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How to Leverage Your Home to Become a Cash Cow as Your Pension

How to Leverage Your Home to Become a Cash Cow as Your Pension

For pensioners, taxes are something of a burden. Since they don’t have a regular income and aren’t working a full time job, having to pay taxes on their pension is seen by them as an unnecessary expense. This is the reason why pensioners in the UK want to move elsewhere in the European Union (EU) to find tax relief. Portugal is one of the countries in the EU that offers a unique opportunity to them. The NHR (Non-Habitual Residency) program launched by the Portugal government gives UK pensioners the chance to avoid having to pay taxes on their pensions if they become tax residents in Portugal. To find out more about tax in Portugal, visit this website.  

Advantages of the NHR Program

The NHR program is quite beneficial for pensioners and has a great number of advantages to offer them. The following are some of the ways in which UK pensioners can use it for their advantage.

Tax Free Income

 Incredibly Low Tax Rate

Under the NHR program, any income gained by a pensioner or any other individual from his country of origin will be considered tax free. This means that if a person is to rent out his home in his home country then the rental income he receives from his tenant won’t be taxed either in his home country or in Portugal where he has qualified for the NHR program. It is an incredible way for pensioners to leverage their home and make it a source of income for them on which they don’t have to pay any tax whatsoever. The income sources that are considered tax free under the NHR program also include royalties, interests and dividends too. The NHR program allows for an individual to enjoy a flat discounted income tax rate of just 20% provided he is working in a professional capacity in a high-value industry. The high-value industries for which the low tax rate is valid for include Engineering, Fine Arts, Medicine, Management, Teaching and Economics. This flat rate will remain for a period of 10 years which is quite a lot. So, if a UK pensioner can get a job in a high-value industry in Portugal then he can save up on income tax in Portugal for up to 10 years all the while enjoying tax free pension from his country of origin. It is really a win-win situation for him.

Criteria for the NHR Program

The benefits of the NHR program are so lucrative that every UK pensioner would love to avail it. However, there are some stipulations that a person has to fulfil in order for them to qualify for this program. So, before you apply for it, it will be a good idea to find out what these criteria are. Read More...

Compare the market Before Commiting

Big financial decisions

Equity release deals are always a game changer for you life. They have a huge power to boost your retirement, get you out of debt, and give you a life you wouldn't have had otherwise. The same way it can have big and good consequences, it can also have big and bad ones. The purpose of this article is not to disencourage you from considering releasing the equity of your house, by all means. However, it is necessary that you take due precautions and choose wisely the exact scheme that is best for you. It will make a huge difference in how much money can you access and how much you can inherit to the next generations, in case that's of your interest.

There are some tips you should always bear in mind when considering this kind of deal. Most of them are common to all major investments or purchases, but you would be surprised to know how many times people can be misled and ignore these basic alert signs, especially if they are at a tight spot with debts or bills. Read More...

Testimonials

We have helped many of our clients have a more comfortable retirement. Read what some of them have said about us.

Rosa H. Sargent

My husband and I have been looking for a way to obtain an additional source of income for quite a while now but were unable to do so until we came into contact Annual Assembly. We did not have a good understanding on equity release but they did a great job explaining it to us.

Sean B. Elliott

When my wife and I entered retirement, it was difficult. We did not invest much in retirement planning so all that we had was our assets, more specifically our property. We thank Annual Assembly for showing us how easy it is to use our property to generate income for us.  

Edmund A. Lee

When the concept of equity release schemes was introduced to me, I did not know much about these schemes but I did know that I did not want to lose my house and that I wanted to be able to provide for my family during my retirement. Annual Assembly made if very easy for me to understand this concept and now I benefit from it on a weekly basis.