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The concept of trusts as understood in English Common Law does not exist in Portuguese legislation, including Lisbon. Still, Portugal does recognize and enforce trusts established in foreign jurisdictions due to international agreements and legislation. This recognition is under the provision of the Hague Conference on Private International law of which Portugal is a member.
Foreign nationals residing in Lisbon, Portugal may have established trusts in their home countries. Although Portugal does not direct provision for trusts, foreign-set trusts may have tax implications and other legal considerations. A lawyer proficient in international law and familiar with trusts can help clarify these implications and advise on the best way to manage such assets while residing in Portugal.
Trusts established elsewhere will have to comply with Portuguese laws once the settler resides in Portugal. For example, Lisbon is subject to Portugal's Inheritance and Gifts Tax which may affect beneficiaries of a trust. More importantly, ever since Portugal ratified the Hague Trust Convention, it legally recognizes foreign trusts, although they will still be subject to Portuguese tax laws.
No, Portugal does not have a legal framework for establishing trusts. However, trusts established in other countries are recognized in Portugal due to the Hague Trust Convention.
Yes, while Portugal does not have trusts per se, any income or gains derived from foreign trusts may be subject to Portuguese Income Tax.
No, any property coming from a trust and received by a Portuguese resident will be subject to the Inheritance and Gifts Tax.
Yes, Portuguese lawyers can manage foreign trusts. However, it's essential they are proficient in international law and are familiar with the legalities surrounding trusts.
No, it is not illegal. Beneficiaries must inform authorities about any income or gains they receive from the trust, as these may be subject to taxation.
The 'Autoridade Tributária e Aduaneira' or Portuguese Tax Authority's website provides updates and information about tax laws that may affect trusts. The Bar Association of Portugal (Ordem dos Advogados) can also provide you with lists of lawyers proficient in Trusts and international law.
If you need legal assistance regarding trusts in Lisbon, consider reaching out to a Portuguese lawyer who is familiar with international law. Especially crucial would have experience with trusts and be able to advise you on the tax implications and other legal matters associated with trusts while residing in Portugal.
