Explore the market: 
Portugal

Running a business in Portugal

Bank account, banking regulations

If you wish to open a Portuguese bank account, you need to get a NIF (“Número de Identificação Fiscal” = Portuguese Tax Number).  You can easily get a NIF through a representative in Portugal.  This representative can either be a financial representative or a lawyer that will apply on your behalf.  You must obtain this number for any governmental activity, running a business, making an investment, or pursuing any legal matters in Portugal.

Obtaining a NIF number and then opening a bank account are typically the two steps taken by prospective applicants of the Golden Visa program in Portugal.

While some of the Portuguese banks allow opening your account online, most of them require you to visit their local branch in person. Nevertheless, the process is easy and the required documents are quite easy to collect. Although it may depend on your choice of bank, in general, the documents you need are as follows:

• Proof of Identification (e.g.; a passport would be sufficient)
• Proof of address (e.g.; a recent utility bill or letter received in the last three months with your visible name and address)
• Portuguese NIF Number
• Proof of Income/Employment (e.g., recent payslip or an employment letter)
• • If you are not employed, you can still open an account, provided that you have proof of registration with the Portuguese employment center (Centro de Emprego) or you have a work contract assurance
• Portuguese Phone Number for SMS Activation
• Additionally, a deposit of € 250-300 in cash (typically asked for new accounts)

Import/export regulations

The TARIC (Tarif Intégré de la Communauté), described above, is available to help determine if a license is required for a product. Moreover, the European Commission maintains an export helpdesk with information on import restrictions of various products:
http://trade.ec.europa.eu/tradehelp/import-restrictions

The many EU Member States maintain their own list of goods subject to import licensing. For example, Germany’s “Import List” (Einfuhrliste) includes goods for which licenses are required, their code numbers, any applicable restrictions, and the agency that will issue the relevant license. The Import List also indicates whether the license is required under German or EU law.

For information relevant to member state import licenses, please consult the relevant member state Country Commercial Guide: EU Member States’ Country Commercial Guides https://export.gov/ccg/ or conduct a search on the Commerce Department’s Market Research Library, available from: https://www.export.gov/Market-Intelligence

More info: https://www.trade.gov/knowledge-product/portugal-import-requirements-and-documentation

Tax rules: Corporation tax

Corporate tax in Portugal generally only applies to incorporated companies. Self-employed sole traders and people with stakes in partnerships pay personal Portuguese income tax on their profits instead.

The main categories of companies subject to corporate tax are the following:

• Resident incorporated companies must pay corporate tax on their worldwide income.
• Resident unincorporated companies must pay corporate tax on any worldwide income that isn’t subject to personal income tax.
• Non-resident companies (those registered outside Portugal) must pay corporate tax on Portuguese income that isn’t subject to personal income tax.

Businesses pay corporate tax in Portugal at a flat rate of 21% of any taxable profits. The rate has gradually come down in the last decade, leaving it slightly below the European Union average of 21.9%.

Businesses in Portugal may also need to pay surcharges on top of their corporate tax bill. These are as follows:

• Up to 1.5% local surcharge (Derrama) on the profit charged by the regional municipality.
• 3% state surcharge (Derrama Estadual) on profit between €1.5 million and €7.5 million (2.1% in Madeira, 2.4% in the Azores).
• 5% surcharge on profit between €7.5 million and €35 million (3.5% in Madeira, 4% in the Azores).
• 9% surcharge on profit over €35 million (6.3% in Madeira, 7.2% in the Azores).

More info: https://www.expatica.com/pt/finance/taxes/corporate-tax-in-portugal-91209

VAT registration thresholds

VAT in Portugal (Imposto Sobre o Valor Agregado, or IVA for short) was established in 1986. It is payable by all businesses with a turnover of more than €10,000 on taxable goods and services.

There are three rates of VAT in Portugal:

• General rate: 23% on taxable goods and services
• Intermediate rate: 13% on food and drink goods and services
• Reduced rate: 6% on certain essential necessities including certain foods (e.g., meat, fruit, vegetables, cereals), books, newspapers, medicines, transport, and hotel accommodation.

Separate VAT rates apply to the Portuguese islands of Madeira (22%/12%/5%) and the Azores (18%/9%/4%).

More info: https://www.expatica.com/pt/finance/taxes/corporate-tax-in-portugal-91209

Customer preferences

Willing to buy from foreign sellers

Recent developments in the social, economic, and technological context have had a high impact on the consumption habits of the Portuguese, and today there is a greater concern with the management of the family budget, as well as a concern with the environmental aspect of products, such as sustainability and the origin of the products they consume. The Portuguese are becoming more concerned about their personal comfort and well-being, especially the younger generations. A trend among the Portuguese youth is to buy natural, organic, locally grown foods. According to Deloitte, 45% of Portuguese claim to be willing to pay more for products and services provided by companies committed to having a positive social and environmental impact. On average, Portuguese consumers tend not to be impulsive buyers, especially after years of recession. Portuguese consumers tend to be loyal to clothing brands, but they are usually not loyal to food brands, as they tend to buy whatever is cheapest. Additionally, consumers prefer foreign products - with the exception of food. Nevertheless, in recent years there have been public awareness campaigns focused on encouraging people to buy domestic products. The Portuguese consumer has currently been described as "addicted to deals", as purchases of products on sale account for nearly half of all the purchases made in the country every year. Good prices and sales are the factors that most influence purchasing decisions and are what attract the Portuguese consumer.

Most popular countries for import of goods

Consumers in Portugal also miss out on the potential of a broader choice of products and better prices. Only 12 % of Portuguese consumers buy online from other EU countries.

Low confidence plays a key role: only 34% 34% of Portuguese consumers feel confident buying online from another EU country, they choose: Spain, Germany, Italy the most often.

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