[author: Sandra Jardim Fernandes]
What are the key considerations for businesses and individuals navigating cross-border mobility in your jurisdiction?
Navigating cross-border mobility in Portugal involves several key considerations for businesses and individuals, including immigration, taxation, employment law, and social security compliance. For non-EU, EEA, and Swiss nationals, obtaining a visa or residence permit is essential, while EU/EEA/Swiss nationals only need to register if they plan to stay more than 90 days.
Portugal offers the Golden Visa program, a residency-by-investment option for non-EU citizens, and the Digital Nomad Visa, designed for remote workers earning at least four times Portugal's minimum wage.
Taxation in Portugal is another crucial aspect. Residents are taxed on worldwide income, while non-residents are only taxed on Portuguese-source income. Residency is established by staying at least 183 days in a year. The New Active Income Taxation (IFICI) offers reduced taxation on foreign-sourced active income for specific professions. Additionally, the Youth Tax Regime provides reduced tax rates for young professionals under certain age and income thresholds. Corporate taxation in Portugal is set at a standard rate of 20%, while businesses in Madeira benefit from preferential tax rates.
In terms of employment law, employers must comply with Portuguese labor laws, including minimum wage, working hours, and termination regulations. EU businesses posting workers to Portugal must notify authorities and ensure compliance with local labor standards. Both employers and employees are required to contribute to Portugal's social security system, with EU rules allowing the portability of social security rights.
Portugal also participates in the EU’s social security framework, facilitating the portability of benefits such as pensions and healthcare, and bilateral agreements may apply to non-EU nationals. For businesses looking to operate in Portugal, foreign companies must register with the Commercial Registry and obtain a Portuguese Tax Identification Number (NIF). Employers transferring staff to Portugal need to ensure compliance with immigration, tax, and labor regulations.
Practical considerations include language and culture, as Portuguese is the official language, although English is widely spoken in business settings. Expats should also secure health insurance and housing, particularly in cities like Lisbon and Porto, where demand for housing can be high.
In conclusion, effectively navigating cross-border mobility in Portugal requires careful planning across immigration, taxation, and regulatory compliance. Professional advisors can ensure smooth transitions and help individuals and businesses manage their mobility strategies.
How can service providers help clients structure global mobility strategies (e.g., regulatory, tax, financial efficiency)?
Service providers, like SjF Immigration & Investments, can help clients structure global mobility strategies by offering tailored solutions that address regulatory, tax, and financial considerations.
1. Regulatory Support: SjF guides clients through complex immigration laws and residency requirements, whether via traditional visas or investment-based programs. They ensure compliance with local regulations in Portugal and other jurisdictions, managing paperwork, residency applications, and immigration procedures. SjF’s experience with relocation and residence-by-investment programs helps clients meet regulatory obligations efficiently, minimizing risks and delays.
2. Tax Strategy: Providers offer specialized tax advisory to help clients optimize their global mobility in a tax-efficient manner. In Portugal, this includes advice on the Youth Income Tax Regime, which offers reduced tax rates for young professionals under specific age and income thresholds. Additionally, the New Active Income Taxation Regime (IFICI) provides favorable tax treatment for individuals with foreign-sourced active income, such as income from specific professional activities. For businesses, SjF provides guidance on corporate taxation in the Madeira Autonomous Region, where the corporate income tax (CIT) rate is 11.9% on the first €25,000 and 14.7% on profits above that. Companies in Madeira’s International Business Centre can also benefit from a reduced CIT rate of 5%. SjF ensures clients capitalize on these favorable tax regimes to minimize tax burdens and maximize financial efficiency.
3. Financial Efficiency: Providers help clients achieve financial efficiency by offering investment guidance and structuring solutions that minimize costs and maximize returns. SjF assists clients in evaluating and selecting the right residence-by-investment options, ensuring financial resources are aligned with their goals. By considering factors such as tax benefits, residency requirements, and investment returns, SjF helps clients make informed decisions that promote long-term financial stability.
4. Comprehensive Support: SjF’s full spectrum of services includes not only concierge and legal support but also investment guidance. They assist clients in making informed decisions on investment opportunities that align with their immigration goals, financial strategies, and regulatory requirements. From consultations to securing residency and managing investments, SjF provides personalized, end-to-end support for smooth transitions and successful outcomes.
Through personalized expertise, SjF helps clients structure global mobility strategies that align with their regulatory, tax, and financial goals, ensuring a smooth transition and long-term success.
Is globalisation on the wane? How do recent political events create new opportunities in global mobility?
Globalization is not necessarily on the decline, but recent political events and global challenges have reshaped how individuals and businesses approach mobility. While trade, technology, and international business continue to thrive, many are considering factors such as safety, political stability, quality of life, and economic opportunities when choosing where to live and invest.
Political instability, particularly in regions with uncertain political climates, has prompted a growing number of individuals, especially Americans, to seek alternatives through residency-by-investment programs. This shift is driven by concerns over political polarization, safety, and the desire for greater security for themselves and their families.
Opportunities in Global Mobility: Service providers like SjF Immigration & Investments are seeing a significant increase in the number of American clients seeking relocation options to countries with more stable political environments and better living conditions. These individuals are looking for destinations offering high quality of life, excellent healthcare, safe environments, and welcoming cultures. Portugal, for instance, has become an attractive option with its residency-by-investment programs, such as the Golden Visa, providing a pathway to residency and long-term stability. Additionally, many view these programs as a way to leave a legacy for their children, ensuring access to a stable future.
In summary, recent political events have created new opportunities in global mobility. The desire for safety, quality of life, and stability has driven people to explore alternatives beyond traditional borders, using residency and investment programs as a strategy to secure their future and create a lasting legacy. Providers like SjF offer personalized solutions that address both clients’ immediate needs and long-term goals.
Key Takeaways:
1. Immigration and Residency Options: Non-EU nationals need visas or residence permits, while EU/EEA/Swiss nationals register for stays over 90 days. Portugal offers tailored programs like the Golden Visa for investors and the Digital Nomad Visa for remote workers earning four times the minimum wage.
2. Tax and Regulatory Compliance: Residents are taxed on global income, while non-residents are taxed on Portuguese-source income. Special regimes like IFICI and the Youth Tax Regime provide reduced tax rates. Businesses must comply with local labor laws, corporate taxation, and social security rules, with Madeira offering preferential tax rates.
3. Practical and Strategic Support: Professional advisors help navigate regulatory, tax, and financial complexities. Services include visa applications, tax optimization, and investment guidance, ensuring smooth transitions and alignment with long-term goals.
Sandra Bio
Sandra Jardim Fernandes is a renowned legal expert specializing in Immigration Law and Foreign Investment, with a strong focus on real estate, corporate law, and investment funds. As co-head of the Immigration at a Leading Law Firm and Head of Legal Affairs at SjF Immigration & Investments, Sandra offers comprehensive, one-stop solutions for immigration, legal, investment, and concierge services.
She is a leading authority on Portugal’s Golden Visa Program, as well as the D7, D8, and other residency programs, expertly guiding clients through the complexities of residency acquisition. Sandra ensures full compliance while tailoring strategies to maximize individual client benefits. Her expertise also covers real estate investment, tourism ventures, and corporate transactions. Sandra’s executive management experience in hotel administration provides valuable insights into business operations. A Fellow Member of the Investment Migration Council (IMC) and an active participant in the International Bar Association (IBA), she is also recognized as a trusted legal advisor by the UK Embassy in Portugal.
Since 2014, Sandra has been a sought-after speaker at international conferences, sharing her knowledge on immigration and foreign investment. Known for her professionalism and multicultural insight, Sandra is a respected figure in the global legal community.
Firm overview
SjF Immigration & Investments was established to meet the growing demand for personalized, comprehensive immigration services. The firm specializes in relocation and residence-by investment programs, providing tailored solutions that consider each client’s unique goals and tax requirements. SjF ensures a seamless process for securing residency in Portugal or exploring various immigration-by-investment options.
With years of experience, SjF Immigration & Investments offers a full spectrum of services, including immigration assistance, legal and tax advisory, concierge support, and investment guidance. The firm’s client-focused approach emphasizes building long-term relationships and delivering expert guidance at every stage of the immigration journey.
The firm stands out for its commitment to delivering solutions that are specifically designed to meet individual needs, offering comprehensive support throughout the process. SjF is known for providing trusted expertise, ensuring that clients receive the highest quality service backed by a proven track record of success.
Through a combination of professionalism, strategic insight, and a commitment to excellence, SjF Immigration & Investments helps clients achieve their immigration and investment goals with confidence and efficiency.
