Client Story: Portuguese Citizen Living in the United Kingdom
Ana is a Portuguese national who lived and worked in the U.S. for several years and subsequently moved to the U.K. She relinquished her green card as she envisions returning to her native Portugal in the next few years. However, while in the U.S., she owned an apartment, which she kept and is now renting out, as well as creating a sizeable 401k. Her father also owns a commercial building in New York for investment purposes that he would like to give to her.
She came to us to sort out her strategy to maximize these investment opportunities in the U.S. while resident of first the U.K. and eventually Portugal. We were pleased Ana sought professional help as we were able to present her various plans to maximize her investment opportunities and secure her future. Our discussions with Ana included the following topics:
- The opportunities to maintain tax-qualified or taxable accounts outside the U.K. as a non-domiciled person, within the context of U.K. regulations.
- The benefits of tax-qualified investment options available in the U.K.
- Analyzing Ana’s returns on her rental apartment, both from a U.S. and U.K tax perspective and walking her through different scenarios on when and whether to sell it.
- Exploring the options around her father’s desire to gift her the NY building, given the potentially heavy U.S. tax obligation if not structured correctly.
- Outlining the various social security agreements in place between the U.S., U.K., and Portugal so that she can maximize her potential government-provided retirement income, depending on status and residency.
When her cross-border orientation with us was complete, Ana had a multi-year game plan and confidence in her near-term financial decisions.