LDA in Portugal without tax residence

However, the company's tax residence must be distinguished from that of its director or partners.

International tax law focuses not only on the place of registration, but also on the place where the company's activities are carried out. effective management functions.

What an LDA in Portugal can really do without tax residence

Within a controlled framework, a Portuguese LDA can :

• be held by one or more non-resident partners; ;
• be run by a manager who is not resident in Portugal for tax purposes; ;
• carry out an international commercial or service activity; ;
• bill customers outside Portugal.

These situations are common in international contexts and do not in themselves constitute an irregularity.

However, these possibilities must be assessed with regard to the reality of the company's operations, and not just its legal form.

In practice, bilateral tax treaties, as well as the principles recognized by the’OECD, are based on the central criterion of effective leadership the place where key strategic and operational decisions are made.

Limits and points of vigilance

The absence of tax residence in Portugal calls for heightened vigilance in a number of areas:

• the actual place where the manager makes decisions ;
• daily business organization ;
• administrative and financial management ;
• whether or not local economic substance exists ;
• possible confusion between the company and the individual.

An LDA that exists only on paper, with no operational coherence, may be perceived as an artificial structure if all decisions and activity are concentrated in another country.

Concrete risks, particularly in France

For a manager or partner who is a French resident for tax purposes, the main risk is that of a "tax holiday". tax requalification.

Tax authorities may consider that :

• the effective management of the company is from France ;

• the company has a permanent establishment in France ;

• income must be taxed in France and not in Portugal.

These situations can lead to :

• a rethink of the tax system ;

• tax reminders ;

• penalties and interest for late payment.

Analysis is always case by case, based on the facts, not on the mere existence of a foreign company.

When this option might make sense

An LDA in Portugal without tax residence may be consistent in certain contexts, including when:

• the manager is already an expatriate or not a French tax resident; ;
• business is truly international; ;
• the structure's organization is consistent with its location; ;
• strategic decisions are not taken from France.

In these situations, LDA can be part of a structured, compliant business logic.

When it is not

This option is generally unsuitable when :

• the manager is a French tax resident; ;
• the activity is carried out mainly from France ;
• the LDA is used simply as an administrative relay; ;
• the structure is copied without global reflection; ;
• no work has been done on tax and legal consistency.

In these cases, the tax risk far outweighs the benefits.

The role of WizeCounsel support

The support offered by WizeCounsel consists of :

• analyze the manager's overall situation ;
• identify potential risk areas ;
• clarify the coherence between residence, activity and structure; ;
• provide a framework for decisions prior to company formation.

This approach aims to secure the legal and tax framework, without seeking artificial arrangements or aggressive optimization.