The 21st annual International Investment Awards 2020
By Spectrum IFA - Topics: Belgium, France, International Investment Awards 2020, Italy, Luxembourg, Portugal, Spain, Switzerland, The Spectrum IFA Group
This article is published on: 7th October 2020
International Investment announced six new categories as part of a relaunched International Investment Awards to celebrate the event’s 20th year. The II Awards are the longest-running event of their kind and this year saw a record number of categories and entries.
Of particular interest to The Spectrum IFA Group is the new category of ‘Woman of the Year’.
We are delighted to announce that our very own Director, Anne Ollerenshaw has been nominated for this coveted award due to her Anne’s long standing contributions to the industry over the past years.
The 21st annual International Investment Awards 2020 take place on Thursday 8 October at 1500 BST.
This new award for 2020 is one of the final three awards and another which was selected via a combination of judges’ comments and, by votes of the readers of International Investment.
From the shortlisted entrants below they will select two winner awards with advisers and industry leaders judged separately.
The shortlist for Woman of the Year (new for 2020) is:
• Anne Ollerenshaw, The Spectrum IFA Group
• Paris Jordan, Virtuvest
• Kim Jarvis, Canada Life Limited
• Durreen Shahnaz, Impact Investment Exchange
• Tanya McCartney, Bahamas Financial Services Board
• Aida Feriz, Wimmer Family Office
• Paule Ansoleaga Abascal, Rothschild & Co Asset Management Europe
• Michele Carby, Holborn Assets
• Jackie Evans, Holborn Assets
• Claire Walker, deVere Group
• Louise Bracken-Smith, Fairway Group
We wish Anne the very best of luck.
The virtual ceremony will be held at 1500 BST on Thursday 8 October, with a repeat showing on this site a few hours later. Make sure that you tune in to find out who has been successful at this year’s event.
New QROPS tax charge for 2017 – Will this change after BREXIT?
By Spectrum IFA - Topics: Belgium, BREXIT, France, Italy, Luxembourg, Netherlands, pension transfer, Pensions, Portugal, QROPS, Retirement, Spain, Switzerland, United Kingdom
This article is published on: 20th April 2018
In the Spring 2017 Budget, the UK government announced its intention to introduce a new 25% Overseas Transfer Charge (OTC) on QROPS transfers taking place on or after 9th March 2017. The HMRC Guidance indicates that the OTC will not be applied in the following situations:
- the QROPS is in the European Union (EU) or EEA and the member is also resident in an EU or EEA country (not necessarily the same EU or EEA country);
- the QROPS and the member is in the same country; or
- the QROPS is an employer sponsored occupational pension scheme, overseas public service pension scheme or a pension scheme established by an International Organisation (for example, the United Nations, the EU, i.e. not just a multinational company), and the member is an employee of the entity to which the benefits are transferred to its pension scheme.
It is also intended that the above provisions will apply to transfers from one QROPS (or former QROPS) to another, if this is within five full tax years from the date of the original transfer of benefits from the UK pension scheme to the first QROPS arrangement.
Nevertheless, it is clear that taking professional regulated advice is essential. This includes if you have already transferred benefits to a QROPS and you are planning to move to another country of residence.
It is important to explore your options now while you still have the chance as who knows what changes will come with BREXIT. Contact you’re local adviser for a FREE consultation and to discuss your personal options
Portugal’s Non-Habitual Resident (NHR) Tax Code & Golden Visa Regime
By Spectrum IFA - Topics: golden visa regime, non-habitual resident, Portugal, Residency, Tax, tax advice, Uncategorised
This article is published on: 5th August 2016
It is not an exaggeration to say that Portugal’s NHR and Golden Visa regimes offer two of the most beneficial tax and residence arrangements available in the world.
The NHR Tax Code
- The NHR tax code is designed to attract foreign individuals to Portugal to entice investment and increase employment opportunities in Portugal
- NHRs are Tax Residents of Portugal but they can benefit from preferential tax rates and in many cases, receive income and interest, which is totally exempt from Personal Income Tax (PIT)
- Any person who has not been resident in Portugal in the past 5 years and who subsequently becomes resident of Portugal may be entitled to apply for this status
- The NHR is valid for 10 years – and may well be extended in the future
- Individuals who qualify must apply by 31st March in the year following registering as a resident of Portugal
Tax Treatment of *Foreign Source Income (generated outside Portugal)
||Taxation in Portugal
|Real Estate Rentals
||Exempt-as long as obtained from abroad
* Sources of income from any of the 81 “Black Listed” territories will not qualify under the NHR tax code
Portugal Source Income
Any income generated in Portugal will be taxed at a flat rate of 20% instead of at the normal progressive rates: up to 48%
Certain professions, such as architects, engineers, doctors, university professors, auditors and tax consultants and other esoteric occupations may also obtain a favoured tax status.
In essence then, anyone who qualifies for residence in Portugal and who can meet the NHR criteria can obtain the these tax privileges .
Importantly, as well as taking tax advice in Portugal, candidates for the NHR tax Code should ensure that they have informed their home country’s tax authorities that they are leaving to avoid any risk of double taxation.Please note, however, that other countries may challenge such residency status by arguing that in accordance with their domestic rules the relevant person should be considered resident in such jurisdiction. If that becomes the case, i.e. if there is a conflict of residency where two countries consider the same individual resident in both their respective jurisdictions, the tie-break clause established under the tax treaties will apply.
In the case of the United Kingdom, the new Statutory Residence Test (SRT) “maze” can exclude a claim of non UK residence, or inhibit the number of days one can visit the UK in the first three years of non-UK Residence unless certain steps are taken.
How can we help?
- We can advise and assist in obtaining NHR with suitably qualified Portuguese associates and assist in obtaining applying for the NHR tax code treatment
- We can refer clients to our UK tax advisors who will ensuring that the correct procedures are adopted so that the SRT non-resident status is met. This will ensure, with the agreement of HMRC, no UK tax returns being necessary in the future
- Likewise, our qualified Portuguese associates, will provide the necessary forms under the Portugal Double Tax Agreements to ensure any UK non- Government pension income is paid gross
Who Can Apply for the Golden Visa
Third State citizens involved in an investment activity, either individually or through a company conducting, at least, one of the following operations in national territory for a minimum period of five years:
I) Capital transfer with a value equal to or above 1 million Euros;
II) Creation of, at least, 30 job positions;
III) Acquisition of real estate with a value equal to or above 500 thousand Euros.
It covers shareholders of companies already set up in Portugal, or in another EU State, with a stable residence in Portugal and with tax obligations fulfilled.
- The investment function established for the Golden Visa has to made and maintained for a minimum of 5 years from the date of which the Golden Visa is established
- The Golden Visa is initially valued for 1 year, renewable for each 2 year period required
- Holders of the golden visa may need to evidence that they have stayed on Portuguese territory for at least 7 days in the first year and 14 days in the subsequent 2 year renewal periods
- After the 6th year, the Visa holder is eligible to apply for Portuguese citizenship, if they so desire
How can we help?
In conjunction with our Portugal Legal associates we can guide applicants through all aspects the process of obtaining the Golden Visa permit.
An overview of tax treatment in Portugal 2016
By Robbin Davies - Topics: Portugal, Tax, tax advice, tax tips, Uncategorised
This article is published on: 28th July 2016
The Portuguese tax year runs from 1 January to 31 December and the tax system comprises of state and local taxes which are generally calculated based on income, property ownership and expenditure.
Portuguese residents are taxed through IRS (Personal Income Tax) on their worldwide income and on a self assessment basis. The income of married taxpayers is based on the entire family unit, and married couples must submit a joint tax return. However, spouses of individuals residing in Portugal for fewer than 183 days in the calendar year, and who are able to prove that their main economic activities are not linked to Portugal, may file a tax return in Portugal disclosing the tax resident individual’s income and their part of the couple’s income.
Income is split into the following categories: revenue from employment, business and professional income, investment income (including interest), rental income, capital gains and pension income. Defined tax deductible expenses are deducted from gross income for each separate category – giving a net taxable income for that category.
A splitting procedure applies to married couples by dividing the family income by two prior to the applicable marginal tax rate being determined. Total taxable income is taxed at progressive rates varying from 14.5% on income under €7,000 to 48% for income over €80,000 to arrive at a final tax liability, then multiplied by two in respect of married couples. There has existed a “Solidarity Tax” of 2.5% which is charged on income over €80,000, and progressively up to 5% for income over €250,000, but this will cease at the end of the 2016 tax year.
Investment income (such as capital gains, interest and dividends etc,) is currently taxed at a rate of 28%. Likewise, rental income is also taxed at 28%, but in both cases tax residents in Portugal may elect for the scale rates to be applied, but once this method is chosen, it will be applied to all income sources. Any tax withheld is considered to be a payment on account against the final total tax liability.
Income from self employment is category B income and is taxed either under a ‘simplified regime’ or based on the taxpayer’s actual accounts. If a taxpayer has earnings below a certain ceiling, they are liable to taxation according to the ‘simplified regime’ whereby 20% of income from sales of products or 80% of income arising from other business and professional services is taxed with a minimum taxable amount due. No expenses deductions are permitted under the simplified regime. If the simplified regime is not applicable then net profits or gains made by an individual are assessed in accordance with the same rules that apply to company tax assessment. Earnings from self-employment or independent activities in Portugal are subject to tax, whether or not an individual is tax resident in Portugal, and may be withheld at source. Tax credits are potentially available for medical expenses, school fees, life and health insurance premiums and where appropriate, mortgage interest, but they are subject to certain conditions. There are other credits available, for example for contributions into retirement schemes and the purchase of eco-friendly renewable energy. Deductions are also available for limited donations to charities, and for payments of alimony that has been determined by a court decision.
It should be noted that with effect from 2010, all foreign bank account holdings are required to be disclosed on income tax returns. In addition, Portugal has a list of of jurisdictions that it considers to be “tax havens”. This list includes the Channel Islands and the Isle of Man, and income from these jurisdictions is taxed at the higher rate of 35%. There do exist alternatives to these jurisdictions which are approved by the Portuguese Tax Authority. Likewise, whilst Trust income is considered liable to taxation, this varies depending on whether the payments from such entities arise from distribution by, or dissolution of, the trust. Nevertheless, where estate planning is concerned, this can be of considerable interest.
Non-Habitual Resident scheme
This attractive regime for new residents with substantial assets is still available for those persons who have not been tax resident in Portugal during the previous five years, whether employed or retired. It provides for substantial tax exemptions during the first ten years of residence. Spectrum IFA Group would be pleased to discuss the structure and implications of the scheme.
This is not an exhaustive list of taxable items, and changes may occur during the current tax year, but it is designed to give an overview of the most import and key issues. Taking professional advice from a designated tax-advisor is essential, and Spectrum IFA Group is well positioned to assist in finding the appropriate institution or individual to provide such advice.