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What was the personal situation or challenge?
Amelia and Allan were UK citizens who had always vacationed in Portugal yearly. The country's culture and picturesque landscapes had captured their hearts, and they envisioned a future of tranquil living in this vibrant nation. When they retired, they decided to move and relocate to Portugal to enjoy the warm climate, culture, and lifestyle.
However, they faced a significant challenge—they still held income and assets in the UK, and the prospect of high taxes on their earnings was a primary concern. They also had concerns regarding their visa options, as they wanted freedom of movement in Europe after BREXIT, as their personal and business interests were aligned with this.
How did Portugal Pathways help?
Portugal Pathways, visa experts, offered Amelia and Allan a comprehensive financial and tax plan alongside guidance and support on life matters when living in Portugal. We first took them through the various visa options available in Portugal, explaining each option's benefits and eligibility criteria. The D7 Visa programme emerged as the ideal solution to fulfil their dreams of relocating to Portugal while maintaining the ability to visit their relatives in the UK and enjoy the European Schengen member country benefits.
Navigating a foreign immigration process can be overwhelming, but Portugal Pathways was there to simplify it all. We provided step-by-step assistance in gathering the required documents and meeting eligibility requirements, including proof of income, health insurance, and clean criminal records.
Our tax and financial advisors, with considerable knowledge of the Non-Habitual Residency (NHR) tax regime and financial planning, proved invaluable for Amelia and Allan. With our help, they could enrol in the NHR tax regime, which delivered remarkable tax advantages. Under NHR, they achieved an impressive 0% tax rate on their income derived from the UK, while their UK pension withdrawals were subject to a mere 10% tax rate during the ten-year NHR window.
They are now in year three, and we are planning what we will do at the end of the 10-year NHR 0% tax qualifying period to ensure they do not have progressive tax rates beyond that period. Based on their circumstances, we were able to show them how they could still pay only 3.8% tax using our proprietary financial model for another ten years after NHR finishes. This has to be done in the first few years after you join the NHR programme, and this is something we specialise in, as many families or advisors don't think for the long term after the end of NHR.
With their D7 visa secured and NHR tax status in place, Amelia and Allan were ready to embrace their new life in Portugal. Portugal Pathways further assisted them in their journey by offering support regarding registering their first car in Portugal and setting up private healthcare for themselves and their family.
Furthermore, our team offered tailored advice on real estate opportunities. With our guidance, they successfully purchased a beautiful villa in Vilamoura valued at €1.8 million and settled into their dream residence with ease. Our personalised solutions have ensured they not only enjoy a favourable tax regime but also embrace life and the true essence of Portugal.
