If you are selling either products or services to a Portuguese company, they may ask you to complete a Mod 21-RFI form prior to being able to pay you the total amount they owe you. If you are have concerns, difficulties or queries with regards to this, do not worry, we have got you covered!

The Mod 21-RFI form has been developed in response to the Portuguese tax authorities who sometimes insist that Portuguese companies withhold 25% of the payment whilst they are paying invoices submitted by British companies which have sold them goods or services.

In order to avoid this, the Mod 21-RFI document is a confirmation that the British company is UK-based and thus pays its taxes in the UK, ultimately providing the Portuguese Tax Authorities with all necessary information regarding your company.

If a Portuguese company has asked you to provide them with a Mod 21-RFI document for them to be able to remit the full payment, please proceed accordingly:
- Download the­ document;
-  Send the completed document to HMRC in order for it to be adequately stamped;
- Ask HMRC to provide you with a Certificate of Residence (1 year validity);
- Send the completed and stamped form alongside a copy of your Certificate of Residence to:
Corporation Tax Services
HM Revenue and Customs

It is interesting to note that Portugal’s government is moving more into co-investing and investment models where government and EU funds are invested in innovative businesses, as well as partaking in innovative business actions by way of subsidies/ soft-loans.

Since my appointment onto the Executive Committee of Portugal IN, I have had the pleasure to learn of “200m”, the latest government initiative committing €200 million to co-invest with Venture Capital funds. The fund aims to attract VCs from all over the world providing the flexibility of not having to set up an office in Portugal. 

The co-investment will be achieved on a deal-by-deal basis investing in start-ups in Portugal – the requirement being that it has to be in start-ups that pay VAT in Portugal.

The 200M scheme has been announced by Prime Minister António Costa with the objective of attracting investors to Portugal to help Portuguese start-ups become more global. Combining another €200 million investment from VC investors, the €400 million investment in the Portuguese start-up sector will be carried out over the next 2 years. I heard Trade and Industry Secretary, João Vasconcelos mention at the latest Lisbon Investment Summit (#LIS) that any exit of the government’s investment in the start-up, when required, will be an uncomplicated process. The growth of entities such as government VC, Portugal Ventures, Lisbon incubator- Startup Lisboa and accelerator Beta I have spearheaded the growth of the entrepreneurial ecosystem in Portugal. Startup growth has been encouraged in the last years in cities like Lisbon, Porto and Braga and beyond. 

There is no doubt that the recent move of the “Davos for Geeks” event Web Summit from Dublin to Lisbon has helped bring even more attention to the tech start-up scene in Portugal. The intention is that Web Summit 2017 in November will host the opening of applications for the 200m fund.

Portuguese tech entrepreneurs have caught the attention of foreign investors, who have already helped high-growth startups like Farfetch, Feedzai, Talkdesk, Veniam, Uniplaces and Unbabel grow global.   I am personally proud that Nuno Sebastião of Feedzai (a start-up from Portugal that was taken to the San Francisco Bay area) recently won the “Accomplished Entrepreneur Award” from my alma mater, the London Business School. Congratulations to Nuno Sebastião and to Feedzai.

May this winning streak for Portuguese start-ups continue and “Viva Portugal”! 

I am an entrepreneur with 16 years of experience in the real-estate and hotel industries in Portugal – my husband and I built up the Martinhal Family Hotel & Resorts brand up from scratch in Portugal. I am also a member of the Executive Committee of Portugal IN – a recently formed task force to attract more FDI into Portugal, especially in the wake of Brexit.  Member of the following Chambers of Commerce: British Portuguese Chamber of Commerce , Swiss Chamber of Commerce and Industry in Portugal, Dutch Portuguese Chamber of Commerce

General enquiries for Portugal IN: geral@portugalin.gov.pt

Passionate Entrepreneur, Real-estate and hotel developer, Startups, FDI into Portugal

Hundreds of thousands of British motorists will face fines for speeding in Europe under new rules coming in on Saturday

Schengen Visa Requirements and Application Guidelines for the UK Residents

The Chancellor Philip Hammond presented the last Spring Budget on Wednesday 8 March 2017.

In his speech the Chancellor was keen to point out that he wanted the tax system to be fair, particularly in relation to the distinction between employed and self-employed individuals.

'But a fair system will also ensure fairness between individuals, so that people doing similar work for similar wages and enjoying similar state benefits pay similar levels of tax.'

In the Budget speech the Chancellor announced that he has requested a report to be delivered in the summer on the wider implications of different employment practices. Also the Budget included changes to NICs and the Dividend Allowance.

In December and January the government issued a number of the clauses, in draft, of Finance Bill 2017 together with updates on consultations.

The Budget updates some of these previous announcements and also proposes further measures. Some of these changes apply from April 2017 and some take effect at a later date.

Our summary focuses on the issues likely to affect you, your family and your business. To help you decipher what was said we have included our own comments. If you have any questions please do not hesitate to contact us for advice.

Main Budget tax proposals
Our summary concentrates on the tax measures which include:

  • increases to the Class 4 National Insurance rates
  • a reduction in the Dividend Allowance
  • changes to the timing of Making Tax Digital for smaller businesses.

Previously announced measures include:

  • increases to the personal allowance and basic rate band (a decreased band for Scottish residents)
  • the introduction of the Apprenticeship Levy
  • changes to corporation tax loss relief
  • the introduction of an additional inheritance tax residence nil rate band
  • changes for non-UK domiciled individuals.

Click here to read our summary of the Budget 2017

Event Calendar

March 2018
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Business Cocktail Evening 22nd March 2018from 6:00pm onwards Lady in Red – Galeria de ArteEdifício Adega de Lagoa, E.N. 1258400-395 Lagoa Sponsored by: [...]
Date :  Thursday, 22 March 2018
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Inscrições para: i.branco@bpcc.pt
Date :  Wednesday, 28 March 2018

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