2021: The Year in Review
“Knowledge increases by sharing but not by saving.”
Kamari aka Lyrikal
This year marked the launch of Kore Partners . We have accomplished all our goals and objectives whether they were client driven, internal, or external.
We have successfully put our creative thinking and technical expertise at the service of our clients to solve high value matters but also underpinned our motto of knowledge sharing.
The publications for 2021 were largely dedicated to the non habitual resident regime (or NHR) and to provide insights on many difficult angles that this regime provides on relocations to Portugal . This briefing outlines a review of our knowledge sharing initiatives:
We started our year with the NHR 2.0 - 2020 perspective, where we dealt with the changes in taxation of pension income for non-habitual residents (NHR) that occurred in April 2020.
We followed with interesting report on data and statistics of the NHR regime, where we identify which are the countries that have used more the regime and some of the shortcomings that policymakers raise on the NHR.
We then delved into the difficult topic of Portuguese Controlled Foreign Companies rule (or CFC) and individual NHR shareholders. How this anti-deferral rule interacts in practice with an exemption method remains unclear.
Our first Private Client Briefing dealt with Tax residence and the habitual test, a key issue as tax residence requires always some degree of habituality or residency link and misunderstandings need to be cleared before relocating to Portugal.
We then examined the practical tax consequences of the formal termination of tax treaty between Portugal and Sweden and what it means for both corporate entities and individuals deriving Portuguese-source income.
Our second Private Client Briefing focused on Golden Visa 2.0 – current state of play and beyond, where we address the interaction of immigration and tax issues and difficult questions with the impending changes to the Golden Visa scheduled to 2022.
Our third Private Client Briefing addressed the split tax year and what this means in practice for persons arriving or exiting Portugal from a tax perspective. Double residency issues of individuals should be avoided.
Our fourth Private Client Briefing deals with tax rulings in Portugal and a selection of 10 tax rulings linked to the NHR regime, which help further understand the regime and when the ruling request may prove useful.
Our fifth Private Client Briefing addresses the tax litigation angle and the NHR regime, where we selected 10 Tax Arbitration Court decisions that directly or indirectly involved the NHR regime from a tax controversy standpoint.
Our sixth Private Client Briefing focuses on digital nomads and the NHR regime, where we address via a dynamic Q&A how this NHR regime applies to self-employed remote workers.
Our seventh Private Client Briefing deals with the taxation of foreign-source capital gains of a NHR and how the 28% flat rate applies and how in some cases exemption method may apply.
We issued an article on the Portuguese press designed to counter mainstream media coverage focusing on expenditure and blurring in the advantages of the non-habitual tax regime (NHR).
Our eight Private Client Briefing addressed how tainted income or income sourced in a blacklisted jurisdiction can originate some surprises on tax toolbox of a NHR.
In a collaborative interaction with Lombard International, we developed on what happens when the 10-year period of the NHR regime elapses and options such as Unit-Linked life insurance policies may become an interesting investment.
Our ninth Private Client Briefing addresses pension income taxation under the NHR and practical application of the 2020 changes with some cross-border cases.
Our tenth Private Client marked the 10 years of the introduction of the NHR regime and looks into the future on what could possibly still be done to reinforce the positioning of Portugal as one of the top countries to reside in Europe.
We analyzed in detail the tax policy and technical issues of the taxation of capital gains from the disposal of real estate that the Portuguese legislator faces after the EU Court of Justice judgement in the MK case (C-388/19).
Due to the rejection of the Budget Proposal for 2022 in the Parliament the proposals we analyzed with specific impact for private clients no longer be enacted and new general elections are scheduled for January 30th 2022.
Our eleventh Private Client Briefing provides a technical revisitation of key points of cryptoassets and NFT tax framework in Portugal and why we consider that sometimes lack of tax rules may not be ideal.
Our Kore Partners Guide for high-end residential property provides our clients answers when approaching a potential deal on this asset class, both from a legal and tax standpoint.
We closed the year with our winter shortlist of business books, based on selected readings published in 2021 on trending topics.
These 21 initiatives during 2021 reflect our essence of a boutique private client law firm and demonstrate our commitment towards sharing knowledge and develop a culture of excellence.
For 2022, we will take a topical approach on wealth management issues affecting families resident in Portugal.
Key takeaways
In 2022, we will continue uncompromising towards our boutique model centred in 4 Kornerstones: (i) client-centred growth; (ii) keep “nimble factor” and differentiated products; (iii) focus on state-of-the-art expertise; and (iv) attract the best talent with a high-growth perspective.
We wish you Merry Christmas and Happy New Year.
Kore Partners Team: Tiago Cassiano Neves, Julija Petkevika Neves, António Mendes, João Pinto Gonçalves, Maria Dewerbe, Guilherme Sottomayor and Carina Fustiga.
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© Kore Partners, 2021
This briefing provides for general information and is not intended to be an exhaustive statement of the law. Although we have taken care over the information, this should not replace legal advice tailored to your specific circumstances. This briefing is intended for the use of Kore Partners clients and is also made available to other selected recipients. Queries or comments regarding this including joining our mailing list can be directed to kore@korepartners.com