&NewLine;<p>For more than 10 years&comma; Portugal has been adopting a series of tax measures to strengthen its competitiveness and encourage foreign investment&period; To this end&comma; in recent years&comma; Portugal has adopted a reform of the&rsquo&semi;personal income tax&comma; in parallel with the implementation of tax regimes applicable to individuals&comma; as well as a reform of the&rsquo&semi;corporate income tax&period;</p>&NewLine;&NewLine;&NewLine;&NewLine;<p>In addition&comma; from the perspective of many foreign countries&comma; Portugal is considered the main linking jurisdiction&comma; not only with&rsquo&semi;Europe &&num;8211&semi; which allows the&rsquo&semi;use of various Community regimes from which Portugal&comma; as a member state of the European Union &lpar;UE&rpar;&comma; benefits -&comma; but also with its former colonies&comma; namely Brazil and the group of countries designated as Portuguese-speaking African countries &lpar;PALOP&rpar;&comma; such as&rsquo&semi;Angola&comma; Guinea-Bissau&comma; Cape Verde&comma; São Tomé and Príncipe&comma; Mozambique and Equatorial Guinea&period; Indeed&comma; Portugal's historical ties with these countries have led to the establishment of several agreements that enable and encourage its people and jurisdictions&period;</p>&NewLine;&NewLine;&NewLine;&NewLine;<h2 class="wp-block-heading">Why Portugal</h2>&NewLine;&NewLine;&NewLine;&NewLine;<p>In addition, Portugal benefits from an extensive network of double-taxation agreements, including, for example, with Macao, which can be a gateway to China;</p>&NewLine;&NewLine;&NewLine;&NewLine;<p>There is also the Portuguese coastline&comma; which confers a particular geographical advantage &&num;8211&semi; reinforced by deep-water ports&comma; such as the port of Sines&comma; and by the opportunities brought by the opening of the Panama and Suez canals &&num;8211&semi; it seems that now is the time for foreign investors to take advantage of future opportunities in Portugal&comma; as a host country with a leading position on the international tax scene &&num;8211&semi; and therefore a natural platform for &&rsquo&semi;investment &&num;8211&semi; has to offer today&period;</p>&NewLine;&NewLine;&NewLine;&NewLine;<p>With all this in mind, we would like to take this opportunity to summarize some of the main opportunities and other aspects that make Portugal such an attractive investment location&period;</p>&NewLine;&NewLine;&NewLine;&NewLine;<h3 class="wp-block-heading">The Golden Visa </h3>&NewLine;&NewLine;&NewLine;&NewLine;<p>Under this scheme&comma; citizens of non-EU member states who make or carry out the&rsquo&semi;one of the legally provided investments such as the transfer of capital of&rsquo&semi;an amount of at least €1,500,000&comma;00 or the&rsquo&semi;acquisition of real estate worth at least €500,000&comma;00 or €350,000&comma;00 with renovations &lpar;among others&rpar;&comma; may apply for a residence permit from the Portuguese Immigration and Borders Service &lpar;<a href="https://www.sef.pt/pt/pages/homepage.aspx" target="_blank" rel="noreferrer noopener">SEF</a>&rpar;&period;</p>&NewLine;&NewLine;&NewLine;&NewLine;<h3 class="wp-block-heading">The Portuguese regime for non-habitual residents </h3>&NewLine;&NewLine;&NewLine;&NewLine;<p>In practical terms, this system offers unquestionable advantages in terms of income taxation, such as the fixed rate of income tax;<a href="https://vivreauportugalconsulting.com/demande-de-rnh/" data-type="page" data-id="6823">IRS de 20 &percnt;</a> applicable to income from work and income from self-employment generating activities with high added value&comma; of a scientific&comma; artistic or technical nature&comma; compared with the maximum possible effective taxation of 53 &percnt;&comma; and also the fact that most income earned abroad by RNHs is exempt in Portugal&comma; provided certain conditions are met&period;</p>&NewLine;&NewLine;&NewLine;&NewLine;<h3 class="wp-block-heading">Succession and donation</h3>&NewLine;&NewLine;&NewLine;&NewLine;<p>Portugal does not levy a tax on the free transfer of assets &lpar;<a href="https://vivreauportugalconsulting.com/succession-au-portugal/" data-type="post" data-id="5405">donations</a>&rpar;&comma; during lifetime or at death &lpar;mortis causa&rpar;&comma; when beneficiaries are the owner's spouses&comma; de facto spouses and descendants or ascendants in direct line&comma; unlike in France&comma; for example&comma; where wealth tax is non-existent in Portugal&period;</p>&NewLine;&NewLine;&NewLine;&NewLine;<h3 class="wp-block-heading">Portuguese participation exemption scheme</h3>&NewLine;&NewLine;&NewLine;&NewLine;<p>The shareholding exemption scheme provides tax benefits for companies that are resident in Portugal for tax purposes, such as the exclusion of profits and reserves distributed to these companies from the calculation of their taxable profits, or the exemption of capital gains arising from the costly sale of shareholdings held by taxable entities, subject to verification of certain conditions laid down by law;</p>&NewLine;&NewLine;&NewLine;&NewLine;<p>Non-resident entities also benefit from a tax exemption on profits and reserves distributed to them, provided that they are residents of the EU, the EEA or a country with which Portugal has signed a double taxation agreement;</p>&NewLine;&NewLine;&NewLine;&NewLine;<figure class="wp-block-image size-large"><a href="https://vivreauportugalconsulting.com/creer-une-entreprise-au-portugal/"><img src="https://vivreauportugalconsulting.com/wp-content/uploads/2022/11/fb-creer-ets--1024x536.png" alt="portugal, fiscale" class="wp-image-9079"/></a></figure>&NewLine;&NewLine;&NewLine;&NewLine;<h3 class="wp-block-heading">Businesses can invest in deduction and reporting of tax losses </h3>&NewLine;&NewLine;&NewLine;&NewLine;<p>Tax losses incurred during a given tax period can be carried forward and deducted from taxable profits for a period of 5 years &lpar;limited to 70 &percnt; of taxable income determined during that same year&rpar;&period; It should be noted, however, that companies recognized as small and medium-sized enterprises &lpar;PME&rpar; benefit from&rsquo&semi;an extension of the reporting period&comma; since&rsquo&semi;they can deduct tax losses for 12 tax years&period;</p>&NewLine;&NewLine;&NewLine;&NewLine;<h3 class="wp-block-heading">The patent regime </h3>&NewLine;&NewLine;&NewLine;&NewLine;<p>This regime applies to contracts for the assignment or temporary use of certain industrial property rights, and represents a form of promotion for companies wishing to invest in Portugal&period; Under this regime&comma; income from these contracts is taxed at only half their value&comma; provided certain conditions are met&period;</p>&NewLine;&NewLine;&NewLine;&NewLine;<h3 class="wp-block-heading">The Portuguese tax neutrality regime</h3>&NewLine;&NewLine;&NewLine;&NewLine;<p>The Portuguese tax-neutrality regime&comma; with the provisions of the European directive on mergers&comma; applies to various company restructuring operations&comma; providing for tax exemption of capital gains resulting from such restructuring operations&comma; provided certain conditions are met&period;</p>&NewLine;&NewLine;&NewLine;&NewLine;<h3 class="wp-block-heading">The Portuguese tax arbitration system</h3>&NewLine;&NewLine;&NewLine;&NewLine;<p>Arbitration offers a number of advantages over legal proceedings&period; It enables disputes to be resolved more easily&comma; because the process is simplified and dematerialized&comma; electronic and faster&period; Indeed&comma; as a general rule&comma; the final decision is handed down within a maximum of 6 months &lpar;on average 4&comma;5 months&rpar;&period;</p>&NewLine;&NewLine;&NewLine;&NewLine;<h3 class="wp-block-heading">Tax treaties </h3>&NewLine;&NewLine;&NewLine;&NewLine;<p>Portugal has signed DTAs with 79 countries, including all Portuguese-speaking countries, 12 American countries, 17 Asian countries and almost all European countries;</p>&NewLine;&NewLine;&NewLine;&NewLine;<p>In the absence of a DTA&comma; Portugal continues to unilaterally offer a reduction&comma; or even an elimination&comma; of international double taxation to resident&period taxpayers;</p>&NewLine;
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