Portugal

The Portugal D2 was created with the objective of attracting foreign entrepreneurs who want to invest in Portugal, creating small and medium sized companies with economic, technological or cultural relevance to the country. The high standard of living, safety, lower cost of living, pleasant climate, well-educated workforce, lower labor costs, and lower corporate tax rate compared to many other EU countries have made Portugal an attractive destination for people who wish to launch their business or start-up or want to travel and trade more easily within the EU market. Portugal is also an ideal location for digital or technology-focused businesses due to its world-class infrastructure.

The D2 or the Immigrant Entrepreneur Visa is for entrepreneurs, freelancers, and independent service providers from outside of the EU and Schengen Area who wish to start (or transfer) a business or startup, or have already invested in a business, in Portugal. If your application is approved, you will be granted residency in Portugal. This will entitle you to live and work in Portugal.

 Who Is Qualified to Apply?
The D2 Visa is open to non-EU/EEA/Switzerland citizens who:

•  Either want to start a business in Portugal
• Or already have a business running in Portugal, but have not yet applied for the visa

Requirements for the D2 Visa

You must meet all requirements that are set by the Portuguese Government. Your application will be thoroughly and carefully reviewed by experts.

• So, you must have:
  A solid, well-structured Business Plan
• A viable business
• Sufficient capital
• A solid business reasoning for the creation of the business
• Proof of the financial resources to support the setup and growth of the business.
• Proof of means of subsistence. This normally means a minimum full wage annual value, plus half of that amount for your spouse and €2,160 for children. The minimum wage in Portugal is around €7,800, but this changes every year.

Family Members and Dependents

You can apply for a Family Reunification Visa to bring your spouse, your children, and your parents (considered dependents) to Portugal after receiving your initial residency permit. You must demonstrate that you not only have the financial resources to support yourself, but also each family member. However, the amount for spouses and children is not as high as the amount for supporting yourself.

Eligible Dependents
The main applicant is entitled to include the following dependent family members within their application:

• A spouse or partner
• A minor or incapacitated child
• Children older than 18, who are single and studying in an educational establishment in Portugal
• Dependent parents of the main applicant or their spouse
• Minor siblings, who are legally deemed to be in the care of the main applicant

Citizenship

Like the D7 and Golden Visa, the D2 provides a path to Portuguese Citizenship as well as a way of living in Portugal. Under the D2 visa, Portuguese residency permits have been granted for an initial period of 2 years.
After 5 years of residence in Portugal, those on the D2 are eligible to apply for settlement (Citizenship).
During those 5 years, you must spend at least 90 days living in Portugal to maintain your residency and be eligible for settlement. If, however, your business requires you to travel outside of Portugal for work, there is a certain amount of flexibility given.

Portugal is the leading destination for individuals and families seeking residence within the European Union. It offers a stable political and social environment, clear and transparent tax rules, good infrastructure, a favorable investment climate and an excellent quality of life. Most foreigners consider the cost of living to be low.
The Portugal Passive Income Visa – also known as a D7 Visa – provides residency status to non-EU / EEA / Swiss citizens, including retirees, who intend to relocate to Portugal and are in receipt of a reasonable and regular passive income.

Portuguese legislation provides for a special visa – D7 Visa – that allows foreigner citizens, who wish to reside in Portugal as retirees or live on their own income, regardless of age, the entrance in Portugal in order to obtain a residence permit, provided that they can prove to have sufficient income to provide them with means of livelihood. This income can come from real estate rentals, investments, among others.

Eligible applicants benefit from the following attractive perks:
The D2 Visa is open to non-EU/EEA/Switzerland citizens who:

• The right to live, work and/or study in Portugal
• An applicant may include dependent children and parents
• Visa-free travel throughout the Schengen Area of 26 European countries
• The option to take employment or establish a business in Portugal
• The option to apply for Portugal’s Non-Habitual Resident (NHR) tax regime status
• Qualification for permanent residency or citizenship in Portugal after five years
• Portuguese residency rights, including education and healthcare

Passive Income requirements
The key requirement for making a successful application is to be able to demonstrate that you are in receipt of regular ‘passive’ income, which may be derived from a pension, rental, dividends or certain categories of investment income.

The minimum income requirements vary according to the number of dependents that the main the applicant wishes to include, as follows:

Main Applicant – 100% of the minimum wage (currently €8,460 per annum)
Spouse or parents of main applicant – 50% of the minimum wage per person (currently €4,230 per annum)
Dependent children – 30% of the minimum wage per person (currently €2,538 per annum)
Eligible dependents
The main applicant is entitled to include the following dependent family members within their application:

• A spouse or partner
• A minor or incapacitated child
• Dependent parents of the main applicant or their spouse
• Minor siblings, who are legally deemed to be in the care of the main applicant

Portugal provides an excellent foundation for setting up a branch company with a stable economy and a range of financial incentives aimed at foreign investment. Establishing a branch company here requires adherence to the OECD Guidelines for Multinational Enterprises.

 What are the formalities regarding Portugal branches?

• A copy of the parent company’s Certificate of Good Standing
• A copy of the parent company’s Certificate of Incorporation
• Memorandum & Articles of Association of the parent company
• Minutes from the General Meeting or Board of Directors with the resolution to incorporate a Portuguese branch
• Power of attorney from the members of the Portuguese management board
• A legal representative of the branch

These documents are required in order to register the branch with the National Companies Register.

All relevant documentation must be officially certified and translated into Portuguese by a registered translator.

What are the accounting requirements for a Portugal Branch?

The branch company must set up a Portuguese bank account and appoint a chartered accountant to handle the accounts of the branch.

Registration with the Tax Office is required for VAT and taxation purposes. Portuguese branches are generally subject to the same taxes as any corporation and are required to submit annual VAT and tax accounts.

If you need further information on accountancy and tax rates in Portugal please contact our partners at Accountancy in Europe.

What office facilities are available when registering a branch?

There are three types of office available in Portugal:

• A registered office is the minimum requirement, providing a registered address for branch correspondence
• A virtual office allows branch communication off-site and includes facilities such as telephone, fax and mail forwarding to maintain business professionalism
• A serviced office provides an office space with all business services set up ready for immediate occupation

Please contact us for a quote regarding your office rental.

Branch formation packages

We will handle every aspect of the branch formation for you. Using our expert knowledge we can offer a branch formation package in which we take care of all aspects of establishing a branch, including setting up a bank account and registering for VAT.

Our unique one stop solution for all European formation requirements also offers formation packages to set up multiple branches. The benefits for establishing multiple branches include further increased exposure and global presence, and we can organize all aspects  for you.