Off-shore* tax heavens: Portugal

Excusam os liberalinhos ultramontanos de estrebuchar que quem fala assim é o Telegraph. Mais idóneo é difícil.

«Case study

You can save €60,000 by careful tax planning. George, 60 and a widower, is about to become a Portuguese resident but remains UK domiciled for now.

The calculations below show how much tax George would pay were he to be taxed at the standard rates, and also how much tax he could save by investing tax-efficiently. If George were to be taxed on his income under the standard position his liability would be €87,244.72.

However, only 15 per cent of pension income is taxable 85pc is tax free (annuity treatment). Investment income: place investments in a tax wrapper - George can draw £800,000 tax-free, all gains and income roll up tax-free.

On this basis, he will have no tax on this income in Portugal for 20 years. Sell the UK house whilst Portuguese resident and in the UK tax year after departure – no Portuguese capital gains tax and no UK capital gains tax.

Invest in a tax wrapper, and extract original capital tax free, as above. Gift shares in the company to Discretionary Trust with no UK IHT (100 per cent exempt…Business Property Relief). The dividends can be paid tax free to Trustees, and tax free from Trustees to George.

With these changes his total total tax charges amount to €429.73 – a saving of €67,593.69.»

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*Não, a Madeira não é para ali chamada.

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