Investment in Portugal

Portugal is one of the oldest countries in Europe, famous for its beaches, food, and history. It boasts a diverse culture and a Mediterranean climate, positioning it not only as an excellent travel destination but also for managing and doing business.

Investors can find many opportunities in the Portuguese market, which is considered safe and up and coming. This is due to the recent years' investment support policies, which significantly reduced companies' bureaucratic and tax burden. 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 digitised procedures, thus reducing time and costs for those operating on the Portuguese market.

Taxation in Portugal

For those wishing to do business in Portugal, the government provides various tax incentives as follows:

a) Relating to the transmission - for consideration by non-residents - of company shares or other values securities.

b) Incentivising companies to settle in less developed areas.

c) Intended for research and development (R&D) investments

d) Granted to companies as part of a corporate reorganisation.

e) Aimed at job creation and vocational training.

A subsidised tax regime for non-habitual residents (RNH) is also in place that provides for all individuals who, having not requested residence in Portugal for tax purposes in the last five years to transfer their tax residence. These incentives aim to attract qualified people with purchasing power, such as professionals or retirees, to the Portuguese territory. Other tax advantages are provided in relation to succession by death and donations to direct family members.

Businesses

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 authorised counters of the Portuguese Tax Agency "Serviço de Finanças"). There is a specific site ("Balcão 2020") where you can find all information on accessing European funds for companies wishing to apply for or discuss the various funding opportunities. In addition, in the main Portuguese cities, there are also specific branches for businesses. These are used by companies who want to set up a new company, to centralise administrative obligations.

Some of these are:

• The one-stop-shop for businesses is Empresa Online that offer a series of integrated services to companies
• The Empresa na Hora desk 
• The Conservatória do Registo Comercial which performs the functions of the business register
• The municipal offices of the territory Câmara Municipal helpful in locating the headquarters of the economic activity
• The National Institute of Social Security "Segurança Social"
• The National Institute of Industrial Property (INPI)
• The Tax and Customs Authority, which is the equivalent of the Italian Revenue Agency

The Portuguese Public Administration's computer system also offers a wide range of services that can be implemented directly online. For example, by consulting the online business portal, the website of the Ministry of Finance, and the Social Security Institute

Invest in Real Estate

The purchase and sale of properties abroad have 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 better than ever due to a shaky real estate market and a well-performing economy. According to INE - Portuguese National Institute of Statistics - the average price per square meter of residential housing in Portugal is 950 euros.

Aside from the property's cost, taxes on the purchase of property in Portugal and other necessary expenses must also be factored into 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 costs associated with the mortgage

Contact Us

If you require further information or advice from our team of specialist lawyers, please contact our Client Relations Team by:

• Completing the online enquiry form here
• Emailing us at clientservice@giambronelaw.com
• Calling us on +44 (0)20 7183 9482