Relocating your business from Ukraine to Portugal can be a strategically advantageous move for expanding markets and reducing tax liabilities. However, this process involves a range of legal, tax, and financial aspects that must be carefully considered.
In this article, we will discuss the key points to focus on when relocating your business to Portugal and provide practical advice for successful integration.
Changing Tax Residency
Tax Residency Change Procedure
Before relocating your business, you need to change your tax residency from Ukraine to Portugal.
This involves:
- Officially notifying the Ukrainian tax authorities of your intention to terminate your tax residency.
- Registering in Portugal: You must register your company as a legal entity in Portugal and submit the relevant documents to the tax authorities.
Tax Implications
When changing your tax residency, it’s essential to consider the following:
- Possible taxation of assets: Check if your assets are subject to taxation when transferred to Portugal.
- Double Taxation Agreements: Portugal has agreements with many countries to avoid double taxation. Familiarize yourself with the terms of the agreement between Ukraine and Portugal.
Transferring Assets and Company
Asset Transfer
- Asset Valuation: Conduct an appraisal of all your business assets (real estate, equipment, intellectual property) before their transfer.
- Legal and tax implications: Depending on the type of assets, there may be legal and tax consequences during their transfer. Consult with specialists to avoid surprises.
Company Registration in Portugal
- Legal Requirements: Register a new legal entity in Portugal or reorganize your existing company according to local legislation.
- Choosing a Legal Form: Determine the most suitable business structure (LLC, joint-stock company, etc.) for your enterprise in Portugal.
Tax and Financial Implications
Tax Benefits and Rates
- Portugal offers competitive corporate tax rates and benefits for foreign investors. Familiarize yourself with the current rates and benefits that may be advantageous for your business.
- Consider applying special tax regimes for new enterprises or foreign investors.
Financial Aspects
- Evaluate the costs of doing business in Portugal, including rent, salaries, and other operational expenses.
- Open bank accounts in Portugal for conducting your company’s financial transactions.
Regulatory Requirements
Familiarize yourself with the regulatory requirements in Portugal that pertain to your business and comply with them.
Documentation Preservation
Keep all documentation related to the relocation process and submit reports to the relevant authorities in Portugal.
Relocating your business from Ukraine to Portugal can open new opportunities for your enterprise, but this process requires careful planning and consideration of various factors.
LFT Advisors are ready to assist you with all aspects of this process—from changing your tax residency to registering your company and ensuring compliance with local regulatory requirements.
Contact us, and we will ensure a smooth transition for your business to a new level in Portugal!
