At Sovereign we have seen an unprecedented increase in the number of people looking to move here, to take advantage of the welcoming lifestyle – the climate, the food, the beaches, the culture and the low cost of living. We have seen high net worth individuals, digital nomads, young entrepreneurs and retirees drawn to Portugal by the tax breaks provided under the Non-Habitual Residence (NHR) scheme or those simply looking for a second Passport to Freedom opportunity. to travel to Europe. .
According to the Global Peace Index 2021, Portugal was the second safest country in Europe after Denmark and the fourth safest country in the world behind Iceland and New Zealand. Portugal regularly wins travel awards around the world and, until last year, it won Europe’s top destination four years in a row.
However, moving your life to Portugal can be a bureaucratic nightmare if you don’t get the proper assistance before the move. It is essential to understand how you will be taxed here on your worldwide income and it may be wrong to believe that you can live here tax free under the NHR. It depends on the double tax treaties in place with other countries, where your sources of income come from and how you are registered here as a tax resident. Procedures are constantly changing, so it’s important to work with a company like Sovereign who have top-notch professionals and a team experienced in helping clients with their immigration.registrations with the rations and tax service. At Sovereign, we have been providing these and many other global financial services to citizens around the world for three decades.
Sovereign can help with residency applications for those with EU or non-EU passports by providing solutions such as golden visas, D7 visas and non-habitual residence applications to support the path to tax residency. NHR is not a residence function, it is a tax status.
The Sovereign Group’s concierge services include:
• Tax numbers and representation
• Bank account opening
• Golden Visa and D7 Guidance with Embassy / SEF Immigration
• Registration as tax resident
• NHR request
• Ongoing tax assistance with tax filings and tax advice
• Corporate structuring for companies and support CSP options in 16 countries, including Portugal.
• Wealth and Asset Management
• Registration of yachts
• Marine insurance
• Aeronautical registration
• Private insurance services
It is imperative that clients are onboarded to experienced providers. Sovereign provides bespoke services and solutions globally and by always keeping abreast of the latest in-country regulations, we ensure that our clients navigate easily through the often arduous bureaucratic processes that can make moving a nightmare.
Sovereign’s bilingual team works closely with clients and has forged strong relationships with attorneys and government offices to provide that special ability to get things done and done quickly.
Sovereign helps clients understand the immigration process and provides high-level consultation and a comprehensive review of clients’ assets and taxation for cross-border planning which must be fully in place before any residency applications are completed at the Portugal. Careful planning ensures clients are fully supported throughout the equally vital procedure, Sovereign continues to support everyone after they become residents.
For example, individuals do not want to find that they have to pay taxes in Portugal on the sale of their property abroad, or that their source of income is subject to higher taxes because it comes from a blacklisted jurisdiction. The Sovereign Group has the edge in the market as it is an international group with extensive experience in managing complex structures involving assets and people in multiple jurisdictions.
With 26 offices around the world, spanning Europe, Asia, the Middle East and Africa, Sovereign’s full range of industry experts deliver services across market entry, trustee and administrator services, accounting, payroll, occupational and personal pension plans, employee benefits and incentive plans, local licenses and permits, secretarial and business management.
Shelley Wren, Business Development Manager at Sovereign in Portugal explains “With the economic crisis resulting from the pandemic and areas of the world where there is instability, people are rethinking their lifestyles. We are not only seeing wealthy people moving to Portugal, but also families with young children hoping for a better quality of life here. However, we have also seen many people fall foul of the taxman because they were not working with an accredited company such as Sovereign. We have seen people wrongly registered as residents, others missing the chance to apply for the RNH, people with tax debts due to unpaid property taxes, people who think they are residents when they remain not -residents and more daunting problems. It never fails to amaze us! Our accounting team have worked with Sovereign for many years and are experienced in handling the complexities of foreign source income for resident tax returns. Residents must declare their worldwide income in Portugal, another fact that many people are unaware of when relocating. “
The quality of life in Portugal is high despite being a poor country with low wages, which means those whose income comes from outside Portugal can get more for their money and live here comfortably. It is now more common for individuals to work from home, from anywhere in the world, opening up the possibilities for offshoring. Young entrepreneurs are attracted to Portugal because of its standard of living and the importance given to family being part of Portuguese culture, which makes Portugal one of the best countries to settle in. Helping clients establish their business here is part of Sovereign’s full-service mission and the ability to immigrate is no longer a luxury reserved for retirees.
Living, working or owning a property in Portugal?
Sovereign Group prides itself on having a global reach from a local delivery point, so talk to us today at [email protected]