It is a solution that has been designed in Luxembourg and that results from the combination of the Portuguese legislation in force, with the Luxembourg legislation, allowing Portugal to offer its fiscal residents the best fiscal and protection solution in Europe. This solution is available to any citizen of the world who becomes a tax resident in Portugal.
The Dedicated Fund combines the advantages of an insurance and an investment fund. In an investment fund there is no taxation over different types of income generated by its assets (interests, capital gains, etc.). As a capitalization insurance investment, it benefits from special taxation conditions, over capital gains, at time of redemption, reaching 11,2 % of taxation, which contrasts with the 28% on traditional time deposits.
Furthermore, if the Dedicated Fund is also used for the transmission of assets between generations, within the actual fiscal framework, clients have the possibility of not paying taxes over wealth, during their entire life. The Dedicated Fund contracts, although with a Luxembourg origin, are registered in the Portuguese Securities Market Commission (CMVM) and the Portuguese Insurance and Pension Funds Supervisory Authority (ASF), complying with the European law.
Advantages - Safety
- Dedicated Fund is governed by the Luxembourg Law;
- Stability: Luxembourg is one of the most stable countries of the world on political and legal terms;
- Legal structure, safe at an European level;
- Council Directive (2014/48/UE) on taxation of savings: 1) Free capital movements; 2) Fiscal Transparency;
- Council Directive (2014/107/UE) about Exchange of information in the field of taxation;
- Assets Protection;
- Protection of investors identity;
- The “Safety Triangle” separates the functions of three entities that are necessarily involved: Insurance Company, Depositary Bank and Commissariat aux Assurances (Luxembourg Regulatory Authority in the Insurance Sector);
Advantages - Inheritance and succession
- Beneficiaries are preset, in a simple way and will receive the quota value at the date of death of the policyholder or the last insured person;
- It allows to organise and prepare the succession business;
- It gives the possibility to change beneficiaries at any moment;
- The relationship between beneficiaries is protected by confidentiality.
Advantages - A tailor made solution (Flexible)
- Tailor made Fund, with customised management, adjusted to the risk profile of the Client;
- A wide variety of investment assets (financial assets and real assets);
- Client chooses the insurance company, the depositary bank and the asset management company
- The parcial or total redemption can be done at any time. Scheduled or periodically, according to needs.