EXPERTISE & FOCUS

New Opportunities

Patent Box Regime


New Patent Box Regime providing a 50% exemption from corporate tax for companies exploiting patents, industrial designs and models protected by IP rights and registered after 01.01.2014

The 2014 State Budget and the CIT Reform made some changes to the tax benefits which are applicable to all Portuguese companies, including those licensed to operate as MIBC companies. Since 1 January 2014, if all the requirements are met, only 50% of the income arising from the temporary use of patents and industrial drawings or models is relevant for the computation of the taxable income.

The combination of the CIT Code and special tax regime applicable to MIBC companies will result in the income derived from the temporary use of patents and industrial drawings or models being subject to an effective tax rate of 2,5%, in case certain conditions are met. From a tax perspective, this regime is highly competitive (comparing to other European countries' regimes) and may represent a significant saving, regarding patents and industrial designs or models which are registered in Portugal.

NON HABITUAL RESIDENCY


Portugal has established a regime for non-habitual tax resident individuals, which is intended to attract to Portugal certain qualified individuals and investments.

This special tax regime is applicable to individuals who have not been considered and taxed as tax residents in Portugal in any of the previous 5 years.

The regime establishes that employment and self-employment domestic (Portuguese) income, related to certain "high added-value" activities of a scientific, artistic or technical nature (included in a list of activities published by the Portuguese Government), will be taxed at a flat rate of 20%.

Furthermore, the regime also establishes a tax exemption for foreign-sourced income, such as, employment income, self-employment income, rental income, interest, dividends as well as other investment income and pension income, under certain specific conditions.

The regime is applicable for a period of ten consecutive years.

Madeira Management can provide advice and assistance to all individuals interested in obtaining further information on this scheme.

GOLDEN VISA


Aiming to promote direct foreign investment into Portugal, the government has created the so called "Golden Visa" Residence Program.

Foreign investors in Portugal, from non-EU countries, may be eligible for a special visa, enabling them and their immediate family to work or study legally in the country and to travel within the Schengen area, provided that certain minimum amounts are invested.

The investment must be maintained for a minimum period of 5 years. After this initial period, the investor may immediately apply for a permanent residency permit.

The investment can be made in three different manners:

  • Capital transfer with a minimum value of 1 million Euro (e.g. bank deposit, acquisition of financial assets)
  • The acquisition of real estate for a minimum amount of 500,000 Euro
  • Creation of 10 jobs

In July 2015 new rules were introduced to extend the investment possibilities, which now also include the following:

  • Investment of a minimum of € 350,000 in a project relating to cultural or scientific research
  • Purchase of a property plus rebuilding or renewals costs totalling a minimum of € 500,000 in certain conditions
  • Investments in a property in a region with a low population density, reducing the minimum investment to € 400,000

Madeira Management can provide advice and assistance to all individuals interested in obtaining further information on this scheme.

Member of OCRA Worldwide 1995 -