The aim is to promote investment, ensuring that it can be recovered, allowing “the private entities to be able to invest and recover their investment made in the terminals over the years”. Each port administration will present a specific investment plan according to its needs.
The maximum term for port concessions will increase from 30 to 75 years, announced Portugal’s Secretary of State for Infrastructure.
The new law will create conditions to enable the return on investments.
The minister explained that this is one of the Government’s priorities to promote the growth of national ports. “We want to maximize the potential of each port, have new terminals, new players – and this is very important. And for that to happen, there has to be a change, and this first change has to do with what the port terminal concessions are”.
At OportoAccounting, we specialize in providing tailored financial and accounting services that help businesses maximize their investment potential in light of regulatory changes. Our expertise includes:
The incentive for non-residents approved by the Portuguese government will be extended to more activities and companies. At the moment, around 20 areas are covered.
The Portuguese government has announced the define the qualified professions of non-residents (immigrants and Portuguese citizens with an address outside the country for at least five years) by a tax incentive program, eligible professions will be entitled to a reduced tax rate of 20%.
To benefit from this incentive, non-resident workers in these professional areas must have at least completed secondary education and at least five years of duly proven experience. The program aims to attract high-value professionals to Portugal, enhancing the country’s economic growth and competitiveness.
List of non-resident professionals considered to have high added value, and which can benefit from the tax free are:
• General director and executive manager of companies; • Directors of administrative and commercial services; • Production and specialized service directors; • Directors of hotels, restaurants, commerce and other services; • Specialists in physical, mathematical, engineering and technical sciences; • Doctors; • Dentists and stomatologists; • University and higher education teachers; • Information and communication technology specialists; • Authors, journalists and linguists; • Creative and performing arts artists; • Intermediate-level science and engineering technicians and professionals; • Information and communication technology technicians; • Market-oriented farmers and skilled agriculture, animal production workers; • Market-oriented skilled workers in forestry, fishing and hunting; • Skilled workers in industry, construction and crafts, in particular skilled workers in metallurgy, metalworking, food processing, wood, clothing, crafts, printing, precision instrument manufacturing, jewelers, artisans, electrical and electronic workers; • Plant and machine operators and assembly workers, in particular fixed plant and machine operators.
OportoAccounting stands out by its expertise in tax laws and its ability to offer tailored solutions that prevent double taxation and optimize clients’ tax structures for our clients and companies.
In recent years, Portugal has emerged as an attractive destination for entrepreneurs looking to establish their businesses in Europe.
With its strategic location, vibrant culture, and favorable business environment, Portugal offers opportunities for those seeking to start their own ventures. However, navigating the complexities of company incorporation in Portugal can be daunting, especially when it comes to understanding local regulations and tax laws. This is where reliable English-speaking accountants play a crucial role, providing invaluable assistance to entrepreneurs looking to establish their presence in Portugal.
Why Portugal?
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, EU grants and other supporting 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:
Define Your Business Structure:
Before starting the registration process, decide on the most suitable legal structure for your business.
Three most common options are:
Limited Liabilty Company (Sociedade Por Quotas)
Single-person Limited Liability Company (Sociedade Unipessoal por Quotas)
Public Limited Company (Sociedade Anónima)
Each structure has its own legal implications, tax obligations and liability.
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. You can also request a certificate of admissibility to the IRN, to guarantee that the name of your company is accepted by the commercial registry. The IRN also allows the incorporation of companies with approved names from a public list.
Prepare the Necessary Documentation:
Identification documents of the company’s shareholders
Tax identification numbers (NIF) of shareholders
NIPC of the shareholders, in case that they are companies.
Draft the articles of association that will regulate the company legal structure;
Decide who will be the manager of the company;
Decide the social capital of the company;
Registration of Company:
Registration and submission of documentation to the Portuguese Commercial Registry office (Registo Comercial).
Open a Bank Account:
Open a corporate bank account for your company where the social capital will be paid. Portuguese law mandates that company funds be deposited in a bank account under the company’s name.
What to do after company is incorporated?
Register activity of company at the Tax Office
Initiate tax compliance, which includes submission on a monthly, quarterly and yearly basis of mandatory statements, namely corporate income tax, value-added tax (VAT), and other relevant tax statements based on your business activities.
Register company at Social Security
After company incorporation a number of identification of Social Security – NISS (Número de identificação da segurança social) will also be provided
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.
Following these steps with the assistance from Oporto Accounting legal and accounting professionals, you can successfully set up and operate your company or start up in Portugal.
English speaking accountants play a crucial role in assisting you to incorporate in Portugal, they will provide 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.
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.
Choosing an 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 to strategic financial planning, choose an accountant who can provide the level of support and expertise you require to succeed in Portugal
In the dynamic landscape of company formation and business establishment in Portugal, having the right support is paramount. Oporto Accounting emerges as the beacon of reliability and proficiency, offering unparalleled services tailored to meet the diverse needs of entrepreneurs venturing into Portugal.
At Oporto Accounting, we understand that no two businesses are alike. Tha t’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 a new market, we have the expertise and resources to support you every step of the way. From initial company incorporation 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 from incorporation and business registration to accounting and payroll.
Expertise You Can Trust With years of experience in the field of accounting and business consulting, Oporto Accounting offers expertise in accounting, payroll and business consulting that you can rely on. Our team of English-speaking accountants possess depth knowledge of Portuguese regulations and tax laws, allowing us to provide accurate and up-to-date advice tailored to your specific needs.
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 suppor t 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 AccessibilityTransparency 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.
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.
Filing Period The period for submitting the Tax Returns for the income obtained during the year of 2023 is between 1st of April and 30th of June.
Automatic IRS Taxpayers may opt for automatic IRS if they are employees (category A income) or retirement pensioners (category H income) if they have no other income.
Exemption in Filing Tax Return Taxpayers who, in 2023, received individually or cumulatively the following income are exempt from submitting the Tax Return (Model 3):
Dependent work or pensions up to €8,500, as long as there has been no IRS withholding;
Taxed at withholding rates (e.g., interest on bank deposits or other investments) and do not opt for the aggregation of such income;
From isolated acts, provided that the respective amount is less than four IAS (€1,921.72). We advise you to consult the information leaflet provided by Tax Authority at the link: (Information Leaflet – AT) IRS – Deductions, tax benefits and fees for income for the year 2023 (portaldasfinancas.gov.pt) The information presented in this article does not bind and does not replace the complete consultation of the legislation in force or the consultation of the IRS services at Oporto Accounting. Oporto Accounting is the leading office is its sector for Accounting, Tax Consultancy, Human Resources and Consulting services. With offices located in Porto and Lisbon. The high quality of the services provided with the professionalism of our team, make Oporto Accounting one of the leading accounting firms in its sector in Portugal.
Another international software company, choosing Lisbon Portugal to take advantage of the outstanding conditions that Portugal currently provides to foreign investors who choose to invest in Portugal.
This time was the multinational Wunderman Thompson Commerce to invest in Portugal and expecting to hire 200 new workers for its two centres of excellence in the country.
Wunderman Thompson Commerce has chosen Portugal to implant the largest e-commerce centre of excellence in Europe. The company’s plans in the country include hiring 200 workers for the two centres of excellence already based in Portugal.
The company has sad that it plans to hire 200 new workers by the summer of 2022, namely in areas of information systems, engineering, data science and business process.
Also informed that wants to bring a global centre of excellence in e-commerce to Lisbon Portugal, offering a unique opportunity and world-class services to there clients and partners. The objective is to give Portuguese business the best tools, making them competitive in an increasingly globalised marketplace.
At Oporto Accounting, we are committed to welcome foreign investors to incorporate in Portugal, providing services such as, company incorporation, accounting, bookkeeping and payroll.
Over the years, Portugal has strengthened its position across diverse growth sectores, today it has transformed to a reliable growth driver for business in real estate, manufacturing, financial, healthcare and education. Year after year Oporto Accounting has been helping foreign clients set up there company’s and business all across Portugal especially in Porto an Lisbon.
Non-residents were responsible for 8.5% of the properties sold in Portugal last year.
Foreigners continue to have a significant weight in property acquisitions in Portugal, however, it was lower in 2019. 8.5% of real estate sales in Portugal were made to non-residents, according to data from the National Statistics Institute (INE). As they buy houses much more expensive than national citizens, their weight in the value of transactions was 13.3%.
“After the significant increases both in number and in value in previous years (+14.5% and +19.2% in number and +22.2% and +22.6% in value, respectively in 2018 and 2017), in 2019 the number of real estates acquisitions by non-residents decreased by 2.0%, having increased by only 1.0% in value,” INE says.
The representativeness of non-residents in transactions is lower than that these buyers have in the value of registered transactions, as they tend to seek higher-value properties. “In 2019, the average value of real estate sold to non-residents was 176,429 euros (+3.1% vis-à-vis 2018). This value is 57% higher than the average value of total transactions, a relative difference similar to the one recorded in 2018,” INE explains.
“As in the previous year, residents in France (18.1% of the total value), followed by residents in the United Kingdom (17.3%) were the main foreign buyers of real estate in Portugal. Among the main countries of residence of non-resident buyers, it is worth mentioning China, whose average value of real estate purchased by residents in this country (373,071 euros) was more than double the total average value of real estate sold to residents abroad.”
Also, the non-residents’ preference no longer lies in the Lisbon Metropolitan Area. “The Algarve has overtaken the Área Metropolitana de Lisboa, having represented 37.7% of the total value of acquisitions by non-residents (35.8% in the Área Metropolitana de Lisboa), as a result of the respective variations of +6.1% and -8.5%, compared to 2018,” the INE concludes.
Portuguese Parliament Approves Decree to Implement DAC6 Reporting Requirements
According to an update from the Portuguese Parliament, the Decree establishing the rules for the implementation of Council Directive (EU) 2018/822 of 25 May 2018 (DAC6) on reportable tax arrangements has been approved and sent for promulgation on 25 June 2020. This includes rules for the required reporting of potentially aggressive tax-planning arrangements that primarily applies for intermediaries but may also apply for taxpayers.
As provided in the Decree, Portugal’s implementation of DAC6 includes some important differences as compared to the implementation by most other EU Member States. One of the key differences is in the scope of taxes covered, which includes not only cross-border arrangements as required by the Directive, but also internal arrangements involving personal and corporate income tax, VAT, municipal property and transfer tax, or stamp duty.
The new requirements will apply from 1 July 2020, with reportable arrangements to be reported within 30 days from the earlier of:
the day after the date the arrangement is made available for implementation;
the day after the date the arrangement is ready for implementation; or
the moment the first step of the arrangement is implemented.
Further, cross-border arrangements must be reported by 31 August 2020 where the first step of implementation was taken in the period between 25 June 2018 and 30 June 2020. Failing to comply with the requirements may result in penalties of up to EUR 80,000.
Note – The Decree was approved before the recent approval of the optional deferral of DAC6 reporting in the EU by up to 6 months. As such, the deadlines as per the Decree may change. Further details will be published once available.
