The D2 Visa
D2 Visa
General features
Before we start the analysis of the D2 Visa, which makes it possible to obtain the Residency Permit in Portugal, we will pass on some information that often raises doubts to those interested in residing in Portugal.
In Portugal, there are several types of Visas.
The best known are the following:
Schengen Visa – It is intended for short stays of up to 90 days and can be granted for the purposes of tourism, family visits, business, seasonal work, transit, among others.
Temporary Stay Visa – Intended for stays in Portugal for a period of up to 1 year.
Residence Visa – Intended for stays of more than one year.
The average deadlines for issuing visas may vary according to the procedures of the Portuguese Consulate in the applicant’s country of residence.
After the issue of the Residence Visa (in any of the modalities), the applicant must travel to Portugal in order to comply with the second stage of the process.
At this second stage, the applicant may remain in Portuguese territory for up to 4 months (with the possibility of two entries) until the interview at SEF.
The possession of a Residence Permit valid for a period of 5 years allows its holder to obtain a Permanent Residence Permit or, if interested, to obtain Portuguese Nationality.
In this case, the new Portuguese citizen can take advantage of all the benefits applicable to citizens who are members of the European Union. D2 Visa, also known as the Entrepreneur or Business Visa, consists of an authorization granted by the government of Portugal so that the applicant can develop a business activity in this country.
This Visa has many peculiarities, which is why we will carry out a detailed analysis, in order to avoid doubts about the procedure to obtain it.
Workplace Team
Requirements
In this item, we will analyze the most important requirements for applying for the D2 Visa.
According to the specifics of the enterprise and the applicant, other requirements may be necessary, which is why we suggest a specialized adviser assist the applicant during this procedure.
As a general rule, the main requirements for applying for the D2 Visa are as follows:
Proof of means of subsistence
Proof of means of subsistence can be understood as the document that proves that the applicant has financial conditions to remain in Portugal for the initial period of the visa without requiring additional income.
Currently, it is necessary to present documents proving the deposit of, at least:
7,620 € for the first adult
3,810 € for the second adult
2,286 € per child
This amount must be deposited in a bank account of a Portuguese bank.
Thus, before applying for the D2 Visa in their country of origin, the applicant must have a bank account in Portugal with the deposit of the mentioned amount.
Incorporation of the company in Portugal
The applicant should provide for the opening of the company that will develop the business in Portugal. This procedure must also be performed before applying for a D2 Visa.
If the entrepreneur cannot be physically in Portugal, he must authorize a lawyer to provide this task.
It is important to mention that before the opening of the company, the entrepreneur must obtain his tax registration (NIF), as it is a necessary document for the constitution of a company.
Finally, many people do not pay much importance to the costs associated with developing the business prior to the start of the activity.
In this sense, it is worth mentioning that the entrepreneur must perform legal obligations before and after the incorporation of the company.
Obligations of the Entrepreneur
As a requirement for opening the company, the applicant must have the following information:
Qualification of members
Social object
Share capital
Distribution of quotas
Appointment of the manager
Appointment of accountant
Normally opening a business takes around 4 days and will cost approximately 360 euros.
Business plan
We can certainly consider the Business Plan as one of the main (if not the main) documents for applying for the D2 Visa.
Through this report the applicant presents the main information about the business to be developed in Portugal, considering, among other characteristics:
The business object
The business structure
The qualification of entrepreneurs
The location of the establishment
The initial investment
The target audience
The expectation of return
These are just some of the information types that must be included in the Business Plan.
As can be seen, entrepreneurs will also be subject to analysis for the purpose of issuing the D2 Visa. The higher the qualification in terms of knowledge and experience in the field, the better.
Along the same lines, the more structured, the more research and the more information in the document, the greater the chances of obtaining a Visa.
For this reason, although it is not mandatory, many entrepreneurs prefer to carry out Market Research in Portugal before preparing the Business Plan.
There are companies in Portugal that assist the entrepreneur in preparing the Business Plan. Viv Europe is one of them.
As Viv Europe already has experience in preparing the Business Plan with a focus on obtaining the D2 Visa, the process will be facilitated.
Proof of accommodation
The proof of accommodation can be understood as the place where the applicant will initially reside in Portugal, as soon as he enters this country.
Depending on the applicant’s country of origin, different documents may be accepted for this purpose.
Among the most common documents we can highlight the following:
Lease agreement;
Property title of the property located in Portugal;
Invitation letter signed by a person residing in Portugal, and
Proof of hotel reservation or short stay establishment for a minimum period of 1 week.
International Medical Insurance
International Medical Insurance must be valid throughout the territory and cover the entire duration of the intended stay of the interested party within the scope of the visa validity.
This insurance must cover the expenses resulting from eventual repatriation for medical reasons, urgent medical assistance and urgent hospital care and the amount covered must be at least 30,000 euros.
Greater difficulties
As far as we can tell, the D2 Visa is not included in the category of “simple” visas to be obtained.
Portugal needs to make sure that the business to be developed has the potential to be successful.
Thus, if the business does not have the minimum requirements to be operational, the visa application will not be accepted.
In addition, the applicant must prove that he has financial conditions to support the costs related to the creation and development of the business.
For these reasons, having a financial reserve is essential for the good development of the company.
Among the greatest difficulties seen by the entrepreneur who intends to invest in Portugal, we can highlight the following:
Find accurate information about Portuguese consumer habits
Carry out a safe budget plan for business development in Portugal
Choose the location of the business establishment
Provision the amount for expenses related to the business
Understanding labour obligations and costs in Portugal
These are just a few of the many doubts that may arise for the foreign entrepreneur and, of course, all of these questions are justified.
Advertising
Making the move to a new country is already a big challenge, let alone starting a business together.
Therefore, although we strive to pass on the main guidelines for the entrepreneur who intends to invest in Portugal, each case must be analyzed in isolation, considering its particularities.
In this way, the pre-operational stage is undoubtedly the most important to create the basis for business success. Seeking professional advice at this stage can be crucial to the success of the business.
Franchises
Another business model widely used for the purpose of obtaining a D2 Visa is the implementation of a franchise in Portugal.
In short, the franchise model is very advantageous for the following reasons:
Business model already tested and approved
Operational structure ready to be implemented
Suppliers, employees and company guidelines already established by the franchisor
Marketing activities of the business developed by the franchisor
Existence of consumers who already know and trust the brand
Quality control carried out by the franchisor
It is obvious that the implementation of the franchise has many advantages.
The simple fact of having a Business Plan for a successful enterprise in the country of origin can facilitate obtaining a D2 visa.
It turns out that this type of business also presents, as a counterpoint, some additional obligations. Amongst them:
Business supervision by the franchisee
Lack of freedom in the business promotion strategy
Need to pay franchise royalties.
Thus, in addition to the percentage of revenue that must be transferred to the franchisor (corresponding to the payment of the franchise), the costs of advertising and promoting the business will also be charged to the franchisee.
However, this is an excellent business opportunity in Portugal, currently being widely used to obtain the D2 Visa.
Comparison of Visas for Entrepreneurs
Although the D2 Visa is aimed at entrepreneurs, there are other types of visa that also have a connection with business activity. Which are:
Golden Visa for investment in companies
Startup Visa
We will summarize the main characteristics of these visas so that the reader can choose the one that best matches his preferences:
Recipient
D2 Visa: People who are interested in starting a new business or opening a franchise in Portugal.
Golden Visa: People who want to invest financially in a company that is already operational in Portugal.
Startup Visa: People who want to develop their Startup company, already established, in Portugal.
Main obligations
D2 Visa: Create a business plan and develop your company according to the guidelines of this document in Portugal.
Golden Visa: Make the investment, at least € 350,000, in operating companies in Portugal.
Startup Visa: Apply for the Startup selection process through IAPMEI and transfer the business to Portugal.
Characteristics of the target audience
D2 Visa: People who have an interest and financial conditions to develop a new company or franchise in Portugal.
Golden Visa: People who have the financial conditions to make the investment and have no interest in participating in the development and operational process of the business.
Startup Visa: People who already have a Startup company and would like support to implement the business in Portugal.
By analyzing the information, we can see that each type of visa has its own requirements and is intended for a diverse audience.
Operational expenses
We will now analyze the costs incurred in the exercise of business activity.
Such expenses must be considered by the expatriate citizen who develops any type of business activity in Portugal.
Among the main expenses, we can list the following:
Employees
Employee costs (payroll) usually reflect the company’s main disbursements. However, they are extremely important for the development of your activity.
In Portugal, the employee receives a total of 14 salaries per year.
In addition to the salary, the company must pay a portion of the worker’s Social Security payment, in the amount of 23%, and the worker must pay the remaining 11%.
Payment by the employer of occupational accident insurance is mandatory and falls on 1% of the employee’s salary.
The food subsidy will cost € 4.27 (in cash) or € 6.83 (in prepaid card) for the day actually worked.
Thus, considering an employee who receives a gross monthly salary of € 1,200, his annual salary will correspond to € 22,409.76, and his effective monthly cost to the company will be € 1,867.48.
Other expenses
Obviously, in addition to employee expenses, the employer must bear the necessary costs for the development of the activity carried out, which must be included in the Business Plan. Among them, we can highlight the following:
Acquisition of raw material;
Logistics;
Acquisition or lease of property;
Hiring an accounting service;
Hiring service providers;
Payment of registration fees;
Purchase of machinery;
Marketing activities;
Tax Burden
Depending on the type of activity to be developed by the entrepreneur, different types of taxes may be levied on the activity.
Corporate Income Tax (IRC)
IRC is the main tax levied on income resulting from the exercise of a business activity, which is applicable on the taxable amount by the organization (which corresponds, quite simply, the difference between the total income and the total expenses of the company in a given period).
IRC rates apply to the taxable amount. For most companies, the rate of 21% applies, to which, in most municipalities, the municipal surcharge in the amount of 1.5%, levied on taxable profit, is added.
The calculation of the company tax must be performed by a qualified accounting professional, given the complexity and responsibilities arising from this function.
Conclusion
We hope that this article may have been useful for the decision to undertake in Portugal.
Portugal is going through a special moment in terms of opportunities and the development of a business will certainly be successful if some precautions are taken.
Let us take the opportunity to recommend the reading of the Complete Guide to Living in Portugal. In this guide, you will have access to relevant information for your final move to Portugal.
Thanks for reading and see you next time.
Source Vitor Queiroz VIV Europe
