Offshore Property

As with all legal questions it depends a lot from management to management and what is included on it (for instance if it have already the issue of the initial power of attorney included or not, if includes already one year of management etc).

Many people buying property in Portugal wonder why they must have Fiscal epresentation. First and foremost, it is a legal requirement. Any non-resident owning property or with income generated in Portugal must designate a resident entity to serve as Fiscal Representative to fulfil all compulsory tax obligations.

Since an offshore mortgage is mostly like a normal mortgage in your home country, some U.K. banks for example now offer mortgages for offshore properties too. Each offshore jurisdiction has its own regulations and taxation, so be aware that there might be some things that you should pay attention too…

Portugal, like any other country in Europe, has an array of taxes that relate to property. Some are connected to possession of the property, others to different forms of related income, while others refer to its transmission. What was that proverb about Death and Taxes?

In 2003 changes in local legislation meant that countries outside of Portugal (sometimes referred to as Offshore Centres) were classified by an international body known as OECD as either Black List or White List jurisdictions. The Black List jurisdictions were for the most part countries that offered beneficial tax regimes that were out of line with the White List countries. The intention being that those on the Black List would be encouraged to fall into line with White List jurisdictions.

When investing in a property in an offshore corporate structure, severall additional costs will come up. This article briefly summarizes all costs related to the purchase of a corporate owned offshore property.