The The PortuguesePortuguese«non habitual«non ... · 2 Summary: Individuals 1 –Why Portugal ? 2...
Transcript of The The PortuguesePortuguese«non habitual«non ... · 2 Summary: Individuals 1 –Why Portugal ? 2...
LISBOA PORTO FUNCHAL SÃO PAULO LUANDA MAPUTO PRAIA MACAU DILI SÃO TOMÉ PEQUIM SHANGAI
The The The The PortuguesePortuguesePortuguesePortuguese «non «non «non «non habitualhabitualhabitualhabitual» » » » TaxTaxTaxTax residentresidentresidentresident regimeregimeregimeregime
Helsinki, April 2015, 18 th and 19 th
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Summary:
Individuals
1 – Why
Portugal ?
2 – The regime
of «non-
habitual
residents»
3 - Golden Visa
4 -Inheritance
and donations
Companies
5 – New
Corporate
Income Tax
regime
6 – Network of
Conventions
to avoid
double
taxation
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• TheTheTheThe LandscapeLandscapeLandscapeLandscape::::
� 300 days of sunshine per year
� Beaches and seasides
� Historic heritage
1- Why Portugal ?
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• A A A A WWWWelcomingelcomingelcomingelcoming EEEEnvironmentnvironmentnvironmentnvironment::::
� Ranking 2nd among most welcoming countries (Mipex III)
� Safe Country - ranking 17th according to the Global peace index
� Good Accessibility – provide easy access by air, road or rail
1- Why Portugal ?
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• WellWellWellWell----beingbeingbeingbeing andandandand QQQQualityualityualityuality ofofofof LifeLifeLifeLife
� Mediterranean gastronomy
� Low cost of living - minimum salary: €515
� Quality health care system – ranking 12 th accordingto WHO
1- Why Portugal ?
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• A A A A CCCConvenientonvenientonvenientonvenient EEEEconomyconomyconomyconomy
� Located in the Euro zone
� Facility and security of trades
� The favourable tax regimes
1- Why Portugal ?
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• WhatWhatWhatWhat are the are the are the are the qualifyingqualifyingqualifyingqualifying requirementsrequirementsrequirementsrequirements ????
� Be tax resident in Portugal :� + than 183 days, or� Have her/his habitual abode, andandandand
� Not have been taxed as a Portuguese resident in any of the previous five years
• Is Is Is Is itititit sufficientsufficientsufficientsufficient to to to to meetmeetmeetmeet the the the the requirementsrequirementsrequirementsrequirements????
� The law requires a constitutive formal act for obtaining the status : Registration as «non-habitual tax resident» before the competent authorities.
2 – The Non-Habitual Tax Resident Regime
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StepsStepsStepsSteps LocationsLocationsLocationsLocations DeadlinesDeadlinesDeadlinesDeadlines DocumentsDocumentsDocumentsDocuments ResponsesResponsesResponsesResponses
1.º:1.º:1.º:1.º: ObtainingObtainingObtainingObtaining the NIF the NIF the NIF the NIF and registration as a and registration as a and registration as a and registration as a
taxtaxtaxtax residentresidentresidentresident in in in in PortugalPortugalPortugalPortugal
TaxTaxTaxTaxOffice Office Office Office
((((ServiçoServiçoServiçoServiço de de de de FinançasFinançasFinançasFinanças))))
UntilUntilUntilUntil the 31th of the 31th of the 31th of the 31th of DecemberDecemberDecemberDecember of of of of
the the the the yearyearyearyear in in in in whichwhichwhichwhich the the the the
individualsindividualsindividualsindividualsbecomebecomebecomebecome taxtaxtaxtax
residentresidentresidentresident
Copy of a Copy of a Copy of a Copy of a rentalrentalrentalrentalor or or or purchasepurchasepurchasepurchase
contractcontractcontractcontract of a of a of a of a propertypropertypropertyproperty
InstantInstantInstantInstant
2.º: Application for 2.º: Application for 2.º: Application for 2.º: Application for registration as nonregistration as nonregistration as nonregistration as non----habitualhabitualhabitualhabitual taxtaxtaxtax residentresidentresidentresident
DirecçãoDirecçãoDirecçãoDirecção de de de de ServiçosServiçosServiçosServiços de de de de RegistoRegistoRegistoRegisto de de de de
ContribuintesContribuintesContribuintesContribuintes
UntilUntilUntilUntil the 31th of the 31th of the 31th of the 31th of March of the March of the March of the March of the
followingfollowingfollowingfollowing yearyearyearyear
All documents All documents All documents All documents certifyingcertifyingcertifyingcertifying the the the the
change of change of change of change of residenceresidenceresidenceresidence
((((additionaladditionaladditionaladditionalelementselementselementselements maymaymaymaybebebebe requiredrequiredrequiredrequired))))
ApproximatelyApproximatelyApproximatelyApproximately4 to 6 4 to 6 4 to 6 4 to 6 monthsmonthsmonthsmonths
� WhatWhatWhatWhat isisisis the the the the procedureprocedureprocedureprocedure????
2 - The Non-Habitual Tax Resident Regime
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� The applicable The applicable The applicable The applicable taxtaxtaxtax regimeregimeregimeregime
Source of Source of Source of Source of incomeincomeincomeincome
TypeTypeTypeType of of of of incomeincomeincomeincome RegimeRegimeRegimeRegimeapplicableapplicableapplicableapplicable
Applicable Rate (2015)Applicable Rate (2015)Applicable Rate (2015)Applicable Rate (2015)
PortugalPortugalPortugalPortugal
EmploymentEmploymentEmploymentEmployment incomeincomeincomeincomeSubjectSubjectSubjectSubject to to to to IRSIRSIRSIRS
20% («high20% («high20% («high20% («high addedaddedaddedadded value» value» value» value» activitiesactivitiesactivitiesactivities)*+3,5 %)*+3,5 %)*+3,5 %)*+3,5 %
Entrepreneurial and Entrepreneurial and Entrepreneurial and Entrepreneurial and professionalprofessionalprofessionalprofessional incomeincomeincomeincome SubjectSubjectSubjectSubject to to to to IRSIRSIRSIRS 20% («high20% («high20% («high20% («high addedaddedaddedadded value» value» value» value» activitiesactivitiesactivitiesactivities)*+3,5 %)*+3,5 %)*+3,5 %)*+3,5 %
CapitalCapitalCapitalCapital incomeincomeincomeincome ((((interestsinterestsinterestsinterests, , , , dividendsdividendsdividendsdividends)))) SubjectSubjectSubjectSubject to to to to IRSIRSIRSIRS 28%*28%*28%*28%*
MovableMovableMovableMovable capital gainscapital gainscapital gainscapital gains SubjectSubjectSubjectSubject to to to to IRSIRSIRSIRS 28%*28%*28%*28%*
ImmovableImmovableImmovableImmovable capital capital capital capital gainsgainsgainsgainsSujectSujectSujectSuject to IRSto IRSto IRSto IRS
Up to a maximum effective rate Up to a maximum effective rate Up to a maximum effective rate Up to a maximum effective rate of 56,5% (48% +3,5 %+ of 56,5% (48% +3,5 %+ of 56,5% (48% +3,5 %+ of 56,5% (48% +3,5 %+ fromfromfromfrom
2,5% to 5%)2,5% to 5%)2,5% to 5%)2,5% to 5%)
RentalRentalRentalRental incomeincomeincomeincome SubjectSubjectSubjectSubject to to to to IRSIRSIRSIRS 28%*28%*28%*28%*
PensionsPensionsPensionsPensionsSubjectSubjectSubjectSubject to to to to IRSIRSIRSIRS
Up to a maximum effective rate Up to a maximum effective rate Up to a maximum effective rate Up to a maximum effective rate of 56,5% (48% +3,5 %+ of 56,5% (48% +3,5 %+ of 56,5% (48% +3,5 %+ of 56,5% (48% +3,5 %+ fromfromfromfrom
2,5% to 5%)2,5% to 5%)2,5% to 5%)2,5% to 5%)
* With the option for income aggregation
2 - The Non-Habitual Tax Resident Regime
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� The applicable tax regime
Source of Source of Source of Source of incomeincomeincomeincome
TypeTypeTypeType of of of of incomeincomeincomeincome TaxTaxTaxTax regimeregimeregimeregime
AbroadAbroadAbroadAbroad
EmploymentEmploymentEmploymentEmployment incomeincomeincomeincomeExemptedExemptedExemptedExempted****
Entrepreneurial ans Entrepreneurial ans Entrepreneurial ans Entrepreneurial ans professionalprofessionalprofessionalprofessional incomeincomeincomeincome(«High(«High(«High(«High addedaddedaddedadded value» value» value» value» activitiesactivitiesactivitiesactivities))))
ExemptedExemptedExemptedExempted****CapitalCapitalCapitalCapital incomeincomeincomeincome ((((interestsinterestsinterestsinterests, , , , dividendsdividendsdividendsdividends))))
ImmovableImmovableImmovableImmovable ccccapital gainsapital gainsapital gainsapital gains
RentalRentalRentalRental incomeincomeincomeincome
PensionsPensionsPensionsPensionsExemptedExemptedExemptedExempted ((((exceptexceptexceptexcept public pensionspublic pensionspublic pensionspublic pensions)))) ****
2 - The Non-Habitual Tax Resident Regime
*Please note that the exemption is not automatic and it depends on certain conditions thant should be met in the particular case. Previous legal advice should be obtained.
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• Complete the IRS tax return
(Annex L)AncillaryAncillaryAncillaryAncillary ObligationsObligationsObligationsObligations
• 10 years(renewable?)BenefitBenefitBenefitBenefit extensionextensionextensionextension
2 - The Non-Habitual Tax Resident Regime
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Resident permit for third country citizens to invest in Portugal
Condition of the investment in Portuguese territory :
KeptKeptKeptKept for 5 for 5 for 5 for 5 yearsyearsyearsyears ((((fromfromfromfrom the obtention the obtention the obtention the obtention of the of the of the of the residenceresidenceresidenceresidence permit) + permit) + permit) + permit) + RemainRemainRemainRemain in in in in
Portugal 7 Portugal 7 Portugal 7 Portugal 7 daysdaysdaysdays per per per per yearyearyearyear
3 – Golden Visa
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3 – Golden Visa
Investment activity performed directly by an individual
or through a company for a minimum period of 5 years:
Capital transfer in
an amount equal
or above
€ 1 Million
Creation of 10
jobs
Purchase of real
estate in an
amount equal or
above
€ 500.000
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3 – Golden Visa
LEGISLATIVE AMENDMENTS PROPOSED -
BROADENING
Investment activity performed directly by an individual
or through a company for a minimum period of 5 years:
Investments
regarding
scientific
investigation or
supporting
artistic
production
min. € 350.000
Investments in
recovering or
maintening
national cultural
patromony
min. € 350.000
Investments in
urban
rehabilitation
work
min. € 500.000
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3 – Golden Visa
Advantages
Access to free
circulation
within the
Schengen Area
Be tax resident
and work in
Portugal
Family
reunification
Access to
Portuguese
nationality
Access to
Residency
Authorization
for Investment
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Direct descendant or Direct descendant or Direct descendant or Direct descendant or
ascendant ascendant ascendant ascendant spousespousespousespouse
OtherOtherOtherOther
4– Inheritance and donations
0%
10%
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5– The Corporate Income Tax Reform
IRC IRC IRC IRC –––– The new The new The new The new regimeregimeregimeregime of «Participationof «Participationof «Participationof «Participation----exemption»exemption»exemption»exemption»
• OneOneOneOne ofofofof thethethethe mostmostmostmost attractiveattractiveattractiveattractive regimeregimeregimeregime inininin EuropeEuropeEuropeEurope
• CumulativeCumulativeCumulativeCumulative criteriacriteriacriteriacriteria::::
� DetentionDetentionDetentionDetention ofofofof 5555%%%% ofofofof thethethethe shareshareshareshare capitalcapitalcapitalcapital orororor votingvotingvotingvoting rightsrightsrightsrights
� AAAA minimumminimumminimumminimum 24242424 monthsmonthsmonthsmonths uninterrupteduninterrupteduninterrupteduninterrupted detentiondetentiondetentiondetention periodperiodperiodperiod
Exemption : Exemption : Exemption : Exemption : dividendsdividendsdividendsdividends + capital gains+ capital gains+ capital gains+ capital gains
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5– The Corporate Income Tax Reform
IRC IRC IRC IRC –––– The new The new The new The new regimeregimeregimeregime of «Participationof «Participationof «Participationof «Participation----exemption»exemption»exemption»exemption»
• LimitationsLimitationsLimitationsLimitations::::
•TheTheTheThe entitiesentitiesentitiesentities thatthatthatthat distributedistributedistributedistribute thethethethe dividensdividensdividensdividens orororor whichwhichwhichwhich sharesharesharesharecapitalcapitalcapitalcapital isisisis onerouslyonerouslyonerouslyonerously transmittedtransmittedtransmittedtransmitted::::
�RealRealRealReal estateestateestateestate ownedownedownedowned bybybyby thosethosethosethose entitiesentitiesentitiesentities shouldshouldshouldshould notnotnotnotrepresentrepresentrepresentrepresent moremoremoremore thanthanthanthan 50505050 %%%% ofofofof thethethethe respectiverespectiverespectiverespective assetsassetsassetsassets
�ShouldShouldShouldShould bebebebe subjectsubjectsubjectsubject atatatat aaaa legallegallegallegal raterateraterate notnotnotnot lowerlowerlowerlower thanthanthanthan 60606060%%%%ofofofof thethethethe applicableapplicableapplicableapplicable IRCIRCIRCIRC raterateraterate (i(i(i(i....eeee.... 12121212,,,,6666 inininin 2015201520152015))))
�ShouldShouldShouldShould notnotnotnot havehavehavehave itsitsitsits residenceresidenceresidenceresidence orororor domiciledomiciledomiciledomicile inininin aaaaPortuguesePortuguesePortuguesePortuguese ““““blackblackblackblack----listedlistedlistedlisted”””” country,country,country,country, territoryterritoryterritoryterritory orororor regionregionregionregion
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5– The Corporate Income Tax Reform
IRC IRC IRC IRC –––– The new The new The new The new regimeregimeregimeregime of «Participationof «Participationof «Participationof «Participation----exemption»exemption»exemption»exemption»
In Portugal:• Exemption of distributed dividends• Exemption of capital gains deriving
from the onerous transmission of shareholding
Portugal Portugal Portugal Portugal Co.Co.Co.Co.
Europa Co. / Europa Co. / Europa Co. / Europa Co. / Africa Co.Africa Co.Africa Co.Africa Co.
Dividends 5% + 2 years
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5– The Corporate Income Tax Reform
IRC IRC IRC IRC ---- RateRateRateRate
• 23% 23% 23% 23% ---- 2014201420142014
• 21% 21% 21% 21% ---- 2015201520152015
• 17% 17% 17% 17% untiluntiluntiluntil 2019201920192019
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6– The network of Conventions to avoid double taxation
71 Conventions 71 Conventions 71 Conventions 71 Conventions concludedconcludedconcludedconcluded (7 not (7 not (7 not (7 not yetyetyetyet intointointointo force)force)force)force)
8 Africa11
America
18 Asia34
Europe
Thank you !
Rogério M. Fernandes Ferreira Founding Partner ([email protected])
Mónica Respício GonçalvesSenior Associate ([email protected])
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