How is a Unipessoal Lda taxed?

It pays IRC corporate tax at 21 percent on profits, with 17 percent on the first 50,000 EUR for SMEs, plus municipal Derrama. Dividends paid to the resident sole member are subject to 28 percent withholding (with treaty reductions for non-residents). Salaries are deductible but trigger IRS and Social Security. The IFICI regime, replacing NHR for new arrivals from 2024, can reduce personal tax for qualifying activities.

Can one person have multiple Unipessoal Lda companies?

Modern Portuguese law allows it, despite earlier prohibitions in the original 1986 enactment. Each company must have its own object and operations, otherwise tax authorities may apply substance-over-form rules and challenge perceived artificial structuring. Many founders prefer to consolidate activities into a single Unipessoal Lda or use a multi-member Lda for cleaner separation of business lines.

Glossary/Entity Types/Sociedade Unipessoal por Quotas

Entity Types

Sociedade Unipessoal por Quotas

Unipessoal Lda

Sociedade Unipessoal por Quotas is the Portuguese single-member private limited company, allowing one person to operate with limited liability under the same Lda regime.

What Unipessoal Lda is

A Sociedade Unipessoal por Quotas (Unipessoal Lda) is the single-member variant of the Portuguese Lda, regulated by the same Codigo das Sociedades Comerciais. The legal effect is identical to a multi-member Lda, but the company has a single member who is the sole holder of the entire capital. The minimum capital is 1 EUR.

The member can be a natural person or a corporate entity, Portuguese or foreign.

Formation goes through Empresa na Hora or Empresa Online with a single member declared in the articles. Governance is simpler since general meeting decisions are recorded as single-member decisions in the company's minute book. The sole member owes the same duties of care and loyalty as in a multi-member company.

A Unipessoal Lda pays the same IRC corporate tax, municipal surcharge, and VAT regime as any other Lda. Cash extraction by the member can be through salary (subject to IRS withholding and Social Security contributions), dividends (subject to dividend tax, currently 28 percent for resident individuals with reduced rates under treaty), or repayment of shareholder loans.

The Codigo restricts a single individual from holding multiple Unipessoal Lda companies in some circumstances, and at one point limited it absolutely; as of recent reform this is permitted but each company must be properly distinct in operations.

When you will meet Unipessoal Lda

You will encounter the Unipessoal Lda when relocating to Portugal as a solo digital nomad, freelancer, or e-commerce operator, especially under residency programs like the D8 digital nomad visa. Many remote workers form a Unipessoal Lda to invoice international clients, optimise tax with the IFICI (former NHR) regime, and access Portuguese Social Security.

The form is also used by foreign holding companies as a single-member Portuguese subsidiary.

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