In terms of doing business, Portugal is recognized as a special country. Experts consider the state to be the most promising among other European countries, proceeding from the fact that the conditions for organizing and conducting various types of activities are simpler here than in other European countries.
They tend to register a company in Portugal mainly in the following organizational and legal forms:
Sociedade Limitada Lda (analog of LLC), the most common form of business in Portugal
Sociedade anonima / Sociedade Aberta SA (analogue of OJSC / CJSC), mainly used by large enterprises.
The main component in choosing a jurisdiction is taxes. Tax rates are quite reasonable in Portugal. Not taking into account the offshore zones of Portugal, there is a flat tax rate for companies, equal to 25%.
Among other taxes, as well as the corresponding rates, the following can be noted:
- value added (23%);
- for dividends (25%);
- interest (25%);
- royalties (25%);
- for payments of winnings (25-35%);
- rental income (15%);
- for payment for services (consulting and management) (15%).
Positive aspects of registering a company in Portugal
Portugal can be classified as a state with an average level of taxation, but taking into account the various benefits provided to foreign investors (both from the EU and other countries, without discrimination). Foreigners have the right to organize business in numerous forms provided for by local legislation. Legal entities registered in Portugal are subject to the benefits of free movement of goods and services throughout the EU.
Portugal can be a very profitable launching pad for your business expansion to the whole of Europe. The country has a developed infrastructure for doing business, well-developed communications, there are ultra-modern business parks where you can quickly establish an office equipped with everything you need to do business in modern conditions.
Besides, the distinguishing features of investing in Portugal can be:
The presence of the technology “Empresa na hora” in the country, thanks to which the process of registering a new enterprise can be carried out within one day, while all operations related to registration are carried out in one place, starting from the entry in the commercial register and ending with opening a bank account and making a founding contribution.
Relatively low wages compared to other EU countries. Minimum salary 475,00 €.
Political stability, a highly developed banking sector and the stock market, the availability of tax incentives for enterprises established in continental zones and island territories.
The conditions for doing business in Portugal are transparent, there is no need to give bribes, you will be given the necessary permits, and so, in many cases, this can be done via the Internet. This is the fruit of the Simplex program, which was actively developed by the government of Jose Socrates. The current government also decided to make life a little easier for investors – in particular, it is planned to introduce the so-called “investment visa”. A residence permit can be obtained by citizens who invest 1 million euros in the Portuguese economy or purchase real estate worth 750 thousand euros.
It should also be noted that Portugal has made significant progress and has taken a leading position among the EU countries in the number and quality of services available in electronic format. The multi-stage national program Simplex provides paperless registration of firms, enterprises, vehicles and provides services for filing tax returns.
Registering a company in Portugal is profitable. The strengths of Portugal are relatively cheap labor and, accordingly, low production costs, a very stable socio-political situation, when businessmen can not be afraid of losses due to strikes and leapfrog with government changes, the absence of bureaucratic obstacles, and pressure on business from the state … Suffice it to say that, if necessary, businessmen can easily go to the top officials of the state and solve certain problems. In general, if your money ended up in Portugal today, you will not lose it tomorrow.
Moreover, one more very important circumstance. Portugal is not just a small rectangle on a map in the very west of Europe. Portugal’s strategic location at the crossroads between Europe and the Americas, as well as Africa, makes it a unique nexus for transatlantic trade.