Private Wealth Portfolio

You can take advantage of the many benefits offered by Private Wealth Portfolio:

Exceptional tax efficiency 

Life insurance is the most tax efficient investment vehicle in Portugal. Private Wealth Portfolio is classified as an ICAE (Instrumento de Captação de Aforro Estruturado or ‘structured instrument for attracting savings’) and this offers unique advantages when compared to other investment products:

  • Personal Income Tax (PIT) on investment growth within your policy is deferred until you make a partial or full surrender.
  • If you make a surrender or your policy matures after a set period of time, the Personal Income Tax rate is reduced as follows:
Surrender or Policy Matures Reduction in PIT rate
Between 5 and 8 years – 1/5th
After 8 years – 3/5th

You can benefit from this tax reduction provided that 35% of your total premiums are paid in the first half of the policy term.

  • The premiums you pay into your policy are excluded from Portuguese Stamp Duty (Imposto do Selo).
  • Private Wealth Portfolio gives you or your adviser the ability to determine when or if a liability to Portuguese tax arises. This can only happen on the occurrence of a chargeable event which is in your control.
  • If you are a non-habitual tax resident or beneficiary of the Portugal residence permit (Golden Visa Programme), you can also take advantage of the optimal tax treatment of the Private Wealth Portfolio for Portuguese residents.

Efficient estate planning 

Private Wealth Portfolio is a valuable instrument for the smooth transition of your wealth from generation to generation:

  • Private Wealth Portfolio sits outside the Will and is not part of the estate. Upon death, proceeds are immediately paid to beneficiaries.
  • There is no inheritance tax or gift tax.
  • Life insurance policies are exempt from Stamp Duty in Portugal regardless of the degree of kinship.
  • There is no Stamp Duty on proceeds paid to beneficiaries upon death.

Currency choice  

You can choose the currency of your investment in either Euro, US Dollar, Swiss Franc or Pound Sterling. The minimum initial premium is EUR 500,000 or equivalent in these currencies.

The information provided is based on our understanding as at 30th May 2016. Fees and charges apply. There may be a delay in processing surrender payments where the investment portfolio contains illiquid investments. You should discuss the taxes, fees and charges applicable to Private Wealth Portfolio with your financial adviser before you apply for this product. Your financial adviser will provide you with the guidance and advice that you need to make Private Wealth Portfolio work effectively for you.


Key Information