Eternity Law International — News — Secure Your Trust License in Portugal

Secure Your Trust License in Portugal

Published:
July 5, 2024

Trusts are quite complex organizations in terms of legal features of their formation, establishment and licensing. Portugal’s tax regime, particularly for non-resident or non-resident investors, has been praised by businesses for its ability to engage investments from non-residents and by capital owners seeking an efficient tax haven. However, behind the favorable tax treatment lies a more complex and potentially legally fraught tax system for foreign trusts that merits closer examination. Below we will consider peculiarities of the launching and functioning of trust structures in this jurisdiction, as well as key aspects of getting a trust license in Portugal.

Our team is first-class experts in field of Portugal trust services and business-registration, and obtaining licenses for any type of commercial activity. We offer comprehensive consulting and practical support at every stage. In addition, we have many options for ready-made trusts for sale.

Trusts in Portugal: nuances of official launching, licensing and operation

Separately, taxation issues for such a business-project in Portugal should be borne in mind, since for this jurisdiction this is a rather complex and complex issue. Portuguese Tax Code defines the specific circumstances when income from trusts and “trust structures” is subject to tax. This includes payments made from such firms, as well as amounts received by individuals upon the liquidation, revocation or termination of these trusts. The financial implications are profound and multifaceted, affecting both the owners of the property held by the trust and the beneficiaries.

Founders of such a business-project need to note that amounts received as a result of the dissolution and trust termination are taxed as capital increases. This tax-rate is 28% or even 35% if the trust is registered in a jurisdiction blacklisted by Portuguese authoritative bodies. Tax-rate underscores a growing trend among countries to clamp down on what they perceive as tax avoidance strategies, especially for those businesses registered in so-called tax havens.

For many years, trusts have been and continue to be a convenient and most beneficial means of managing other peoples’ funds. There are many options available for assets transferring into trust or use within framework of Portugal trust law, and regulations of controlling and supervising private monetary means and property.

Key feature of trusts in Portugal is that decisions regarding underlying funds and their disposal are made only by the directors in arrangement and cooperation with the owners of these funds or estate. However, it’s worth considering that the transfer of excessive powers to dispose of assets may have consequences in the form of an increased tax burden. The most common solution to this problem is to own the client’s assets through a trust, which creates additional layers of control. Our lawyers will select for you the most favorable conditions for creating and opening a trust in Luxembourg, Denmark, Germany, Austria and others.

Creating a trust doesn’t need any special procedures beyond normal firm launching locally. The last-mentioned itself takes about several working days. After establishing a commercial structure, it is necessary to get officially-approved permission. Trust license cost in Portugal, granted in our services range, depends on many third-party factors and is calculated individually for each client before cooperation starts.

To obtain a trust license in Portugal, a firm must meet a number of norms, incl. those listed below.

  1. Submitting a request to IBCM for prior authorization to license a firm in Portuguese Exclusive Economic Zone.
  2. Launching a Portuguese organization.
  3. Filling out a trust license application in Portugal from National Banking establishment.
  4. Appointment of a specialist in the prevention of illegal circulation of funds and a local director.
  5. Opening a corporate account in a Portuguese bank.

Generally-set national AML-rules make trust institutions to meet several obligations listed below:

  • complete identification of clients;
  • storage of documents connected with clients and deals;
  • conduct fact checks and make reports suspicious operations;
  • adoption and application of internal controls that address AML risks specific to each organization.

As part of trust license requirements in Portugal, next-mentioned must be completed.

  1. Provide certified/legalized copies of passports of all participants.
  2. Provide an apostille/legalized power of attorney for firm launching from its participants.
  3. Designate and confirm directors powers and hire workers (at least one of the directors needs to reside locally).
  4. Provide a list of all organization members.
  5. Establish a physically-registered presence locally.

In addition to registration documentation, businesspersons must provide 3 firm names. In this country, duplicate firm names are prohibited, as in most jurisdictions. It is also necessary to set the size of minimum initial capital. The law sets a limit of 1 euro.

So, how to get trust license in Portugal? General process is as follows.

  1. Determining the range of future business-activities and developing a business plan.
  2. Selection, verification and reservation of a name for a company.
  3. Collection of data about firm’s beneficiaries, founders and directors.
  4. Local address registration.
  5. Formation and collection of registration and constituent documents.
  6. Registration as a taxpayer.

Trust license fees in Portugal needed to pay are about 1.5-2 thousand euros.

Privileges of obtaining trust license in Portugal

  1. A progressive, open and digital economy. World Bank places Portugal 30th in its list of the world’s richest countries by GDP. The country has recently experienced an economic evolution with rising exports, indicating sustainable and long-term progress will only strengthen.
  2. Portuguese governmental apparatus has simplified and facilitated the processes for setting up firms locally, which is attracting a great number of foreign capital-holders.
  3. Portugal sets the lowest taxes for companies operating in Europe.
  4. Direct access to the EU single market, free movement of goods, services, capital and individuals, meaning Portuguese firms may offer their products and services throughout the EU without having to pay additional fees or overcome trade barriers.

Our firm offers comprehensive professional trust services in Portugal. We also have an extensive range of ready-made trusts licensed in Hong Kong, China, Malta and other countries. Contact us right now.

You could be interested

ISO 20000: Management of IT Services

In 2005, BSI released a new ISO 20000, which sets IT services quality demands. Standard adoption made it possible to assess the effectiveness of the services provided to users. ISO 20000 provides guidance for IT service management. According to it, firm that implements requests of this act must ensure a stable IT services level and...

EMI License in New Zealand

New Zealand, renowned for its breathtaking landscapes and thriving economy, presents an appealing prospect for businesses seeking a global foothold. One vital consideration for companies operating in New Zealand is the acquisition of an EMI (Electronic Money Institution) license. This article will explore the prerequisites, fintech solutions, advantages, bank accounts, payments,  transactions, prices, sale processes,...

ISO 15189 Importance

Highest quality norm in laboratory research field in Europe is international certificate ISO 15189. The validity of the certificate extends to the most popular groups of services: general tests and biochemical blood tests. Now patients of certain medical institutions can not even doubt the reliability of the tests, because experts do not allow any compromise....

US Congress introduces new bills on cryptocurrency

The blockchain technology goes to a new level. Recently the US Congress presented two new bills governing the price setting procedure in the cryptocurrency market. The main goal of these acts is to create competition, increase market activity and attract traders on the crypto market in the US. H.R. 922 – virtual currency consumer protection...

SEMI license in Lithuania

A SEMI permission is a profitable tool that increases the prospects of growth and development of your biz in Lithuania.Every business-company involved in the issuance of e-money in country must get SEMI license in Lithuania in order to legally operate in this jurisdiction. Having a license will allow you to make offline or online payments,...

What is an EMI – European Payment License?

Developed for the digital era, alternative payment institutions provide innovative access to basic financial services across many sectors. EMIs represent an essential part of the EU’s financial mechanism as they assist natural persons and enterprises in managing their funds. As per the enforceable EU law, all entities dealing with e-funds must acquire an EMI license...

Related posts

Secure a Trust License in the Comoros

Trust companies carry out the activities of managing and storing assets, performing their administration and distribution. Any owner of financial assets or real estate can take advantage of placing everything he owns under the management of a trust as one of the main tools for obtaining asset protection. To carry out such activities, it is...

Secure Your Trust License in Mauritius

The Republic of Mauritius is a state with a favorable and developed investment microclimate, which is conducive to doing business and creating companies in this jurisdiction. Some of the main reasons for setting up a business in Mauritius include the favorable tax system and free repatriation of profits for foreign entrepreneurs, as well as the...

Secure a Trust License in Estonia

According to Estonia trust law, a trust business is an officially established and commercially valid act of trust, by virtue of which a person or organization entrusts one or more assets (financial assets, real estate, etc.) to a trust company with the possibility of transfer, for further profit from them, for interaction with a certain...

Secure a Trust License in Lithuania

Lithuanian legislation allows entrepreneurs from all over the world to offer their clients various financial and investment services based on the appropriate permits. Officially approved permits giving the right to provide financial services are issued by the Bank of Lithuania to legal entities participating in the financial market created and formed at the local level....

EMI license in Portugal

Introduction Portugal, known for its picturesque landscapes and rich cultural heritage, has also emerged as a hotspot for businesses, especially in the fintech sector. One key aspect that has contributed to this trend is the availability of EMI (Electronic Money Institution) licenses in the country. In this article, we will delve into the requirements, services,...

Crypto License in Portugal

In modern financial space, a separate niche has already been formed for cryptocurrencies – digital funds that are used for settlements and actively circulate in various operations. More organizations are appearing on the market intending to offer services for the crypto-exchange, opening of crypto-currency debit cards and carrying out crypto-operations. In jurisdictions favorably accepting cryptocurrencies,...

Discover our services

The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.

Ready-made companies for sale

Companies with a bank account around the world

Banks for sale

Established Banks for sale

Ready-made licenses for sale

Forex, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Licensing

Forex licenses, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Offshore company registration

Expert advice on the acquisition of an offshore company

Open a bank account

Open bank accounts in more than 120 banks around the world
Fill the blank: