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Table of contents:
1. TOP 5 Disadvantages of living in Portugal
2. The right way to do it
3. Company formation Bulgaria
The 5 biggest disadvantages of living in Portugal.
19 March 2025 6593 8"The Portuguese dream: Living near the beach and telling yourself and your family, “Ay caramba, I made it!” Absolutely! But aren't there alternatives to Portugal? Yes! We have the insider tip!"
Portugal is among the top 3 most popular countries for Western European expatriates. Lisbon, Porto, Braga, and of course, Funchal in Madeira are trending destinations. As an employee, you usually have to expect significantly lower wages compared to Western Europe, for example. The main appeal is undoubtedly the mild climate, the Portuguese lifestyle, and proximity to the sea.
But what if I work independently, remotely, or even start a business in the South, far from my home country? Does it really make sense as an entrepreneur, or are there better alternatives?
Here are the 5 biggest disadvantages of moving to Portugal, especially as a self-employed person:
1. Generally high taxes
Personal income tax in Portugal: Tax rates are progressive and can reach up to 48%.
The standard corporate tax rate in Portugal is 25%. In Madeira, corporate profits are taxed at 20%.
Portugal doesn't have the highest taxes in Europe, but it doesn't have the lowest either. Portuguese taxes, especially those related to social security, are high—at least in their standard form.
Portugal ends tax-saving model.
The 2009 law exempted foreign income from taxation for those who lived in Portugal for at least half the year, for a period of ten years.
As of 2024, this is coming to an end. Lisbon aimed to attract “qualified foreigners” with tax incentives, but the tax benefits only led to losses and rising real estate prices.
"The Portuguese dream: Living near the beach and telling yourself and your family, “Ay caramba, I made it!” Absolutely! ut aren't there alternatives to Portugal? Yes! We have the insider tip!"
Is there still a place on Earth where costs, taxes, and entrepreneurship are in perfect balance?
Yes, it exists—in Eastern Europe. Our example: Romania.
Please ask yourself the following question:
Do you want to go all in on your self-employment for a few years and build up a personal fortune so that on average
90% of your income remains in your private account? Affordable rents and moderate living costs, as well as employees you can afford?
Here is the solution:
Straight to the point: Move to Romania and pay only 1-3% tax when founding a corporation? (Plus 10% tax on profit distribution to private assets) Yes, you heard right, if you live in Romania you could keep around €900,000 from a €1 million company profit at the private level.
Be skeptical and question it, but at GO EU, we have assisted hundreds of entrepreneurs settling in Romania, where they pay around 10% in taxes, with the rest going into their private assets.
If you are interested in company formation and moving to Romania or Bulgaria, we would be happy to hear from you. You can find more information in the video description.
Thanks to this expertise, we have created a setup that allows us to establish a Company including a bank account – 100% remote, meaning without any travel required. And the best part? It’s completely legal and accessible to almost everyone through GO EU!
Update 2025: 10 Minutes initial consultation 100% free.
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Call us: +49 (0)89 90 42 23 60
2. Lack of efficiency
When you have something to take care of, you suddenly wish that Portugal’s slow pace of life wasn’t quite so slow.
3. Low salaries and high youth unemployment
Fulfilling the dream of working in Portugal can be challenging unless you secure a job immediately. However, due to Portugal’s high unemployment rate, the job market is highly competitive. Additionally, average salaries are 20-40% lower than those in Western Europe.
4. Dependent on tourism
The local economy relies on tourism, which can lead to limited employment opportunities.
5. Bureaucracy
Bureaucracy exists not only in Portugal but also in many European countries like Bulgaria, Romania, and Germany. However, in Portugal, bureaucracy reaches a new level of paperwork and confusion.
I hope you enjoyed this post! If you are interested in company formation in Romania and Bulgaria or tax savings, we would be happy to hear from you. Feel free to get in touch!
Update 2025: 10 Minutes initial consultation 100% free.
Inquire now
Call us: +49 (0)89 90 42 23 60
(NEW: Company formation including bank account opening – 100% remote)
Starting a company in Bulgaria
Only 5-7.5% tax on annual turnover!
There is a very simple tax system in Bulgaria for any type of company with a tax rate of 10% (flat tax). The special feature of GO EU - and only with GO EU: Only 5% - 7.5% corporate tax, and 5% dividend tax on profit distributions into private accounts. This results in a total tax burden of around 10%, meaning that approximately 90% of the company’s profit ends up in the private account.
The unique selling point of GO EU!
We specialize in the two countries Romania and Bulgaria. -> See About us
Based on this expertise, we have created a setup that allows us to establish a company, including a bank account, 100% remotely, i.e., without any travel. And it's completely legal and accessible to almost anyone, via GO EU!
- Lowest taxes in the entire EU
- Avoidance of double taxation through double taxation agreements
- Low-wage sector with well-trained personnel in certain industries (e.g. IT)
- Managing directors and shareholders not publicly visible (anonymous)
- Direct contacts for all tax-related questions
- Recognition of the EU company by the local tax office
Do you want to start a company in Bulgaria? Request a consultation! Our expertise, specialized in Bulgaria and Romania, along with our network of experts, helps you with almost every aspect of the process.
Update 2025: 10 Minutes initial consultation 100% frees.
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Georg K.
Published on 28 August, 2024 / Answer
My wish is to relocate and start a business. But to be honest, as uncool as it may seem to some, I have to say that Romania is the country for me. The sense of freedom is priceless. Question: Can I set up the company in advance so that when I move to Romania in a few months, it is fully operational?
Hans
Published on 30 August, 2024 / Answer
Everything can be done remotely without travel, as I have learned. I personally went through the process with another provider and had to travel three times! 1x for the company formation, 1x for the bank account, and 1x for the power of attorney for the tax advisor (only possible through a notary). Completely unnecessary! I wish I had known this beforehand—or done it with GO EU.
Sabrina
Published on 23 September, 2024 / Answer
I intend to live in Germany and, if at all, only move to Portugal, Mallorca, or Romania after a few months as a new venture. Can I also manage the company from Germany if I don’t emigrate at all?
Thomas Hofmann
Published on 24 September, 2024 / Answer
Starting a company within the EU is a common process that happens daily—including cases where the founder’s main residence and place of living are not in the country of incorporation but rather in their home country. The incorporation itself is not an issue. Regarding tax recognition by the home country’s tax authorities, it is important to note that everything is based on the Double Taxation Agreement (DBA). As long as its guidelines are followed, recognition is ensured. This approach is used by hundreds of thousands of businesses and is a completely standard process, not a legal gray area.
Wilfred
Published on 25 September, 2024 / Answer
I'm interested in a consultation. I have some questions. Is this free?
Thomas Hofmann
Published on 25 September, 2024 / Answer
We are available by phone on weekdays during regular office hours, as well as through our contact form. A 10 Minutes initial consultation, including advice, is always free of charge.
Ulrich
Published on 28 September, 2024 / Answer
The EU always phases everything out. First, they lure you in, and then the tax benefits disappear. In Bulgaria, the 10% flat tax has remained stable for 15 years—it has never been touched. Why is that, actually?
Reptilienmann
Published on 07 January, 2025 / Answer
Because in Bulgaria, people still want to leave the country. Wages there are extremely low. On the other hand, for entrepreneurs, it’s a real opportunity!
Sebastian
Published on 15 March, 2025 / Answer
A friend of mine set up as a freelancer in Portugal and ended up paying over 40% in taxes, plus mandatory social security.. Even during months with barely any income. It completely killed the motivation to stay.
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