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Navigating trade laws and agreements in Portugal What should foreign nationals know about setting up a Portuguese company?
Portugal has become an increasingly attractive destination for foreign nationals aiming to start a business in Europe. Its strategic location, stable political environment, and growing economy, Portugal offers numerous opportunities for entrepreneurs from around the world who are intending to set up a company or open a branch of their existing company in Portugal. However, before embarking on your expansion project in Portugal, it is essential to understand the country's trade laws and agreements that can significantly impact your company's success.
This guide will explore the various trade laws and agreements in place for Portuguese businesses, including the common issues foreign nationals should be aware of, and how international lawyers (Advogados) can assist.
Click on the links below to jump to that section:
The benefits of starting a business in Portugal as a foreign national.
The various trade agreements in place in Portugal
The trade laws in Portugal, and what businesses should know before importing and exporting.
The importance of working with international lawyers, and how they can assist you set up a business in Portugal.
The most common queries on setting up a business in Portugal.
Is Portugal a good place to start a business?
Portugal attracts a large number of overseas businesses every year that are intending to invest and expand into the Portuguese economy. Benefits for foreign nationals looking to set up a company in Portugal include:
Strategic location
Portugal's strategic location at the crossroads of Europe, Africa, and the Americas provides businesses with easy access to global markets. The country's well-developed transportation infrastructure, including modern ports and airports, facilitates the movement of goods and services.
EU membership
Portugal is a member of the European Union (EU), which grants businesses access to a market of over 500 million consumers. Being part of the EU also means that Portugal adheres to EU trade policies and regulations, promoting fair trade practices.
H3: Growing tech ecosystem
The Portuguese government has invested in growing a tech ecosystem for businesses. The country has emerged as a hub for tech startups, with Lisbon and Porto gaining recognition as vibrant tech cities. The availability of tech talent and resources has attracted many entrepreneurs in the technology sector.
Find out more about the benefits of starting a business in Portugal here.
What trade agreements are in place for Portuguese businesses?
European Union membership
As previously mentioned, Portugal is a member of the European Union, therefore, businesses operating in Portugal have the opportunity of reaping the trading benefits. The EU is a single market, allowing the free movement of goods, services, capital, and labour among its member states. This provides several advantages for businesses in Portugal:
- Access to a large market
- Increase access to EU funds and support for SMEs
- No customs restrictions within the EU
- Easy to trade with other EU member states
- Free movement of labour
The advantages businesses can access in Portugal include tapping into the diverse labour pool from other EU countries to access a wide range of skills whilst trading freely with other EU member states. Collectively, this forms one of the world's largest markets.
Bilateral trade agreements
In addition to its EU membership, Portugal has entered into several bilateral trade agreements with countries and regions outside the EU. These agreements aim to facilitate trade and economic cooperation. Some notable trade agreements involving Portugal include:
Trade relations with Portugal |
|
|---|---|
Brazil | With a shared history, both countries have maintained a strong trade relationship. The Economic Partnership Agreement, Political Coordination, and Cooperation Agreement between the EU and Brazil further enhance trade opportunities. |
China | Bilateral agreements between Portugal and China aim at strengthening trade ties. |
The USA | Portugal has a strong trade relationship with the United States, and both countries are committed to expanding economic ties. The U.S.-Portugal bilateral tax treaty promotes trade and investment. |
African Portuguese-speaking countries (PALOPs) | Portugal maintains close economic and cultural ties with PALOPs, which include countries such as Mozambique, Cape Verde, and Angola. |
If you are considering setting up a company in Portugal, it is advisable to seek legal advice as soon as possible. Instructing international and multilingual lawyers will help guide you through the company formation process; ensuring you are fully aware of trade agreements in place.
Contact Giambrone & Partners today for more information.
What are the import and export regulations for trade in Portugal?
After verifying your company in Portugal, if you plan to engage in international trade, you will need an Economic Operators Registration and Identification (EORI) number. This unique identifier is used for customs declarations and is necessary for businesses that import or export goods to or from Portugal.
In addition, as an EU member state, Portugal benefits from the EU's customs union, meaning customs duties and tariffs are generally not imposed on goods traded within the EU. However, businesses should be aware of specific rules and regulations for importing and exporting certain goods, such as controlled or restricted items.
Proper documentation is crucial for international trade. This includes:
- Invoices
- Certificates of origin
- Bills of lading
- Other relevant paperwork required by customs authorities
Ensuring accurate and complete documentation is essential to avoid delays or issues at a border.
To ensure you have the proper trading documentation, it is recommended to instruct international lawyers who will be able to advise you and help you assemble the correct documentation that is required.
Find out more about setting up a company in Portugal here.
Should you instruct a lawyer when setting up a Portuguese company?
Navigating trade laws and agreements in Portugal as a foreign entrepreneur can be complex. It is recommended to consult with both legal and tax professionals who specialise in Portuguese business regulations and can help ensure that your business operates within the boundaries of the law.
Giambrone & Partners is a law firm that helps foreign nationals set up a company in Portugal or open a Portuguese branch of an existing one. Our international and multilingual lawyers understand how a Portuguese business operates, and the various laws and taxes they abide by. We will help you decide a legal business structure, and assist with gathering the necessary documentation.
To learn more about setting up a company, contact Giambrone & Partners today to speak to our expert lawyers.
Frequently asked questions
What are the employee benefits in Portugal?
In Portugal, employment law entitles employees to annual leave amounting to 22 working days. Working hours are limited to 40 hours per week and overtime is paid. Employers also have to pay social security contributions for their staff. There are obligatory statutory benefits including parental leave, worker's compensation insurance, and paid sick leave.
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