Moving to Portugal - Can I keep my Individual Savings Account (ISA)?
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- Опубликовано: 18 окт 2024
- IMPORTANT - PLEASE READ REGARDING THIS CHANNEL
The content on this channel is for educational and information purposes only. It should not be relied on as advice, and you should always take qualified advice before making any changes to your personal position.
Whilst I have experience in the financial and tax industry, this channel is for recreational purposes and is not an advertisement for my business or services. Its purpose is to share quality information.
Whilst every care is taken as to the accuracy of the information in these videos, the information provided is based on the understanding of the rules at the time, and rules can change with little or no notice.
Whilst I cover a wide range of issues on the channel, in my professional role I specialise in tax efficient investments, UK and overseas pensions, estate planning, and wealth management for expatriates based in Portugal. Unfortunately, I do not offer visa or tax return services, nor can I assist US nationals.
Thank you for your support and understanding. I hope to continue to provide you with valuable information to help you with your life in Portugal. If you have any suggestions for content you would like to hear, please let me know
Individual Savings Accounts
For Non Habitual Residents (NHRs), interest and dividends are tax exempt during the 10-year period but realised gains are taxed at 28%. For non-NHRs, interest, dividends and gains are taxed at 28%.
If your move to Portugal is short-term, or if you are not certain that it will be your long-term home, then there is a case for retaining your ISAs. Although you cannot add to them whilst non-UK resident, you can continue to hold them, and once you return to the UK they resume their tax-efficiency.
A planning point you may wish to consider if you have a stocks and shares ISA is to ‘rebase’ by selling and then immediately repurchasing the same funds within your ISA prior to leaving the UK to ‘wash out’ any taxable gains accrued to the point of your departure. This way, if you did decide to restructure, encash, or withdraw from the ISA as a Portuguese tax resident in the future, there would be little or no tax to pay in Portugal.
As a general guideline, if you believe your move to Portugal is long-term (as a rule of thumb, 5 years or more) then restructuring and starting an investment vehicle that is suitable for residency in Portugal would make sense for greater tax efficiency, amongst other reasons. If this is the case, planning well in advance is advantageous, as there is no tax on ISA closure for UK residents.
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IMPORTANT - PLEASE READ REGARDING THIS CHANNEL
The content on this channel is for educational and information purposes only. It should not be relied on as advice, and you should always take qualified advice before making any changes to your personal position.
Whilst I have experience in the financial and tax industry, this channel is for recreational purposes and is not an advertisement for my business or services. Its purpose is to share quality information.
Whilst every care is taken as to the accuracy of the information in these videos, the information provided is based on the understanding of the rules at the time, and rules can change with little or no notice.
Whilst I cover a wide range of issues on the channel, in my professional role I specialise in tax efficient investments, UK and overseas pensions, estate planning, and wealth management for expatriates based in Portugal. Unfortunately, I do not offer visa or tax return services, nor can I assist US nationals.
*Thank you for your support and understanding. I hope to continue to provide you with valuable information to help you with your life in Portugal. If you have any suggestions for content you would like to hear, please let me know*
very helpful information. thanks, Mark
I'm glad you found it useful Katarzyna. Best wishes. Mark
Hello, I am not British but living in Portugal as a non-Poruguese. Do you have any advices for me and people like me also?
Thank you for your comment. The same principles apply to non British nationals, but it is very difficult to advise without knowing your situation. I would recommend your speaking with an Accountant here and taking formal advice. Best wishes, Mark
Hi Mark, that's a great video. Can I still contribute to my ISA account while being a Portuguese tax residence? Would the £20k yearly cap still be applicable?
Regarding the "crystallised" term, would it be the case when withdrawing only or also when rebalancing the ISA account?
Hi Danilo. Thank you for your comment. You can keep you ISA, but cannot contribute further funds when you are a non-UK tax resident. Crystallisation can occur when you make a switch within the account or withdraw from the account. Kind regards. Mark
That has put me off Portugal. You have a little ISA and you have to pay 28% of any gain or interest in it?! ISA's pay interest and interest should NOT be subject to capital gains. It is not an asset , just an investment. Portguese gestapo!
If it is a cash ISA then the interest would be taxable in the UK and no capital gains tax due. If it is an investment ISA, then any gains realised would be subject tax because, after you leave the UK, the ISA is no longer a tax free scheme - it is only tax free for UK tax residents. Best wishes. Mark
Hey Mark I’m a Greek citizen living in The UK I have a ISA and planing to move to Greece I can’t find any info about capital gains tax can you share your thoughts
Hi, i'm sorry but my focus is on UK and Portugal