Advantages:
What makes Private Wealth Portfolio a unique financial vehicle different from any other banking or financial product?
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They can keep assets abroad with their current bank and asset manager but in a Portuguese vehicle, without any doubt about their legal and tax treatment.
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May have a depositary outside the EU (thus outside the scope of any potential EU restrictive or tax measure)
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They provide the financial vehicle, with the best possible taxation in Portugal, while assets held abroad are subject to annual taxation.
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They can legally maintain the confidentiality and asset protection they had before with offshore solutions.
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They can invest in any type of financial asset without restrictions, being able to choose their preferred asset manager or even manage their own investments.
Meanwhile, the insured still has access to accumulated cash values, which can be used for any purpose and accessed at any age. There are no penalties for accessing the cash value before turning age 59 1/2, as there are with annuities and with individual retirement accounts (IRAs). In addition, there are no required minimum distributions, as there are with annuities, IRAs and retirement accounts.
the concept:
Private Wealth Portfolio - Product Features Private Wealth Portfolio (Portugal) is a single-premium life insurance policy, specifically designed for tax residents in Portugal. It can be concluded as a lifetime contract or as a mixed contract with a maturity period extendable by the policyholder.
The insurance contract may cover one or more insured lives in the first death or last survivor options. (maximum age is 80 years). The currency of denomination can be EUR, USD, CHF or GBP.
Why an Insurance?
Because it is the only vehicle for Portuguese residents to maintain assets outside Portugal, but through a fully compliant and tax-efficient product.
Insurance offers unique tax advantages, as well as in terms of estate planning, asset protection, investment freedom, liquidity and flexibility. And total confidentiality.
Why in Ireland?
Because Ireland has the most protective insurance legislation. Policyholders have absolute precedence over protected assets, while for example, in Luxembourg, tax creditors, social security, and officials are ahead of policyholders if the assets are inadequate.
Ireland offers more flexibility for investments and selection of depositaries. VAT is not levied on asset management or insurance custody fees.
Wealth Preservation:
Private Wealth Portfolio “Unit-Link open structure solutions”
Private Wealth Portfolio falls within the definition of an ICAE ('instrument for raising guaranteed savings' or 'instrument structured to attract savings').
This is a fundamental advantage in Portugal compared to direct investment made locally or abroad -
In case of redemption, early disposal or maturity of the policy, the income calculated by the difference between the premiums paid and the amount paid by the insurer is subject to IRS at the rate in force, with the following reductions:
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1/5 of the income if the redemption or maturity occurs after 5 years and before 8 years from the start date of the policy
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3/5 of the income if the redemption or maturity occurs after 8 years from the date of policy initiation, provided that the premiums paid during the first half of the policy term represent at least 35% of the total premiums
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Life insurance premiums are excluded from Portuguese Stamp Duty.
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In Portugal no taxes are charged on inheritances or donations. Instead, Stamp Duty is paid at the flat rate of 10% on free transfers, but transfers to spouses, descendants, and ascendants are exempt. Payments to beneficiaries of insurance policies are, however, outside the scope of Stamp Duty. Thus, the insurance benefits from exemption from Stamp Duty even for heirs or donees who are not spouse and children, that is, no degree of kinship is required.
