Portuguese Compliant Investments (PCIB) for Your Tax-Efficient Growth
Portuguese-compliant, tax-efficient savings and investments offer some features similar to the UK ISA.
These solutions can secure an effective tax rate on income as low as 11.2% for life.
Key features
Tax-Free Growth: Enjoy tax-free growth within a Compliant Investment Portfolio Bond, with no capital gains tax payable.
Flexible Investment Options: Choose from a range of investment strategies tailored to your needs, with the flexibility to adapt as your circumstances change.
Multi-Currency Capability: Hold your investments in EUR, GBP, USD, or Swiss Francs, depending on your preferences.
Diverse Fund Choices: Access a wide range of funds and ETFs with institutional discounts, managed by Ingenium to match your risk profile.
Simplified Administration: All investments are valued in the policy’s denominated currency and can be passed to beneficiaries without complications.
Investment details
Minimum Investment: Start with an initial investment of €100,000, with additional top-ups permitted from €20,000.
Withdrawal Options: Withdrawals are treated favourably by the Portuguese IRS (AT) in terms of their taxation
No tax on income or gains if accumulated within the policy.
Favourable tax rates on withdrawals, with only the growth element being taxable as follows:
- 28% tax on growth for withdrawals in years 0–5.
- 22.4% tax on growth after 5 years.
- 11.2% tax on growth after 8 years.
Why choose our solutions?
These investment solutions are popular due to their ability to legitimately avoid capital gains tax. In this way they can also be structured to mitigate capital gains when downsizing your main home and investing the surplus for steady income. However, careful setup is crucial—mistakes made by Advisers unfamiliar with the detail of the Portuguese rules can prevent you from enjoying these tax benefits. We have seen problems with policies created by Advisers not based in Portugal, you have been warned!
We work with our network of pofessionals which includes Certified Accountants to ensure compliancy and provide assistance in tax filing.
Our lean fee approach ensures that our fees are competitive, typically no higher than standard investment platforms.
These solutions are ideal for those planning to stay in Portugal for the foreseeable future. If you are British and later return to the UK, these Portuguese Compliant Investment Bonds can be restructured to benefit from UK tax advantages.
To explore whether these tax-efficient savings and investment solutions are right for you, get in touch with us today.