WEL ELCOME COME Christina Hippisley Portuguese Chamber of - - PowerPoint PPT Presentation

WEL ELCOME COME

Christina Hippisley

Portuguese Chamber of Commerce in the UK

LIVING IN PORTUGAL

Dylan Her erholdt

• ldt - Portugal

tugal Rea ealty ty (Sil ilver er Coast) Bruc uce e Hawker er - Fine Fine an and C d Coun untr try y (A (Alga garve) e) Rober ert t Edw dwards ds - Cer erro

• Novo
• Alga

garve e Prope perti ties es (Alga garve) Alexandre dre Mansour - Opt ptylon lon Capi pital (Lis isbon and d Porto) Mode derati tion

• n by: Chris

isti tina Hip ippi pisley

THE HE PR PROP OPER ERTY Y BU BUYING ING PROCESS CESS LE LEGAL AL STEPS EPS

Sara 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

• ther

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. Lisbon Oporto Faro

WHERE YOU CAN FIND US

ssimoes@caiadoguerreiro.com mluis@caiadoguerreiro.com

REAL ESTATE ACQUISITION IN PORTUGAL

MAIN STEPS

Market Prospection Reservation Document Due Diligence Promissory Agreement Public Deed

RESERVATION DOCUMENT

• Identification of the Parties
• Acquisition value
• Identification of the real estate
• Deadline to make a decision / perform the due diligence
• Reservation fee
• Identification of the Mediator (if applicable)
• Indication of the lawyers who will perform the due diligence
• Reference to bank loans (if applicable)
• List of special conditions subject to the agreement

DUE DILIGENCE

ESSENTIAL TO ANALYZE:

• That all the legal mandatory documents to conclude the

acquisition are updated and available

• The legitimacy of the Seller and the scope of its right over the

real estate

• The licensing of the real estate and its purpose
• The legal conformity between the reality and the documents

(specially regarding areas and composition)

• The existence of debts and encumbrances
• The existence of legal problems or constraints on the building

PROMISSORY AGREEMENT

• Useful if the real estate or the Parties are not ready to conclude the

transaction immediately

• Defines the TERMS AND CONDITIONS OF THE DEAL, including down payments,

deadlines and the final date to conclude the transaction with the public deed

• Establishes the RIGHTS AND DUTIES AND LEGAL CONSEQUENCES IN CASE OF BREACH

by any of the parties and may include special protection clauses:

• Provisional land registry
• Refund of down payments
• Compensation for delays
• Additional guarantee on construction / defects
• Even after the transaction has occurred, there are clauses that can be kept

in force

PUBLIC DEED

• Scheduled with prior notice
• Performed BEFORE A PUBLIC NOTARY or a Portuguese Lawyer
• It’s mandatory the presence of the Parties OR THEIR LEGAL REPRESENTATIVES,

the Bank (in case of loan), a Translator (if the parties do not speak Portuguese) and the identification of the Mediation Company (if applicable)

• Corresponds to the closing of the deal, where the OWNERSHIP RIGHT IS

TRANSFERRED TO THE BUYER, as well as the keys and the real estate legal

documents (if were not delivered before)

• It is subject to registration in the Land Registry Certificate
• It shall mention the TAXES PAID BY THE BUYER
• It shall mention the ways of payment, amounts and dates of such

payments

COSTS IN THE ACQUISITION SUBSEQUENT COSTS

• IMT (Property Transfer Tax): up to 6,5% on the

real estate price

• SD (Stamp Duty): 0,8% on the real estate price
• Notary Fees: (depend on the Notary)
• Land Registry Fees: +/- €250
• Attorney Fees (if applicable)
• Mediator Fees (usually paid by the Seller)
• Real Estate Insurance Fee
• Condominium Fee
• IMI (Annual Property Tax): between 0,3% and

0,45% on the Taxable Value of the Real Estate

• Maintenance Fee (in case of houses with pools

and gardens)

• Local Taxes charged by the Municipality

(depends on each Municipality)

REAL ESTATE MARKET IN PORTUGAL

Investment in the Portuguese Real Estate Market by origin of the Investor | Million Euros

Source: JLL

MARKET DISCOVERED BY INTERNATIONAL INVESTORS PRICES BELOW THE EUROPEAN AVERAGE

Evolution of the European Houses prices

Source: Eurostat

• Good quality/price ratio
• It grants access to residency programs for non-

European citizens

• It allows to change the Tax Residency and benefit

from Tax programs like the NON HABITUAL RESIDENT TAX

REGIME (NHR) which exempts most of the income

received from abroad and establishes a lower flat rate on income received in Portugal

• It establishes a bond with Portugal, relevant for some

citizenship applications

WHY OWN REAL ESTATE IN PORTUGAL?

Profitability of Real Estate markets

Source: ECB, The Economist, Bloomberg, Confidencial Imobiliário 2017

CAPITALS PARALLEL ON PROFITABILITY

Portugal and England have numerous agreements signed centuries ago that are still in force:

• Treaty of Windsor (1386) - pact of mutual

support between the countries;

• Methuen

Treaty (1703)

• military

and commercial treaty;

• Treaty of Peace and Alliance (1810) - to

extinguish the slave trade;

• Treaty of Navigation and Trade (1914) -

commercial and economic relationships;

• Double

Taxation Convention (1968)

• regarding income and corporate tax, capital

gains tax and surtax.

It is time to come to Portugal…

Caiado Guerreiro provides a “one stop shop” service from a professional and personalized team, combining technical excellence with commercial understanding and a pragmatic constructive approach. We can assist you in the multiple perspectives from tax advice to real estate acquisition, company incorporation or IT rights.

www.caiadoguerreiro.com

Sara Sousa Rebolo srebolo@caiadoguerreiro.com

BA BANKI KING, NG, FI FINANCE ANCE AN AND MO D MORTGAGE GES S IN IN PO PORTUG UGAL AL

Judith Price, Portugal Consultants

BANKING, FINANCE AND MORTGAGES IN PORTUGAL

BY: JUDITH PRICE

BANKING IN PORTUGAL

• Documentation to open an account
• Passport / ID Card
• Proof of residential address Eg: recent utility bill
• Proof of employment Eg: P60, payslips, employer reference letter, self assessment tax return
• Housewife / husband may need to sign a simple declaration
• Proof of national insurance number
• Portuguese tax number (NIF)

FALA PORTUGUÊS?

MORTGAGE PRODUCTS

GENERAL TERMS & CONDITIONS

• Project Type: Main residence, holiday home, construction, renovation, transfer
• Mortgage Type: Repayment – capital & interest, mixed, fixed, interest only (limited)
• LTV: Up to 80%
• Loan Amount: From €50,000 +
• Age to be repaid by: 75
• T

erm: Up to 30 years not beyond age 75

• Nominal Interest Rates from 1.25% – 5% : Euribor 3 / 6 / 12 month + spread / margin

MORTGAGE SIMULATION – “FINE”

Property Purchase Mortgage Required LTV Term Type of Rate Base Spread/Margin Final Spread/Margin Nominal Interest Rate TAEG* € 375,000 € 262,500 70% 20 Years 6 mth Euribor (-0.268%) 1.890% 1.890% 1.622% 2.035%

• TAEG – Taxa Anual Efetiva Global. It includes the real costs of the mortgage, not only the interest but also all other cost the client has to pay, such as insurance

Ficha de Informação Normalização Europeia Monthly Costs Building Insurance € 27.85 Life Cover € 105.75 Monthly Payment € 1,281.46

• Capital

€ 926.65

• Interest

€ 354.81

ESTIMATED ASSOCIATED COSTS

Property Transfer Tax Acquisition Stamp Tax Mortgage Stamp Tax Casa Pronta (Notary) Mortgage Registration € 18,964.65 0.8% - € 3,000 0.6% - € 1,575 € 307.50 € 465 Other Costs to Consider Bank Valuation fee Mortgage Arrangement fee Broker fee Lawyer fee Account Maintenance fees

LENDING CRITERIA

• Banks consider:

 Financial Strength  Property Valuation

• Based on your net monthly income vs. your existing debts + new mortgage payment
• Total must not exceed 30-40% of your net monthly income

YOUR FINANCIAL FOOTPRINT

DOCUMENTS REQUIRED

• ID: Passport
• Proof of address (recent utility bill)
• Experian report
• Last 6 months bank statements
• Employed applicants: P60, Last 3 months payslips,

ref letter from employer

• Self Employed applicants: Last 3 years company accounts, 3 years self assessment tax returns,

accountants certificate

• Portuguese tax number NIF
• Buy to let property: tenancy agreements, tax return, mortgage statements

OBRIGADA!

Contact Email: judith@portugalconsultants.com

EV EVAL ALUATING TING PR PROP OPER ERTY Y IN INVES ESTMENTS TMENTS

Alexandre Mansour, Optylon Capital

COFFEE BREAK

Please return in 20 min

CURRENCY RRENCY AN AND F D FOR OREI EIGN GN EX EXCHA HANGE NGE

Pr Prem m Raj aja, a, Curren rencies cies 4 You

Currencies 4 You

Moving To Portugal

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Bank Comparison

Exchange Rate Comparison on 18/10/2018

Amount saved using Currencies 4 You £18,618.74 or €21,173.23

Currency Amount T

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ransfer Fee Provider Purchase In € Rate Cost To Client In £’s Currencies 4 Y

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We Watch The Markets So Y

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Limit Order for €500,000 £416,666,67 @ 1.20 is Stop Loss Stop loss cost £434,782.61 @ 1.15 is Waiting until completion could have cost £462,962.93 @ 1.08 Completion Date

Don’t Delay Act Today

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PLANNING AHEAD FOR PORTUGAL’S NON ON HA HABI BITUAL AL TAX AX RE REGI GIME ME

Geoffrey Graham, Edge International

MOVING TO PORTUGAL

Planning Ahead for the Non Habitual Tax Regime

Pestana Chelsea Bridge Hotel, 31st October 2018

• Pratice and specialize in the following areas:
• International Law Firm with over 25 years of experience in foreign investments
• Leading Portuguese firm advising individual and corporate clients on their investments
• 6 Offices Worlwide, including Lisbon, Porto, Algarve, United Kingdom and Cape Verde
• I. EDGE

Planning Ahead for the Non Habitual Tax Regime

Planning Ahead for the Non Habitual Tax Regime

nonhabitualresidents.com www.edge-il.com

• II. Destination:

Portugal

• In recent years, Portugal has attracted an increasing number of

new residents who come to invest or make it their new home

• Portugal is the 4th safest country in the World according to the

Global Peace Index 2018

• Its investor friendly environment has helped make it the home of

Web Summit three years in a row

• Is considered the best country in Europe for a foreigner to live

(according to InterNations)

• The Non-Habitual Tax Resident, Golden Visa, Urban Rehabilitation

and Start-Up programmes created by the Portuguese Government have been key components in the country’s financial recovery

Planning Ahead for the Non Habitual Tax Regime

Planning Ahead for the Non Habitual Tax Regime

• The Non-Habitual Tax Residency was introduced in 2009 to attract individuals

and their families to Portugal, making it beneficial from a tax perspective

• NHR status can result in pensions, dividends, bank account interest and some

royalties originating in a non-Portuguese source being exempt from, or being subject to a preferential rate of, personal income tax

• Portuguese contract salaries for High Added Valued Activities (“HAVA”) will be

taxed at 20%. Examples of HAVA include medical and I.T. specialists.

• Only requirements to benefit from the NHR status: become a Portuguese tax

resident; not having been a Portuguese tax resident in the previous 5 years

• The NHR status can be maintained for 10 years
• No minimum investment required
• Open to all nationalities with a valid resident visa
• III. General

Overview

Planning Ahead for the Non Habitual Tax Regime

Planning Ahead for the Non Habitual Tax Regime

• Successful NHR applicants will be exempt from income tax on:
• IV. Legal

Information

Salary if subject to tax in the country of source under an existing Double Tax Treaty Pension provided that it does not originate in a former public employment Dividends, Interest and certain Royalties which may be subject to withholding tax on the source country

Planning Ahead for the Non Habitual Tax Regime

• To become a Non-Habitual Resident it is necessary to be a

Portuguese tax resident. In order to be a Portuguese tax resident your Portuguese address must be your main address worldwide.

• Not having been a tax resident in Portugal for the past 5 years.
• The application process normally takes less than a week.

V. Requirements

Planning Ahead for the Non Habitual Tax Regime

Planning Ahead for the Non Habitual Tax Regime

• VI. NHR

and Brexit

• A valid resident visa (EU Residency Certificate) obtained before Brexit is

valid for 5 years

• Holders of a valid resident visa obtained before Brexit will be in better

position to renew or obtain permanent residency

• Part of our services includes obtaining the EU Residency Certificate
• EU Residency Certificate is a mandatory document to become Portuguese

tax resident and NHR

• In a hard Brexit scenario, this could require replacement with an equivalent

document

Planning Ahead for the Non Habitual Tax Regime

VII.

Entrepreneurs

and Start-ups

• Portugal is very receptive to outside investment: qualified workforce,

foreign languages skills, telecommunications, infrastructures.

• Network of tax treaties facilitates the use of tax efficient structures.
• Straightforward company set-up (a company can be created in less

than 24 hours).

• Grants/benefits may be available for start-ups (average of 30,000 new

start-ups per year in Portugal).

Planning Ahead for the Non Habitual Tax Regime

• VIII. Our

Services

• We will provide you with a complete range of legal services for the application

for NHR status, enabling clients to deal with all legal matters under one roof.

• Includes NHR application, further tax advice, related corporate structuring,

advice on property purchase/rental and on succession.

• This will also include: undertaking an initial fact find; due diligence on current

tax status; preparation and submission of initial application; representation before the Portuguese Tax Authorities; regular contact with the Authorities; regular updates in relation to the process; other related advice.

• Our services include a number of necessary administrative services, such as

registration at the Local Health Centre, registration of driving licenes, opening

• f local bank accounts, etc.

Planning Ahead for the Non Habitual Tax Regime

IV.Contacts

• EDGE is the leading Law Firm in monitoring the

investments of individuals and companies.

• For more information regarding the NHR regime please

visit us at www.nonhabitualresidents.com or www.edge- il.com and contact us:

Planning Ahead for the Non Habitual Tax Regime

Geoffrey Graham Gonçalo Figueira E: ggraham@edge-il.com E: gfigueira@edge-il.com

London

• P. (+44) 203 875 17 96

Algarve - Lagos

• P. (+351) 282 038 678 I F (+351) 282 038 678

Algarve - Almancil

• P. (+351) 289 895 420 I F (+351) 289 895 429

Porto

• Edif. Boavista Prime, 3.2

• P. (+351) 223 241 959 I F (+351) 213 527 619

Lisbon

• Edif. Atrium Saldanha, 7th floor

• P. (+351) 213 191 290 I F (+351) 213 527 619

Cape Verde

• Av. Amilcar Cabral,

• P. (+238) 242 20 61 I
• F. (+238) 242 12 62

Worldwide

BR BREX EXIT IT, , TAX AX AN AND WEA D WEALTH H PL PLAN ANNING ING OP OPPO PORTUNITIES TUNITIES

Gavin in Scott, tt, Blevin ins Franks

Tax and wealth planning

• pportunities

Gavin Scott Senior 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 years 7 countries 22 Offices 43 Partners and Private Client Managers 200+ Employees 5,100 Families €2.5 billion Funds Under Advice.

…tax driven financial planning and wealth management advice

What do we do?

Comprehensive Financial Planning

Cross-Border Tax 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 facts. What do they mean for you, living in Portugal?

PEACE OF MIND

Brexit

A 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

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 - www.blevinsfranks.com

Portugal

Tax paradise within the European Union!

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 Residence

Qualification

• Not resident in Portugal

in the last 5 years

• Employed, self employed or retired
• High value occupations.

Non Habitual Residence

The 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
• ‘Tax Free’ Lump Sum (UK only)
• Inheritance Tax Free
• Ability to transfer to other schemes abroad without penalty.

Tax relieved contribution Tax free growth Tax free payout

“I beg your pardon?”

Tax relieved contribution Tax free growth Tax free payout

NEW Exit tax?

Good news for EU residents

Exclusion from charge if…

The pension is EU resident Remain EU resident for 5+ UK tax years You are EU resident

Flexible access in Portugal can mean

15% 85%

• r

perhaps

And what about Final Salary Schemes?

Securing 10,000 of Income

Reducing interest rates…

@5% 200,000 400,000 @2,5% 1 million @1% 2 million @0.5%

In Summary

Portugal…

• Inside the EU
• Wants to attract long term retirees
• Does this through a low taxes

No tax for 10 years on…

• Pension income
• Dividend income

…Other tax planning opportunities are available.

Edition 7

Available now

Thank You

• 179731. Where advice is provided outside the UK, via the Insurance Mediation

THANK YOU!

Any questions? Please go and talk to our speakers and exhibitors next door.