Attractive Economic Gains Await When You Set Up Business In Portugal
In many instances, running, setting up and operating an international business can be an expensive venture. Which is why it is so important for companies to find a location that is going to be worth every cent. In the world of business, even something as simple as a small tax break can equal to big savings for an investor. Which is why many have turn their eyes to Portugal, a country which offers major tax incentives for both international and domestic businesses alike. But those are not the only benefits that await. Here is why many investors are planning to set up business in Portugal:
The Tax Benefits of Course
Portugal’s government is offering everyone tax benefits, even if you are not doing business in Portugal, and the country’s Non-Habitual Resident Program is responsible for this. When an international business receives and becomes a part of this program, they can become tax-residents of Portugal even if they have never set foot in the country prior to this. By doing so, any income becomes tax free in Portugal in the country where the income is sourced.
International businesses can also apply for the Golden Residence Permit, which allows investors to enter and stay in the country without a visa if they enter the country regularly.
Some Industries Have More Perks
The Portuguese government is generous, but not every business gets preferential treatment as this is only limited to specific industries. Portugal, for example, is one of the world’s leaders in renewable energy, and this means the government continues to inject funding into this sector to help promote and boost it.
Tax breaks are also available for investors whose businesses promote globalization. Much of the country’s investment entice foreigners to come and set up business in Portugal. This is why these industries offer major tax incentives over others.
Investors can rest easy still though, because the government has capped investment tax credits between 10% and 20%, which still means big savings.
In Portugal, investors and entrepreneurs may pursue their investments individually or through a company. However, they should demonstrate that they are able to provide the minimum investment value in the country.
The investment must be for a minimum of five years. Investors can opt to either transfer the capital amount in an amount equal to or greater than 1 million €. They can also create at least 10 jobs and acquire the property of equal or greater value than 500,000€.
It’s Strategic Position
Needless to say, Portugal’s location also plays a crucial role for investors when setting up a business. Being close to some of the most important markets in the European Union certainly has its perks. Maintaining good trade relations with, EU countries, the United States, Brazil and Africa have also helped in this department.
The Highly Skilled Workforce
Looking for roles to fill in your new recently set up business in Portugal? You’ll be glad to know you’ve selected the right country. This is because Portugal is home to some of the most highly skilled individuals you will find. Despite this, the cost of hiring employees remains lower compared to a lot of others. It is an important advantage to investors who are interested in opening a start-up business in Portugal.