There is a significant number of reasons why foreign investors should decide to invest in Portugal. Portuguese people have incredible work ethics, appreciate the time and know how to balance work and life. These, as well as many other things, might attract both employees as well as employers to be a part of Portuguese Business Culture. Portugal was for a reason chosen by Forbes as number one country for investments.
Portugal has a lot to offer to foreign investors. Excellent education and orientation towards developing technologies in many cases improved the situation in this country, allowing the foreign investors to recognize their market like the one with most opportunities. Particular business culture is also something that is attractive for foreigners on the Portuguese territory.
After the banking issues in 2014, when several countries of Europe declared a crisis, Portuguese people demonstrated their strength to make a change in those hard time. Portugal has taken significant steps lately to improve competitiveness and simplifying the process of investing which opened new opportunities for foreign businesses and investors. All this became easier thanks to the reforms made in competition law, the labour market, and the tax system. Besides, an outstanding infrastructure, a safe environment, as well as a highly qualified young workforce and high standards of investment protection are the things that make Portugal as one of the most desirable business locations.
It is very significant to know, that the legal system in Portugal is based on non-discrimination concerning the national origins of investments, which may be a crucial fact for the investors. However, there are some limitations which regard to activities such as water management, public telecommunications, as well as defence and transport infrastructures. However, you need to have in mind that there are plenty of other possibilities for developing businesses in Portugal.
Investors from all over the world have seen a great number of opportunities for different businesses, and are able to participate in Portuguese market just like all other, no matter of their national origins.
Foreign investors enjoy many benefits in Portugal. Among these benefits are corporate tax rates which have been reduced significantly. Portugal is one of the European countries which successfully improved their fiscal policy and corporate tax rates after the banking issues in summer of 2014.
Depending on the location, the number of created jobs and the degree of involved technological innovations, tax credits up to 25% are now offered for incoming investments. Besides this, the federal government also implemented measures to help draw investment making some labour regulations easier such as workplace flexibility and creating a special aid regime for large products.
All of the things are modified in order to provide more positive experience for foreign investors, such as the websites published by the Government named “Cutting Red Tape” and “Empresa Na Hora.” These sites were created to provide information on measures taken since 2005 to reduce bureaucracy as well as to allow for companies to quickly incorporate in the Portuguese market.
Foreign investors with no residence visa can apply for a Portuguese Golden Residence Permit which allows them and their families to freely visit other European Countries, stay and live in Portugal and enjoy benefits from tax advantages. These tax advantages include 20% flat tax rate with particular foreign sourced incomes excluded with Double Tax Convention.
To have the possibility of applying for the Golden Residence Permit, you should have eligible investments which could take several forms for minimum five years. These investments can be in the form of transfer of capital – 1 million € or more, the creation of at least ten job spaces, and acquisition of property of 500.000 € or more. For the Golden Residence Permit, you should also consider the administrative fees and timing requirements.
To conclude, Portugal offers secure property market, relaxed immigration rules, high-living standards and lots of entertainment opportunities. These things will definitely have an impact on your life since you will be able to enjoy them because of the Portuguese work-life balance. Hopefully, you have found the best reasons for yourself why you should try business and invest in Portugal.