How to open a business in Portugal and get a residence permit for investment. Valeria's story.

How to open a business in Portugal and get a residence permit for investment. Valeria’s story

Valeria never planned to leave her hometown. She was born here, graduated from high school, found her first job, and, together with her colleagues, set up her own business – a chain of beauty salons throughout Togliatti. Everything was going great, until the problems which haunt many entrepreneurs in Russia, began.

I don’t know who had a problem with the premises I was renting, but they started actively trying to squeeze me out. They started having problems with utilities: they just shut off the electricity, water, and heating for a few weeks. After, it turned out that the premises had problems with registration, which no one had found before. By the time one of the landlords called me and said he had been made a better offer, I had already finally come to terms with the loss of business. Naturally, when we tried to discuss the problems and find out what was going on, no one wanted to talk to us. That’s when I realized something had to change.

I realized that I didn’t want to live in a country where you could be deprived of everything you had earned with your own hands for so long with impunity. I wanted to trust the people I work and live with. Finally, I just wanted a change of scenery. That’s how I came up with the idea of moving.

How to decide to start a business in Portugal

How to decide to start a business in Portugal

Well, moving is a great idea, but what to do in a new country? Try to start your own company from scratch? Or just get a job and figure it out locally? These questions had been on a girl’s mind for a long month. Every day was spent searching for ways and possibilities: someone advised to go to university or language school, somewhere on the forum, all as one, said that labor immigration – was the best option for the move. But that’s not what it’s all about! Taking a step back in her career just to somehow increase her chances of moving seemed like a terrible idea to Valeria.

– It turned out funny. I hadn’t yet completely decided where I was going to go, but my relatives were already trying to convince me that I should go to a language school in Germany. I don’t know why, but for the older generation in Europe, it’s like there are only a couple of countries, and they just don’t notice the other possibilities.

In the end, it was decided to try to revive the business in another country. At that point, the girl had amassed a good amount of money, so she started looking for opportunities to move on a business visa.

In the process of searching for information about business immigration, Valeria learned that to obtain such a visa, a lot of additional conditions must be met. In addition, not every country offers this to everyone. Even then, Portugal seemed to be the best option of all, but everything finally came to a head when she contacted us and had a consultation.

– I found MoveToCascais completely by accident. I think it was recommended on Instagram. I had considered moving to Portugal before, so I decided to do a trial consultation. It was there that I found out all the answers to the questions that I had been having trouble figuring out lately. That’s when I finally figured out what direction I was going to take.

Listening to Valeria’s story and learning all her wishes about the move, we offered her the perfect option for moving to Portugal: a residence permit for investment in real estate. In the future, the purchased property can be used for setting up business in Portugal or just sold at a better price. Fortunately, the prices in the real estate market in Portugal every year are only growing.

How to decide to start a business in Portugal.

Business registration in Portugal. All about the forms of company registration in Portugal

Business registration in Portugal. All about the forms of company registration in Portugal

Let’s take a moment away from Valeria’s story and talk about how the business environment in Portugal works. If you want to start your own business in Portugal we have good news for you: Portugal is the perfect place to do something bold and different.

For you, as a new entrepreneur in Portugal, the easiest option for opening your own business would be the registration of a sole proprietorship or, in other words, a private entrepreneur. This form of registration will provide you with a number of advantages, namely:

    1. the possibility of completing the entire registration process online;
    2. no naming requirements for your company;
    3. advantage on income taxes of 17% for the first 15,000 euros.

Understandably, the self-employed route does not suit everyone, so if you know that your business will expand in the future, it is worth opening an LDA right away. There are the following requirements for this form of incorporation:

  • requires at least one shareholder;
  • your company name must be unique and often offered in more than one version by the national registry;
  • requires compulsory registration of the legal entity with the tax and social security services;
  • mandatory accounting.
First days in a new place and business registration in Portugal

First days in a new place and registering a business in Portugal

Walking the streets of the city for a couple of days and enjoying the local beauties, the girl decided to get busy. There was so much to do: open a bank account, get a NIF, close a business deal-and it had to be done quickly! But the first thing she had to do was find a place to live in the first place while the new house is being renovated.

A good option was found quickly. The spacious, new apartment in the heart of the city cost Valeria only 800 euros per month.

– The rental prices were a pleasant surprise. In Russia’s central cities I would have had to pay two or three times as much for an apartment the same size. And, of course, it is unlikely that I would have found an option with such good amenities.

Registering and completing a real estate purchase

Registration and Completion of a Real Estate Purchase

From the moment Valeria arrived in Portugal, the whole process went very quickly. The girl took 30 minutes to issue a NIF (Tax Identification Number) and open an account with a local bank. For our part, we provided a guarantor who is required at all stages of the process and translation of all documents required for registration.

The last and most important thing to decide was to close the deal to buy the property and, with the documents in hand, apply for a residence permit in Portugal. The entire process of buying a property in Portugal can be broken down into a few simple steps:

The process of buying a property in Portugal can be divided into a few simple steps.

    1. Filing the NIF. The document is required for both the purchase of real estate and the registration of a bank account.
    2. Opening an account with a Portuguese bank.

In theory, this requirement is only necessary if you involve a bank loan transaction. Otherwise, remittances are generally conducted through your lawyer’s bank account. But the mere fact that you have a Portuguese bank account will allow you to make further tax deductions, pay utility bills, and other transactions through it.

If you have a Portuguese bank account, it will allow you to make tax deductions, pay utility bills, and other transactions through it in the future.

  1. Signing a preliminary contract.
  2. Conclusion of the main contract for the purchase of the property.
New Life in Portugal

New life in Portugal

It’s been exactly six months since then. During that time Valeria has had time to apply for the Portugal Golden Visa program and receive her coveted residency card.

– The renovation of the new house is in full swing. Just yesterday we finished furnishing the hallway and selected the kitchen and bathroom furniture. In another six months, we plan to finish and finally open a business in Portugal. After going all this way with MoveToCascais I can safely say – do not be afraid to change something in your life. Nothing is impossible and moving to another country is no exception.