The economy is currently dominated by the services sector, particularly in the tourism industry, followed by the industrial sector, which employs about 25% of the working population and contributes 12% of the GDP. The agricultural sector comes in last place, representing about 2.1% of Portugal’s GDP and employing 6% of the active population. The dominant industries in Portugal are as follows:
remuneration that can be allocated to the activity carried out in Portugal but also remuneration that is borne by a Portuguese company or permanent establishment (PE). Non-residents are taxed at a flat rate of 25% on their taxable remuneration in 2023.
Resident income tax rates
When a foreign investor decides to set up a company in Portugal, he/she must decide from the beginning upon the type of company he wants to establish. The Company Law in Portugal sets several types of structures from which a foreigner can choose.
This type of company is the most common in Portugal. Usually, this type of company is the most common in Portugal. It is usually chosen by foreign investors who want to set up a small business in Portugal. At least two shareholders can establish a private limited company in Portugal, only if they provide a minimum share capital of EUR 5,000. The liability of the founders for the company’s obligations only extends to their contributions to the initial capital.
Foreign investors who want a medium or large-sized company choose this type of structure. Public companies in Portugal require a minimum share capital of EUR 50,000 and at least five shareholders to be incorporated. Still, the founders are liable for the company’s obligations only to the extent of their contributions
Partnerships in Portugal are only formed between at least two partners. To set up a limited partnership in Portugal, no minimum capital is required. Its particularity is that one partner has to be general and have full liability for the company’s obligations (socios comanditarias), while the other one must have limited liability (socios comanditados).
Just like limited partnerships, general partnerships also need at least two partners to incorporate them. No minimum capital is required here either. As opposed to limited partnerships, all the members in a general partnership in Portugal are fully responsible for the company’s obligations and they can make decisions on behalf of the company and manage the company.
A subsidiary is a legal entity that can run under the rules of an LDA if it is a small or medium business or as a joint stock if it is a large company. In any case, a subsidiary is an independent entity from the parent company, it can have the same name or another one as long as it operates with the same activities as the company from abroad. Just like for all companies, a subsidiary must have a representative agent who needs to have residency in Portugal.
Setting up a branch in Portugal is subject to easy incorporation and the whole process can be supervised by our team of consultants. A branch is dependent on the parent company in a foreign country.
Shelf companies are ready-made companies already registered and at the disposal of local and foreign entrepreneurs. This kind of company runs as a limited liability company and can be purchased by investors who do not want to start a business from scratch and deal with the formalities of such incorporation. There are no financial activities linked to a shelf company, and therefore, no liabilities. This is another solid benefit of a shelf company that is known by international entrepreneurs.
Chandrawat & Partners is a prominent full-service firm dedicated to delivering top-tier professional services to clients both within the domestic and international spheres.
Chandrawat & Partners stands as a dynamic and rapidly expanding full-service firm, specializing in the delivery of exceptional professional and corporate services to a diverse clientele, both foreign and local. We proudly represent companies and individuals across a wide spectrum of sectors through distinct entities established in various countries worldwide.
Chandrawat & Partners stands as a dynamic and rapidly expanding full-service firm, specializing in the delivery of exceptional professional and corporate services to a diverse clientele, both foreign and local. We proudly represent companies and individuals across a wide spectrum of sectors through distinct entities established in various countries worldwide.
ASIA
AFRICA
EUROPE
NORTH AMERICA
SOUTH AMERICA
OCEANIA