Wealth Planning And Life Assurance Benefits For Portugal

Wealth Planning And Life Assurance Benefits For Portugal

Benefits Summary for the Policyholder residing in Portugal

Clients across Europe enjoy common benefits when structuring their wealth using unit-linked life assurance as a platform.

Special benefits

In addition to the general advantages of life assurance, clients residing in Portugal are entitled to a range of benefits, including:

  • Deferred taxation of capital gains, dividends and interests derived from the underlying investments until the profits are paid out to the policyholder, heirs or beneficiaries after the last life assured dies.
  • No Stamp duty upon termination of the policy as opposed to the 10% tax that normally applies to donations/inheritances to non-relatives.
  • No minimum life cover required.
  • No minimum duration but strong tax advantages to keep policy over 5 years and over 8 years (i.e. reduction of taxable value to 80%, respectively 40% of the realised gains).
  • Portability of the life assurance solution.
  • Diversification of investments through the Luxembourg investment rules framework, including access to international assets not registered in Portugal, such as alternative funds and private equity.
  • Possibility to invest in unquoted assets, such as shares in unquoted companies or corporate bonds issued by unquoted companies.
  • Maximum policyholder protection through Luxembourg’s “Triangle of Security”.
  • Privacy and confidentiality.
  • Security (i.e. protection of the investor and his/her assets).
  • Possibility to pledge, assign or use the rights arising from the policy as collateral.

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