Tax Minimization in Portugal

The tax minimization in Portugal is an effective tool adopted by numerous companies with establishments in the country which want to reduce the tax contributions in a legal manner. In this field, the tax minimization is considered a proper and a legal way to maximize the incomes of a company. Our company formation specialists in Portugal can offer support for all interested persons in tax minimization in Portugal and necessary guidance once such financial tool has been adopted.

Tax minimization methods in Portugal

Any company in Portugal needs a suitable tax plan to help them avoid the overpayment of the fees. In this matter, the VAT, the withholding tax, the income and corporate taxes, some of the main fees a company deals with, should be attentively analyzed. Another tax minimization method you can adopt is related to the income tax on salaries of personnel which can be reduced if several social contributions are paid by each employee under a strict convention signed in this matter. The same tax minimization tool can also apply to gifts, bonuses, office supplies or several subscriptions of a company in Portugal. Tax deductions can be obtained once you set up a foundation in Portugal, an important tool considered by many entrepreneurs from abroad. Furthermore, the repatriation of profits can be subject to fiscal optimization, as part of the tax minimization method. It is good to know that each saved money due to a tax minimization procedure can be invested in diverse areas, whether in the company’s different sectors or abroad. 

We remind that the company registration procedure in Portugal is an easy process which can be done within a few days. Complete guidance and information in this matter can be offered by our company formation agents in Portugal. The same team can help you set up a company in Portugal, in respect with the legislation in this country.

Taxes in Portugal – what you need to know

Even though the taxation system in Portugal is complex, it comes with special rights for both citizens or foreigners established in the country. It is good to know that non-residents in Portugal are subject to a 28% tax rate for capital gains and 25% as an income tax. The corporate tax is set at 21% in Portugal and in Azores Island, which is a free trade zone. As for the companies set here, these are subject to a 17.5% corporate tax rate. The tax imposed on interests, capital gains and dividends is set at 28%, but with several exemptions in the real estate sector.

If you are interested in tax minimization for your company, please feel free to contact our team of company formation agents in Portugal. We can also help you set up a company in Portugal.