Types of companies in Portugal
- Limited liability company (Sociedade por Quotas de Reponsabilidad Limitada-LDA)
- Responsibility
- Minimum capital
- Min. number of shareholders
- Recommended for
- Limited liability company (Sociedade por Quotas de Reponsabilidad Limitada-LDA)
- Limited
- 5,000 €
1
- SMB
- One-person liability company(Sociedade Unipessoal por Quotas)
- Limited
- No min.
1
- Sole holder
- Sole holder (Empresa Individual)
- Unlimited
- No min.
1
- Sole holder
- Public limited company (Sociedade Anonima-SA)
- Limited
- 50,000 €
5
- Big companies
Corporate tax rate in Portugal
In Portugal the corporate tax rate is 21%. However, SMB* benefit from a reduction of this rate, it is lowered to 17% on the first 15 000€ of profit.
The Azores, have a corporate tax rate of 16.8%.
*Are considered as SMB companies which have less than 250 employees, a turnover below 50 million euros and which the total of the assets and liabilities does not exceed 43 million euros.
Questions
Why should I incorporate my company in Portugal?
- The infrastructures of the country are qualitative.
- Portugal is a very popular touristic destination.
- The country invests in research and development and is starting to diversify its business sectors.
- Labor costs are low.
Which difficulties can be encountered in Portugal?
- The country is specialized in low added-value sectors such as fuel, food, textile or chemistry.
- Public and private indebtedness is high.
- Justice is at a slow pace.
- Rates for doubtful loans are high and globally bank’s portfolios remain weak.
- Unemployment rate for young people is 25%.
- Labor Market is closed because of insufficient interior competitiveness and lack of investments.
Which are the cultural specificities of the world of work in Portugal?
- In Portugal the world of work is formal, it is fundamental to respect hierarchy and to use an appropriate vocabulary.
- Wearing formal clothing is important.
- Punctuality is crucial.
