Trading in Portugal
Discussion
We are increasingly seeing a lot of interest in our products from Portugal, and one of our existing customers is now spending a lot of time over there )livbes in UK but is Portuguese and speaks the language) so we are keen to capitalise on that and have a presence over there.
Looks like this would be easy enough had we not left the EU but setting up over there now would require a Visa.
Does anyone have any experience of being based in the UK but running a Portuguese business with a Portuguese address and bank account etc?
Our products would be drop shipped but supported over there throughout the year either by one of the Directors or our Portuguese customer turned self employed sales/support guy.
Thanks
Looks like this would be easy enough had we not left the EU but setting up over there now would require a Visa.
Does anyone have any experience of being based in the UK but running a Portuguese business with a Portuguese address and bank account etc?
Our products would be drop shipped but supported over there throughout the year either by one of the Directors or our Portuguese customer turned self employed sales/support guy.
Thanks
The simplest, cheapest and lowest risk option would be to set up your man there as an agent. Self-employed / sole trader. He uses your company name and logo and represents your interest there for a retainer or commission but operates as an independent entity.
To set up a more substantial operation there, you would need to establish a Portuguese company with the majority shareholding held in Portugal (by Portuguese nationals or those tax domiciled there). Minimum start-up capital will also be required. And keep in mind that you would be paying tax to the Portuguese government - and - to HMRC on the proportion of revenue you bring into the UK.
Pros and cons to each. The agent option is the simplest, lowest cost means to gain a presence in the country but you could end up growing someone else's business. Setting up a company will give you greater control, a more meaningful presence and the opportunity to benefit from the growth of that company but carries with it much higher tax obligations and you'll not have majority control. The latter can be mitigated through contracts between the owners but these will require legal fees of UK and Portuguese lawyers.
Caveat is that this insight is not Portuguese specific but drawn from other EU nations. All have broadly similar conditions related to overseas ownership of businesses. That said, Portugal is currently being very proactive on attracting inward investment so there may be incentives that make the opportunity there a little more attractive than I've set out. I would recommend your first step is to speak to someone at your local DiT (Department for International Trade) office. They will have international trade specialists who can advise on the best approaches, arrange trade missions and provide assistance - some free, some not.
To set up a more substantial operation there, you would need to establish a Portuguese company with the majority shareholding held in Portugal (by Portuguese nationals or those tax domiciled there). Minimum start-up capital will also be required. And keep in mind that you would be paying tax to the Portuguese government - and - to HMRC on the proportion of revenue you bring into the UK.
Pros and cons to each. The agent option is the simplest, lowest cost means to gain a presence in the country but you could end up growing someone else's business. Setting up a company will give you greater control, a more meaningful presence and the opportunity to benefit from the growth of that company but carries with it much higher tax obligations and you'll not have majority control. The latter can be mitigated through contracts between the owners but these will require legal fees of UK and Portuguese lawyers.
Caveat is that this insight is not Portuguese specific but drawn from other EU nations. All have broadly similar conditions related to overseas ownership of businesses. That said, Portugal is currently being very proactive on attracting inward investment so there may be incentives that make the opportunity there a little more attractive than I've set out. I would recommend your first step is to speak to someone at your local DiT (Department for International Trade) office. They will have international trade specialists who can advise on the best approaches, arrange trade missions and provide assistance - some free, some not.
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