Now is the time

Create your company in PORTUGAL

Why Portugal ?
Types of Companies
Tax management

Choose Portugal

In Portugal there are no restrictions on the entry of foreign capital. In fact, the Portuguese regulatory framework is based on a principle of non-discrimination based on the nationality of the investor. In the same way, it is not mandatory to have a Portuguese partner and there are no limitations regarding the repatriation of profits or dividends.

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  • A skilled and often multilingual workforce for a significantly lower price than in other Western European countries.
  • A system that promotes investment in innovation and R&D, which has allowed the country to attract new FDI, essential for its development. This is demonstrated by the presence of a large number of multinationals from all types of sectors.
Location
  • Privileged geographical location, in southern Europe, with nearby Africa and the gateway to the American continent
  • Country integrated in the European Union, which allows access to a market of 500 million inhabitants;
  • Platform for Portuguese-speaking countries, an additional market of 260 million people;
Infrastructures
  • Safety and quality of life: Portugal is the third most peaceful country in the world in a sample of 163 countries (Global Peace Index 2017);
  • Infrastructures of excellence: according to the World Economic Forum, Portugal is the 13th country in the world with the best structures (road and port networks);
Economy
  • A skilled and often multilingual workforce for a significantly lower price than in other Western European countries.
  • A system that promotes investment in innovation and R&D, which has allowed the country to attract new FDI, essential for its development. This is demonstrated by the presence of a large number of multinationals from all types of sectors.

Invest in Portugal

Portugal was one of the countries that was hit hardest by the economic crisis of the late 2000s. Thanks to a rigorous policy and the implementation of reforms in the banking, pension and labor market sectors, the country has once again managed to gain an interesting economic competitiveness, and has begun a deep diversification of its exports (both at the sectoral and geographical levels ). Their economies have stabilized, with an estimated growth of 2.3% in 2017 (OECD, 2018),

Types of companies

In the same way as in other countries, there are several types of companies in Portugal, each with its own characteristics. The limited company is the most popular to manage a business in Portugal for both residents and foreigners. The differences between the different types of company essentially refer to the number of partners and their level of responsibility, the form of capital representation, administration and supervision, and the greater or lesser flexibility of management.

Partners

Portuguese companies are not required to have a resident partner in this country, nor are there restrictions on the distribution of dividends abroad.

In the case of non-resident partners in Portugal but if they are resident in another EU state, it is necessary that they obtain a Portuguese tax identification number (NIF).

If these partners belong to a third country, then they have to appoint a fiscal representative in Portugal.

In any of the cases, GLC Abogados will resolve the situation.

Manager-Administrator

The manager / administrator of a Portuguese company is appointed and dismissed directly by the partners, and will always be responsible for the good management of the company and compliance with current legislation and regulations.

In limited partnerships, managers may not exercise competing activity on their own or someone else’s account without the consent of the partners.

Regarding liability, it is normal that the debts or liabilities of the company respond only to the capital stock of the company and not to its manager / administrator.

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Tax management

Portuguese companies are subject to compliance with the Portuguese Commercial Companies Code, they have to keep their accounting books in Portuguese and in accordance with the accounting standardization system.

Corporation Tax (Tax Rates)

Resident companies

Resident companies

Pymes the first

25.000€

Continent

21%

Continent

17%

Madeira

14,7% ó 5%

Madeira

11,9%

Azores

16,8%

Azores

13,6%

Value Added Tax VAT

Normal type

23%

Intermediate type

13%

Reduced rate

6%

Social Security

The manager of a Portuguese company is obliged to register and contribute to the Portuguese Social Security scheme with 34.75% (23.75% + 11%) of the respective salary, subject to a minimum social contribution equal to the contribution required for the minimum wage in Portugal.

If no remuneration is received, the manager has to prove that he is registered in another compulsory Social Security system in another EU country, he will be exempt from registration and contribution for the same purpose in Portugal.

Municipal spill

The municipal spill is a fixed tax rate that affects taxable profits before deduction of recoverable tax losses in subsequent periods. In the municipalities of Lisbon and Porto, the municipal income is 1.5% for taxpayers whose turnover the previous year has exceeded 150,000 euros.

Bill properly

Invoices made by companies must meet certain specific accounting standards, must be issued through a computerized billing program – in which case they must include the expression in Portuguese “Processed by computer” – duly authorized by the Portuguese tax authorities.

Companies have to use invoicing software certified by the Tax Agency (TA), to issue invoices or equivalent documents and sales receipts. The invoicing programs automatically create a file that can be exported and sent automatically, or entered manually in the e-Invoice portal. The delivery of this file (SAF-T billing) to the tax authorities takes place every month, before the 12th of the following month.

How can we help

From GLC Abogados we offer you professional services specialized in foreign investments in Portugal. With 10 years of experience and know-how, at GLCwe know how to guide our clients to maximize opportunities and mitigate the risks of operations in a new jurisdiction. Contact us to discover how we can help your investment in Portugal.