Portugal is one of the perfect locations for entrepreneurs to establish their firms. Portugal ranks 39 out of 190 nations in the World Bank’s “ease of doing business index”, indicating the sustainability of the Portuguese economy. By establishing a company in Portugal, an organization can have access to the marketplace of the European Union, which is home to more than 7% of the planet’s populace.
What are the various reasons to register your company in Portugal?
Portugal is located in the southern part of the European Union. It serves as a point of entry for trade between European nations and many others, including Spain. The nation ranks 25th in the world for ease of conducting business there. Portugal is undoubtedly one of the European nations that attract foreign investment the most. There are numerous reasons to register your company in Portugal. Here in this article, we will learn about a few reasons to register your company in Portugal.
1.Strategic Location
The strategic location of Portugal is one of the reasons to register your company in Portugal. Portugal enjoys strong ties with Europe, the United States, Latin America, and India. Its convenient location provides entrepreneurs with easy access to the rest of the world by air, sea, land, and train, providing a significant foundation for international companies to penetrate the global market.
Portugal was listed as one of the European nations having few barriers to foreign direct investment. Furthermore, a noteworthy feature of the nation is its three deep-water ports, which are employed to transport resources and merchandise around the globe.
2.Advances in Technology
Portugal is a technologically developed nation. The region is ranked seventh in Europe for providing modern telecommunications facilities. The nation’s internet connectivity is incredibly impressive and accessible in practically all rural areas. The nation’s transportation network is likewise well-developed. This makes it simple for entrepreneurs and executives to travel to multiple nations quickly for professional reasons. Hence, this is another one of the reasons to register your company in Portugal.
3.Tax Advantages
One of the reasons to register your company in Portugal is the various tax advantages. There are several tax benefits that are proven to be attractive for businesspeople looking to launch a firm in Portugal. Portugal has invested the previous ten years in developing tax breaks, exemptions, and lower VAT rates to entice international investors to its shores and accelerate development and employment generation in the nation. The Portuguese government offers very appealing and helpful taxation schemes. Tax credits range from 10% to 20%. Compared to other nations, the corporate tax rate and VAT are considerably lower.
A few of the tax advantages in Portugal are listed below:
- Investing in creative technology companies or small enterprises might be aided through seed programs.
- tax programs for temporary residents,
- A tax incentive program for research and development
Portugal provides a tax concept termed a “non-habitual resident program” which carries a lower flat tax rate of 20% on income, for people who are incurring a higher tax rate in their existing nation of residency. This promotes economic growth in a nation with weaker capital markets for overseas businesses and individuals. Additionally, the tax rate is somewhat lower for small enterprises, which facilitates their ability to expand.
4.Abundant Natural Resources
Natural resources are abundant in Portugal. Numerous industries, including mining, agriculture, and others, prosper in the nation. Additionally, it aids in exports, which helps the nation receive foreign exchange. Additionally, tourism strengthens the nation’s economy and increases commercial prospects. For a few years, the nation’s wine-producing sector has also been growing.
5.Golden Visa
The golden visa in Portugal is another one of the reasons to register your company in Portugal. You can reside in Portugal for an extended period of time legitimately with a gold visa. In order to qualify for a golden visa, non-European nationals can contribute to property, research programs, and other services. With time, you may be able to obtain a second citizenship depending on a golden visa. Second citizenship comes with a lot of benefits. For instance, the ability to travel freely among the Schengen nations without having to endure severe administrative hurdles. When six years have passed since the date the golden visa was issued, one may apply for citizenship in a member state of the EU.
6. Free Economic Zones
Another one of the reasons to register your company in Portugal is the free economic zones. In both Madeira and the Azores, there are free economic zones. Considering taxes, advantages, importing and exporting of commodities, exclusion from customs, and free flow of commodities, those are the areas of Portugal that are most advantageous for launching a business. As such these regions draw in a lot of entrepreneurs.
7. Governmental Assistance
The government of Portugal is working on programs to help small and medium-sized businesses.
Here are a few of the measures the government has taken for companies and entrepreneurs in 2018:
- Startup Visa– Startup Visa is a residence permit for business people with the mission of attracting capital, talent, and technological expertise to Portugal.
- Tech Visa– Tech Visa is a certification initiative created for businesses looking to hire highly skilled and specialized workers from non-Schengen area nationals in Portugal.
- Pitch Voucher- Pitch Voucher encourages the improvement of the bond between small businesses and ambitious projects. Via the Startup Centre system, businesses can pose technology problems, to which startups can offer creative answers.
- Semente– Semente offers tax advantages to entrepreneurs who put money into firms in their early stages.
8. Advanced Infrastructural Facilities
Portugal provides enterprises with readily available premises which is another one of the reasons to register your company in Portugal. A lot of business parks, buildings, and shopping centers offer space for companies to start up in the nation. There are numerous roadways and ports that link the entire nation, facilitating quick and effective travel.
9. Competent Workforce
Portugal’s effective educational system is renowned for creating intelligent individuals. This competent workforce satisfies the need for corporate development in a range of areas. Because of the abundance of a skilled workforce, numerous companies, including those related to research and development and biotechnology, are experiencing rapid growth in the nation.
A competent workforce is one of the reasons to register your company in Portugal as entrepreneurs from all over the world are drawn to the nation and expand their enterprises.
Conclusion
There are numerous reasons to register your company in Portugal. A business owner would get a number of advantages by establishing a company in Portugal, including access to modern technology and infrastructure facilities, a talented labor pool, tax breaks, government support, free economic zones, golden visas, etc.
