What was the goal?
Aaron and Emily. W, an American couple, decided to relocate to Portugal. They faced complex challenges with the IRS and tax planning due to their U.S. connections. With retirement accounts like 401Ks and Roth IRAs, and concerns about estate planning and wealth management compliance in Europe, they needed a comprehensive strategy to optimise their financial position and ensure compliance with both U.S. and Portuguese regulations.
" The team at Beacon Global Wealth Management helped us navigate complex U.S. and Portuguese tax laws, saving us €780,000 and doubling our retirement portfolio growth. Their expertise in estate planning and tax optimisation has given us peace of mind as we settle into life in Portugal."– Aaron and Emily W.
Solution:
- Comprehensive Financial Consultation:
- Conducted an in-depth analysis of their retirement accounts, investments, and income sources.
- Developed a customised strategy for optimal tax positioning and asset growth in Portugal, while ensuring compliance with U.S. tax laws.
- Tax Structuring and Optimisation:
- Dual Tax Compliance: Implemented strategies to ensure compliance with both U.S. EU law and Portuguese tax regulations, making the most of the double taxation treaty.
- Retirement Account Management: Structured their 401K and Roth IRA accounts to maximise tax efficiency in both countries.
- Tax Treaties: Leveraged tax treaties between the U.S. and Portugal to minimise tax liabilities on their income and investments.
- Asset Protection and Growth:
- Capital Growth Protection: Implemented strategies for capital protection and growth security, ensuring their assets were safeguarded.
- Income Optimisation: Created diversified income streams to minimise tax impact and maximise cash flow, ensuring long-term financial stability.
- Estate Planning: Implemented a plan for smooth and tax-efficient asset transfer to their heirs, optimising their estate for U.S. and European compliance.
Results:
- Significant Tax Savings: Achieved tax savings of €780,000 over 10 years by optimising their retirement accounts and leveraging international tax treaties between Portugal and the US.
- Enhanced Asset Growth: Secured a robust strategy for capital growth and income optimisation, doubling their retirement portfolio growth.
- Secure Estate Planning: Established a clear, effective estate plan, ensuring peace of mind for their family's future.
Summing up
Our tax optimisation, asset protection, and estate planning strategies helped Aaron and Emily achieve their financial goals in Portugal. By leveraging international tax agreements and strategic financial planning, we secured significant tax savings, robust asset growth, and a secure future for their family. We regularly update our clients, assess portfolio performance, and make recommendations and adjustments with the family every step of the way. The client was aware that as a US connected citizen they were always going to have to pay some tax to the US Treasury but are currently considering giving up US citizenship which will create potential further reduction in tax burden in 3 or 4 years.
If you face similar challenges and seek expert guidance, we work with Americans and U.S.-connected individuals to provide peace of mind and personalised plans to meet your life goals.
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