Algarve property guides – Offshore Company

An overview of the offshore company buying process found in high value properties in the Algarve. Mostly in areas such as Quinta do Lago Vale do Lobo and the surrounding areas.

Algarve property guides – Offshore company

A fairly common practice when property within the Golden Triangle changes hands is the transfer of the Offshore company.  This is common place around Quinta do Lago and Vale do Lobo. Where property values are generally in excess of €1,000,000.

What does it mean

Simply put the property is owned by the off shore company and rather than the property itself changing owners, the company shares are transferred instead.  This of course eliminates the IMT and stamp duty levied on property transactions. Buying costs are limited to lawyers fees only.

Benefits of an offshore company

The clearest benefit of purchasing your Algarve property under the offshore company vehicle is of course the upfront tax savings. You will save just under 7% of the purchase price, which is fairly significant on properties of higher values.

The tax you pay should you sell the property will also be different to private ownership. Presently non residents pay a flat 28% on any profit following a property sale. This would not apply to off shore owned properties. The tax will be based on your wherever you are a tax resident and will  be based on the sale of a company, rather than a property.

Offshore company ownership is also much more discreet and one of the main reasons it is employed on the higher priced properties. No property deed is exchange so ownership is not as easily accessible.

Negatives of  an offshore company

There are costs associated with offshore ownership. Namely the managing agent for the company. This will generally be around €2,000 per year to manage the annual filling of accounts and upkeep of the company.

This year, 2017, a new tax has been introduced for additional payment of IMI (property tax) on all offshore properties. This will be on top of the current IMI payments and will be another 0.4% of the fiscal value.

There will generally be an inbuilt capital gains liability with off shore properties. Although this is only applicable if the house is sold outwith the company, it is worth noting.

IRG Property Portugal

Conclusion

Most high value properties are owned using an offshore corporate structure. This is perfectly legal and common place with luxury properties.

Many buyer’s can be put off by the thought of not actually owning the property themselves, or of being caught in some kind of “scheme”. But it really is quite simple and straight forward, if one was to purchase using an off shore company structure, the property (or company asset in this case) would own this property in it’s entirety and be the sole asset of the company. There would be no other trading or interest other than the property.

The buying process would then simply involve the transfer of the company shares, of course including the sole asset the property, to you as the new owner. The same due diligence would be carried out, financial records would be checked to ensure all associated taxes have been paid in respect to the company and all the same property checks will be made also.

Ultimately there is no reason not to purchasing offshore and there is always the option to transfer the property to private names at a later date if preferred.

For more information on property purchasing here in the Algarve you can donwload our free Portugal Property Guide here.

Visit our Algarve property tips section for more great information

 

Italian magazine places bridge in Vilamoura as one of the World’s “top 10”

1The pedestrian and cycling bridge VLM, with its main material being wood,  located in the longest Avenue in Vilamoura, was distinguished as one of the ten best in the world by the Italian magazine “Domus”: considered as a reference in the fields of architecture and design.

The bridge, launched in 2009 and extending over 160 meters in the Vilamoura XXI Avenue, has also an artistic component; two dynamic images were created  on one of the sides of the wooden 25 metres tall wall, that is only visible as a whole “in motion”.

“What began as a very simple project, became eventually a work of art,”  quotes the architect Francisco Salgado Re, one of the authors of the project, stressing that the sequence of images, consisting of 180 hand painted boards, works like “movie frames”

The two dynamic images created by the artist Domingos Loureiro are different; depending on the direction from where they are observed and visible from a 45-degree perspective – he added – explaining that they are not visible if viewed from the front,  only with the movement of cars.

With this project, designed by the studio And-Ré, based in Porto, the team also wanted to, in terms of visual and audible noise, direct the pedestrians’ attention to the lake and adjacent golf course and not the parallel road.

“We tried to create a point of interest from an extensive and somewhat monotonous route, giving a way to enjoy the scenery and sun setting and transforming it into a stopping and “viewing” spot, he noted.

Not only the bridge but also the “design” of some street furniture and the shared used bicycles within Vilamoura were And-Dre studio’s work.

David Cameron’s visit earns International compliments in the Algarve

2British Prime Minister David Cameron chose Portugal again for his family holidays.

After having been photographed in 2013 in Lagos and in 2014 in Cascais, on both occasions to buy fresh fish, this time the camera captured him having a drink with his wife, Samantha, around ​​Alvor area.

The couple and their three children, aged between five and 11 years old, are staying in a rented house in Monchique since they arrived at Faro airport on a low cost airline. And further, according to the Algarve newspaper “Sul Informação”, their accommodation is the same as two years ago.

The Cameron family vacations are attracting a lot of international media attention to the Algarve. British journalists even pointed and revealed the brands and prices of the outfits the couple were wearing at the time of the photos in Alvor.

Spanish highlight the beaches as “magic atmosphere”

Some Spanish publications have also taken the opportunity to point some of the Algarve’s tourist attractions. For example, the ABC newspaper describes the Algarve region as an area of “quality tourism with excellent services at affordable prices to the British pockets.”

In Alvor is highlighted the spectacular beach of “Três Irmãos”, for its fine sand and rocky surroundings, giving it a magical atmosphere,” emphasizes the ABC newspaper.

The stay of David Cameron in Portugal will not last much longer, as he is expected in London on the 15th of August, to commemorate the 70th anniversary of the victory over Japan in World War II.

Silves Medieval Fair

1

The Silves Medieval Fair takes place from 7th to 16th August 2015 in Silves Historic Center (Algarve).

For nine days, Silves, capital of the Algarve during the Arab occupation, returns to its golden age. A historical recreation of the era of the Christian reconquest, the city is invaded by characters from the past such as acrobats, jugglers, dancers and snake charmers who display their skills.

This event, organized by Silves Municipality Cultural Department, intends to show the public and visitors how people lived once in Silves, as well as the city’s importance in the history of Al-Gharb with the Christian reconquest, and of course stimulate Cultural Tourism and the promotion of the city.

Do not miss this opportunity to experience live the noble’s parades, knights’s tournaments and also archers, artisans and merchants to proclaim their products.

Algarve considered the World’s best place for retirement

1The Algarve was considered, for the second time on a row, as the World’s best place to enjoy retirement.

In a review from the US Company “Live and Invest Overseas” quoted by CNN; the Algarve comes in first place, and highlighted the low cost of living, the beach, the golf courses and the ease of communication for native English speaking.

According to the review, the cost of living in the Algarve is significantly lower than in the United States.

To elaborate this review, it was considered the cost of living and Real Estate investment, entertainment options, the strength of expatriate communities, health care and logistics for relocation.

One of the highlighted factors is the ‘more than 100,000 expatriates, who promoted exchanges of books,  tennis and volunteer groups.

Pestana Group opens its 12th Hotel in the Algarve

1The former touristy complex “Torralta” in Alvor, will be nº 12th Pestana Hotel in the Algarve.

With an investment of eight million euros, arouse the “Alvor South Beach” that will be opening its doors on the 6th of August.

To “The Express” the Manager of the Pestana Group, Pedro Lopes, says this new project transformed a huge concrete structure destined to be another tower of “Torralta” – never completed – into a Beachfront Hotel.

This new Hotel has 79 rooms, of which 57 are suites.

It further has three swimming pools and a decor identical to the one on the Group’s Hotel in Miami.

Seven Vilamoura opening party

1Located in the heart of the Vilamoura Marina within the Congress hall of the Hotel Tivoli – SEVEN Vilamoura is back for a fantastic 2015 and promises to thrill the Algarvian nights with parties full of animation and with the best international DJ’s.

SEVEN will bring 38 nights of pure emotion, with a line-up and very special guests, reason for being considered as the only night club in the country hiring the best DJ’S in the world.

As one of the most desired locations, the space is designed with a main room, a communal lounge area, VIP area and also an outdoor area with 6 different bars available.

Don’t miss out!

 

Puro white party at Purobeach Vilamoura

1

The most well known party for several years is back: White Party at Purobeach Vilamoura  – Friday 24th July.

Purobeach Vilamoura is a small oasis right next to the sea on Vilamoura beach where you’ll find a restaurant, lounge bar and massage area. A combination of a healthy and calming atmosphere during the day with vitality and entertainment at night. A place where body and mind encounter perfect balance.

On the beach, the decoration is exotic and complemented by an exclusive service. As the sun rises, enjoy a massage or just simply relax in the body-hugging comfort of the chairs and beds to the sound of music Purobeach style.

At night, the dinner menu with the exotic influences of Miami, Marrakesh and Melbourne will surprise the most demanding of foodies and always in a unique party atmosphere.

Do not miss this unique opportunity to have fun with excellent food and drink selection while listening to good music in a white environment.

Dress Code: WHITE!

 

Summer Lovers Market’s 1st edition in Vilamoura

1

 

The 1st edition of the Summer Lovers Market, an event that falls under the category Fashion & Food, will take place this 25th and 26th July the Vilamoura Casino gardens.

This initiative has 40 of the most trendy National Brands that dictate fashion trends and street food. The summer fashion will bring caipirinhas and ice creams under the sound of chill out music, bossa nova and reggae. Plus, every evening visitors can enjoy a sunset party.

The festival will feature several areas, which are divided into summer brands, street food, lounge area and a stage for performances. It has a sympathetic character to support “From Kibera With Love” – a project that strives to ensure the education of children of Kibera, the largest slum in the world in Kenya.

This event runs from 10am to 8pm – free entrance.

For more information check  www.facebook.com/summerloversmarket

 

New elegance in “Casa Velha” restaurante in Quinta do Lago.

1

 

The mythical restaurant “Casa Velha” has blossomed in Quinta do Lago. This gastronomic space of French cuisine reopened doors a few days ago and now features an elegant facility with Mediterranean character, with a Menu renewed by Chef Yannick Guichaoua and impeccable table service managed by Celine Guichaoua and her team.

The village that houses the Casa Velha Restaurant, dates from the first half of the twentieth century and is one of Quinta do Lago’s landmarks.

Over the decades, the space has undergone architectural changes, adapting to the times and culinary fashions. From the original design remains very little: only the Moorish-style stone fountain that still hums freshness in the inner courtyard and the photos in the memories ark of those who followed the metamorphosis of the facade over the past.

In the past, this was the venue of endless parties and even one of the hottest nightclubs, “The Patio” in the 90’s.

Today, we find an idyllic retreat, reminiscent of the villages of the French Riviera. This year, the Quinta do Lago group invested a few millions in the extensive refurbishment of the former Casa Velha, from which two different spaces arise: “Bovino”, a premium steakhouse and the French kitchen corner, which retains its original name “Casa Velha”