Portugal Immigration Consultant and Business Visa Consulting Services

The D2 Visa accommodates a wide range of business activities without restricting applicants to specific sectors. Acceptable ventures include:

Starting a New Business: Launching a new company in Portugal in any industry, provided you can demonstrate its viability and potential contribution to the Portuguese economy.

Relocating an Existing Business: Transferring your current business operations to Portugal.

Investing in an Existing Portuguese Business: Purchasing or investing in an already established company in Portugal.

You can apply for the D2 Visa before formally incorporating your business in Portugal.

However, you must provide a Detailed plan demonstrating the feasibility and potential impact of your proposed business.

Financial Proof: Evidence of sufficient financial resources to establish and sustain the business, such as bank statements or proof of funding.

While prior incorporation is not mandatory, having concrete plans and financial backing strengthens your application.

Incorporating the business also guarantees the government that you are coming to Portugal with a proper intention and not just for the sake of residency or getting entry in Europe.

Approx 8 months.

The reasons for rejection can be forged documents, false information, criminal convictions not disclosed. We have not seen any rejection for Portugal D2 as the process is very clear.

At times there are delays due to additional information asked by the authorities.

Yes.

Yes, establishing a Portuguese bank account is a crucial component of the D2 Visa application process. This account should reflect sufficient funds to support both your personal living expenses and the initial operations of your business. While there's no specific amount mandated, demonstrating financial readiness through this account strengthens your application.

Yes, you can transfer funds directly from India to Portugal. The Reserve Bank of India (RBI) permits resident individuals to remit up to USD 250,000 per financial year under the Liberalised Remittance Scheme (LRS) for permissible current or capital account transactions, including investments abroad.

The costs associated with establishing a company in Portugal include:

Government Fees:

• €220 for incorporating a company with a pre-approved memorandum and articles of association. (Included)
• An additional €100 if the company registers a trademark associated with one class of goods or services, plus €44 for each additional class.

Accounting Costs:

• Hiring a certified accountant (Técnico Oficial de Contas) is mandatory. Fees depend on the scope of services but typically range from €100 to €300 per month.

Ongoing expenses include:

Accounting and Tax Compliance:

• Monthly fees for accounting services.
• Costs associated with annual financial statements and tax filings.

Social Security Contributions:

• Employers must contribute approximately 23.75% of an employee's gross salary to social security.

Office Space and Utilities:

• Rent and utility costs vary by location and size of the premises.

Insurance:

• Business insurance premiums depend on the type and scope of coverage.

Other Operational Expenses:

• Marketing, transportation, and other costs specific to your business operations.

As a tax resident, your worldwide income is subject to Portugal's progressive personal income tax rates, which range from 14.5% to 48%, depending on income levels.

Businesses in Portugal are subject to:

• Corporate Income Tax (IRC): Standard rate of 21% on profits.
• Value Added Tax (VAT): Standard rate of 23%, with reduced rates for specific goods and services.
• Social Security Contributions: Employers contribute 23.75% of employee salaries; self-employed individuals pay 21.4% of taxable income.

Additional local taxes may apply based on business activities and location.

As a Portuguese tax resident, your global income is taxable in Portugal. Non-residents are taxed only on Portuguese-source income.

Yes, Portugal and India have a DTA to prevent double taxation on income earned in both countries. This agreement outlines which country has taxing rights over specific income types and allows for tax credits or exemptions to mitigate double taxation. Consulting a tax professional familiar with both jurisdictions is advisable to navigate the DTA effectively.

As a Portuguese tax resident, your Indian income is taxable in Portugal. However, under the DTA, you may be eligible for tax credits in Portugal for taxes paid in India on the same income, reducing overall tax liability.

Non-Habitual Resident (NHR) Regime: Portugal's NHR regime offers favorable tax treatment for new residents, potentially exempting foreign-source income from Portuguese taxation for ten years. Eligibility and benefits depend on specific criteria.

Tax Credits: Utilize foreign tax credits available under the DTA to offset taxes paid in India against Portuguese tax liabilities.

Professional Consultation: Engage tax advisors experienced in both Indian and Portuguese tax systems to develop strategies tailored to your situation.

Yes, self-employed individuals, including entrepreneurs, must contribute to Portugal's social security system. The contribution rate is 21.4% of taxable income, with potential reductions or exemptions during initial business periods.

Under the LRS, resident individuals are permitted to remit funds abroad without prior approval, provided the total amount does not exceed USD 250,000 in a financial year. For remittances beyond this limit, prior approval from the RBI is mandatory.

FEMA governs all foreign exchange transactions in India. Key compliance requirements include:

• Permissible Transactions: Ensure the purpose of remittance aligns with FEMA's current and capital account transaction guidelines.
• Documentation: Provide necessary documents such as Form A2 and a declaration under LRS to your authorized dealer bank.
• Tax Compliance: Adhere to tax regulations, including Tax Collected at Source (TCS) provisions applicable to foreign remittances.
• Reporting: Maintain records of all transactions and report them as required under FEMA guidelines.

Consulting with a financial advisor or legal expert familiar with FEMA regulations is advisable to ensure full compliance.

Yes, liquidating assets in India may result in capital gains tax liabilities. The tax rate depends on the type of asset and the holding period. It's recommended to consult with a tax professional to understand the specific tax implications and explore possible exemptions or benefits under Indian tax laws.

Yes, you can repatriate profits or earnings from your overseas business to India. The repatriated amount must be in compliance with FEMA regulations and reported accordingly. It's essential to ensure that all local taxes and obligations in Portugal are settled before repatriation. Consulting with financial experts in both jurisdictions will help navigate the process smoothly.

Yes, family members who obtain residence permits through family reunification have the right to work in Portugal without the need for an additional work permit. This allows your spouse to seek employment or even start a business in Portugal.

Children residing in Portugal have access to the public education system, which is free and open to all residents, including foreign nationals. The public schools follow the national curriculum and the primary language of instruction is Portuguese.

Additionally, there are numerous private and international schools, particularly in larger cities like Lisbon and Porto, offering curricula in various languages, including English. These schools charge tuition fees, which can vary depending on the institution.

While private healthcare is not mandatory for D2 visa holders, having health insurance is a requirement during the visa application process to ensure you have access to medical services upon arrival.

Once you become a resident, you can register with the Portuguese National Health Service (SNS), granting access to public healthcare services, which are either free or available at a low cost.

Many residents also opt for private health insurance to access private facilities with shorter waiting times and broader coverage. The cost typically ranges from €400 to €1,000 per year, depending on age, coverage, and pre-existing conditions.

The D2 Visa serves as a pathway to permanent residency and citizenship in Portugal. Initially, it grants a temporary residence permit valid for 2 years, which can be renewed for an additional 3 years.

After 5 years of legal residence, you become eligible to apply for permanent residency or Portuguese citizenship, provided you meet residency requirements, demonstrate integration into Portuguese society, and pass a basic Portuguese language test (A2 level).

Government Fees: Other than the initial visa and residence permit, no major hidden charges.

Ongoing Compliance Costs include:

• Annual Tax Filings (mandatory, with possible accountant fees)
• Social Security: 23.75% (employers), 21.4% (self-employed)
• Accounting Services for compliance and reporting

While not mandatory, hiring local professionals is strongly recommended:

• Lawyer: Ensures compliance, drafts contracts, and handles legal matters.
• Accountant: Handles bookkeeping, tax filings, and financial compliance.

Their expertise helps avoid costly mistakes and ensures smooth operations.

The D2 Visa depends on maintaining an active and viable business. If operations cease without justification, your residence status could be at risk.

However, authorities review each case individually, considering factors like efforts to sustain the business, external challenges, and compliance with other residency requirements.