Changes in Portugal’s Immigration Law

Recent changes in Portugal’s immigration law have significant implications for the financial environment, taxes, and the accounting world. At Accountancy Bulgaria, an agency that has been helping entrepreneurs start a company in Bulgaria, we strive to keep you informed about these developments and how they compare to Bulgaria’s tax and immigration landscape. 

This article will explore the recent changes in Portugal, their impact on businesses and individuals, and why Bulgaria remains an attractive alternative for those seeking favorable tax conditions and straightforward immigration procedures.

Overview of Changes in Portugal’s Immigration Law

New Visa Regulations

One of the most notable changes in Portugal’s immigration law is the introduction of new visa regulations aimed at attracting foreign talent and investment. These regulations include new visa categories in the process for obtaining residency.

• Tech Visa: Portugal has introduced a Tech Visa aimed at attracting highly skilled professionals in the technology sector. This visa offers a simplified application process and faster approval times for tech professionals and their families.
• Entrepreneur Visa: The Entrepreneur Visa is designed to attract foreign entrepreneurs who wish to start a business in Portugal. This visa provides various incentives, including access to funding and support networks.

Impact on Taxes and Accounting

The changes in Portugal’s immigration law have direct implications for the country’s tax system and accounting practices. These changes are designed to make Portugal more competitive in the global market by offering attractive tax incentives to new residents.

• Tax Incentives: New residents under the Tech and Entrepreneur Visas can benefit from significant tax incentives, including reduced income tax rates and exemptions on certain types of income. Therefore, Portugal is becoming an appealing destination for high-net-worth individuals and businesses.
• Accounting Requirements: With the influx of foreign professionals and entrepreneurs, there is an increased demand for accounting services to navigate the complexities of Portuguese tax laws. This includes compliance with local regulations, tax planning, and financial reporting.

Read also: Who Exactly is an Accounting Specialist and Why You Need One

Comparing Portugal and Bulgaria as Tax Havens

Tax Benefits in Portugal

Portugal’s recent changes aim to position it as a competitive tax haven by offering various benefits to new residents and businesses.

• Non-Habitual Resident (NHR) Scheme: The NHR scheme allows new residents to benefit from a flat income tax rate of 20% for a period of ten years. Certain types of foreign income may also be exempt from Portuguese taxes.
• Corporate Tax Rates: Portugal offers competitive corporate tax rates, with various incentives for startups and businesses operating in specific sectors, such as technology and innovation.

Tax Advantages in Bulgaria

While Portugal offers attractive tax benefits, Bulgaria remains a compelling alternative for several reasons.

• Low Corporate Tax Rate: Bulgaria boasts one of the lowest corporate tax rates in the European Union at a flat rate of 10%. This makes it an ideal destination for businesses seeking to minimize their expenses and, consequently, increase their profits.
• Flat Personal Income Tax: Bulgaria also offers a flat personal income tax rate of 10%, which is significantly lower than many other European countries, including Portugal.
• Simplified Tax Compliance: Bulgaria’s tax system is known for its simplicity and efficiency, reducing the administrative burden on businesses and individuals.

Immigration Policies: Portugal vs. Bulgaria

The changes in Portugal’s immigration law aim to streamline the process of obtaining residency and attract foreign investment. However, these policies come with certain complexities and requirements.

• Application Process: While the new visas offer simpler processes, applicants must still meet specific criteria, including proof of financial means and investment in the Portuguese economy.
• Residency Obligations: New residents in Portugal are required to spend a minimum amount of time in the country each year to maintain their residency status.

Bulgaria offers straightforward and business-friendly immigration policies that complement its favorable tax environment.

• Residency by Investment: Bulgaria’s residency by investment program allows foreign investors to obtain residency by investing in government bonds or other qualifying assets. This program is known for its efficiency and relatively low investment thresholds.
• Minimal Residency Requirements: Bulgaria imposes minimal residency requirements, making it easier for business owners and investors to maintain their residency status without having to spend extended periods in the country.

Read also: Financial Accounting: Discover Accountancy Bulgaria’s services

Conclusion

The recent changes in Portugal’s immigration law present new opportunities for foreign professionals and entrepreneurs. However, when comparing the tax and immigration benefits, Bulgaria remains a more attractive destination for businesses and individuals seeking favorable tax conditions and straightforward immigration policies. 

At Accountancy Bulgaria, we are dedicated to helping you navigate these complexities and make informed decisions for your financial future. Trust us to provide the expertise and support you need to thrive in Bulgaria’s welcoming business environment.