D2 Visa for Portugal: Residence Visa for Immigrant Entrepeneurs
The D2 visa, also called the Visa for Immigrant Entrepreneurs, gives resident status to immigrants who plan to involve themselves investment activities in Portugal.
The legal basis for this type of visa can be found in article 60(2) of Law Nº 23/2007 from July 4, and regulated by article 31(2)(3) of Regulation Decree Nº 84/2007 from November 5.
In basic terms, the investment must be made by way of a company that one wishes to establish in Portugal, in the scope of a well defined business plan, which will be judged above all, on an investment level, for its prospective economic, social, scientific, technological, or cultural relevancy.
Target: Small business owners who wish to establish themselves in Portugal.
Obtaining and NIF (Individual Contributor Number)
– Application form;
– Copy of Representative’s Identification Document;
– Copy of interest party’s passport, authenticated by an official Portuguese consulate official.
Time of Wait: Issued on the same day.
Opening a bank account in Portugal and transfer of investment amount
– NIF (either proof of one or the actual issued document);
– Other documents, to the bank’s discretion.
Time of Wait: In Portugal, same day; by way of an abroad representative, about a week.
Establishing a commercial entity
– NIF (either proof of one or the actual issued document);
– Power of attorney;
Time of Wait: Same day.
Request for consular visa
– Visa application form;
– 3×4 photo;
– Identification Documents;
– Certificate of prior federal criminal activity;
– Certificate of prior state criminal activity;
– International health insurance;
– Proof of housing and/or conditions for housing in Portugal;
– Authorization for the SEF to consult the Portuguese criminal registry of the applicant, with the exception of those under 16 years of age;
– Declaration that one is aware that one should not travel to Portugal without the required visa;
– Declaration of the applicant as to his or hers professional descriptions, length of stay e housing location;
– Proof of residence in the name of the owner, the partner, or responsible party;
– Documents which substantiate the visa application, in accordance with current legislation;
– Proof of source of livelihood during the length of stay;
– Proof of income in the home countryl;
– Business Plan.
Time of Wait: Dependent on that consulate where the visa application is made, but usually between 30 and 60 days.
Evaluation and quote:
In order to offer an evaluation and quote, we need to have the following information:
– Marital status:
– Number of Children:
– City of residence:
– Do you know of someone who can represent you in Portugal?
– Business activity you want to develop in Portugal:
– Classify and describe the business activity in terms of economic, social, scientific technological or cultural relevance.
– Are there any partners?
– Investment amount (per partner):
– Do you have proven adequate professional experience relating to the business activity?
– Do you possess proven contacts, with potential clients and/or partners, relative to the business activity?
– Do you have a commercial address in Portugal?
– Do you have housing in Portugal?
– Do you know anyone in Portugal that can emit an invitation letter?
– Do you have proof of income in the home country?
-Do you have the means sustain yourself, (stable and steady resources sufficient to maintain essential necessities such as food, shelter and health care) which can carry you through your initial stay in Portugal (approximately 6 months)?
What kind of company do I need to open?
Portuguese legislation envisages several company models, but it has been the limited liability companies which have been the most sought after to this end. This sort of company imports at least two partners; however, it is important to note that in Portugal “uni-person” companies also exist, which, as the name suggests, have only one owner.
Is there a minimum amount of capital required for the company which is to be established?
One of the most talked about issues, though, is related with the equity capital of the business to be established, be it a limited liability or “uni-person” company, which is also considered a limited liability enterprise.
What matters most in these two company models is that the equity capital is set in the company's contract, corresponding to the sum allotted by each partner, being such that each allotment cannot have a value inferior to one Euro (articles 201 and 219 of the Code of Commercial Companies).
Therefore, there is no minimum value exigency required for the establishment of a company by allotment whether it be a limited liability or a “uni-person” company, with the only requirement being the quantification each partner's allotment, whose face value must not be below 1 Euro.
Another issue related to the aforementioned topic is the general belief that the freedom to set the value of one's equity capital applies only to residents of the EU, which would in turn impose a minimum demand of 5,000 Euros equity capital for non-EU residents.
It is, however, an incorrect assumption. In fact, there is no differentiation between residents and non-EU residents in this matter. In short, the freedom to set the value of one's capital is also applicable for non-residents.
Therefore, as for either a limited company or a uni-person entity, which is the same as a limited liability company, the capital is freely set in the contract, corresponding to the sum of quotas (shares) subscribed by the partners, understanding that each quota (share) cannot have a value inferior to 1 Euro (article 201 and 219 of the Commenrcial Entity Code).
Am I obligated to have a partner?
You can opt to have a uni-person limited liability company, which does not need a partner. However, if you choose to start a shared limited company, you will need at least one partner.
Is there a value set by law for the investment?
Another question that we would like to look at here relates to the nature and the value of the investment, within the understanding that the investment must be made via full payment of equity capital in the sum of 5.000 Euros.
Article 60 (2), of Law Nº 23/2007 from July 4 requires that investments operations must have been made, or that one can prove the possession of available funds in Portugal. Furthermore, once one provides proof the said funds, they must also exhibit the intention of proceeding in an investment operation. The article, however, does not insist that such investment corresponds with the full payment of the equity capital.
In other words, although and investment can be made through full payment of equity capital, it is not deemed an obligation.
The law also does not establish any minimum investment value, due to the same being beneficial for the diversification of economic activity by way of the company's development.
Therefore, the value of the investment should compatible to the activity of the developer, in other words, it should be the sufficient amount to launch business activities. The amount of the investment also serves to prove the credibility of the business proposal.
Will I be allowed to work in other EU countries?
It is important to bring up the matter of freedom to circulate and work in other EU countries, as it is has been said that the beneficiary of these types of visas – rectius, of the residential legality that it allows for – can work in other countries of the European Union.
This information is incorrect. Every EU country has its own rules in respects to non-EU residents ability to practice a professional activity as a private individual or as a service provider within a business entity which has been established in Portugal. If the objective of the visa for immigrant entrepreneurs is in fact to allow for ones settlement in another EU country, it is of high importance that the applicant consult the internal legislation of that country first, since there is a strong possibility that the Portuguese visa will not to allow one to practice any professional activity in another EU country, even within the context of a exercising a business activity.
Therefore, the Immigrant Entrepreneur visa is only valid for Portugal. If one wishes to work and reside in another EU country, they should obtain a visa for that country.
Does this visa allow me to work in Portugal?
The authorization of residence which comes with this type of visa allows for the holder to work in other establishments other than their own business.
Can I use this visa as a form to emigrate to Portugal for the sole purpose of finding work?
This visa supposes that the applicant has genuine entrepreneurial goals, and it is set apart for this.
Will the company have to pay income tax?
The IRC is the tax on the profit of legal persons (legal entities), which is imposed during the proper taxation period (Article 1 of the CIRC).
According to the IRC, taxable entities are those commercial or civil enterprises (operating in commercial form), which are either headquartered or managed in Portuguese territory. (Article 2 of the CIRC).
THE IRC focuses on the profit of commercial or civil enterprises (operating in commercial form), which are primarily engaged in activities of a commercial, industrial or agricultural nature, thus taking into account all activities which make up the economic operations of a business, including the providing of services. (Article 3 of the CIRC).
THE IRC is owed at each taxation period, which coincides, as a rule, with one calendar year (Article 8 of the CIRC). However, the taxation period can be less than a year, namely, in the first year of taxation, which is calculated by the time when business activities begin, or when enough profits are obtained to allow it to be subject to taxation, and the end of the following taxation period.
The general IRC tax is 21% (Article 87 of the CIRC, with an alteration introduced by Law Nº 82-B/2014, from December 31).
In the case of taxable entities which mainly and directly practice economic activities of an agricultural, commercial, or industrial nature, and are categorized as small to mid-sized companies, the applicable IRC tax rate on the first 15.000 Euros worth of collectables is of 17%, with a 21% tax rate applied to any exceeding amount.
The payment must be effectuated in three separate amounts per account, with expiration dates in July, September and December 15 of the same year in which the taxable profits were acquired. Relatively, the difference between the values paid to each account is the total value of the tax, the payment must be carried out by the deadline for periodic profit declarations (Article 104 of the CIRC).
Special payment on account
Additionally, the same taxable entities are subject to a special payment on account, if they make payments in March, or in two installments in March and October of the calendar year. (Article 106 of the CIRC). The amount of the special payment on account is of 1 % on the business volume relative to the previous taxation period, with a minimum limit of 1000 Euros, and, when it is superior to this amount, it is equal to 20 % of the surplus profit, with a maximum limit of 70.000 Euros.
The value of the special payment on account is deducted from the amount payed on account during the previous taxation period.
The special payment on account is not applicable for the first or second taxation period of a business. Thus, a business will only be able to pay the special payment on account starting from its third taxation period, which normally corresponds to the third calendar year from the date when business operations commenced.
Therefore the company is taxable by the IRXX, the general tax is of 21% over earnings, or a special tax of 175 over the first 15,000 Euros of taxable goods (in the case of earnings) adding a tax of 21% to any value exceeding that amount. Additionally, starting from the third taxable period, (normally the third year after the establishment of the company) the same taxable goods are subject to a special payment of 1% over the volume of business relative to the prior taxable period, with a minimum limit of 1,000 Euros, and when above that, equal to the heightened limited of 20% of the exceeding amount, with a maximum limit of 70,000 Euros.
Will the company have some fixed montly charges?
There are two types of unavoidale montly charges, one being in respect to the CAT (Certified Accounting Technician) and the other being payment towards social secutiry.
The CAT`s fees are fixed by himself, so the amount varies from CAT to CAT.
Regarding the payment towards social security, managers, like members of statutory organs, are included as beneficiaries by the Workers Social Security statutes on account of a third party. For each manager, the company is obligated to contribute with a global percentage of 34,75 % on the amount set in the Social Support Index (SSI), which is 419.22 Euros. Consequently, for each manager, the monthly amount to be contributed is of 145.68 Euros, to be paid before the 20th of each month. In the case that the visa holder has a job parallel to their own business activities, in the sense that it would create discounts in social security, the same shall be freed of any obligation to pay this tribute as company manager.
Does the company need an accountant?