For the first time in the History of the Government of Portugal a person of Indian origin, António Costa, son of an Indian, born in Portugal became the Prime Minister, and it has opened the opportunity for Indians to invest in Portugal.  

BY Marcelle Mello Rodrigues

Portugal is a country where the number of immigrants has grown considerably in recent years. A large portion of these immigrants are Indians. For the first time in the History of the Government of Portugal a person of Indian origin, António Costa, who is the son of an Indian, born in Portugal became the Prime Minister, and it has opened the opportunity for Indians to invest in Portugal.  

Prime Minister Narendra Modi has presented the Overseas Citizen of India card to his Portuguese counterpart Antonio Costa and described him as the best of the Indian diaspora across the world. He was also awarded the Pravasi Bhartiya Samman by the President of India.

He has held this position since 2015 and since then the international relations between these two countries have improved a lot. In 2018, SEF - Foreigners and Borders Service accounted for a total of 11,393 Indians legalized in Portugal.
There are several reasons for this unprecedented mobility - the globalization of economic interests, as well as the search for work and education, but mainly due to humanitarian crises, political reactions and the facilitation of exodus in the face of vacancies of immigrants and refugees.

The 2018 European Migration Network Annual Migration and Asylum Report highlighted an increase of 127.3% of Indians to Portugal, compared to the previous year (2017).

Foreigners and Borders Service SEF's performance illustrates the national migratory reality in 2018, where there were a total of 33,839 foreign documentation procedures granted, with nationalities from different countries, the most representative of which are in order of demand:
1 – Brazil------------------11.586

2- Israel --------------------4.289

3- Cape Verde -------------4.259

4 – Angola ------------------1.953

4 – Ukraine -----------------1.849

5 – Guinea-Bissau-------1.550

6 – Turkey ------------------1.141

7 – India ----------------------648

8 – Venezuela ---------------562

9 – Nepal ---------------------338

From 2018, with the new Regulatory Decree no. 9/2018 of September 11, which regulates the Legal Regime of entry, stay, exit and removal of foreign citizens in Portuguese territory allowed to streamline, reduce bureaucracy and make procedures for visa applications and residence permits easier, for example, for students Startup Visa, which wants to attend professional education courses for highly qualified immigrant entrepreneurs, in order to make new business models related to entrepreneurship and technology, as well as innovation, more attractive.    

For apply a Startup Visa you need to:

• You are an entrepreneur who intends to develop your startup in Portugal, even though you might not have started your business yet;
• You are an entrepreneur who has already launched a startup in your country and you want to set it up in Portugal;
• You did not have a regular residence in the Schengen area in recent past;
• You do not have criminal records;
• You are not under 18 years old;
• You have enough funds in your bank account in a total amount of 5146.08€ for 12 months (per person);
• It’s necessary also have to prove that:
• Your project/startup is focused on tech;

Your startup shows potential to the creation of jobs, besides the entrepreneurs you include initially, along with yourself, in your application;
Your startup shows the potential to generate a turnover of 325,000€/ year and/or assets value over 325,000€/ year, within 5 years after the start of the contract with your chosen incubator; You have the capacity to establish a company, when applicable, during the undergoing of the program.
Even with a favorable scenario to make investments in Portugal at this time, it is necessary to make a compatible business plan and bet on the most appropriate aspect to know how to take advantage of the facilities that the country offers to foreign entrepreneurs.

Some of the main areas for investment at this time would be the following:

1 – TURIMS or Tourism

Tourism is one of the most promising and heated sectors in Portugal. And within this segment one can have accommodations: hostel, airb&b, hotel chains, tourist guides, tourism agencies, and transport geared to tourism. Portugal is now a destination that attracts visitors from all over the world. Thus, it is worth investing in the structure and innovation of the place with regard to accommodation; in the services of agencies and tourist guides.

2 – REAL ESTATE INVESTMENT

Investment in the housing sector in Portugal has always been and will always be profitable, safe and in this moment quite lucrative because of the great demand in housing. However, it is necessary to have knowledge and experience in the sector as it involves bureaucracy, legislation from a foreign country, money transfers, maintenance of the property, between others.

In the current COVID-19 pandemic, the property market in Portugal remains heated. In Lisbon, due to the large number of foreigners, there is a lack of housing and the construction companies are in a good moment of growth. In addition, banks have released many housing loans.

In a small interview with the Broker, Fernando Trovão, of Century 21 Real Estate - Direct Contact from Setúbal, central Portugal, a city where there has been considerable growth in this field, says that “prices will not go down, there are few new houses, which this to be built it will be delivered in 6 or 7 months, therefore after the quarantine period of this pandemic, which will be in great demand and will not be reduced in price.”       

3 – SERVICES IN GENERAL

The service sector is also a good investment whether through franchises, restaurants or cafes, pastry shops, yogurt shops, ice cream parlors, etc. Things like that are great niches to work and invest in Portugal, as well as perfumeries, and the beauty and esthetics sector, Household cleaning and interior remodeling/renovation companies.

4. IT & INNOVATION

Today, Lisbon has become a hub for innovation and IT entrepreneurship. The city has investment from giants like Google, in addition to hosting the largest technology and innovation conference in Europe: Web Summit.

Also, it has the growth of the edtech market - technology in the educational system, attracting IT professionals.

And, why not speak about 3D printing - a trend that promises to establish itself as one of the most promising businesses in the coming years!  For those who have the training, investment capacity needed to acquire all the related machinery, this sector will be a real revolution.

How works the Entrepreneur Visa - D2

To get an entrepreneur visa in Portugal you will need to open a company, and for that it is necessary to present the following documents:

The company documents required by the Portuguese government are:

Permanent certificate:
The Permanent Certificate allows online access to a company's information. It allows to consult computerized records, electronic documents associated with the electronic dossier of the companies (except documents of accountability) and the latest social pact and updated statutes of companies, cooperatives, public companies and other entities with commercial registration.

In practice and for legal purposes, the permanent certificate proves the company's records with customers and partners. Whenever the request for a permanent certificate is made, an access code is assigned, and it is not necessary to present the certificate on paper.

Types of Permanent Certificate and Prices

1 - Permanent Certificate of Registration

It gathers the company's computerized records and all registration requests by deposit or transcription (pending execution or subject to confirmation). In the case of requests, only the presentation or deposit number and the identification of the type of required acts are made available. The values associated with this type of certificate are as follows:

• Subscription for one year - 25€;
• Subscription for two years - 40€;
• Subscription for tree years - 60€;
• Subscription for four years - 70€.

2 - Permanent Certificate of Registration and Documents
In addition to the computerized records mentioned in the previous certificate, this permanent certificate also allows the viewing of all documents related to the entity's electronic file (except the documents of accountability). The cost associated with this certificate varies according to the subscription duration:

• Subscription for one year - 55€;
• Subscription for two years - 88€;
• Subscription for tree years - 132€;
• Subscription for four years - 154€.

3 - Permanent certificate of the articles of association / updated statutes
It provides the view of the latest pact and updated statutes that are associated with the electronic folder of the company or association. The cost of this type of permanent certificate varies between € 20 and € 50, depending on the period of time subscribed:

• Subscription for one year - 20€;
• Subscription for two years - 35€;
• Subscription for tree years - 45€;
• Subscription for four years - 50€.

Payments can be made by home banking, ATM or credit card.

The list of documents required for Entrepreneur Visa - D2:

• Declaration of registration of the beginning of activities;

• Registration of the incorporation of the company;

• Financial Planning: you must prove your company's financial health;

• D2 Visa application form: provided by the Consular Section.

For more information, you can visit the link: https://pt.vfsglobal.co.in/ 

You will also need a business plan to prove the company's viability. It is important to mention the nature of the investment, its value and duration, in addition to its economic, technological and social relevance for Portugal.

Currently, it is possible to open a small business in Portugal without leaving home, over the internet. Or in person at the “Empresa na hora” posts spread across Portugal. The initial process is fast and it is possible to create a new company in an hour.

It becomes easier with the support of a lawyer and an accountant, who can guide you about the business plan, market study, to define the type of company (singular or collective); and to have all the necessary documentation:

• Passport and NIF Portugal,

• Commercial Registration;

• Social Security registration;

• Declaration of the beginning of activity;

 • Admissibility certificate;

• Deposit of capital stock;

• Preparation of the company's charter.

Opening a bank account

The next step in starting a small business is to go to a bank and open a bank account in Portugal on behalf of the company. You can choose public or private banks, as you dim fit. Analyze the monthly fees and compare which bank is most advantageous. Each bank has its own document policy for opening an account, the most common documents required are, in general, passport, company permanent certificate, telephone number in Portugal, email, address and visa.

The last step to open your company is to start the activity with the NIB (bank number) - it is usually the accountant who does this. From then on, your company will be legal in Portugal.

The cost of opening a company in Portugal is 360 €, the value includes the commercial registration and the process of incorporating the company. This payment must be made when the company is formed.

If the entrepreneur has properties linked to the company, the value may be higher.

So let’s see the list of initial costs:

• € 360 to open the company;

• Company's share capital;

• Cost of the accountant.

Monthly taxes

The monthly taxes for your company in Portugal will be as follows:

• IRC (17% in the first € 15,000 in profit and 21% after that amount);

• Tax (up to 1.5%) - municipal tax;

• 6%, 13% or 23% VAT (varies depending on the product or service);

• Single Social Rate - Tax on employees' salaries (23.5%).

(Marcelle Mello Rodrigues is Spl Correspondent-IOP, Lisbon, Portugal. She is a former parliamentary advisor to the President of Brazil; Worked as a lay federal judge for 18 Months at Federal Regional Court, South Brazil; Master in Law and Pol. Science, Montpellier University (France, 2018); PG in Environmental Management –Federal University of Rio de Janeiro, 2015; PG Public Law, Federal Magistrates School of Paraná-Brazil - 2007; Bachelor of Laws, Brazil, 2004. Experienced Lawyer; Born in Brazil, now in Portugal; - https://bit.ly/2viF8he) 

Image courtesy - PIB / Facebook Page / Google 

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