EXPAT INVESTMENT PLANNINGThe Portuguese Bond
What is the Portuguese Bond?
The Portuguese Bond is a savings and investment vehicle for Expats resident 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, the Portuguese bond is 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, the Portuguese Bond offers the potential for long-term wealth accumulation through growth of the underlying investments held in the account, providing they are invested in the right areas.
It's important to note that the specific details and eligibility criteria of the Portuguese Bond may vary, and it is advisable to consult with a regulated financial professional or tax advisor familiar with Portuguese tax laws and regulations.
Who is it for?
The Portuguese Bond is 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 what the underlying investments of the account hold).
KEY FEATURESTax-efficient when held for the long term
Insurance and Investment account
Investment growth over the long-term
Wealth Tax benefits
Locally compliant in Portugal
LIMITATIONSTax 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
Our Verdict
For expats residing in Portugal and having over £100,000 to invest, the Portuguese Bond stands out as 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.
The Portuguese Bond allows expats to leverage the tax benefits provided by the Portuguese tax system. By investing in this bond, 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 the Portuguese Bond aligns with your investment objectives.
