In Portugal, the income of Venture Capital Funds incorporated and operating under the Portuguese legal regime is exempt from taxation.
The subscription of units in the Fund do not levy any taxes.
Venture Capital Funds incorporated and operating under the Portuguese legal regime are exempt from income tax, regardless of the type of income that they obtain.
This means that the VCF’s tax regime was designed with a view of being a neutral vehicle for tax purposes.
Also, there is no stamp duty taxation in Portugal related to the net assets of these funds. Consequently, all the income obtained by a Portuguese Venture Capital Fund, as well as the positive variation of its asset´s value, is fully exempted from taxation.
The steps to set up your Venture Capital Fund are the following:
(i) Creating the Fund’s Management Regulation (Prospectus).
(ii) Submitting to CMVM.
(iii) Operational process.
From our experience, the item (i) usually takes most of the time while structuring a fund. It can take up to 2.5 months depending on the complexity of the fund rules. The item (ii) relies on CMVM’s agility. It usually takes up to 1.5 months to receive the final approval.
For both items, we hire external lawyers to assist the client structuring the prospectus and submitting all the information to CMVM.
Click here, if you would like to incorporate your own Venture Capital Funds.