The new measure will take effect on August 1, 2024.
The Republic President of Portugal has promulgated a government diploma that allows young people up to the age of 35 to be exempt from paying the Municipal Property Transfer Tax (IMT) and Stamp Tax (IS) when purchasing their own permanent house.
This measure applies exclusively to the purchase of the first home of both owners, it is also restricted to the purchase of urban buildings or autonomous fractions of urban buildings intended exclusively for personal and permanent housing, leaving out the acquisition of land for construction.
The diploma authored by the Portuguese Government provides full exemption for houses worth up to the4 th IMT bracket meaning up to €316,772. To be eligible, young buyers must also not have been considered dependents for tax purposes in the year of the home purchase.
At OportoAccounting we provide to foreign individuals and companies, professional services such as annual compliance of tax filling as well banking assistance, helping you out with Portuguese law and regulations.
The Portuguese government plans to reintroduce tax incentives for non-habitual residents as part of a broader economic stimulus package. This initiative aims to support companies and the economy, being the focus to attract foreign professionals by offering a fixed rate of 20% income tax rate on salaries and professional income, excluding dividends, capital gains, and pensions, according to Miranda Sarmento, an economist.
Portuguese Finance Minister revealed that this measure is designed to high valueadded Professionals to the country as part of a package of measures aimed to support economy growth. The reintroduction of the non-habitual resident regime is expected to play a key role in this strategy.
Additionally, the government will present gradual reduction measures to stimulate the economy, including a reduction in corporate income tax reducing it by two percentage points per year, up until it reaches 15%. This comprehensive package demonstrates the government’s commitment to fostering a more attractive business environment.
OportoAccounting, an accounting and payroll firm in Portugal can assist you by providing additional information on the new expected NHR tax program.
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).
Finding the right accountant is essential for effectively managing your finances, whether you’re an individual or a business owner. In Lisbon, a city bustling with economic activity and diverse financial needs, the search for a reliable and competent accountant can seem daunting. This comprehensive guide is designed to help you navigate the process of selecting the best accountant in Lisbon, covering crucial aspects such as understanding your accounting needs, evaluating qualifications and experience, assessing communication skills, and more. With expert tips and detailed advice, this guide will ensure you find an accountant who meets your specific requirements and supports your financial goals. Whether you’re looking for help with tax preparation, bookkeeping, financial planning, or payroll services, the right accountant can make all the difference. Read on to discover how to choose the best accountant in Lisbon and ensure your financial well-being.
Your Guide to Choosing the Best Accountant in Lisbon
Choosing the right accountant is crucial for the financial health of your business or personal finances. In Lisbon, where the market is filled with numerous accounting professionals, finding the best accountant can be a daunting task. This guide aims to simplify the process, providing you with essential tips and considerations to ensure you select an accountant who meets your needs and helps you achieve your financial goals.
Understand Your Needs
Before starting your search, it’s important to clearly understand what services you require from an accountant. Are you looking for someone to handle your business taxes, manage your personal finances, or provide financial advice? Different accountants specialize in different areas, so having a clear idea of your needs will help narrow down your choices.
Look for Relevant Experience
Experience matters when it comes to accounting. Look for accountants who have experience working with clients in your industry or with similar financial situations. An accountant familiar with the specific challenges and opportunities within your sector can provide more tailored and effective advice.
Check Qualifications and Certifications
Ensure that the accountant you choose is properly qualified and certified. In Portugal, reputable accountants are often registered with the Ordem dos Contabilistas Certificados (OCC). This certification ensures that the accountant has met rigorous professional standards and adheres to a code of ethics.
Consider Reputation and Reviews
Research the reputation of potential accountants by reading reviews and testimonials from their clients. Personal recommendations from colleagues, friends, or family can also be valuable. A strong reputation and positive client feedback are indicators of reliability and quality service.
Assess Communication Skills
Effective communication is key in any professional relationship, including with your accountant. During initial consultations, assess how well the accountant listens to your needs, explains complex financial concepts, and responds to your questions. An accountant who communicates clearly and promptly will make managing your finances much easier.
Availability and Accessibility
Consider how accessible and available the accountant is. Will they be able to meet with you regularly, or are they difficult to reach? An accountant who is available when you need them can provide timely advice and support, which is especially important for urgent financial matters.
Use of Technology
In today’s digital age, the use of modern accounting software and technology can greatly enhance the efficiency and accuracy of financial management. Inquire about the tools and technologies the accountant uses and whether they are proficient in the latest accounting software.
Trust Your Instincts
Finally, trust your instincts when choosing an accountant. A good professional relationship is built on trust and comfort. If you feel confident and comfortable with an accountant, it’s a positive sign that they may be the right fit for you.
Accessibility and Availability: Key Factors in Selecting Your Accountant
When choosing an accountant, two critical factors that often determine the success of the professional relationship are accessibility and availability. In Lisbon, a city bustling with economic activity, having an accountant who is both accessible and available can make a significant difference in effectively managing your financial affairs. Here’s why these factors are essential and how to ensure your accountant meets these criteria.
Why Accessibility Matters
Accessibility refers to how easy it is for you to reach your accountant when you need them. This includes physical accessibility for in-person meetings and the ability to communicate via phone, email, or other digital means. An accessible accountant ensures that you can get timely advice and support, which is crucial for making informed financial decisions.
Timely Advice: Financial decisions often require prompt attention. An accessible accountant can provide immediate guidance, helping you avoid delays that could impact your financial health.
Ongoing Support: Regular access to your accountant means you can continuously monitor and adjust your financial strategies, ensuring they remain aligned with your goals.
Crisis Management: In times of financial uncertainty or emergencies, having an accessible accountant can be invaluable. They can offer swift solutions and help mitigate potential issues.
The Importance of Availability
Availability goes hand-in-hand with accessibility. It refers to the accountant’s capacity to take on your work and dedicate sufficient time to your needs. An accountant who is readily available can give your financial matters the attention they require, ensuring thoroughness and accuracy.
Dedicated Attention: An available accountant can devote the necessary time to understand your financial situation deeply and provide personalized advice.
Proactive Management: Accountants who are available can take a proactive approach to your finances, identifying opportunities and potential issues before they become problems.
Consistent Communication: Availability allows for regular check-ins and updates, ensuring you’re always informed about your financial status and any necessary actions.
Tips for Ensuring Accessibility and Availability
When selecting an accountant in Lisbon, consider the following tips to ensure they meet your accessibility and availability needs:
Assess Communication Channels: Find out how the accountant prefers to communicate and ensure it aligns with your preferences. Whether it’s via email, phone calls, video conferences, or in-person meetings, having multiple channels of communication is beneficial.
Inquire About Response Times: Ask potential accountants about their typical response times. Quick responses are crucial for addressing urgent financial matters promptly.
Check Office Hours and Location: Consider the accountant’s office hours and location. An accountant with flexible hours and a conveniently located office can make in-person meetings more feasible.
Evaluate Workload: Discuss the accountant’s current workload to gauge their availability. An accountant who is overburdened may not be able to give your finances the attention they need.
Look for Technology Use: Accountants who use modern accounting software and digital communication tools can offer more efficient and accessible services.
Set Expectations: Establish clear expectations for communication and availability from the outset. Discuss how often you will meet, how to handle urgent issues, and the preferred methods of communication.
Why Oporto Accounting is the Right Choice for You
Selecting the right accountant is crucial for managing your finances effectively, and in Lisbon, Oporto Accounting stands out as an excellent choice. With a reputation for reliability, expertise, and exceptional client service, Oporto Accounting offers comprehensive accounting solutions tailored to meet your specific needs. Here’s why Oporto Accounting should be at the top of your list when choosing an accountant in Lisbon.
Comprehensive Services
Oporto Accounting provides a wide range of services designed to meet the diverse needs of businesses and individuals. Their services include:
Tax Preparation and Planning: Expert guidance on tax compliance and strategies to minimize your tax burden.
Bookkeeping: Accurate and efficient bookkeeping services to keep your financial records up-to-date.
Financial Consulting: Personalized financial advice to help you achieve your financial goals.
Payroll Services: Comprehensive payroll management, ensuring timely and accurate employee payments.
Audit and Assurance: Reliable audit services to ensure your financial statements are accurate and comply with regulatory standards.
Expertise and Experience
With years of experience in the accounting industry, Oporto Accounting has built a team of highly qualified professionals. Their expertise covers various sectors, ensuring they can handle the specific challenges and opportunities of your business or personal finances. The team stays updated with the latest tax laws and accounting standards, providing you with accurate and up-to-date advice.
Client-Centered Approach
At Oporto Accounting, client satisfaction is a top priority. They take the time to understand your unique needs and tailor their services accordingly. Whether you require assistance with complex tax issues or day-to-day bookkeeping, their personalized approach ensures you receive the attention and support you deserve. The team is known for its responsive communication, making it easy for you to get the help you need when you need it.
Modern Technology and Tools
Oporto Accounting utilizes the latest accounting software and digital tools to enhance efficiency and accuracy. This modern approach allows for seamless collaboration, real-time financial tracking, and secure data management. By leveraging technology, they can provide more efficient services and better insights into your financial health.
Proven Track Record
The reputation of Oporto Accounting speaks for itself. With numerous satisfied clients and positive reviews, they have established themselves as a trusted accounting partner in Lisbon. Their proven track record of delivering high-quality services and achieving client success stories sets them apart from other accounting firms.
Convenient and Accessible
Oporto Accounting’s office is conveniently located, making it easy to schedule in-person meetings. Additionally, they offer flexible communication options, including email, phone, and video conferencing, ensuring they are accessible to you no matter where you are. Their commitment to accessibility means you can rely on timely advice and support, even for urgent financial matters.
Before delving into the intricacies of setting up a company in Portugal, it’s essential to understand why this country has become an increasingly popular choice for entrepreneurs.
Geographic Advantage: Portugal boasts a strategic geographic location, serving as a gateway to both European and international markets. Its membership in the European Union provides businesses with access to a vast consumer base and facilitates trade with other EU member states.
Stability and Infrastructure: Additionally, Portugal’s stable political environment, well-developed infrastructure, and skilled workforce make it an attractive destination for foreign investment.
Supportive Business Environment: Portugal offers a competitive business environment with a range of incentives and support measures for entrepreneurs. From favorable tax regimes to various funding opportunities, the Portuguese government has implemented policies aimed at fostering innovation and entrepreneurship.
How to set up a company in Portugal, step by step
Setting up a company in Portugal can be a straightforward process if you understand the necessary steps and requirements. Below is a comprehensive guide to help you navigate through the process effectively:
1. Define Your Business Structure:
Before starting the registration process, decide on the most suitable legal structure for your business. Options include:
Sole Proprietorship (Empresário em Nome Individual)
Partnership (Sociedade em Nome Coletivo)
Limited Liability Company (Sociedade por Quotas)
Public Limited Company (Sociedade Anónima)
Each structure has its own legal implications, tax obligations, and liability considerations, so choose carefully based on your business needs and objectives.
2. Choose Your Company Name:
Select a unique name for your company that complies with Portuguese regulations. Ensure that the chosen name is not already in use by another company and that it accurately represents your business.
3. Prepare the Necessary Documentation:
Gather all required documents for company registration, which typically include:
Identification documents of the company’s shareholders and directors
Address for the company’s office
Tax identification numbers (NIF) for shareholders and directors
4. Register Your Company:
Submit the necessary documentation to the Portuguese Commercial Registry (Registo Comercial) to register your company. This can typically be done online or in person. The registration process includes:
Filling out the required forms
Providing all necessary documentation
Paying the registration fees
5. Company Tax Identification Number (NIF):
Once your company is registered, a tax identification number will be provided (Número de Identificação Fiscal/NIF) from the Portuguese Tax Authority (Autoridade Tributária e Aduaneira). This number is essential for tax purposes and is required for conducting business activities in Portugal.
6. Company Social Security Number (NISS):
Once your company is registered, a social security identification number will be provided (Número de Identificação Segurança Social/NISS) from the Portuguese Social Security. This number is essential for social security purposes and is required for hiring in Portugal.
7. Open a Bank Account:
Open a corporate bank account for your company. Portuguese law mandates that company funds be deposited in a bank account under the company’s name.
8. Comply with Tax Obligations:
Familiarize yourself with Portuguese tax laws and fulfill all tax obligations applicable to your company. This includes corporate income tax, value-added tax (VAT), and any other relevant taxes based on your business activities.
9. Fulfill Other Legal Requirements:
Depending on the nature of your business, you may need to obtain additional licenses or permits to operate legally in Portugal. Ensure compliance with all relevant regulations and obtain any necessary permits before commencing business activities.
10. Maintain Proper Records:
Keep accurate and up-to-date records of your company’s financial transactions, including income, expenses, and tax filings. Proper record-keeping is essential for compliance with Portuguese accounting and reporting requirements.
By following these steps and seeking assistance from legal and accounting professionals when necessary, you can successfully set up and operate your company in Portugal. Remember to stay informed about any changes in regulations or requirements that may affect your business operations.
The Role of English-Speaking Accountants in Portugal
One of the most significant challenges facing entrepreneurs looking to establish a company in Portugal is the language barrier. English-speaking accountants play a crucial role in bridging this gap, providing essential support and guidance to entrepreneurs throughout the process.
Language Assistance: By offering their services in English, these professionals can help entrepreneurs navigate the complexities of the Portuguese legal and regulatory system with ease.
Comprehensive Support: From assisting with company formation and registration to providing ongoing accounting and tax support, English-speaking accountants offer a comprehensive range of services tailored to the needs of foreign entrepreneurs.
Trusted Advisors: English-speaking accountants can serve as trusted advisors, offering valuable insights and strategic guidance to help entrepreneurs make informed decisions about their businesses.
What to consider when choosing the right accountant?
When selecting an accountant to assist with the establishment and operation of a company in Portugal, there are several factors to consider.
Qualifications and Experience: It’s essential to choose a qualified and experienced professional with a strong understanding of Portuguese tax and accounting laws.
Language Proficiency: Consider the level of English proficiency of the accountant and their team. Effective communication is crucial when working with an accountant, so it’s essential to choose someone who can clearly and confidently communicate in English.
Range of Services: Consider the range of services offered by the accountant and whether they align with the needs of your business. From basic bookkeeping, payroll to strategic financial planning, choose an accountant who can provide the level of support and expertise you require to succeed in Portugal.
Choosing Oporto Accounting: Your Partner for Success
In the dynamic landscape of company formation and business establishment in Portugal, having the right support is paramount. Amidst the intricacies of legalities, tax structures, and administrative procedures, partnering with a trusted and experienced firm can make all the difference. Oporto Accounting emerges as the beacon of reliability and proficiency, offering unparalleled services tailored to meet the diverse needs of entrepreneurs venturing into Portugal.
Tailored Solutions for Every Need
At Oporto Accounting, we understand that no two businesses are alike. That’s why we offer tailored solutions designed to meet the specific needs and objectives of each client. Whether you’re a startup looking to establish your presence in Portugal or a multinational corporation expanding into new markets, we have the expertise and resources to support you every step of the way.
Comprehensive Services from Start to Finish
From initial company registration to ongoing accounting and tax compliance, Oporto Accounting provides comprehensive services to ensure the smooth and successful operation of your business in Portugal. Our team of experienced professionals will guide you through the entire process, handling all aspects of incorporation and business registration with efficiency and precision.
Expertise You Can Trust
With years of experience in the field of accounting and business consulting, Oporto Accounting offers expertise you can rely on. Our team of English-speaking professionals possesses in-depth knowledge of Portuguese regulations and tax laws, allowing us to provide accurate and up-to-date advice tailored to your specific needs. Whether you have questions about share capital requirements, corporate tax obligations, or any other aspect of doing business in Portugal, we’re here to help.
Personalized Support and Guidance
At Oporto Accounting, we believe in building strong and lasting relationships with our clients. That’s why we take the time to understand your unique business needs and goals, offering personalized support and guidance every step of the way. From answering your questions and addressing your concerns to providing strategic advice for growth and expansion, we’re committed to helping you achieve success in Portugal.
Transparent Communication and Accessibility
Transparency and communication are at the heart of everything we do at Oporto Accounting. We believe in keeping our clients informed and involved throughout the entire process, ensuring that you always have a clear understanding of your financial situation and compliance status. Our team is accessible and responsive, ready to assist you whenever you need us.
It consists of a request made to the National Registry of Corporate Entities (RNPC) for the purpose of changing the firm name or denomination, relocating the headquarters to another municipality, or changing the corporate purpose of a commercial company.
The request for a certificate of admissibility can be made before the establishment of the commercial company, in order to secure the use of the desired firm name or denomination by the future partners.
The certificate is mandatorily provided electronically, and in case of approval, it includes the new elements requested by the applicant. After its issuance, the applicant has a deadline of 3 months to utilize it.
With the issuance of the certificate of admissibility, a code and number are provided which must be used in the execution of acts that require its use, particularly corporate acts related to changes in contract clauses or the establishment of commercial companies.
The timely request of the certificate of admissibility will allow for the verification of the availability of the firm name desired by your company, anticipating the need to update the intended denomination, in case the company was established through a fantasy name approved by the National Registry of Corporate Entities.
Regarding the choice of corporate purpose, the applicant should indicate the activities they intend to develop currently and in the future, as well as provide the respective economic activity codes.
Oporto Accounting has a team that can assist you with the request for issuing the certificate of admissibility. Contact us!
