Every self-respecting businessman is continuously looking for opportunities for growth and development of business. After all, any entrepreneur strives to top, whether through a profitable partnership cooperation or increased earnings.
Evidently, Portuguese government is committed to facilitating this process to the highest extent possible, by building a favorable business environment. This country is famous not only for tourism, but for unprecedented opportunities due to its highly favorable reputation and accelerated timelines for company registration.
These are just some of the facts that may encourage businesses to open a limited liability company in Portugal for the sake obtaining effective and efficient instruments to conduct business.
Below we describe 8 key advantages of Portugal as a business environment.
1. Tourism drives demand
With its paradise beaches, specific architecture and history of hosting some of the most remarkable events, Portugal has become indispensably attractive for a huge number of tourists from all over the world. The Portuguese government is faced with the task of providing decent opportunities for a comfortable stay for guests.
This objective is achieved in a most straightforward and easy way: the authorities set a relatively low level of taxes and eliminate any serious bottlenecks for small and medium businesses. Hence, many restaurants, cafes, bars, beauty salons, travel agencies, and many other types of small and medium business are increasingly growing in Portugal. High level of tourist inflows literally can make these business owners rich in no time.
2. Portugal – the best place for investment
According to a study conducted by European Central Bank, Portugal was ranked among European countries with low restrictions on foreign direct investments.
It is also remarkable that the country has three deep-sea maritime ports which are used for goods and commodities turnover between Europe, Africa, Latin and North America. The number of consumers, open to Portugal counts in hundreds of millions.
The benefit for Portugal is obvious: to develop the economy at the expense of investors. Some of the giant business actors, such as IKEA, Colt, Microsoft, BNP Paribas and others, have already opened their plants, service centers and similar infrastructure facilities here.
3. Startup Portugal
The Startup Portugal program made it possible to significantly increase the amount of investment in startups who choose Portugal as a location to start business. Investors provide the funding, and these extensively large resources are made available to perspective businesses to launch and develop their operations.
For example, in 2019, about 40% of program participants were representatives from around 40 African countries. The investment market amounted to 13.7 billion dollars.
Eligibility to participate in the program depends on several factors, yet, basic criteria of assessment include the number of workplaces created and the company’s cash turnover.
The program also simplifies the procedure of relocation to Portugal by means of Startup Visa. Eligibility covers startup businessmen living outside the EU and the Schengen area.
4. Working conditions are attractive for the top specialists
Increasingly more businesses are opened in Portugal every year, which forms the foundation for development of the country’s economy. And it is no secret that skilled and qualified workforce is the core asset for any business entity to succeed.
The popularity of business in Portugal is evident. This inevitably attracts professionals from all over the world, who are seeking employment in this particular location. And it should be noted that there is a lot to be sought: salaries are on average higher than, e.g. in Russia or the CIS. A skilled professional with an experience of 3-5 years can make decent earning, starting from 40 000 EUR per year.
The tax system is designed to create favorable environment for business to strive, which in its turn contributes to comfortable life and welfare of all people inhabiting the country. General living conditions are among the top: ocean air and mild, pleasant climate. Who wouldn’t dream of working in such environment?
5. Zero tax rate on Bitcoin
Any type of cryptocurrency is exempt from VAT. The Portuguese Tax Authority (PTA) announced this in 2019. Bitcoin is no exception.
This rule applies only to individuals. It is safe to exchange on fiat money, invest in cryptocurrency, sell / buy bitcoin without paying income tax.
6. Golden visa
Gold visa allows you to legally stay in Portugal for a long period. Residents of non-European countries can make investments in real estate, research projects and other assets, which will make them eligible for golden visa.
Based on golden visa, over time you can get a second citizenship. Numerous advantages come along with a second citizenship. For example, freedom to move around the Schengen countries without burdensome bureaucratic procedures.
Citizenship of a member country of the European Union can be obtained after six years from the date of issuance of a golden visa.
7. Non – Habitual Residency Tax regime
Portuguese authorities have introduced a special tax regime in order to attract capital from foreign investors. Providing compliance to certain conditions, a foreigner can minimize taxes and become a tax resident.
If the period of residence in Portugal is more than 183 days per year, then personal income tax is reduced to the basic 20% for foreign income. Moreover, some types of income are completely tax exempt.
8. Portuguese banks
Many European banks are reluctant to cooperate with businesses from the CIS or with another non-resident of the EU countries. However, to run business and to prosper, access to effective, fast and reliable financial transactions is a key requirement, and Portuguese banks offer by far one of the most beneficial options.
Portuguese banks are open for non-residents (subject to positive outcome of a thorough due diligence), and account maintenance costs are cheaper than those applied by other key financial institutions in the region. A bank in Portugal can become a reliable and more affordable replacement for financial institutions in Latvia, the Czech Republic, Cyprus or Serbia.
Good standing and high reputation of Portugal will definitely boost opportunities and enhance benefits for every businessman.
We can help you to register companies and open accounts in Portugal. All you need to do is to contact us straightaway at firstname.lastname@example.org and we will promptly respond.