The Trust Law in Portugal mentions that a trust is the type of agreement that can be established by two or more settlers who can legally transfer stocks, properties, bonds or loans to trustees. Trust companies are seen as legal entities that act as fiduciaries or agents on behalf of other companies or natural persons in Portugal and that are in charge of varied responsibilities we will shortly present. Our company formation agents in Portugal can give more details about trust companies in Portugal and the ways in which they can activate.
How does a trust company work in Portugal?
A trust company in Portugal has the main purpose, of properly administrate and manage the assets, shares, and bonds of a company or person living in this country. Such a company practically has a legal obligation of taking care of the assets in the name of the owners, under a written legal contract. Below is important information about trust companies in Portugal:
- Assets involved in a trust can be managed with the purpose of investments and future profits.
- Trustees cannot use the assets on their personal behalf.
- Stock transfers can be made with the help of a trust company in Portugal.
- Trust companies are involved in wealth management and can act as fiduciaries on the market.
Trust companies can be established as private LDAs and therefore have a legal status before running the activities in Portugal. If you would like to open a limited liability company in Portugal, we suggest you talk to one of our company formation representatives in Portugal and ask for assistance.
Who needs fiduciary services in Portugal?
Fiduciary services in Portugal are normally directed to Portuguese companies looking for portfolio development, wealth management, and equity investments. The management of company assets can enter the attention of one of our specialists who can provide fiduciary services under a legal agreement and the promise that he/she will work in the best interest of your personal purposes and intentions. Fiduciary services in Portugal can be a combination of tax plans and strategies, inheritance tax planning, complete retirement planning, a wide range of corporate solutions for future business investments, portfolio diversification, business risk reduction, and management, plus complete legal advice in matters of company finances.
Who can open trust companies in Portugal?
Trust companies in Portugal can be established by foreign or domestic investors with a clear criminal record and no financial crimes involved. The benefits of having a trust company in Portugal are huge and among them, the financial ones and the possibility of sustaining the business portfolio in a large percent. One of our company formation agents in Portugal can give immediate support for opening a trust company in Portugal. They can help you start a business in Portugal by handling the formalities involved.
Taxation of trusts in Portugal
The flat tax of 28% rate is applicable on trust distribution, alongside the stamp duty of 10% rate on gifts delivered from a trust, plus the capital gains tax. However, the stamp duty tax can be eliminated if the beneficiary of the trust is related to the settlor who can be a family member. If you would like to know more about the taxation of trusts in Portugal you are more than welcome to address your inquiries to our consultants.
Investments in Portugal
Portugal is a top business destination for numerous entrepreneurs worldwide who want to benefit from a great and appealing climate for their activities. The tourism sector is quite prolific and provides a multitude of investment possibilities to foreign investors of any kind. Spain, UK, France, the Netherlands, and Germany are the main investors in Portugal who benefit from simple business formalities, appealing investment incentives and many important encouragements offered by the government. We have gathered facts and information about the investments and economy in Portugal that you might find it useful:
- • around USD 135,777 million represented the total FDI stock in 2018;
- • according to the 2019 Doing Business report provided by the World Bank, Portugal ranks 34th out of 190 worldwide economies;
- • the Golden Visa Programme allows foreigners to obtain Portuguese citizenship if particular investments are made – EUR 250,000 for established companies;
- • most of the foreign investments are directed to the financial and insurance sector in Portugal.
Those interested in opening trust companies in Portugal can get in touch with our company formation agents in Portugal and find out more about the formalities and bureaucracies involved.