Invest in Portugal
Portugal is one of the oldest countries in southern Europe, famous for its beaches, food and its history. It boasts a diverse culture and a Mediterranean climate putting it in the position of not only an excellent destination for travel but also for managing business and doing business.
Investors, in fact, will find many opportunities in the Portuguese market, which is considered safe and fast growing, also, due to the investment support policies implemented in recent years, which significantly reduced in the bureaucratic and tax burden for companies. Today in Portugal it is possible to set up a business in less than 24 hours and the taxation of business income is 21% (with some exceptions). In addition, relations between companies and the public administration are managed, in many cases, through simplified and digitized procedures, thus reducing time and costs for those operating on the Portuguese market.
Taxation in Portugal
From a fiscal point of view, for those who do business or wish to do business in Portugal, the government provides various incentives as follows:
a) Relating to the transmission - for consideration by non-residents - of company shares or other values securities
b) Aimed at incentivizing companies to settle in less developed areas
c) Intended for investments in R&D (research and development)
d) Granted to companies as part of corporate reorganization
e) Aimed at job creation and vocational training
A subsidized tax regime for non-habitual residents (RNH) is also in place, that provides for all those individuals who, having not requested residence in Portugal for tax purposes in the last 5 five years, to transfer their tax residence. Incentives created precisely to attract qualified people with purchasing power, such as professionals or retirees, to Portuguese territory. Other tax advantages are provided in relation to succession by death and donations to direct family members.
To work or set up a business in Portugal, it is essential to obtain a Portuguese tax code (“Número de Identificação Fiscal”; or “Número de Contribuinte”) issued by the authorized counters of the Portuguese Tax Agency “Serviço de Finanças”) . As regards funding, however, there is a specific site (“Balcão 2020”) where you can find all the news and information on access to European funds, for companies wishing to apply for or discuss the various funding opportunities available. In addition, in the main Portuguese cities there are also specific branches for businesses. These are used, by those businesses who want to set up a new company, to centralize administrative obligations.
Some of these are:
- The one-stop shops for businesses Empresa Online that offer a series of
integrated services to businesses (www.portaldaempresa.pt/cve/pt/lojaempresa/)
- The Empresa na Hora desk ( www.empresanahora.pt )
- The Conservatória do Registo Comercial which performs the functions of the
business register (www.irn.mj.pt/sections/irn/a_registral/registo-comercial)
- The municipal offices of the territory “Câmara Municipal” useful for locating the
headquarters of the economic activity (https://bde.portaldocidadao.pt/evo/landingpageEE.aspx)
- The National Institute of Social Security “Segurança Social” (www.seg-social.pt)
- The National Institute of Industrial Property (INPI) (www.marcasepatentes.pt)
- The Tax and Customs Authority, which is the equivalent of the Italian Revenue Agency (www.portaldasfinancas.gov.pt)
The computer system of the Portuguese Public Administration also offers a wide range of services that can be implemented directly online. For example, by consulting the online business portal (www.portaldaempresa.pt), the website of the Ministry of Finance (www.portaldasfinancas.gov.pt) and the Social Security Institute (www.seg- social.pt/ consultas / ssdirecta).
Invest in Real Estate
The purchase and sale of properties abroad has always been one of the preferred forms of investment by entrepreneurs due to their safety and flexibility in recovering the capital invested in a relatively short time. Buying a house in Portugal is now more convenient than ever, because the real estate market is in turmoil, also due to the good performance of the Portuguese economy. According to INE - Portuguese National Institute of Statistics - the average price per square meter of residential housing in Portugal is 950 euros. In addition to the price of the property, however, taxes on the purchase of property in Portugal and other necessary expenses must also be considered in the budget.
The main ones are:
- The municipal property tax
- The tax transfer, in case of resale of properties
- Notary fees
- Registration fees in the land registry
- The agent’s expenses, if an agency was used
- The expenses associated with the mortgage