What was the personal situation or challenge?
John, a successful entrepreneur, and his family had a dream of relocating to the sunny Algarve. However, they faced concerns about visa complexities, especially for their adult child, aged 19. Additionally, they needed expert guidance on finding the perfect property within their £2.3 million budget and choosing the best location to call home.
They had holidayed in Portugal as a family for many years and had wealthy friends who lived in the Algarve and they were ready to embrace a more relaxed lifestyle while still running his UK-based international business.
The families passion for outdoor activities, including tennis and water sports, combined with Portugal's climate, made the Algarve an ideal destination. This coupled with the ability to take dividends from their international business in the UK at 0% tax under Non Habitual Residency (NHR) tax regime made this decision easy.
How did Portugal Pathways help?
Securing residency and tax status
We guided John and his family through the process of applying for the D7 visa alongside the NHR tax program, ensuring a seamless and successful completion within two months. Our expert support extended to securing residency for all family members, enabling visa-free travel within the Schengen region European countries.
We further facilitated John's and his wife's enrolment in the NHR tax program, granting them significant tax benefits. Under NHR, John's pays 0% tax on dividend income from his overseas business interests and UK rental properties, while they only pay just 10% tax rate on their UK pension withdrawals during the ten-year NHR window.
Currently, we are now planning beyond the 10 year NHR tax benefit as he is three years into his D7 visa and we have been able to ensure he pays no more than 3.8% tax on his non Portugal held assets for the next 15 years subject to any legislation changes.
This personalised Wealth PlanTM strategy uses a combination of bonds and globally recognised investment portfolios in conjunction with Portugals tax system. This meticulous planning safeguards their financial interests and positions them for a thriving future in Portugal
Enriching their life in Portugal, both financially and as a family
To fulfil their property aspirations, we helped John and his family find the perfect home in the picturesque Carvoeiro area which is just a few miles from friends who live in Benagil. The property, just a brief walk from the nearest beach and close to a local tennis club, perfectly accommodates their active lifestyle and ideal location preferences.
By offering tailored guidance and personalized solutions, Portugal Pathways has successfully enabled John and his family to make Portugal their new home, enjoying all the benefits of the D7 visa and NHR tax status, as well as the Algarve's delightful climate, rich lifestyle offerings and still manage his business and investment interests.