Utmost Apex Portugal Bond Review 2025
This article reviews the Utmost Apex Portugal Bond offering for Expats, and explains how it works, the tax position, along with the costs associated.
As an expat living in Portugal, you may be exploring the best way to manage your investments, pensions, and estate planning in a tax-efficient and compliant manner. Portugal is a hugely popular destination for British expats, but navigating the financial landscape can feel daunting.
Fortunately, expats in Portugal have the option of using a Portuguese-compliant bond, an investment vehicle which offers wealth protection, tax efficiency and estate planning benefits, all whilst staying on the right side of the local tax laws.
In this review, we take a closer look at the Portuguese bond offered by Utmost International. The Apex Portugal Bond is a single-premium, unit-linked life assurance policy designed specifically for expats seeking investment growth and tax-efficiency.
Utmost Apex Portugal Bond | Key Features
Utmost International is a world-leading provider of insurance-based solutions, authorised and regulated by the Central Bank of Ireland. Specialising in life assurance products designed to preserve and transfer wealth across generations, Utmost Wealth Solutions offer strong investor protection and tailored financial planning tools for expats around the world.
The Apex Portugal Bond is a unit-linked life insurance policy specifically designed for expats living in Portugal. With a minimum investment of €100,000, it provides a flexible and tax-efficient wrapper for medium to long-term investors.
The bond offers additional benefits such as the ability to include up to six individuals on the policy and to schedule regular withdrawals, monthly, quarterly, semi-annually or annually, to support a steady income stream.
The bond is fully compliant with Portuguese tax regulations, delivering considerable tax advantages. It also offers long-term planning flexibility and is portable to the UK and compatible with most trust structures, making it a great choice for expats who may change residency or eventually return to the UK.
Utmost Apex Portugal | A Wider Range of Investment Choice
With many Portuguese bonds on the market, a key element that sets the Utmost Apex Portugal apart is its ‘Open Architecture’ feature, which provides investors with a high level of flexibility and choice.
Utmost’s Open Architecture gives investors access to a wide range of external funds and the ability to tailor your investment portfolio to match your personal financial goals and risk tolerance. You can also customise your chosen investments over time (note that some changes may incur charges), making it ideal for the evolving needs of an expat.
Utmost also offers the option to appoint a Discretionary Fund Manager (DFM) or adviser via an external investment platform. This ensures your investments are expertly managed in line with your specific needs, giving you added peace of mind and reassurance that your long-term financial goals will be met.
Tax Benefits Of Life Insurance Policies In Portugal
Life insurance policies in Portugal benefit from highly favourable tax treatment, especially when held for five years or longer, making them one of the best investment choices for residents.
Investment income from a life insurance policy is generally subject to Portuguese Personal Income Tax (PIT) at a flat rate of 28%. However, the longer you hold the policy, the more you will gain from tax advantages and reductions.
After holding the bond without making any withdrawals for five years, only 80% of the income will be subject to PIT.
For withdrawals made between five and eight years, the effective rate drops to 22.4%.
Hold it for eight years or longer, and just 40% of the will be taxable reducing the effective tax rate to just 11.2%.
(These tax advantages apply as long as at least 35% of the total premiums are paid within the first half of the policy term.)
Additionally, any growth within the bond is tax-deferred, meaning your investment can grow tax-free until you choose to make a withdrawal.
Portuguese Bond Estate Planning Benefits
Portuguese Compliant Bonds can also be used as powerful estate planning tools. The Utmost Apex Portugal Bond allows you to transfer wealth to your chosen beneficiaries outside of the forced heirship rules which typically apply under Portuguese law, giving you greater control over who inherits your assets and how they will be distributed.
Additionally, there’s no wealth tax for transfers to children or spouses, and your beneficiaries will not be subject to Portuguese stamp duty, which is usually charged at 10%. By using a Portuguese bond, you can reduce the tax burden on your heirs whilst ensuring your estate is passed on to your heirs in accordance with your wishes.
Portuguese Bond Fee Structure
Utmost International stands out for its clear and transparent fee structure, making it easier for investors to understand exactly what they will pay. Bond fees start as low as 0.50%, and can decrease to just 0.20% as your investment value increases.
For investments below €450,000, an annual administration fee of €600 will apply.
Note, the Utmost Portuguese Bond is available only through regulated and professional financial advisers, who will also have their own fee structures. Be sure to understand exactly how much an adviser charges before proceeding with any recommendation.
Is The Utmost Apex Portugal Bond Right For You?
If you’re planning to retire in Portugal or stay long-term, the Apex Portugal Bond could be an ideal wealth management tool. Specifically designed for expats, this tax-efficient investment offers growth potential, estate planning advantages, and the ability to include up to six lives assured under one policy.
This bond is best suited for those who can commit to investing €100,000 or more and who intend to remain in Portugal for five to ten years or longer, as this is when the full tax advantages begin to take effect.
What sets Utmost International apart is the flexibility and choice it provides, allowing you to tailor your underlying investments to match your personal risk tolerance, and work with a financial adviser or discretionary investment manager to help manage both your portfolio and administration.
