BUSINESS IN PORTUGAL
In recent years, Portugal has become the ideal playground for entrepreneurs and foreign freelancers alike. Economic conditions are also favorable for business development on European soil.
For many years now, Portugal has been positioning itself as Europe's new Silicone Valley.
You've decided to set up home and live off the fruits of your labour. create a company in Portugal. You also have a lot of questions:
"Is corporate taxation more advantageous in Portugal than in France? "What legal form should I adopt? "Can I freelance in Portugal?
COMPANY TAXATION IN PORTUGAL
Corporate tax has also been reformed (January 1, 2014). The latter has promoted Portugal to the rank of the most competitive countries in terms of international taxation.
Corporate income tax
Under the 2004 reform, this tax applies to both resident and non-resident companies. The criteria of residence and/or origin of income determine its scope.
Tax rates
The taxable amount for IRC taxpayers is, as a general rule, subject to a tax rate of 17%* for companies domiciled for tax purposes in Portugal. This rate corresponds to the general tax rate.
* Since 01-01-2023, the tax rate for companies with sales of less than €50,000.00 has been reduced from 21% to 17%.
VAT (IVA)
This indirect tax came into force in Portugal on January 1, 1986, in application of the legal system based on the European Directive of May 17, 1977 ("6th Directive"). This establishes the common VAT system in the countries of the European Union. The tax operates in the same way as in France.
Tax benefits of IRC
The Portuguese tax system offers a number of tax breaks, notably under the simplified regime.
These grants come in various forms, from tax credits to reductions in council tax and stamp duty. They also include tax exemptions. Tax incentives are also available to encourage new businesses to set up within the region. country.
What legal form should you choose to set up a business in Portugal?
You're ready to carry out your professional project and set up your company in Portugal. However, you don't know what the best legal form for your company will be! Vivre au Portugal Consulting also provides you with information on the different legal forms available.
Sole proprietorship
Empresario em Nome Individual
The entrepreneur carries on the business alone, in his own name. He personally manages and controls the business.
EURL
Sociedade Unipessoal por Quotas
As a result, this legal form is very similar to the French EURL, requiring a single shareholder. This may be a natural or legal person. The company is managed by a manager, who may or may not be a partner. The manager must be a natural person.
SARL
Sociedades por Quotas LDA
The LDA is the most widely used legal form in Portugal. As a result, this legal form is very similar to the French SARL. A minimum of two partners (individuals or legal entities) are required. The company is managed by one or more managers, who may or may not be partners. These must be natural persons.
LET US HELP YOU CREATE YOUR COMPANY
Our company will enable you to set up a company in Portugal, with its articles of association signed before the Portuguese authorities and its intra-Community VAT number.
- Accounting department
- Tax domicile
- Additional services
IN SUMMARY
1 %
Tax rates
1 %
Employer's contribution
1 %
VAT
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