With the sun setting on Portugal’s Non-Habitual Residency (NHR) program, Americans living in or moving to Portugal must rethink their financial strategies. The NHR program, a long-standing magnet for expats due to its tax advantages, will no longer be available to new arrivals after 2025, and current beneficiaries will see their privileges end after ten years. To ensure financial security, Fresh Portugal, in collaboration with Green Ocean, offers innovative solutions to help Americans transition to a post-NHR world.
The NHR Program and Its Implications
The NHR program provided expats, including Americans, with significant tax benefits:
- Tax-Free Securities Investments: Americans enjoyed tax-free returns on investments in stocks, especially in the S&P 500, under NHR.
- Lower Retirement Account Taxes: Tax-deferred accounts like 401(k)s and IRAs were taxed at rates between 0–10%.
However, the impending end of NHR creates challenges:
- Progressive Tax Rates: Expats face Portugal’s standard tax rates, which could triple the tax burden.
- Limited Investment Options: Many EU-based tax-efficient products remain inaccessible to US citizens due to compliance requirements.
Fresh Solutions for Americans: Insurance Wrappers
Recognizing these challenges,Fresh PortugalandGreen Oceanhave developed theFresh & Green Ocean Insurance Wrapper, a compliant investment product tailored to Americans’ needs in Portugal.
What Are Insurance Wrappers?
Insurance wrappers are financial instruments combining investment portfolios with life insurance policies. This approach allows expats to benefit from:
- Reduced Capital Gains Tax: After 8 years, investors pay an effective tax rate of 11.2% instead of the standard 28%.
- Market Growth Opportunities: Investments are tied to indices like the S&P 500, offering growth potential with downside protection.
Key Advantages
- Accessible for US Citizens: Designed to meet US tax and compliance standards, ensuring easy adoption by American expats.
- Tax Benefits for Expats: Enjoy preferential tax rates on gains, even if the investment period begins before moving to Portugal.
- Risk-Managed Growth: Principal protection ensures no losses during market downturns while allowing for steady returns.
- Retirement Alternatives: Transition funds from 401(k)s or IRAs into these wrappers to sidestep Portugal’s progressive tax rates.
Who Can Benefit?
- Future Expats: Start the investment holding period now to maximize tax savings when moving to Portugal.
- Current Residents: Early investment ensures benefits align with the expiration of NHR.
- Retirees: Secure retirement income with a tax-efficient alternative to traditional US accounts.
How to Get Started
- Rapid Assessment (€650): A joint financial and tax consultation evaluates your income streams, portfolio, and tax situation.
- Implementation:
- Green Ocean: Provides financial planning, investment setup, and management.
- Fresh Portugal: Ensures legal compliance, handles tax filings, and communicates with tax authorities if needed.
Why Choose the Fresh & Green Ocean Insurance Wrapper?
TheFresh & Green Ocean Insurance Wrapperis a uniquely tailored solution for Americans navigating the complexities of Portugal’s tax system. Designed specifically to address the challenges posed by the end of the NHR program, it combines Fresh Portugal’s unparalleled expertise in Portuguese tax law with Green Ocean’s deep understanding of US financial planning.
With this wrapper, you gain:
- Tax Efficiency: Benefit from significantly reduced tax rates on investment gains, compliant with both US and Portuguese regulations.
- Comprehensive Expertise: A collaborative effort between tax lawyers and financial planners ensures a product that meets your unique needs as a US expat.
- Market Resilience: The wrapper’s downside protection and steady growth potential safeguard your wealth, even in volatile markets.
- Seamless Implementation: From tax compliance to financial management, Fresh Portugal and Green Ocean handle every aspect, so you can focus on enjoying life in Portugal.
The Fresh & Green Ocean Insurance Wrapper isn’t just an investment product—it’s your key to financial security and peace of mind in Portugal.
Secure Your Future in Portugal
The end of the NHR program may feel daunting, but with the right planning, you can navigate these changes confidently. The Fresh & Green Ocean Insurance Wrapper offers a powerful, tax-efficient solution that secures your investments and protects your financial future in Portugal.
Don’t let tax concerns hold back your Portuguese dream.
