What wealth strategies for Non-Habitual Residents?

By crossing the Pyrenees to settle down here in Portugal, you have adopted a second homeland with a dream setting, with its mild climate, dazzling blue sky, rich history, thousand-year-old culture, art of living, ... not to mention the legendary kindness of its inhabitants. And that's not all, since you will receive a welcome gift, of a fiscal nature, the much appreciated status of Non-Habitual Resident.

10 years are offered to you, of tax-free pensions for some, the retirees, each year more numerous to take for land of election this new Florida of Europe, and of exceptional conditions for many others, that they are entrepreneurs, artists, or doctors.

Before indulging in the carefree Lusitanian way of life, take the time to secure your status as much as possible and to adapt your asset strategy, where your change of life has generated a new complexity, in an environment that has become de facto international.

Let's not forget that our tax administrations, although increasingly collaborative, remain independent and have very specific objectives...

Obtaining your RNH status does not necessarily guarantee your country of origin the conditions of non-residency.

It will therefore be necessary to guarantee your situation in the eyes of two administrations and through the prism of their tax treaty.

In this sense, you can reflect on the implementation of some good practices, seeking on the one hand to avoid any doubt as to your "permanent home" and on the other hand to refocus your "economic interests" on Portugal as much as possible.

You are certainly already comfortably installed in your new "home sweet home" in Portugal, but be careful, if you have kept real estate assets in your country of origin, you would be prudent to ensure that these assets are no longer at your disposal: sale, rental, or even in certain circumstances, dismemberment, the question deserves reflection to avoid any questioning of your actual residence.

As far as your economic interests are concerned, it is better to renounce executive and professional functions in France. Beyond these good reflexes, some additional adjustments can be precious to secure your position as a non-resident in your home country.

Any leads? How about developing new activities here in Portugal where there is no shortage of great entrepreneurial opportunities. Your talents and capital could be useful! But, let's keep it simple: your asset strategy should above all contemplate a geographical aspect. Rebalancing your financial and real estate assets between France, Portugal and even Luxembourg is a must.

Generating taxable income in Portugal is also advisable. This is one of the essential conditions for the application of the Franco-Portuguese tax treaty, the keystone of the RNH status. Many possibilities exist through the implementation of financial or real estate strategies.

Secure your tax statusRedefining the geographical contours of your estate are two essential steps in defining your strategy. And that's without mentioning the civil issues: matrimonial regimes, civil partnerships, blended families, donations and inheritance across borders, the rules of the game change as soon as your new life begins, here in Portugal.

Last but not least, how to combine all these fiscal, geographical and civil dimensions with your own objectives? An international and global approach to wealth management will be the key to your success in restructuring your financial and real estate assets.

Whether you want to make your assets grow, optimize your tax situation, protect your loved ones, prepare for your retirement, anticipate your transmission, enhance the value of your entrepreneurial capital, or even prepare for the future expiration of your RNH status, ask yourself the right questions... or ask us. Do not hesitate to ask us about your wealth management issues, Luxembourg life insurance, bare ownership, financing, taxation of savings, etc.

Article by Claire Teixeira published in the magazine Living in Portugal