10 reasons to incorporate in Portugal

In the past few years Portugal has attracted considerable interest from foreign investors who have chosen to incorporate a company there for a number of reasons. The preferred vehicle of investment is the private limited company or Lda. that presents the following advantages:

• Minimum share capital as low as € 1 per shareholder;
• Only one shareholder is required;
• No restrictions for foreign shareholders and directors;
• No residence requirements for foreign shareholders and directors;
• Fast and easy incorporation procedure;
• Low two tier corporate tax rate: 17% for the first € 15,000 of income and 21% thereon;
• International Business Centre of Madeira with a corporate tax rate of just 5%;
• No withholding tax on inbound or outbound dividends pursuant to certain criteria;
• Ease of business with other Portuguese-speaking jurisdictions: Brazil, Angola, Mozambique, Macau...
• Attractive Golden Visa program for non-EU citizens (see here).

MADEIRA’S INTERNATIONAL BUSINESS CENTRE REGIME EXTENDED

Portugal’s State aid scheme for Madeira was scheduled to finish at the end of 2013. This meant that companies incorporated after 2013 would no longer qualify for the island’s International Business Centre (IBC). However, following the European Commission’s decision to extend the authorization, companies incorporated in Madeira until June 30, 2014 can still obtain a license to operate in the IBC.