Independent Financial Advice In Portugal
LEARNING OBJECTIVES
We’re passionate about providing free, high quality and up-to-date information to Expats in Portugal.
IN THIS ARTICLE, YOU WILL LEARN THE FOLLOWING:
How investments are taxed in Portugal
How to invest tax-efficiently
Key questions to ask an Adviser
How much financial advice should cost
This article is for Expatriates in Portugal seeking independent financial advice in order to navigate the intricacies of the country's financial landscape and optimise their financial planning.
Independent financial advice helps Expats in Portugal mitigate risks, maximise opportunities, establish a solid foundation and provide peace of mind.
Investing in Portugal | How are Investments Taxed in Portugal?
From an investment perspective, taxation on investment accounts in Portugal is fairly straightforward. A flat rate of 28% is levied on shares, bonds and securities (essentially all financial investment accounts).
This tax is applied on the growth element of the account, i.e. the profits taken. It's vital to note that Portugal has 'blacklisted' certain jurisdictions, meaning investment accounts held in these jurisdictions trigger an additional tax penalty of 7%, taking the total tax due to 35%.
Always seek regulated Expat Investment Advice prior to proceeding with any investment account as a fiscal resident in Portugal.
Tax-Efficient Investments in Portugal
Working with an Expat Financial Advice firm can give you access to certain products that are treated favourably in Portugal.
For example, a Portuguese Investment Bond that is tailored made to sit within the tax system provides significant benefits to investors, notably:
Only 80% of the income is taxed if held between 5 and 8 years (capital gains tax)
Only 40% of the income is taxed if held over 8 years
Zero Wealth Tax in Portugal
No Stamp duty tax
Ability to pass onto your loved ones free of any taxation
The above accounts represent the most tax-efficient vehicle for Expat investors, and encourage long-term investors to take advantage of the tax benefits.
Wealth Management Portugal
Whilst the above solution is typically the best option for Expats in Portugal, be sure to consult with a regulated local financial adviser in Portugal.
Note, the investment landscape is not regulated to the same extent as the UK, which has the Financial Conduct Authority and the Financial Services Compensation Scheme in place to protect investors from fraudulent or commission based advisers.
We encourage all Expats to conduct thorough due-diligence on any firm prior to implementing an investment recommendation. Be sure to ask the following questions:
Who are you regulated by?
What are your qualifications?
Do you charge on a fee or commission basis?
Are you being paid to recommend a product?
Can I leave at zero cost at any stage?
If not, what are the exit penalties and why are they in place?
Local Financial Adviser in Portugal | The Wealth Genesis
The Wealth Genesis is the first Expat Wealth Management firm to charge all clients the same, one-off flat advice fee, regardless of client circumstances, wealth or background.
This ensures our advice is bespoke and tailored to the individual, and that all our recommendations and financial strategies are completely independent with no conflicts of interest at any stage.
We also charge an industry leading low annual management fee, which provides for expert ongoing advice, portfolio changes, cash-flow modelling and taxation queries. To learn more about how we work with our clients, see 'Why Us?' and our Client Reviews.
We have expert advisers based in Madeira, Lisbon and Faro. To schedule a consultation, get started using the button below.
