Well-planned property investments in Portugal
Offshore pension trustees
When offshore pension trustees were given the opportunity to acquire land in Portugal with fantastic development potential, they needed our help to navigate the tax maze.
- We advised that the land be bought by a Portuguese company structured as an SA (as opposed to an LDA) to obtain certain land transfer tax advantages.
- As they didn’t invest in the Portuguese company directly, there would be no Portuguese taxation on the sale of the company shares. If the Portuguese company sold the real estate and distributed the proceeds by way of dividend, there would be no withholding tax.
- By using a Luxembourg holding company to hold the SA shares we were able to achieve a tax efficient exit from Portugal.