New Startups Law Approved

The new Startups law in Portugal was approved by the Portuguese government at the end of March and promises to bring changes to the entrepreneurship ecosystem. However, what exactly does this law 56 consist of?

The diploma proceeds by legally defining the concepts of startup and scaleup, followed by the amendment to the Personal Income Tax Code (CIRS); the amendment to the Statute of Tax Benefits (EBF); and the amendment to the Investment Tax Code (CFI).

It also changes the tax regime for stock options, giving more favorable tax conditions to holders of shares under the so-called Employee Stock Ownership Plan (ESOP). This ensures that taxation will occur at the moment when the income is actually realized.

In markets, with a specific stock options regime for startups, whose taxation applies when the securities are sold, the rates will vary, comparing Portugal favorably with this new approved regime.

The Venture Builder will be holding a Workshop on Tax and Accounting Planning on April 6th, where it will address these changes. As well as other tax issues that are of interest to any interested project in Portugal.

If you are interested or still have questions about the Law of Startups, register for our Workshop here.

If you would like more information please contact our team of specialized consultants, you can make an appointment at this link.