Salient to Investors:
- Paulo Silva at Aguirre Newman said wealthy French are fleeing French taxes to invest in Portugal to take advantage of preferential tax treatment.
- The French have overtaken the British as the largest group of foreign home buyers.
- Gustavo Soares at Sotheby’s International Realty said the tax benefits Portugal offers foreigners has been extremely important in attracting French investors.
- Luis Filipe Sousa at PricewaterhouseCoopers said French pension income may end up not being taxed at all. Foreigners living in Portugal may have their pension income exempt from taxes as long as it’s paid from a foreign source, while France only taxes its residents.
- France has the highest tax burden in the euro region: 75 percent on annual incomes of more than 1 million euros and capital-gains tax.
- The French, British and Chinese accounted for more than 50% of the 3,500 property purchases made by foreigners in Q1 2014.
- The Chinese are seeking to take advantage of the country’s property-for-visa program.
Read the full article at http://www.bloomberg.com/news/2014-07-23/rich-french-fleeing-hollande-taxes-find-sanctuary-in-portugal.html
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