The Portuguese offshore investment bond is designed for individuals who require a tax efficient investment vehicle which meets their changing needs with the potential to secure capital growth and realise those benefits at a time of their choosing.
The policy is not taxable until the bond is surrendered or a withdrawal is made. Surrenders and withdrawals are extremely tax-efficient, as just the capital gains element is subject to tax. The tax rate which is applied to a total or partial surrender depends on how long you have held the policy for.
|Up yo Year 4||28% tax on gains only|
|Between 5 & 8 Years||22.4% tax on gains only|
|After 8 years||11.2% tax on gains only|
Please see an example of how a withdrawal works:
Whether you are living in Portugal already or moving to Portugal from the UK, we strongly recommend you download and read our Portuguese Bond guide which tells you everything you need to know about tax on compliant offshore bonds in Portugal.