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.
REDUCED CGT RATES
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.
POTENTIAL TRANSFER TAX EXEMPTION
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.
EASE OF TRANSFER
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.
NO TAXATION ON REDOMICILIATION
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.
UPLIFTED BASIS FOR CGT
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.
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.
CAPITAL IMPROVEMENTS NEVER EXPIRE
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.
At euroFinesco, we recognise that each Portuguese Property Holding Company owner has individual requirements; no two situations are identical. As Company Administrators, our basic services include:
- Resourcing accurate and current information in Portugal to Beneficial Owners regarding Company obligations as well as relevant legislation;
- Clarification of pertinent procedures and interpretations with Finanças;
- Communications liaison between Finanças and the Property Company;
- Reporting to Beneficial Owners regarding Company status in Portugal;
- Acting as Administration: qualified & prepared to meet compulsory company compliance commitments;
For more information, please consult our euroFINESCO publications.