In this article, I am going to talk about current global trends, the E-Residency program in general, and the way it will be realized in Portugal via E-Residency 2.0. I will shed light on the legislative architecture behind it and highlight all the potential benefits and possibilities arising from this incentive. So bear with me and you will soon find out all that is necessary regarding E-Residency in Portugal!
First of all, I would like to talk about E-Residency in general and help you understand what it is all about. I will not go into unnecessary details, as I am sure most readers are already well aware of what it is and what it is not. Nevertheless here is a quick overview of this interesting incentive.
E-Residency is a concept legally backed by the government of the respective country in which it is realized. The main idea behind it is to grant non-residents access to economic activity and allow them to operate completely online and within the framework of EU jurisdiction. Namely, it allows to acquire tax registration, incorporate companies, pay salaries, collect profits, utilize banking/accounting services, etc. completely online, while avoiding unnecessary bureaucracy and staying on the legal grounds of the European Union. A good example of this program is Estonian E-Residency which was founded in 2014. As mentioned above it features access to essential services and also encompasses an electronic card that allows its owner to e-sign documents.
Despite a very positive global reception of the Estonian initiative, there were a number of critics, who expressed doubts regarding the lack of clearly defined taxation policies behind the e-companies. However, when we consider Portugal, it is important to understand that the local tax system is very sophisticated and flexible, featuring among its benefits double taxation treaties, special status of cryptocurrency-related gains and the non-habitual tax residency regime offering a 10 year exemption on income tax on certain types of qualifying income outside of Portugal.
In Portugal this concept is presented by the E-Residency 2.0 which is currently in the works and is expected to be launched by early november 2021. The development of the E-Residency 2.0 was commenced in accordance with the resolution of the Council of Ministers no. 30/2020 (action plan PATD 21.04.20) in line with the European Union development policy.
As of yet not many details are unveiled and many aspects of this initiative are still to be uncovered. Nevertheless, it is already clear that the Portuguese government is working very hard on making Portugal a favorable location for business incorporation with a warm economic climate open to foreigners.
Please note that numerous features of E-Residency are already made available by our online platform. We are a dedicated team of legal professionals, based in Portugal and offering our clients a very comprehensive list of services available 100% online. With us you can gain access to economic activity in Portugal in a matter of just a few clicks. We file NIF’s, register freelancers, incorporate companies, provide legal addresses, acquire NHR regime status all completely online! Check us out!