Open Holding Company in Portugal

Portugal is an attractive country in which businesspersons can open holding companies if they understand and respect particular conditions, from which we remind that it is necessary to obtain specific licenses in the Free Trade Zone of Madeira to obtains numerous advantages. A holding company in Portugal is an important business form which possesses shares in other entities which are free to operate according to their plans, with no other interventions. If you want to set up a holding company in Portugal, we invite you to solicit guidelines and complete information from our company formation specialists in Portugal.

Details about holding companies in Portugal

When registering a holding company in Portugal, one should know that the dividend income obtained by this type of entity from the subsidiary can be exempt from the corporate tax rate in the holding company's authority. Besides that, the following aspects must be met when opening a holding company in Portugal:

• •     the profits or the capital gains of a holding company in Portugal are subject to a low tax rate;
• •    if the holding company pays incoming or outgoing dividends to the parent company from overseas, the withholding tax rate will be reduced or eliminated.

Our company formation agents in Portugal are here to offer comprehensive information about how to set up a holding company in the country and about the taxes imposed on such business. The company registration procedure in Portugal is an effortless process which can be entirely guided by our team of advisors.

What is the purpose of a holding company in Portugal?

The management of the shareholdings in other companies that carry economic activities in Portugal is the sole purpose of holding companies established in this country. Having at least a 10% share in a company offers lots of advantages among which, the voting right. More than that, having a holding company can allow you to provide technical management, if a written agreement in this sense is made, as it is the case of subsidiaries. For more details about these aspects and about how to establish holding companies in Portugal, you can talk to one of our company formation representatives in Portugal.

Audits for holding companies in Portugal

A certified auditor needs to be appointed by holding companies in Portugal. These specialists must report to the General Tax Inspectorate in Portugal and provide the list of all stockholdings consisting of financial investments, as the law obliges. Such a report must be made on a yearly basis, and support in this matter can be obtained from one of our representatives in Portugal.

Taxation of holding companies in Portugal

Having a holding company in Portugal means taking advantage of an appealing tax regime where there is no capital gains tax and no corporate tax. The deduction on interests apply to holding companies in Portugal, however, the withholding tax is not eliminated, except the cases of outgoing or incoming dividends to the parent company. For a better understanding of the taxation of holding companies in Portugal, please address your inquiries to one of our company formation agents in Portugal.

What are the benefits of holding companies in Portugal?

Holding companies present a series of advantages which can raise the interest of investors who want control in specific companies in Portugal. Here are a few examples of holding company advantages in Portugal:

1. Holding companies are protected by the applicable EU directives.
2. The double taxation treaties signed by Portugal with countries worldwide provide a series of tax exemptions for holding companies.
3. Centralized corporate control is related to holding companies.
4. A holding company provides greater protection against all sorts of risks (operational and financial).
5. The protection of assets (equipment, intellectual property, etc.) can be offered by a holding company.
6. The amount of taxes can be reduced when owning a holding company in Portugal.
7. The management of a holding company in Portugal is controlled by the managers of this company.
8. The continuity of the business can be ensured by the directors of a holding company in Portugal.
9. Tax minimization methods can be successfully implemented in a holding company.
10. Investing in large projects can be made with the help of holding companies in Portugal.

The structure of a holding company in Portugal is not complex, however, for registering such a business in Portugal, it is recommended to solicit the support of our team of company formation specialists in Portugal.

Making investments in Portugal – key factors

Portugal has an excellent geographic location with important business connections worldwide, by air, sea, and land. International investors can enjoy numerous advantages when it comes to owning a business in Portugal. Among these, the mention that entrepreneurs can rely on the brilliant, skilled and multilingual workforce available on the market. Also, having access to complete technology for their companies allows international entrepreneurs to decide quite fast in Portugal for a business point of view. Another great advantage for entrepreneurs from abroad refers to the ease of registering a business in Portugal. There are no complex formalities in this matter, and that because the incorporation process of a company has been extensively simplified, including for holding companies in Portugal. The following facts, data, and numbers ca highlight a few aspects of the business direction and economy in Portugal:

• • the 2020 Doing Business report ranks Portugal 39th out of 190 worldwide economies, as stated by the World Bank;
• • international investors can obtain Portuguese citizenship if they make investments of at least EUR 250,000 in existing companies in this country;
• • 27% of the total FDI stock for 2018 in Portugal have been directed to the financial services sector;
• • Spain, the UK, Luxembourg, and the Netherlands are the main investors in Portugal;
• • around USD 135,777 million was the total FDI stock for Portugal in 2018.

Why should you open a holding company in Portugal?

If you want to manage the stocks in another enterprise as a secondary method of supporting the economic activities, you should register a holding company in Portugal. Under a signed arrangement which runs the terms of compensation, a holding company in Portugal can offer methodological management services to all of its subsidiaries. One should know that a holding company in Portugal can be set up as a private limited company or as a public one, the registration process being 90% about the same with the one for any type of company which is subject to a legal framework.