The Trust Law in Portugal mentions that 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 be activated.
How does a trust company work in Portugal?
A trust company in Portugal has the main purpose of properly administrating and managing the assets, shares, and bonds of a company or person living in this country. Such a company practically has a legal obligation to take 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 percentage. One of our company formation agents in Portugal can give immediate support for opening a trust company in Portugal. They can help you open a company in Portugal by handling the formalities involved.
About trusts in Portugal and their use
Trusts in Portugal can be managed by specific companies. There are certain reasons why trusts are set up in Portugal, and among them, the following are the most important:
- Family assets can be controlled with the help of trusts in Portugal. Also, protection is offered in this case. It can be established from the beginning who are the beneficiaries of the trust in question, as well as how it can be distributed, taking into account the shares and amount. Many people set up a trust in Portugal to protect their wealth in case of divorce.
- Good tax planning can be done with the help of a trust in Portugal. There are certain tax exemptions applicable to trusts in Portugal. A specialist in the field can help you in this direction, explaining the conditions under which certain taxes can be avoided.
- With the help of a trust in Portugal, one can protect minor children, including those with disabilities. Thus, it can be ensured that the wealth is distributed and managed correctly from this point of view. A trust company in Portugal can help you in this regard.
- Assets can be set with other purposes. For example, they can be passed during and after the lifetime of the person in question to family members. It can be said that it is a matter of safety in terms of the distribution of assets in the family, without financial risks.
- Setting up a trust in Portugal does not require certification, and family members can have access to the wealth left behind. We emphasize here that trusts in Portugal are private and these can be made up of properties, company shares, cash, and land, as the case may be.
Setting up a trust while living in Portugal
Tax residents in Portugal can easily set up trusts. It is also great for those who want to open a trust company in Portugal. Professionals in the field, such as trustees, can take care of the formalities, taking into account the legislation in force. Wealth can be protected and controlled at the same time, with the help of a trust that can be registered in Portugal by residents of this country. Here is what is taken into account in this case:
- how wealth can be distributed in the family. All details are mentioned in the relevant documents,
- tax liability and implications,
- trust objectives,
- working with a trust company in Portugal in charge of all legal aspects of the trust in question.
If you want to set up a trust in Portugal, do not hesitate to ask for our help. We are also here for those who want to set up a trust company in Portugal and need guidance regarding the formalities and procedures.
Trust limitations in Portugal
It is also the local legislation that underlines trust limitations in Portugal. Find some of them below:
- Financial activities through trusts are not accepted in Portugal. There is no tax imposed on special beneficiaries like licensed entities, or non-resident companies, under certain conditions.
- Immovable properties in Portugal are not accepted in a trust.
- Trusts in Madeira, one of the autonomous regions of Portugal cannot be used by Portuguese residents.
We remind you that we can help foreigners open a company in Portugal or any autonomous region of this country, in a fast and reliable manner.
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. Moreover, we are at your disposal with information about company formation in Portugal.
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:
- An economic growth of approximately 2.3% was recorded in Portugal in 2023.
- A GDP growth of approximately 1.2% in 2024 and 1.8% in 2025 is expected, according to the latest estimates for Portugal.
- A decrease in the inflation rate in Portugal is estimated, from 5.3% as it was in 2023 to approximately 2.3% in 2024.
Besides assistance for trusts in Portugal, foreigners can benefit from other services too. Our accountants in Portugal are at your disposal when you start a business in this country. Those interested in setting up a company in Portugal can get in touch with our local agents and find out more about the formalities of the formation process.