Buying property in Portugal
Portugal has long been a popular choice for people, particularly from the colder climates of Northern Europe, looking to purchase a holiday home or a retirement home. Traditionally they have done so using offshore companies, mainly to avoid estate taxes. Unfortunately Portugal, along with some other countries, has made this route considerably less attractive by the imposition of swingeing tax penalties on offshore companies. The magnitude of these penalties can be seen from the examples below,Real Estate Transfer TaxThis tax is paid by the purchaser, at progressive rates of up to 6% (5% for rural property) on property used exclusively for residential purposes, on the higher of the registered value or the purchase price agreed between the parties. This is usually the purchase price.For offshore companies this rate has been increased to 15%.Municipal Property TaxThis is a tax, at a rate set annually, levied by the local authority and based on the registered value.
The rates are different for urban and rural properties and the total is typically about 1.6%.For offshore companies the rate has been increased to 5%Tax on a Deemed Rental IncomeWhere a property is owned by an offshore company, it is treated as having produced a rental income, which is charged to income tax, of one-fifteenth of the registered value.There are other taxes, which have to be taken into account and these are,Income taxWhere a property is rented out, the rent is charged to income tax and on a sale 50% of the chargeable capital gain is subject to Portuguese income tax.Stamp dutyThere is a stamp duty of 0.8% on the transfer of real estate.Donations taxGifts to a spouse, antecedent or descendant are tax- free but other donations attract a tax of 10%A SolutionFortunately there are territories, which are not on the Portuguese black list and by purchasing a property in Portugal through a properly structured corporate vehicle incorporated in one of these locations, it is possible to avoid the penalties on offshore companies. These arrangements may bring with them other benefits such as,?The ability to sell the property in the future without the buyer having to pay Real Estate Transfer tax,?Avoidance of Portuguese capital gains tax on re-sale,?Avoidance of donations tax or inheritance tax?Avoidance of the deemed benefit provisions in U.K. law.As taxes and the manner in which they are applied change frequently specialist advice should always be taken before entering into any arrangements..
The Chesterfield Group provides a full range of trustee, and corporate advisory, formation and management services and invites enquiries. More particulars can be found on our web-site www.chesterfield-management.comWhat is a Reverse Mortgage?
Simply stated, a reverse mortgage is a loan that enables homeowners (age 62 and older) to convert part of the equity in their home into a tax-free income without having to sell the home, give up the title, or take on a new monthly mortgage payment.
More and more homeowners are using this to supplement their retirement income, pay for health care, modify their home, or just get some cash for emergencies.
Since this is a new product, some people have misconceptions of what a reverse mortgage is.
The bank doesn't give you money and take your house.
Let's look at some of the most common questions.Are reverse mortgages for desperate people?
No.
It is an excellent financial planning tool used from people of all walks of life.
How do I qualify?
You must be 62 or if both parties are on the mortgage, then you both must be at least 62.
And, you must have equity in your home.What if I still owe on my home?
What is a Reverse Mortgage? 
Tax help > What is a Reverse Mortgage?
Student Loan Interest Rates Jump on July 1st
Woburn, MA (ContentDesk) February 23, 2006 -- Last month Congress passed the Deficit Reduction Act of 2005, which included a provision dramatically cutting the government's student loan package by $13 billion. This change affects anyone who will take out student loans in the future, as well as those who have outstanding student loans but haven't yet consolidated them. Since these cuts reduce subsidies available to student loan lenders, interest rates on student loans are on the rise, cautions Andrew Schwartz, CPA, founder of the MDTAXES Network, an affiliation of CPAs throughout the country that specializes in tax planning and preparation for healthcare professionals.
Effective July 1st, the rate for Stafford Loans jumps from 4.7% to 6.8%, and the fixed rate on PLUS loans increases to 8.5% from as low as 6.1%.
There are quite a few changes to the loan consolidation rules as well.
Not only will rates increase substantially on July 1st, you'll no longer be able...
Student Loan Interest Rates Jump on July 1st
Tax help > Student Loan Interest Rates Jump on July 1st
Home-Based Business vs. Second Job -- The Choice is Yours
Many families today rely on two incomes to pay their bills not being able to make ends meet month to month. They face several options to secure that extra income they need, one being obtaining a part-time job and the other a home-based business. It's a decision with advantages and disadvantages to each. I want to provide some suggestions to help you make the right choice. When deciding between a standard second job and a home-based business, it is important to consider the expenses incurred in both.
For those considering a second job, many do not take into account the numerous extra expenses that go along with childcare, clothing, gas, etc. Crown Financial Ministries offers a worksheet online (http://www.crown.org/Tools/mommake.asp ) to help you determine how much you will actually make once these expenses are deducted from your income. By breaking it down and seeing the guideline, you can see just how much extra you really...
Home-Based Business vs. Second Job -- The Choice is Yours
Tax help > Home-Based Business vs. Second Job -- The Choice is Yours
Consolidate Debt With A Home Equity Loan
If you are a home owner who is having to borrow from Peter to pay Paul due to a mounting debt load, a debt consolidation home equity loan may be the answer. A debt consolidation loan will allow you to consolidate your high interest credit card and consumer loans into one low rate, affordable monthly payment.A debt consolidation home equity loan is a secured loan. Your home will be used as collateral and the lender will have a lien on your home until the loan is paid off. None the less if you are drowning in a sea of debt, a debt consolidation loan can give you a new financial start. It can help you avoid bankruptcy as well as end harassing creditor phone calls.
In addition, in most cases your monthly payment will be significantly lower freeing up cash that can be used for savings.It is important that once you obtain your debt consolidation loan that you cut up your credit cards and close out the accounts. This will help you to avoid the temptation of running up another debt load...
Consolidate Debt With A Home Equity Loan
Tax help > Consolidate Debt With A Home Equity Loan
New Mutual Fund Guide Focuses on Novice Investors
San Diego, CA (ContentDesk) February 27, 2006 -- In eight chapters, his Beginner's Guide to Top Low Cost Common Stock Mutual Funds (ISBN: 1-4116 6908-8) explains to first time investors how funds work, their tax aspects, guidelines about when to sell, and why a buy-and-hold strategy beats market timing.
In addition, he details for purchase 13 top low cost funds, including one that over three decades turned $10,000 into
$395,000.
"Making money in the stock market is a no brainer," he says, "if you just let our economy, a tremendous money-making machine, work for you.
And you can make it work for you by having patience and buying and holding for the long term proven quality funds." About the AuthorSteve Haberman practices what he preaches.
For over 30 years, through good and bad times, he's invested in no load funds.
Through his common sense approach, he's profited greatly and been able to travel extensively throughout Europe.
Tax help > New Mutual Fund Guide Focuses on Novice Investors