Legislation of Portugal

Legal system

Civil law

Types of entity

Sole proprietor (Empresário em Nome Individual);
Individual limited liability establishment (Estabelecimento Individual de Responsabilidade Limitada);
Partnership company (Sociedade em Nome Coletivo);
Limited partnership company (Sociedades em Comandita);
cooperative;
Limited liability company (Sociedade por Quotas);
Public limited company (Sociedade anônima );
Branch of a foreign entity

Shelf companies permitted

Yes

Incorporation timescale for a new company

1 day

Company suffix

Lda

Sensitive words

Identical or similar names, misleading words, authority, bank and related words

Cyrillic alphabet permitted in company name

No

Local registered office

Yes

Local registered agent

No

Information to be kept at the registered office

All financial and fiscal documents, registers, company papers etc., they may also be kept in digital form

Seal required, type of seal

Not required

Redomiciliation (to, from) permitted

Permitted

Minimum number of directors

1

Residency requirements for directors

No

Corporate directors permitted

Yes

Directors’ meetings/frequency/location

No requirements

Disclosure to local agent

Yes

Disclosure to public

Yes

Company secretary required

No, but recommended if there is a non-resident director

Residency requirements for a secretary

No

Qualified secretary required

Yes

Corporate secretary permitted

No

Minimum number of shareholders

2

Residency requirements for shareholders

No

Corporate shareholder permitted

Yes

Meetings/frequency/location

Yes / annually / no requirements

Disclosure to local agent

Yes

Disclosure to public

Yes

Beneficiary info disclosure to

No

Minimum authorized share capital

2

Minimum issued share capital

2

Minimum paid share capital

2

Authorized capital payment deadlines

No requirements

Issued capital payment deadlines

Before the end of the first financial year

Standard currency

EUR

Standard authorized share capital

2

Standard par value of shares

1

Shares with no par value permitted

No

Bearer shares permitted

No

Personal tax

13,25-48%

Сorporate tax

21%

Corporate tax (in detail)

The standard tax rate is 21%. In some regions and for small enterprises, the rate may be lower in terms of part of income

Capital gains tax

21%

Capital gains tax. Details

Capital gains are included in the general tax base

VAT

23%

VAT. Details

The standard VAT rate is 23%. Reduced rates of 13% and 6% apply to certain goods and services

Withholding tax

25% (dividend), 25% (interest), 25% (royalty)

Other taxes

Social contributions, Municipal property tax, Property transfer tax

Exchange control

No

Government fee

—

Stamp duty

Rates vary by transaction

Requirement to prepare accounts

Yes

Requirement to file accounts

Yes

Publicly accessible accounts

Yes

Requirement to file Annual Return

No

Publicly accessible Annual Return

No

Audit required

No

Location

Southwestern Europe

Total area

92 151 sq.km

Population

10 347 892 (2021)

Capital

Lisbon

National currency

Euro

Conditional reduction of currency

EUR

Against USD

1?08 (2024)

Climate, average max and min t°

Subtropical, Mediterranean; avg. temperature in January – 5-10°C; avg. temperature in July +20-27°C

Time difference from Moscow

- 2 hours

Dialing code

+351

State language

Portuguese

Ethnic groups

Portuguese (87%); citizens of African and Asian descent (12%); small quantity of Spaniards andmigrants from Eastern Europe

Literacy rate

95,7% (2019)

History

History of Portugal as an independent state traces back to 1143, when it was established as an independent kingdom from the kingdom of Leon in 1143. In the 15th and 16th centuries, as the result of pioneering the Age of Discovery, Portugal expanded western influence and established the first global empire, becoming one of the world's major economic, political and military powers, and ultimately dividing the world with Spain. The Portuguese Empire was the longest-lived of the modern European colonial empires, spanning almost 600 years, from the capture of Ceuta in 1415 to the handover of Macau to n 1999 (de facto) or the granting of sovereignty to East Timor in 2002 (de jure). The empire spread throughout a vast number of territories that are now part of 53 different sovereign states. Portugal's international status was greatly reduced during the 19th century, especially following the Independence of Brazil, its largest and most important colony ever. After the 1910 revolution deposed the monarchy, the democratic but unstable Portuguese First Republic was established. Democracy was restored after the Portuguese Colonial War and the Carnation Revolution in 1974. The revolution in 1974 also resulted in the independence of Angola, Mozambique, São Tomé and Príncipe, Timor-Leste, Cape Verde and Guinea-Bissau in 1975. Portugal is one of the founding members of NATO and a member of the EU since 1986.

Credit rating

BBB

Government type

Parliamentary republic

Executive branch

Council of Ministers (Prime Minister and ministers)

Legislative branch

Assembly (230 memebers)

Judicial branch

Supreme Court; judicial tribunal of second instance; judicial tribunal of first instance

Unemployment

6,8% (2020)

GDP per capita rank

47 (2020)

Corruption perceptions index rank

62 (2021)