ABOUT START UP VISA PROGRAM

The Portuguese startup visa is designed for entrepreneurs from countries outside the EU/EEA who wish to establish innovative companies in Portugal and offers them an opportunity to move to Portugal and implement their business ideas. The program simplifies the relocation process and supports the launch of startups, even at the idea stage. Applicants can also add their spouse as co founder, so they won’t have to worry about reunification.
The program collaborates with accredited incubators and is supported by IAPMEI (Institute for Support to Small and Medium Enterprises and Innovation), the government agency responsible for competitiveness and innovation, providing entrepreneurs with the necessary resources and expert guidance for success.

REQUIRED DOCUMENTS

• Passport
• Motivation letter
• Bank account with a minimum balance of €6,120 (to confirm financial viability)
• Criminal record certificates (from the country of citizenship and the country of residence for over one year, with an apostille in Portuguese or English)
• Long-term rental agreement for housing in Portugal (for at least one year)
• NIF / NISS
• Health insurance (touristic for D2 visa or número de utente, national public health insurance)
• Agreement with IAPMEI and information about your startup

WAYS TO APPLY FOR START UP VISA D2

• Application from home country
  ARTICLE 89.4
• Start up within Portugal for entrepreneurs arriving on a tourist visa or visa-free entry

STEP-BY-STEP GUIDE

REGISTERING COMPANY AND DEMONSTRATING GROWTH POTENTIAL

Complete the application on the online platform, outlining your business idea, model, and development plans. Within the first year of obtaining residency, you will need to register your company in Portugal.

In your motivation letter demonstrate:

● Outline your project’s scalability and potential for growth in European and global markets. The potential revenue of the startup should be at least €350,000 per year within five years.
● Show how your business will create job opportunities for local residents in Portugal.
● Emphasize your innovation; traditional businesses like cafés or beauty salons may not meet IAPMEI’s criteria.

CHOOSING IAPMEI INCUBATORS

Obtain approval from accredited business incubators that work with IAPMEI.
Basically, IAPMEI incubators work by providing startups and entrepreneurs with a supportive environment to develop their business ideas:

• Application and Selection: Entrepreneurs apply to join an incubator, presenting their business ideas. The incubator evaluates applications based on potential for growth and innovation.

• Support Services: Once accepted, startups receive various support services, including mentorship from experienced professionals, access to training programs, and networking opportunities with other entrepreneurs and investors.

• Workspace: Many incubators offer physical office space where startups can work and collaborate.

• Funding Assistance: Incubators often help startups access funding through grants, loans, or connections to investors.

• Business Development: They provide guidance on business planning, marketing strategies, and operational management to help entrepreneurs grow their companies.

• Exit Strategy: After a specified period, or once a startup reaches certain milestones, they typically “graduate” from the incubator, equipped to operate independently.

GETTING IAPMEI APPROVAL

Choose the most suitable incubator after receiving approvals from several and submit your application to IAPMEI.
IAPMEI decides on the application within 30 working days, notifying candidates via the platform. If additional documents are needed, candidates have 3 working days to provide them.

For an unfavorable decision, applicants can submit objections within 10 working days via email. If no response is received, IAPMEI makes the final decision.

After IAPMEI approval (you need IAPMEI’s approval to show that your business aligns with the country’s innovation and economic goals), entrepreneurs can proceed with a chosen incubation contract.

SIGNING INCUBATION CONTRACT

After approval, entrepreneurs and incubators have 40 working days to sign the incubation contract. The contract must include:

● Entrepreneur’s responsibilities
● Incubator’s services and obligations
● Contract value
● Incubator’s project supervisor

It should include the incubator’s and entrepreneurs’ details and be submitted on the platform, dated and signed, following next steps

1. Entrepreneurs invite incubators to formalize the contract on the platform.
2. Incubators upload the signed contract within 5 working days.
3. A Declaration of Acceptance, valid for 180 days, will then be available to entrepreneurs for visa application purposes.

VISA APPROVAL

Once approved, you will receive your D2 Visa for 4 months. Start making necessary arrangements to move to Portugal, including travel and housing. Travel to Portugal using your D2 Visa.

APPLY FOR A RESIDENCE PERMIT

Schedule an appointment at AIMA and submit all prepared documents, adding to already existing ones NIF and copy of your D2 visa, for processing the residency. Make sure all documents are in order and you have provided all necessary confirmations.
Submit all prepared documents and provide biometric data (fingerprints and photos) for processing the residency. Make sure all documents are in order and you have provided all necessary confirmations.

The applicants can also come to Portugal on a tourist visa (or under a visa-free regime) and apply in Portugal under Article 89.4 without getting visa D2 from the Portuguese Consulate.

RelyOn clients don’t need to worry about securing an appointment; we will handle the scheduling at a time that is most convenient for them, allowing them to prepare their documents without any stress.

MONITORING THE PROCESS AND PREPARING TO START YOUR BUSINESS

Carefully track the visa application process and ensure compliance with all program requirements. Once the residency permit is successfully obtained, begin implementing your startup project in Portugal and take advantage of the opportunities offered by the country’s innovative business environment.

FAMILY REUNIFICATION

When an entrepreneur receives a residence permit card, family members (spouse, children) can apply for a residence permit at AIMA under Article 98.2 (family reunification).
Once again, spouse can be added as co founder of the business, so the family won’t have to worry about reunification later.

By offering access to resources, incubator support, and a streamlined path to residency, Portugal positions itself as a dynamic hub for global startups. With careful planning and adherence to program requirements, entrepreneurs can successfully launch their businesses while also benefiting from the country’s vibrant entrepreneurial ecosystem. Moreover, the flexibility to include family members in the process ensures a smooth transition to life in Portugal. RelyOn Relocation is here to guide you through every step of the process, from securing approvals to handling appointments, ensuring a stress-free journey toward realizing your business goals in Portugal.

ABOUT STUDENT VISA PROGRAM

When there are no other options, you can consider relocating to Portugal on a student visa or obtaining a residence permit through university studies or professional courses.

There are several options for enrolling in universities in Portugal, each with different study durations.

BACHELOR’S:

● 3-4 years duration
● applicants will need to pass an entrance exam
● the cost of studies in university can vary from 2,500 to 8,000 euros per year
● applicant must have High School Diploma

MASTER’S:

● 2-3 years duration
● applicant must have Bachelor’s Degree

POSTGRADUATE:

● duration is typically 1 year (it’s important to note that to obtain a D4 student visa, the course must last at least 1 year), ideal for those who prefer not to invest a lot of time and effort in their studies
● after finishing a course there is normally no need to write a thesis; completing a group test is enough.
● applicant must have previous Master’s Degree

PROFESSIONAL COURSES

● 2 years duration
● wide range of professions, from dental assistant to designer
● the average cost is around 2,000 – 4,000 euros per year

It is important to understand that most programs (80%) are conducted in Portuguese. International schools and institutes are usually private, and tuition fees there are higher. There are also programs with theory in Portuguese (with the possibility of translation into English) and practice in English. Although programs in Portuguese might seem challenging, they are still more affordable and can be a good opportunity to learn the local language.

The residence permit is granted for one or two years, depending on the program, and can be renewed as the course continues, and even later after getting a job or starting a business in Portugal.

For a residence permit through professional courses, you may apply from within Portugal. However, for university studies, we recommend obtaining a D4 visa in your home country first. 

PORTUGUESE STUDENT VISA D4 STEP-BY-STEP GUIDE

CHOOSING A UNIVERSITY OR COLLEGE

When choosing a university or professional courses at a college in Portugal, consider the accreditation and reputation, programs offered, and language of instruction. Evaluate the location, cost of living, and campus facilities. Check for international student support, tuition fees, and available scholarships. Assess career services and the strength of the alumni network, and seek feedback from current or former students for insights into their experiences. For professional courses, ensure the college offers programs that align with your career goals and check the duration and cost of the courses.
We provide a list of options based on RelyOn clients’ preferences to help a client find the right institution.

ENROLLMENT AND DOCUMENT SUBMISSION TO A UNIVERSITY OR COLLEGE

Prepare the diploma or certificate with grades and apostille
Bachelor’s: High School Diploma
Master’s: Bachelor’s Degree
Postgraduate: Master’s Degree
Submit your documents to the university or college, take the entrance exam (if necessary) and receive enrollment documents from the university or college.
Professional courses must follow CNQ (National Catalog of Qualifications – manages non-higher education qualifications) standards.

COLLECT REQUIRED DOCUMENTATION

Get all necessary documents, including:
1. Passport. Must be valid for at least 3 months after the end of the study course
2. Diploma of secondary or higher education
3. Certificate of enrollment. An official letter from the university or college and also Confirmation of payment for tuition (receipts or contract with the educational institution).
4. Proof of financial. Means By the official requirements for a Secondary school residency the applicant will need to show savings of at least €10,000 per person in their account. To increase the chances of getting approved for a residency permit, some applicants aim to show a deposit of €12000 – €16000.
5. Proof of accommodation. To apply for a residency permit, one must have an accommodation in Portugal. It can be a one-year rental contract in Portugal. Note, that the contract needs to be registered with Finanças.
The client may also submit the letter from a guarantor providing them accommodation instead (including their rental contract or property certificate).
6. Criminal record certificate. Applicants over 16 must provide a criminal record certificate from their home country and any countries they lived in for over a year.
Obtaining the Certificate: Request it from the relevant authorities, then get it apostilled, translated into Portuguese, and notarized. If you are applying from Portugal, you could also request your criminal record certificate from the Consulate in Portugal.
Validity: The certificate is valid for 90 days. Order the certificate after getting an appointment, and gather other documents while it’s processed.
7. Health insurance. Touristic health insurance for applicants from home country, and private health insurance or national public health insurance (número de utente)
8. Proof of legal entry into Portugal. For cases of applications for a visa-free residence permit. Normally, it is a visa, plane ticket, and entry stamp, etc.
9. NIF. The first document that applicants for residence in Portugal receive is a Portuguese tax number, known as NIF.
Clients will need a NIF number to rent a place, open a bank account, get insurance etc.
We will obtain the NIF for RelyOn clients, before they arrive in Portugal.

APPOINTMENT AT THE PORTUGUESE CONSULATE AND SUBMISSION OF DOCUMENTS

Submit your completed D4 Visa application at the Portuguese Embassy or Consulate in your home country or country of residence.

After submitting your application, the applicant will receive the D4 visa for 4 months.

This step is not necessary for those who decided to apply directly inside Portugal.

APPLY FOR A RESIDENCE PERMIT

Schedule an appointment at AIMA under article 92 and submit all prepared documents and provide biometric data (fingerprints and photos) for processing the residency. Make sure all documents are in order and you have provided all necessary confirmations.

RelyOn clients don’t need to worry about securing an appointment; we will handle the scheduling at a time that is most convenient for them, allowing them to prepare their documents without any stress.

FAMILY REUNIFICATION

Once a student receives their residence permit card, family members (spouse, children/parents) can apply for a residence permit at AIMA under Article 98.2 (family reunification).

Obtaining a Portuguese Student Visa D4 and Residence Permit offers a fantastic opportunity for both personal and professional growth. Whether you choose to pursue university studies or professional courses, Portugal provides high-quality education, a rich cultural experience, and the potential to stay for work or business. With Relyon Relocation by your side, you can rest assured that every step of your move will be seamless – from selecting the right educational institution to securing a residence permit for your entire family. We take care of the complexities, so you can focus on achieving your goals.

A World of Options: Why a Second Passport Can Change Your Life

Have you ever imagined what it would be like to hop on a plane, breeze through customs, and step into a new country with minimal fuss? That dream is a reality for many people, and the key that unlocks it is something called a second passport. But wait – what exactly is a second passport, and how can it totally change your life? Let’s dive in!

1. Understanding Second Passports

1.1 What is a second passport?

A second passport is just what it sounds like: a passport from another country, in addition to the one you already have. It gives you the legal right to live, work, and travel in that country as if you were born there. Imagine having an extra set of keys to the world!

1.2 How to obtain a second passport

There are several ways to get one: through birthright (if your parents or grandparents hail from a foreign land), by naturalization (living in a country long enough to become a citizen), through different types of residential visas or through investment programs, where some countries offer citizenship in exchange for investing in their economy. It’s like getting VIP access to a country – only with paperwork.

1.3 Legal considerations and responsibilities

Having a second passport sounds glamorous, but don’t forget the legal side. You may need to keep up with taxes, military service, or other obligations in both countries. The laws can be tricky, and this is where professionals, like Relyon Relocation, come in handy to help you navigate the details.

2. Enhanced Global Mobility

2.1 Expanded visa-free travel

One of the most exciting perks of a second passport is the expanded visa-free travel. U.S. passports are powerful, but they don’t grant access to every country without a visa. A second passport might open doors to places you’ve always wanted to explore without needing extra paperwork. Think about it – one passport could get you to Thailand, and the other gets you into Brazil hassle-free!

2.2 Easier border crossings

Ever been stuck in a painfully long customs line? With the right second passport, you could zoom through some borders with priority. It’s like owning a FastPass at Disneyland, except for international travel.

2.3 Extended stay options in foreign countries

With a second passport, long stays abroad are often much simpler. Whether you’re retiring in sunny Portugal or taking a year off to live in Europe, you won’t have to deal with the headache of visa renewals or limited stay restrictions. Picture this: spending months sipping espresso in Italy without having to pack your bags every 90 days!

3. Economic Advantages

3.1 Access to new job markets

A second passport can open doors to new job markets. Let’s say you’ve always wanted to work in Europe—well, with citizenship, you don’t need work visas or extra permissions. Your dream job in Berlin or Paris might just be one passport away.

3.2 International business opportunities

For entrepreneurs, a second passport can be a business goldmine. Imagine the ability to easily establish companies in new markets, access global investors, and take advantage of local business perks. It’s like having a VIP backstage pass to international business opportunities.

3.3 Tax optimization strategies

Now, here’s where things get interesting: having dual citizenship could allow you to take advantage of more favorable tax laws abroad. While Uncle Sam doesn’t let you off the hook that easily, strategic tax planning across multiple countries can help minimize your tax bill. And who wouldn’t want to keep more of their hard-earned cash?

4. Personal Freedom and Security

4.1 Political stability options

A second passport is more than just a travel perk – it’s a safety net. If the political climate in your home country gets a little too chaotic, a second passport gives you the option to relocate to a more stable environment.

4.2 Emergency relocation possibilities

In times of emergency, having another country to go to can be a lifesaver. Whether it’s a natural disaster or a sudden crisis, knowing you have a “Plan B” ready to go can bring immense peace of mind.

4.3 Protection from geopolitical risks

In an increasingly unpredictable world, having multiple citizenships can provide protection from geopolitical issues. Whether it’s economic downturns, political unrest, or sanctions, a second passport offers you a way out. It’s like having an escape hatch for your life – just in case.

5. Challenges and Considerations

5.1 Dual tax obligations

Now, before you get too excited, let’s talk about the flip side. Having two passports often means double the tax obligations. You may need to file taxes in both countries, which can get complicated. But with good planning (and Relyon Experts help), you can find ways to manage it.

5.2 Military service requirements

In some countries, citizens are required to perform military service. If you’re a dual citizen, you might find yourself facing these obligations – so it’s worth checking the fine print.

5.3 Balancing multiple national identities

Having two nationalities can sometimes feel like living a double life. Balancing loyalties, traditions, and obligations can be challenging, but for many, the perks outweigh the occasional identity crisis.

Why Work with Relyon Relocation?

At the end of the day, a second passport is like your personal key to global freedom – whether it’s for travel, business, or personal security. And while the benefits are clear, the process can be complex. That’s where Relyon Relocation comes in! Specializing in Portuguese citizenship, we’ll guide you through every step of the process to make sure your second passport journey is smooth and stress-free. Ready to explore your new world of options? Contact us today!

Vibrant Cities and Coastal Charm: The Best Portuguese Cities for Expats

Why Portugal is the perfect expat destination and how Relyon Relocation makes it a breeze!

In recent years, Portugal has become the dream destination for non-EU citizens seeking residency in Europe, and it’s not hard to see why. From the relaxed lifestyle to the stunning beaches and cities brimming with culture, Portugal offers an irresistible combination of charm and practicality. Whether you’re eyeing a sun-soaked retirement or planning to run your international business remotely, the Portuguese Golden Visa and D7 Visa options make it surprisingly easy to settle down in this coastal paradise.
But before you pack your bags, you might need some help navigating the paperwork, visas, and all those not-so-glamorous details. That’s where Relyon Relocation steps in. They’ve got your back, guiding you through the whole process so you can focus on more important things, like choosing your perfect city! Let’s take a tour of the most popular Portuguese hotspots for expats and see which one is right for you.

Lisbon: A Perfect Blend of History and Modernity

Lisbon is the heartbeat of Portugal, a city where history and modernity dance together effortlessly. Expats here rave about the city’s energy – it’s a place where old-world charm meets a fast-growing tech scene. Locals are warm, open-minded, and used to mingling with people from around the world.

Life for Expats:

Expats love Lisbon’s diversity and vibrant expat communities. English is widely spoken, making the transition easier. The locals? Welcoming, as long as you show an interest in their culture – and maybe learn a few words of Portuguese!

Work & Business:

Lisbon is a booming tech hub, attracting startups and remote workers. Salaries range from €1,000 ($1100) to €2,500 ($2750) per month, depending on your field. While it’s not Silicon Valley-level pay, the lower cost of living makes up for it.

Housing:

Rent in Lisbon can be steep by Portuguese standards. Expect to pay from €900 to €2,500 ($1000 – $2750) per month for a two-bedroom apartment in central areas like Baixa or Chiado. Buying? Prices start around €3,500 ($3880) per square meter in prime locations.

Cost of Living:

Grocery prices are manageable – around €50 ($55) a week for a single person. Dining out? A meal at a mid-range restaurant will set you back about €15-20 ($16-22), while a casual café lunch is just €10 ($11).

Culture & Entertainment:

Lisbon is brimming with museums, art galleries, and music festivals. The nightlife is legendary, from trendy rooftop bars to intimate Fado performances.

Schools, Sports & Health:

Great international schools and universities make Lisbon perfect for families. There’s also excellent healthcare, both public and private, with affordable costs for expats.

Who Should Live Here?

If you love the buzz of city life but want a touch of history and culture at every corner, Lisbon is your spot. Ideal for digital nomads, entrepreneurs, and anyone who thrives in a cosmopolitan environment.

Porto: Cultural Hub with a Riverside Appeal

A little more laid-back than Lisbon, Porto is a city for lovers of wine, history, and riverside views. It’s gaining popularity among expats, but still retains that quintessential Portuguese authenticity.

Life for Expats:

The vibe in Porto is friendlier and more intimate. Expats feel like part of the community here. Plus, the locals are known for their hospitality and warmth.

Work & Business:

Porto is great for freelancers and those in creative industries. Salaries are slightly lower than in Lisbon, averaging €900 to €1,800 ($1000 – $2000) a month.

Housing:

Rent in Porto is more affordable. A two-bedroom apartment in the city center will cost you around €700 – €1,500 ($780 – $1670 ) a month. Buying property? Prices hover around €2,500 ($2775) per square meter.

Cost of Living:

Groceries are even cheaper than Lisbon, and you can dine like a king on a budget. A three-course meal at a decent restaurant? €10-15 ($11-$16). And don’t forget the port wine – you can get a great bottle for under €10!

Culture & Entertainment:

Porto is rich in history, with UNESCO World Heritage sites like the Ribeira District. There’s always a cultural event or festival happening, from wine tastings to music concerts along the Douro River. Plus, the art scene here is growing fast.

Schools, Sports & Health:

Porto boasts reputable international schools and solid healthcare options. There’s a strong sense of community, which is perfect for families. The city is also mad about football, so you’ll never run out of games to watch or play.

Who Should Live Here?

Porto is ideal for expats who want a slower pace without sacrificing culture. It’s perfect for creatives, young professionals, and families who want a more affordable yet lively city with a riverside view.

Algarve: Sun-Soaked Paradise for Beach Lovers

If your vision of paradise involves golden beaches, palm trees, and year-round sunshine, Algarve is calling your name. The region is a favorite among retirees, remote workers, and sun worshippers alike.

Life for Expats:

The Algarve is incredibly expat-friendly. There are large English-speaking communities, especially in towns like Lagos, Faro, and Albufeira. Locals are accustomed to expats and tend to be welcoming and relaxed.

Work & Business:

While the Algarve isn’t known for corporate offices, it’s perfect for remote work. Many digital nomads enjoy the slower pace of life here. Salaries in the region are lower, averaging €800-€1,500 ($890-$1670) monthly, but remote work evens out that gap.

Housing:

Renting a two-bedroom near the beach will cost €700-€1,200 ($780-$1330) a month. Buying property? Prices start at €2,000 ($2200) per square meter. Many expats choose to invest in homes here because of the rising demand for vacation rentals.

Cost of Living:

Groceries are affordable, and you’ll find some of the freshest seafood in Europe. A mid-range meal costs about €12-15 ($14-16), and dining by the beach is a must!

Culture & Entertainment:

Beach life is a lifestyle in the Algarve. Surfing, sailing, and beach bars are all part of the daily routine. And if you love golf, the Algarve is home to world-class courses. The nightlife is lively, with plenty of seaside bars and clubs.

Schools, Sports & Health:

Though the Algarve has fewer international schools than Lisbon or Porto, families still have good options, Because the Algarve has historically been a base for English and American people. Healthcare facilities are well-rated, especially in larger towns like Faro.

Who Should Live Here?

Algarve is perfect for beach lovers, retirees, and digital nomads who want an affordable yet idyllic place to live. If your dream includes sunshine, sand, and sea, the Algarve should be top of your list.

Cascais: Where Luxurious Living Meets Ocean Views

Cascais, once a sleepy fishing village, has transformed into one of the most exclusive and luxurious destinations in Portugal. Just a stone’s throw from Lisbon, it offers a perfect mix of coastal beauty and sophisticated living and is known as the Portuguese Riviera.

Life for Expats:

Expats in Cascais enjoy a relaxed, upscale lifestyle. The town is chic, with plenty of international residents. Locals tend to be affluent and welcoming, especially to those who appreciate the finer things in life.

Work & Business:

Many expats commute to Lisbon or work remotely. It’s a great base for entrepreneurs and business owners who want to be close to the capital while enjoying a more peaceful setting.

Housing:

Cascais isn’t cheap, but it’s worth it. Rent for a two-bedroom apartment ranges from €1,200 to €3,000 ($1350-3350)a month. Thinking of buying? You’re looking at prices starting at €4,000 ($4450) per square meter.

Cost of Living:

Groceries are on par with Lisbon, and dining out is a treat. Expect to spend around €25-30 ($27-33) for a nice meal at one of Cascais’ upscale restaurants. Cafés by the beach are perfect for a casual meal or coffee with ocean views.

Culture & Entertainment:

Cascais offers a more laid-back nightlife than Lisbon, but it still has plenty to do. You can enjoy world-class golf, tennis, and, of course, sailing. The town also hosts art exhibitions, music events, and cultural festivals throughout the year.

Schools, Sports & Health:

Cascais is home to top international schools and excellent healthcare facilities. Families love the safety, the proximity to nature, and the access to various sports activities like surfing, hiking, and golf.

Who Should Live Here?

Cascais is perfect for expats who want luxury, convenience, affluent and interconnected community and stunning ocean views. It’s ideal for retirees, families, and anyone looking for a sophisticated coastal lifestyle with easy access to Lisbon.

From the bustling streets of Lisbon to the golden shores of the Algarve, Portugal offers a diverse range of cities perfect for expats. Whether you’re looking for culture, business opportunities, or a beachside retreat, there’s a city here for everyone. And with the help of Relyon Relocation, making your move to this beautiful country is easier than ever. All that’s left is to choose your new home – where will it be?

Portugal offers a favorable tax environment for both residents and non-residents, making it an attractive destination for individuals and businesses alike. Understanding the key taxes, from personal income tax to corporate and property taxes, is essential for anyone planning to live, work, or invest in Portugal. This guide will walk you through the most important aspects of the Portuguese tax system, helping you navigate your obligations and opportunities.

Key taxes in Portugal include income tax, corporate tax, VAT, capital gains tax, as well as property transfer and inheritance taxes. Both tax residents (those who reside in Portugal for at least 183 days per year) and non-residents have to pay taxes.
However, tax residents need to pay worldwide income tax, while those who live in the country for less than 183 days only pay tax on what they earn in Portugal.

Personal Income Tax (IRS)

Tax residents and non-residents earning Portuguese-sourced income pay the IRS on a progressive scale (14,5%-48%), with the rate depending on annual income. Non-residents are subject to a 25% flat rate on employment income derived from Portuguese sources.

Corporate Tax for legal entities

This tax is paid by all companies operating in Portugal. If the company is not a Portuguese tax resident, it pays tax only on profits earned in Portugal. The standard corporate tax rate is 21%, but in Madeira and the Azores (special economic zones), it’s approximately 14.7%. Small and medium-sized enterprises may qualify for a reduced rate of 17%.

The Value Added Tax (VAT)

Applies to legal entities providing services or selling goods. The rate varies depending on the type of goods or services and region. Usually, it is between 6% and 23%.

Tax on Dividends

Different rates are applicable: 28% for companies-residents of Portugal and 25% for companies-non-residents receiving dividends from a Portuguese company.

Stamp Duty

It is a tax placed by the government on different legal documents, usually in the transfer of assets or property. Paid by legal entities and individuals at equal rates: 5% in case of selling of a business or share, and 10% for gifts and inheritance.

Additional solidarity rate

The rate of 2.5% applies to personal income tax if the annual income exceeds €80,882, and 5% rate is levied on income over €250,000.

Capital gains tax

The tax is charged in Portugal on the sale of property or assets at a rate of 28% for individuals and 25% for legal entities and non-residents. Residents are taxed on just 50% of their capital gains.

Real estate taxes in Portugal

1. Purchase of real estate:

Property Transfer Tax
(IMT, Imposto Municipal sobre Transmissoes) a municipal tax which is paid on a single payment. The rate is changeable according to the type, location and value of the property. It is calculated by the value declared in the deeds or on the rateable value. Generally, the tax rate is between 0-8%, while for commercial property it has a flat rate of 6.5%, and for agricultural and rustic lands the rate is 5%.

Stamp Duty is paid on deeds, contracts, bank loans, documents, etc. When buying a house, you pay this tax to the notary while signing the deed of sale. The rate is 0.8%.

Notary fees and administrative expenses total 2.5% of the property’s value.

2. Other real estate taxes:

As an owner of a property in Portugal, you need to pay Immovable Property Tax (IMI, Imposto Municipal Sobre Imóveis). This tax is paid on a yearly basis, and the rate differs according to municipality. Urban property tax rates range from 0.3% to 0.5%, while properties in rural areas are taxed at 0.8%.
If you want to rent your property, as a non-resident, you must pay Rental Tax on your rental income, which is 28%. As a resident, you will pay a flat rate of 28% and you can add rental income to your other income for the year so it is taxed at the normal scale rates.
If you come to sell your Portuguese property, you could be liable to 28% Capital Gains Tax (for non-residents). EU/EEA residents can choose to pay the scale income tax rates if that proves more beneficial. You can be exempt from this tax if you use the capital from selling a main home to buy another home in Portugal or the EU/EEA area.

As for Inheritance Tax, passing on Portuguese property to any recipients other than your spouse, children or parents will incur a flat 10% Stamp Duty.

Navigating the Portuguese tax system may seem complex at first, but with the right information and guidance, it becomes manageable and even advantageous. Whether you are considering moving to Portugal, investing in property, or starting a business, understanding the tax landscape is crucial. Let RelyOn Relocation help you make the most of Portugal’s tax benefits, ensuring your financial and business goals align with the country’s regulations.

D2 Visa – Your Gateway to Business in Portugal

Entrepreneurs are a unique breed! They’re full of ideas, energy, and drive to create businesses that bring profit, provide jobs, benefit society, and contribute to the economy. Always thinking ahead, they aim to grow their business and often feel constrained by the limits of one city or country. This ambition leads them to explore international opportunities and new challenges.
At some point, many entrepreneurs feel the pull to expand beyond borders, seeking new markets and bigger opportunities. European countries, especially Portugal, understand the value of attracting foreign entrepreneurs. That’s why they’ve created the D2 Visa – a perfect solution for those who want to live, work, and build a business in Europe.

Why Choose the D2 Visa?

The D2 Visa is tailored for non-EU entrepreneurs, freelancers, and investors who want to live and work in Portugal. With this visa, you can move to Portugal, run your business, and travel freely across the Schengen Zone, whether for business or pleasure. Even better, your family can join you, enjoying the same rights and privileges as residents!
So, if you’re thinking about launching your business in Europe and enjoying the benefits of living there, the D2 Visa is the ideal option.

Where to Start?

The first question is – which country is right for your business? You need a place with the right business environment, competitive market, and reasonable startup costs. You might wonder whether to buy an existing business or start a new one, or perhaps even expand your current business with a branch office.
Next, quality of life is crucial. You want a place with a high standard of living – good housing, a comfortable climate, affordable prices, reliable infrastructure, and a safe environment.
And let’s not forget your family. Relocation should be smooth for everyone, especially children. High-quality schools and healthcare are non-negotiable.
Once you start considering all these factors, it becomes clear that handling everything on your own can be overwhelming. That’s where finding the right relocation partner comes in.

Why RelyOn Relocation?

RelyOn Relocation is the leading expert in securing D2 Visas for entrepreneurs. From your very first free consultation, our dedicated team will guide you step-by-step through the entire process, taking care of all the paperwork and legal procedures, ensuring your relocation and business setup are as smooth as possible.
With years of experience, we’ve chosen to specialize in Portugal, consistently recommending the D2 Visa for entrepreneurs.

Why Portugal?

Portugal offers a perfect environment for families and entrepreneurs alike. It’s a welcoming country, no matter your age, nationality, or profession. Here’s why we recommend Portugal for your business and family relocation:
● High quality of life comparable to leading countries
● Welcoming atmosphere for newcomers
● Business-friendly environment with government incentives for startups and job creation
● Competitive tax rates for businesses
● Wide selection of ready-made businesses for sale
● Affordable and high-quality housing
● English is widely spoken – no need to learn Portuguese right away
● Fresh, healthy food at affordable prices
● World-class healthcare
● Excellent education and safe schools for children
● Low crime rate – safe and secure neighborhoods
● Rich cultural history and beautiful landscapes
● Ideal climate with the entire country bordered by the Atlantic Ocean
● Opportunities tailored for both emerging professionals and retirees

If you’re ready to take the next step, RelyOn Relocation can help you navigate every part of the journey, from securing your D2 Visa to finding the best opportunities for your business and family in Portugal.

D2 Visa requirements

In the first case, the applicant must appoint himself as a director and pay a salary and social security, making it a more expensive option. Alternatively, being self-employed is more economical since social security contributions are waived during the first year. However, the client still needs to demonstrate the value of their business to Portugal by securing contracts or agreements with local companies. This is not a formal requirement, but drawn from the experience of their consultants. Unofficially, the most significant number of refusals are due to “not having enough reasons to do business and to be in Portugal”.

Self-employment

● The applicant needs to have a VAT representative in Portugal to become self-employed. This person is usually a lawyer
● No need to pay social security for the first year (starting from the second year, pay only 21.4% of profit per month)
● The client don’t have to have an accountant, but it’s advisable to have a contract without VAT (IVA here is 23%), if their annual income does not exceed 14 000 euros
● During registration, you can provide any bank account with a European IBAN, but it’s advisable to switch to a Portuguese account afterward
● If there is no profit, the mandatory payment to the social fund is 20 euros per month

A company:

● The applicant needs to have a VAT representative in Portugal to start a company
● The client needs to pay all taxes and social security (33.74% of monthly income per person, including themself)
● The applicant will hire a certified Portuguese accountant (costs around 150 euros per month)
● The client will open a corporate bank account in addition to a personal account
● NHR is not applicable

Portugal – the fastest-growing economy in the European Union, offers a world of opportunity for entrepreneurs looking to expand their horizons. With the D2 Visa, you not only get the chance to grow your business in a dynamic European market, but also to enjoy the exceptional quality of life that Portugal is famous for. Let RelyOn Relocation guide you through every step of the process, helping you turn your business dreams into reality in one of the most welcoming countries in Europe.

From Passive Income to Portuguese Paradise: The D7 Visa Journey

For those dreaming of sunny beaches, rich culture, and a high quality of life, Portugal has become a top destination. And thanks to the D7 Visa, moving to Portugal is more accessible than ever, especially for those who have passive income. Let’s explore what the D7 Visa is, how it works, and why it could be your gateway to a Portuguese paradise.

1. Understanding the D7 Visa

1.1 What is the D7 Visa?

The D7 Visa is a long-term residency visa designed for non-EU citizens who have a steady passive income. Introduced in 2007, this visa allows individuals to live in Portugal and enjoy the benefits of its peaceful, beautiful lifestyle. Unlike other visas tied to employment, the D7 focuses on income from investments, rentals, or retirements.

1.2 Who is eligible for the D7 Visa?

To be eligible, you must demonstrate that you have sufficient passive income to support yourself without relying on a job in Portugal. This makes the D7 perfect for retirees, investors, digital nomads, and others who earn income remotely. Whether you’re drawing from a rental property, dividends, or even a pension, you might just qualify!

1.3 The benefits of the D7 Visa

The D7 Visa doesn’t just give you residency in Portugal; it opens the door to Europe. You’ll enjoy visa-free travel across the Schengen zone, access to Portugal’s healthcare system, and the chance to apply for permanent residency or citizenship after five years. And for families, the visa can extend to spouses and dependents, making the dream of relocating to Portugal a reality for everyone.

2. The Passive Income Requirements

2.1 Defining passive income for D7 Visa purposes

For the D7, “passive income” means earnings not tied to active employment. This could be anything from rental income, dividends, or even royalties from intellectual property. Essentially, it’s about showing you have a stable income stream, even if you’re not working day-to-day.

2.2 Minimum income thresholds

To qualify, you’ll need to meet certain income thresholds. For a single applicant, the minimum is currently around €8,460 per year (about $9,000 USD). This figure increases for additional family members. While this number may seem modest, it ensures you can comfortably live in Portugal without needing local employment.

2.3 Acceptable sources of passive income

Acceptable income sources include rental income from properties, returns on financial investments, retirements, and royalties. Digital nomads often qualify by showing income from freelance work or remote employment, provided it’s regular and sufficient to meet the visa’s minimums.

3. The Application Process

3.1 Required documents

Applying for the D7 Visa requires several key documents:
● Proof of passive income (bank statements, tax returns)
● A clean criminal record
● Proof of Portuguese accommodation (rental contract or property ownership)
● Health insurance valid in Portugal
● Passport valid for six months beyond your planned stay

3.2 Step-by-step application guide

1. Gather your documents: Collect proof of income, accommodation, and other required documents.
2. Submit your application: You’ll need to apply through a Portuguese consulate in your home country.
3. Attend an interview: You may be asked to attend an in-person interview.
4. Receive your visa: If approved, you’ll receive a temporary visa to enter Portugal and finalize the residency process.

3.3 Processing times and fees

The application process typically takes two to three months, and fees are relatively low compared to other European visas. You’ll pay around €90 (about $100 USD) in consular fees, plus any costs for document translation and legal assistance.

4. Life in Portugal on a D7 Visa

4.1 Housing requirements

Once in Portugal, you’ll need to have a confirmed residence. Whether you’re renting or buying, Portugal offers affordable housing options compared to the U.S., especially outside of big cities like Lisbon or Porto. Many expats choose the Algarve for its warm climate and coastal living.

4.2 Healthcare and social security

Portugal’s healthcare system is top-notch and highly affordable, especially when compared to U.S. prices. As a resident, you’ll be eligible to join the public healthcare system, and private health insurance options are available if you prefer.

4.3 Education options for families

For families with children, Portugal offers public schools, private schools, and international schools where English is often the primary language of instruction. Education is affordable, and the international community ensures a smooth transition for expat families.

Ready to start your journey to Portugal? The D7 Visa offers a unique opportunity for those with passive income to enjoy the incredible lifestyle, culture, and opportunities that Portugal has to offer. Contact us at RelyOn Relocation to learn more and get expert guidance on your move to paradise.