A newly released report, āWealthy Expats in Portugal Survey Report 2024,ā reveals that the majority of affluent expats holding NHR tax status have not taken early measures or sought professional guidance within the initial 1-7 years to mitigate progressive tax rates ranging from 28% to 48%.
The survey, which interviewed over 1,000 expats, shows that many affluent international families in Portugal benefiting from NHR tax status could face substantial financial risks if they do not plan their income and assets early in their 10-year NHR tax benefit period.
A representative fromĀ Portugal Pathways,Ā a community platform assisting affluent expats in Portugal, commented: āWe were surprised to find that still many NHR tax status families in Portugal were unaware of the importance of seeking professional advice on their tax and cross-border income and assets as early as possible under NHR tax status. There are ideal regulated and tax efficient solutions available if they act early before itās too late, potentially saving significant amounts of tax in the long term.āā
āWe have had many individuals contact Portugal Pathways who are eight or nine years into their NHR tax benefit. We connected them with the right professional advisors, but due to their delay in acting on this, they struggled to avoid significant tax increases at the end of their NHR tax period.ā
The report highlights that international families with NHR tax status who have relocated to Portugal enjoy the lifestyle, cost of living, culture, healthcare, safety, and security. However, they often postpone managing their finances, assets, and income for long-term protection, not just under NHR tax status.
Andreas Munzer, residing in Cascais, shared: āThis was a real eye-opener for us. We have been living in Cascais for four years, enjoying the lifestyle and low tax status that NHR tax provided. Only recently did we seek professional advice from a cross-border wealth manager and tax expert supplied to us by Portugal Pathways.
Fortunately, we acted in time and now have a plan to mitigate these high taxes for the future. If we had waited another year or so, it would have been very difficult for us to afford to stay in Portugal.
āOur advice to anyone in our situation is to consult with a professional advisor early in your NHR tax benefit period. This way, you can create a plan and continue to enjoy life in Portugal with peace of mind for the future in terms of your tax on income and assets.ā
Niall Macdonald, a wealth manager based in Portugal, remarked: āItās understandable that people delay this process as they prefer to enjoy life rather than consult with professional advisors about tax matters, but it is essential that they do so early when they receive NHR tax status and get peace of mind.ā
The report reveals that up to 73% of the estimated 72,000 expats with NHR tax status in Portugal could face a significant increase in tax liabilities once their NHR status expires, with potential tax rates escalating to 48%.
Portugal Pathways offers to arrange a free, no-obligationĀ discovery callĀ for NHR tax holders seeking clarity about their situation with professional advisors. You will also receive a free copy of the latest āWealthy Expats in Portugal Survey Report 2024ā. Early action is crucial, as unmanaged future tax issues can significantly impact long-term financial security.
By implementing a personalised cross-border structured plan for their income and assets, many affluent NHR tax holders can continue to enjoy their lives without the unintended consequences of failing to seek professional advice and ensuring peace of mind for the long term in Portugal.
Offers comprehensive guidance on luxury property, wealth management, Portugal’s Golden Visa residency by investment options, tax status, private healthcare, and other essential relocation concierge solutions to enhance your life and investments in Portugal.
Our expert team can ensure you optimise your investments and income, real estate, and other assets through effective cross-border structuring of your worldwide income and taxes for long-term security and peace of mind.
Sponsored Content
