As an English-speaking accounting and payroll firm in Portugal, Oporto Accounting, observes that Portugal has been ranked 15th best country for expats in Expat Insider 2024 ranking Which evaluates the best countries for people living abroad.
This annual survey ranking, compiled by InterNations since 2014, assesses 53 countries worldwide based on various factors including quality of life, ease of integration, personal finance, and more, to provide an in-depth analysis of the best destinations for people living abroad.
Portugal continues to excel performances in specific areas: the quality of life indexes (7th place), personal finances (13th), and ease of integration (15th) continue to perform well for Portugal.
The Expat Insider 2024 survey included 12,000 people representing 175 nationalities participed, offering a broad perspective on expatriate experiences across the globe.
Portugal is becoming an attractive destination for investors, with significant opportunities in key economic sectors, according to the “Structural Trends Shaping Portugal’s Economy and Growth” report commissioned by Euronext. The report also highlights Portugal as “the country is positioning itself as a center for technological innovation and startups”.
“This initiative not only reconnects stakeholders but also catalyzes new collaborations and investments,” emphasizes Miguel Athayde Marques, Chairman of the Board of AEM. Euronext’s report identifies five promising areas for investment, based on the structural trends that are shaping the national economy:
• Health: representing 11% of GDP, a percentage higher than the OECD average. Among offers opportunities in biotechnology startups, geriatric care, and medical tourism.
• Energy: Portugal is leading in renewable energy investments, particularly in wind and solar projects, green hydrogen, and lithium.
• Real estate and tourism: These sectors are “going through a period of prosperity”, experiencing substantial growth due to strategic location, quality of life, and competitive real estate prices.
• Agriculture and Forestry: With a 45% growth in exports over the past four years, opportunities lie in advanced agricultural technologies and high-value products like wine, olive oil, and fruits.
• Infrastructure: Portugal’s geographical location is ideal for investment in transport and logistics, with future investments identified in rail, ports, airports, and water infrastructure.
OportoAccounting offers to its clients a large range of consulting, accounting and payroll solutions for foreign companies that want to incorporate in Portugal. www.oportoaccounting.com
Minister Mário Centeno, Portugal’s former finance minister, has signed a landmark protocol to avoid double taxation, significantly impacting emigrated taxpayers. This protocol, involving agreements with multiple countries across various continents, aims to prevent individuals from paying taxes on the same income in two different nations.
The primary objective of these agreements is to eliminate the financial burden on emigrated taxpayers who often find themselves liable for taxes in both their country of residence and their home country. By addressing this issue, the protocol seeks to promote fair taxation and ensure that income is only taxed once, thereby reducing financial stress on taxpayers and fostering a more favorable economic environment.
Negotiations for this protocol began last year and have progressed constructively, leading to a comprehensive text that addresses Portugal’s primary concerns. In a statement to the press, Centeno emphasized that the protocol focuses on combating tax evasion and eliminating double taxation on income taxes. This, he noted, will deepen economic and commercial bilateral relations, providing a robust framework for cooperation between Portugal and its international partners. And highlighted the importance of such agreements in strengthening the economic ties between Portugal and other countries.
The successful conclusion of these negotiations marks a significant step towards more equitable and efficient tax systems, reflecting Portugal’s commitment to fostering international cooperation and economic growth.
OportoAccounting also helps foreign companies to assist with our exceptional banking assistance, and we conduct regular tax efficiency reviews throughout the financial year, ensuring that your business is being run in the most tax efficient way and it’s complying with the Portuguese law and regulations, including helping to set up a company in Portugal, OportoAccounting.com
Porto, second biggest city of Portugal, will start providing tax benefits to startups.
The decision results from following a memorandum of understanding signed between the municipal council and Startup Portugal. This agreement coincides with the inauguration of Startup Portugal’s new office in the northern region, staffed with a team of five.
Ricardo Valente, Councillor for Economy, Employment and Entrepreneurship at Porto City Council emphasized the importance of this development. “The opening of an office in the city of Porto by Startup Portugal recognizes the relevance of the city’s entrepreneurship ecosystem and the entire North region, demonstrating the continuous commitment to supporting the capacity for transformation and retransformation of the country’s economic base,” he said.
Startup Portugal’s new office is designed to promote the entrepreneurial ecosystem in North of Portugal, an area currently hosting over 1,200 startups valued at approximately 8.9 billion euros, which constitutes 27% of the total Portuguese ecosystem. Since 2020, these startups have collectively raised more than 2 billion euros, representing 40% of the total funds raised by the Portuguese ecosystem, according to data shared by Startup Portugal.
Startup Portugal and the municipality have signed a memorandum of understanding which includes a provision for the potential exemption of municipal tax fees for startups and scaleups headquartered in Porto. This initiative aims to create a more supportive environment for entrepreneurial growth and innovation. Additionally, the agreement outlines the introduction of other complementary tax benefits to further assist these growing companies.
Porto is the 7th municipality to commit to applying a municipal tax exemption to companies recognized by Startup Portugal. São João da Madeira, Fundão, Arcos de Valdevez, Barreiro, Porto de Mós and Odemira are the other municipalities.
With headquarters in Porto Portugal, OportoAccounting with its team accountants and lawyers can assist in setting up your Startup in Porto or Lisbon and provide HR consultancy and accounting services.
The Executive Vice-President of the European Commission, Valdis Dombrovskis, commended Portugal for its “outstanding economic performance” during a press conference following the presentation of the European Semester spring package. This latest assessment from Brussels has resulted in Portugal being removed from the economic vulnerability monitoring mechanism it had been under for more than a decade.
Stated Dombrovskis “First of all, congratulations to Portugal for the remarkable economic performance in addressing its imbalances,”. He further noted that the conclusion from the European Commission is that Portugal “no longer faces macroeconomic imbalances.” This marks a significant milestone for the country, reflecting its progress in achieving economic stability.
Dombrovskis attributed this positive development not only to various factors but also to Portugal’s strong fiscal performance. The country has been showcasing budget surpluses, a rarity among EU nations. Additionally, the commissioner highlighted the “rapid fall” in the public debt-to-GDP ratio. According to Brussels forecasts, this ratio is expected to decrease to 91.9% by 2025, indicating substantial fiscal improvement.
Despite these achievements, Dombrovskis urged Portugal to accelerate the implementation of the Recovery and Resilience Plan (RRP). He emphasized that this is an “important topic” for the Commission, aiming to address some of the delays that have been encountered. The RRP is crucial for maintaining the momentum of economic recovery and ensuring long-term resilience.
The European Commission’s assessment period spans from 2023 to May 2024, offering a comprehensive view of Portugal’s economic landscape. This period has witnessed significant advancements, underscoring the effectiveness of the country’s economic policies and reforms.
Overall, Portugal’s exit from the economic vulnerability monitoring mechanism and its strong fiscal indicators are promising signs for the country’s future economic prospects. The emphasis now shifts to sustaining this progress through continued implementation of strategic initiatives like the RRP.
OportoAccounting offers expert accounting and payroll services, and specializes in submitting applications for the Recovery and Resilience Plan (RRP).
