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Company Formation Portugal



Tax Minimization in Portugal

Updated on Wednesday 14th December 2022

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Tax-Minimization-in-Portugal.jpgThe 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.
Are you interested in the services offered by the certified team of accountants in Portugal? You have full support at your fingertips from our specialists, with experience in areas such as bookkeeping, payroll, audits, human resources, and annual financial statements. We are also at your disposal with information about the most optimal tax minimization options that can be successfully implemented in your company.
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.

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Call us now at +351 21 020 0969  to set up an appointment with Federico Richardson, the head of Lexidy Law Boutique SLP. Alternatively you can incorporate your company without traveling to Portugal. As our client, you will beneficiate from the joint expertize of local lawyers and international consultants. Furthermore we offer you the following:

- cost-efficiency: competitive company formation prices;

- prompt response to your inquiry (maxim 24 hours);

- free and complete legal information featured on our site, at your disposal.

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The team from CompanyFormationPortugal.com is very qualified and benefits from extensive expertise in this area. I would definitely recommend them to any entrepreneur decided to start his own business here.

Mihai Cuc, Partner of
MHC Law Firm

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