Howard Bilton, founder of The Sovereign Group, discusses Golden Visa changes, the end of the NHR status, and tax efficiency in Portugal
Essential Algarve | December 2024 | Interview
Portugal became a fashionable destination over the last decade. The country earned top travel awards, and special programmes and tax schemes were created to attract new residents and investors. Many rushed to Portugal to grab the Non-habitual Resident (NHR) status, guaranteeing they would be tax-exempt for 10 years. However, a lot has changed since then, and this attractive status is no longer available to newcomers. The same goes for the Golden Visas. Once an excellent opportunity for those looking to invest in Portugal and bagging themselves a passport in the process, this advantageous programme has also changed. To clarify the current situation, Essential Algarve spoke to Howard Bilton, Chairman and Founder of The Sovereign Group, one of the world’s largest privately owned consultancies, which, on top of many other services, assists aspiring residents with visa applications and ongoing tax and accounting. A qualified Barrister, Howard Bilton is a proud Yorkshireman, art collector, wine producer, and philanthropist. The multifaceted man started his company in Gibraltar in 1987 and expanded to Portugal in 1990, opening an office in the Algarve.
Much has evolved since then. Today, The Sovereign Group employs 600 people in 20 jurisdictions. In Portugal, he explains that their services have “morphed more into an accountancy practice, in which [they] act as fiscal representatives for many thousands of people, look after the filing of their tax returns, and give them tax advice”. They also do some planning for Brits living in Portugal “because there’s often a lingering liability to UK inheritance tax, which many don’t realise”. He explains that Brits are still liable to UK inheritance tax unless they have not been resident in the UK for 10 tax years.
Like many professional firms in Portugal, Sovereign became involved in Golden Visa applications over the last decade. Recently, this advantageous scheme underwent various changes.
