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

MSB license in Austria

Austria, renowned for its idyllic landscapes and profound cultural heritage, has consistently emerged as a preferred locale for entrepreneurial endeavors, encompassing the sphere of Money Service Businesses (MSBs). Within this purview, the acquisition of an MSB license in Austria assumes paramount significance, serving as an indispensable prerequisite for individuals and entities desiring to participate lawfully...

Cryptocurrency exchange and exchanger development

A crypto exchange is a trading platform through which you can buy, sell and exchange cryptocurrencies. Like Forex, cryptocurrency exchanges facilitate cooperation between buyers and sellers of cryptographic currency, which ensures the reliability and security of transactions. The crypto exchange operates using a trading engine. The speed and correctness of operations depends on how optimized...

Real Estate Investing Belize

Real estate investing in Belize is the best investment of 2020. The Covid 19 epidemic revealed all the weak points of government control in many states with a high population density. An interesting fact was that the political structure of such countries had nothing to do with it. After all, South Korea and China were...

Company registration in Venezuela

Venezuela is quite a popular offshore jurisdiction with many advantages. If you are really determined to create a business, then we recommend that you think about registering an offshore company in Venezuela. The economy in Venezuela is quite stable and the requirements for opening an organization are quite acceptable. It is difficult to register a...

Legal opinion for ICO / TGE

Legal opinion for ICO / TGE is a detailed consultation, made in writing, regarding aspects of the client’s business or other issues. With the help of this document, you can evaluate the project, considering it from the point of view of the legal system. ICO: preparation of a legal opinion and its purpose What do...

How to register company in USA in 2023

Enterprise establishment in America is quite simple, even if executives don’t intend to move there. Register a company in USA requires entrepreneurs to get a valid work visa. The legal framework governing the US commercial industry is quite strict, however, offering a loyal basis for novice businesspersons. What you need for company registration in USA...

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:

Zurich

Dreikonigstrasse, 31A, Stockerhof
+41 435 50 73 23

Kyiv

Baseina street, 7
+38 094 712 03 54

London

Grosvenor Gardens, 52
+44 203 868 34 37

Washington

1629 K St. Suite 300 N.W.
+1 (888) 647 05 40 Toll Free

Vilnius

Gediminas Avenue, 44A
+370 52 11 14 32

Tallinn

Kesklinna linnaosa, Tuukri 19
+372 880 41 85

Edinburgh

Lochrin Square, 1
+44 203 868 34 37

Nicosia

Jacovides Tower, 5 floor
+371 665 550 51

Riga

Esplanade, 7 floor
+371 665 550 51

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai
800938622 Toll Free

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard
+6531594300

Sydney

20 Martin Place
+61 2 888 00 365

Porto

2609 Avenida da Boavista
+351 800 500 206 Toll Free

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7
+995706070360