| Nominee Companies have existed in Portuguese Law since the 19th century and have been embraced in legislative reforms over the years. They are fully compliant and are not subject to the harsh laws that have made Offshore Property Companies a pariah: no deemed income tax, no 5% Punitive Rates bill. |
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| Capital Gains Tax on the sale of a Nominee Company is only 10%, as compared to 25% for non-resident companies and individuals or up to 21% for residents if ineligible for rollover relief. |
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| The sale of the shares is normally exempt from “IMT” (Property Transfer Tax). Buyers can save thousands of euros, making Nominee Company acquisition more attractive than direct purchase. |
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| When the Company is eventually sold, only a simple deed of sale is required. The property remains securely within the company with nothing to trigger the bureaucratic problems of property transfers. |
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| When a non-resident company moves to Portugal, there is normally no taxation. This is because it is the Company Headquarters that moves, not the property, avoiding any transfer of assets. |
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| In the redomiciliation process, there is usually a significant uplift in the basis for eventual CGT assessment. A major tax problem can be transformed into a manageable inconvenience. |
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There are two forms of nominee companies while they share many of the same benefits, they differ on several aspects that make them adaptable to your needs and requirements.
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| Unlike direct ownership where expenses can no longer be offset against Capital Gains after five years, any capital invested into your Nominee Company is always reflected in the Company value. |
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For more information, please consult our euroFINESCO publications.
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