EXPAT INVESTMENT PLANNINGPortuguese Bonds
What are Portuguese Bonds?
Portuguese bonds are a savings and investment vehicle for Expats residing in Portugal. It combines elements of insurance and investment to offer life assurance, whilst allowing growth potential over the medium-long term.
Unlike a traditional investment account, Portuguese bonds are deliberately tailored to fit within the local tax system, resulting in considerable tax benefits for investors when held for several years.
This investment option offers considerable income tax benefits to the policyholder, particularly when held for a period of 8 years.
Additionally, Portuguese Bonds offer the potential for long-term wealth accumulation through the growth of the underlying investments held in the account, provided they are invested in the right areas.
It's important to note that the specific details and eligibility criteria of Portuguese government bonds may vary, and it is advisable to consult with a regulated financial professional or tax advisor familiar with Portuguese tax laws and regulations.
Who Are Portuguese Bonds Best Suited For?
Portuguese Bonds are a product available to Portuguese residents who intend to stay in the country for the long term (at least 5 years). Particularly, it will be beneficial to those who wish to grow and protect their wealth whilst minimising local taxes as much as physically possible.
It’s important to bear in mind that, as with any investment, this product carries market risk (the level of risk depends on the underlying investments of the account).
KEY FEATURES of Portuguese BondsTax-efficient when held for the long term
Insurance and Investment account
Investment growth over the long-term
Wealth Tax benefits
Locally compliant in Portugal
LIMITATIONS of Portuguese BondsTax advantages take several years of investment
It can be set up on a commission basis
Typically cannot hold individual shares
Minimum investment of £100,000
Portugal Bonds:
Our Verdict
For expats residing in Portugal and having over £100,000 to invest, Portuguese Bonds are an exceptional investment opportunity due to the attractive tax benefits it offers. The combination of these tax advantages and the investment potential makes it a compelling choice for Expat investors in Portugal.
Portuguese bonds allow expats to leverage the tax benefits provided by the Portuguese tax system. By investing in a government bond in Portugal, individuals can enjoy exemptions or reductions in taxes on investment growth and capital gains.
These tax advantages can have a significant impact on the overall profitability of the investment, enabling investors to keep more of their hard-earned money.
Considering the tax benefits and the investment potential, the Portuguese Bond becomes a no-brainer for expats with investable assets of £100,000 or more.
Our Expert Team at The Wealth Genesis can provide bespoke advice tailored to your specific needs and help you determine whether Portuguese Bonds align with your investment needs, goals and objectives.
