Requirements for successfully establishing a company in Portugal
The bureaucracy in Portugal has decreased to some degree since the country joined the EU, but it’s still just as costly to handle necessary formalities there as it is in other countries. For specific trade and professional groups, it’s necessary to prove your skills with the appropriate diplomas or certificates.
Portuguese proficiency is also required in many professions and must be certified by taking a test. Lawyers, for example, may not work without language skills. As a foreigner, you need an identification number to receive an income in Portugal.
When establishing a company, you should first decide on your company’s corporate structure. You can run the company independently and be liable for your own assets, or you can set up a limited liability company, called a "Sociedade por Quotas."
As an independent business owner, you can either pay the minimum contribution in the amount of 25.4% or increased contributions amounting to 32%. The minimum level of protection offers the most important social security, while the additional contributions provide added family assistance and support in the event of illness.
The contribution base is the national minimum wage. The employer can even choose the amount of the base himself (ranging from the minimum up to 12 times the amount of the minimum wage).
Also, employees must be registered with social security, as contributions are calculated on the basis of full income, including bonuses and subsidies.
Save on taxes in Portugal
The maximum income tax in Portugal is 42%, while the maximum corporate tax rate is only 25%. In the special zone of Madeira, entrepreneurs can benefit from especially low tax rates if they meet certain criteria. These tax rates serve primarily to create additional jobs, as wages are completely tax deductible.
In order to fulfill all of the requirements, you will need assistance from a tax consultant.
Professional translations for all industry sectors
To ensure that nothing stands in the way of your business activities in Portugal, we will take care of the professional translation of your documents. While we translate texts in the more common subject areas like medicine, law, and technology, we also have translators well-versed in more specialized areas, such as biochemistry and food technology.
Our project managers possess years of experience and always choose the best translator for your texts from our large network of professional native speakers.
If you’re planning an extensive project, it might be worth creating a Translation Memory System. This allows you to strengthen your corporate identity with consistent terminology and simplify your internal processes.
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