Tax system changes
The increasing complexity of the tax system and the constant changes in tax law, in particular the Personal Income Tax law and the adoption of new rules on Social Security, means that enterprises must regularly review their internal procedures, adapt employees’ remuneration packages and give consideration to personnel costs, all critical factors for the increase of productivity.
It is natural that individual investors feel the need to be updated and receive tax assistance when planning their investments, in order to comply with their tax obligations while, at the same time, achieving tax maximization and optimisation.
To accomplish this, economic agents, enterprises or individuals, need access to the most recent tax changes that may give rise to internal modifications or which generate opportunities.
In addition, internationalisation, globalisation and EU tax harmonisation, constitute a challenge and an opportunity to those operating internationally, for whom the timely awareness of the tax laws is essential to the success of their projects and investments.
How can we help you?
- Private Clients
- Employment tax
- Investing in Portuguese real estate through a foreign company
Private Clients
Individual investors and their families need specific attention with focus on the ability to answer their requests of efficiency, availability, technical excellence and discretion. Individual investors whose investment plans contemplate Portugal as a key target can take advantage of the experience and expertise of our specialised team.
The team provides specialized assistance on the recent tax regime created for non-residents, which provides a more favorable regime for individuals who acquire Portuguese tax residence.
How PwC can help you
- Tax regime for non-residents and similar regimes;
- Tax management on the acquisition, increase, hold and transference of assets, in Portugal or abroad;
- Tax optimization of the acquisition and transference of securities, immovable properties and other assets;
- Tax impacts of contributions to pension and similar funds and the respective benefits;
- Conflict of jurisdictions;
- Change of residence and relocation;
- Family business;
- Enterpreneurship and start-ups;
- Copyrights and similar;
- Foundation, trusts and other entities of social assistance.
Employment tax
The growing difficulty in retaining employees and the competitiveness in the Portuguese labor market imposes the need to define and regularly review remuneration policies, in order to provide employees with the benefits that best fit their personal and family situation, also taking into account the impact on their net income and costs for companies.
How can we help?
- Design, analysis, implementation and monitoring of remuneration policies from a tax and social security perspective.
- Identification of tax and social security implications in the implementation of Flexible Compensation Plans.
- Review of tax and social security procedures followed in the payroll.
- Identification of special tax treatment applicable to the income paid to employees (eg, severance pay, allowances, compensation for change of place of work, displaced workers, etc).
- Assistance with the definition of post-employment benefits (pension plans, pension and net income estimates, etc), from a tax and social security perspective.
- Assistance with the design, implementation and identification of tax and social security impacts of Share Plans (stock options, RSUs, phantom shares, etc).
- Support in the identification and implementation of policies and benefits applicable to startup employees.
- Tax and social security support, local or cross border, to Executives/Administrators/Superior Management.
- Analysis of the tax impact arising from the application for special tax regimes, such as the Non-Habitual Residents regime (“RNH”) or the Former Residents regime (“Programa Regressar”).
- Advice and compliance with tax and social security obligations associated with remote workers and in an international context.
Investing in Portuguese real estate through a foreign company
- Identification of Portuguese tax implications of the acquisition, ownership and sale of real estate (company) in Portugal;
- Tax implications in the country of tax residence;
- Perform a tax Due Diligence of the company owning the real estate in Portugal;
- Prepare calculations of the tax implications of buying real estate vs. buying a company owning the real estate.
What’s up for Startups?
PwC’s Startup Business Survey 2023
Several countries are taking a step forward with regard to the taxation of employee equity benefit plans in startups, paving the way for a more attractive and friendly startup ecosystem. Based on contributions from PwC members in all jurisdictions involved, we developed this study that aggregates an overview of the different tax regimes for share benefits granted to startup employees in 30 countries, highlighting the significant differences in the tax treatment of these benefits across all those territories.
Download the document to read the entire analysis.
Download
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