrecoverable withholding tax on investment funds located in certain countries. They allow policyholders, in general, to manage when they take benefits and potentially to defer the benefits to a period that may be more advantageous from a taxation perspective.