Portugal is a country of beginnings. From Portugal, Columbus began his voyage, and most foreign entrepreneurs successfully start a business here. Portugal is located in the Southwestern part of Europe, in the west of the Iberian Peninsula. The continuous increase in exports led to the rapid growth of the country’s economy. As a result, Portugal is characterized by the state with one of the highest GDP growth among the EU countries. It creates a favorable business environment for both residents and non-residents.
Portugal has an open economy and is interested in attracting foreign investment. We are talking about both favorable conditions for business and the possibility of obtaining resident status for investments in the economy or real estate.
You can organize a new company in Portugal, including remotely, or buy an existing ready-made company.
Benefits of a company registered in Portugal
Below are the main advantages of owning a company in Portugal:
- Double Taxation Treaty, European Union Dividend Directive
- There are no restrictions on foreign investment, plus the availability of benefits for some projects;
- There is no currency control;
- A simple procedure for buying real estate and the subsequent receipt of permanent residence;
- The company is located in a respected jurisdiction;
- One of the lowest prices for company formation in the EU;
- High speed of business registration, up to 10 business days;
- The need to create a real presence, but at the same time affordable prices for office rent;
- The ready-made company is already functioning, and you do not need to waste time. You can start a business immediately after transferring documents and changing information about the owners.
The main types of taxes in Portugal
There are the following main types of taxes in Portugal:
- the corporate tax, which is imposed on all profits of the enterprise. There is both a national tax – 25% and a regional tax – of 2.5%. The tax level varies depending on the type of business of the company;
- value-added tax on the mainland – 21%, on the islands – 15%;
- social tax is withheld from employee salaries.
Until 2012 the Autonomous Region of Madeira had a reduced income tax rate. Currently, the rate for ordinary companies is 4%, and for financial companies is 25%.
However, for companies licensed by the IBC company, tax rates have not changed: they are exempt from paying withholding tax. For dividends, it is 20%, and for interest, it is 15%.
Documents for the purchase of a ready-made company in Portugal
To buy a ready-made company in Portugal, you will need the following documents:
- Foreign passport of the future owner of the company and the future director (it may be the same person);
- Proof of residential address (most often a utility bill);
- If the owner of the ready-made company is a legal entity, then statutory documents and information on the owner of the company will be required.
- Also, check that the company you are buying has the Articles of Association order. It is the main business document. Plus, make sure of its financial condition, and that it has no problems with the law.
- It is also important for future owners to obtain a Tax ID – a tax number. It is needed both for individuals and legal entities. To obtain it, you must have a tax representative in Portugal.
- You also need to know that the purchased company will require a mandatory legal address and a corporate bank account. Banks reserve the opportunity to request additional documents. The company must prove its profitability and financial soundness, as well as provide a business plan.
- Personal presence is required to sign documents.
- The financial statements of the company are certified by an auditor and submitted to the Register, and reporting on the company’s income is submitted to the tax authority. The tax period is one calendar year.
Prices for the purchase of a ready-made company
The cost of a particular ready-made company depends on its age, authorized capital (which can be from 1 euro), and other factors.
You also need to understand that additional costs can be required in the form of:
- Obtaining a Tax ID for the owner/director;
- Obtaining a Tax ID for a foreign company that wants to be the owner;
- Tax representative services in Portugal;
- Legal address;
- Accounting services;
- Online access to the commercial registration certificate.
The procedure of buying a ready-made company in Portugal
Step-by-step instructions on how to purchase a ready-made company in Portugal:
- Search for companies for sale in Portugal;
- Clarify the availability of free ready-made companies, and agree on a price for the company;
- Specify the list of additional services that you require: Tax ID, legal address, tax representative, etc;
- After approval, you must pay the bill. The price depends on the value of the company;
- After that, the company is re-registered to you. It will require your visit;
- After receiving the documents, you can conduct a full-fledged business in Portugal.