Proof of registration with Social Security
Posted: Wed Dec 18, 2024 7:02 am
Nowadays, you can be an entrepreneur in any country, and even more so with the rise of teleworking. More and more people are looking for lower taxes and greater ease in setting up their own business and they don't mind doing it in a foreign country.
In the case of our neighbouring country, Portugal, its Government is encouraging the arrival of new entrepreneurs. So, if you are thinking of opening a company in Portugal , we will tell you what are the advantages and disadvantages of going to the Luso country.
The main benefits of opening a company in Portugal are its low bureaucracy . On an shareholder database administrative level, it is very easy to register, which is not the case in Spain, as becoming an entrepreneur can be a real feat. It is also very profitable on a fiscal level.
The main tax advantages are:
The corporate tax rate is 17% if profits do not exceed 25,000 euros , and 21% if profits are higher. However, if companies are established within Portugal, this rate will be 12.5%.
A non-Portuguese entrepreneur will pay 20% tax on his Portuguese income, but will pay nothing on his foreign income.
Income from work, business or professional activities generated in Portugal is subject to a tax rate of 20%. However, this income must be generated by activities with a certain added value, for example: biologists, doctors, musicians, etc. The rest of the income is taxed on a progressive scale with a maximum rate of 48% .
In order to qualify for this tax regime, a series of requirements must be met :
The taxpayer must not have been a tax resident in Portugal in the five years prior to the date of application.
In order to be considered a tax resident, the interested party must remain in the country for more than 183 days , consecutively or alternately.
The Portuguese tax authorities must be asked to apply this tax regime until March 31 of the year following the year in which the attribution of this status is to take effect.
If you are granted and recognized the application of this tax regime, it applies for 10 renewable years.
Administrative procedures:
Obtaining the intra-community CIF is a quick and easy procedure
Tax Identification Number (TIN)
Business Registration
Declaration of commencement of activity
Certificate of admissibility
Deposit of share capital
Preparation of the pact or constitutive act of the company.
Another reason to set up or open a company in Portugal is that the staff is highly trained and multilingual . In addition, Portugal is very well positioned in terms of competitiveness.
In the case of our neighbouring country, Portugal, its Government is encouraging the arrival of new entrepreneurs. So, if you are thinking of opening a company in Portugal , we will tell you what are the advantages and disadvantages of going to the Luso country.
The main benefits of opening a company in Portugal are its low bureaucracy . On an shareholder database administrative level, it is very easy to register, which is not the case in Spain, as becoming an entrepreneur can be a real feat. It is also very profitable on a fiscal level.
The main tax advantages are:
The corporate tax rate is 17% if profits do not exceed 25,000 euros , and 21% if profits are higher. However, if companies are established within Portugal, this rate will be 12.5%.
A non-Portuguese entrepreneur will pay 20% tax on his Portuguese income, but will pay nothing on his foreign income.
Income from work, business or professional activities generated in Portugal is subject to a tax rate of 20%. However, this income must be generated by activities with a certain added value, for example: biologists, doctors, musicians, etc. The rest of the income is taxed on a progressive scale with a maximum rate of 48% .
In order to qualify for this tax regime, a series of requirements must be met :
The taxpayer must not have been a tax resident in Portugal in the five years prior to the date of application.
In order to be considered a tax resident, the interested party must remain in the country for more than 183 days , consecutively or alternately.
The Portuguese tax authorities must be asked to apply this tax regime until March 31 of the year following the year in which the attribution of this status is to take effect.
If you are granted and recognized the application of this tax regime, it applies for 10 renewable years.
Administrative procedures:
Obtaining the intra-community CIF is a quick and easy procedure
Tax Identification Number (TIN)
Business Registration
Declaration of commencement of activity
Certificate of admissibility
Deposit of share capital
Preparation of the pact or constitutive act of the company.
Another reason to set up or open a company in Portugal is that the staff is highly trained and multilingual . In addition, Portugal is very well positioned in terms of competitiveness.