We welcomed Frederico Gouveia e Silva, Managing Partner at NEWCO, a Portuguese firm advising investors and expats, on our podcast, The Golden Quarter Show.
NEWCO is a one-stop shop in Portugal, it has more than 30 years of experience helping investors and expatriates in a range of services for residence by investment, digital nomad visas, real estate investment, corporate services, and consulting services.
Key Takeaways from our conversation include:
- The wide range of services NEWCO offers in Portugal from corporate services, to relocation, tax, and concierge services
- The driving motivation behind Portugal’s lure from American and international investors, which goes far beyond the Madeira tax incentives and the Portugal Non-Habitual Tax Residence regime
- How NEWCO supports clients not only in their relocation or temporary residence but with all the ongoing compliance, company setup, real estate, and tax matters
- NEWCO has a long-standing experience and multi-disciplinary team which is why expats and investors keep returning to their firm for services
Frederico Gouveia e Silva is NEWCO’s Managing Partner, overseeing the executive management of the company, as well as spearheading the business development of new markets. He holds a Bachelor’s Degree in Economics from the Universidade Nova de Lisboa (New Lisbon University) and has taken various postgraduate courses in Taxation and in Accounting, as a result of which he is a qualified tax consultant and chartered accountant. He has also been the chairman of the Bureau of the International Business Centre of Madeira (CINM) at the Madeira Chamber of Commerce and Industry (ACIF-CCM) and Vice-President of the Association of Professionals of the International Business Centre of Madeira (APCINM). Additionally, he is member of the International Fiscal Association (IFA).
To get in touch with our guest to explore Portuguese company formation, relocation, tax, compliance, or advisory services you can email info@newco.pro.
Supporting expats and investors in Portugal
Lorena Jimenez: Frederico welcome to The Golden Quarter Show. It is a pleasure to have you on today.
Frederico Gouveia e Silva: Thank you, hi how are you?
Lorena Jimenez: Good thank you, it is great to be able to speak to you finally. So, I thought it would make sense if we start with a bit of an intro on NEWCO, I know you guys provide a range of services, both on the corporate aspect, from relocation to corporate services that you deliver.
If you could give us just a quick bird’s eye view on what your service offering is?
Frederico Gouveia e Silva: Well, I would say we have a holistic approach to helping our clients and we do provide a turnkey solution adapted to each of our clients’ specific needs.
So, for that we offer a comprehensive range of services namely; corporate services being company incorporation, accounting, tax compliance, management, consulting, and even registration of ships and yachts.
We do have different services, which are relocation services – these are more guided to individuals – so golden visa programs, resident permits, taxes and let us say concierge services in terms of helping people move and settle in Portugal.
We also have a real estate business, that helps our clients in buying and selling real estate, or finding short-term or long-term rentals and, consulting services. So, we do try to provide a wide range of services to help any client move or invest in Portugal.
Read More: Foreign Investment is in our DNA:NEWCO – The Washington Times
Lorena Jimenez: Fantastic, yes that is a very wide range of services.
And you know, when you mentioned real estate – do you help them in looking for properties, do you support them once they have their property in terms of the management of that? Or does it end when they finish the transaction?
Relocation experts in Portugal
Frederico Gouveia e Silva: Well, in terms of real estate, we help them in terms of the transaction, and we help them in terms of any construction and any changes that they need to do in the building they have just bought. And in the management, in terms of, for example, managing the short-term rentals Airbnb – we take care of everything.
Lorena Jimenez: So definitely a full range – a one-stop shop (for investors and expats) – without overusing that term, but a very wide range of services.
Frederico Gouveia e Silva: But that is the idea – basically, that is the idea (a one-stop shop) and what we do not do, we have the right connections to introduce the client to the right guides that will help them do what they need.
Lorena Jimenez: In terms of where your main client base is there are different elements to your service offering, but from the relocation angle, particularly where are you seeing a demand from your private clients?
Frederico Gouveia e Silva: Well, that is a difficult question in the sense that we have 30 years of experience and we do have a very diverse client base of investors from all over the world and with various profiles, some from individual clients, be it digital nomads, or be it families, even in terms of companies – it can be startups.
We do help several multinational companies, for example, from the US. So, I will say that the main comments we receive is that they (our clients) are attracted to Portugal, and specifically to Madeira.
Madeira luring foreign investors
Lorena Jimenez: And specifically, to Madeira for tax purposes, I’m presuming?
Frederico Gouveia e Silva: Well, this is a fantastic island!
So, there are rational reasons to come to Madeira and invest. There are also irrational reasons like the weather like the mountains, the sea, and all the attractions we have here. So, it is not only taxes but a lot of different reasons.
What I will say is that we have a lot of advantages both for companies and individuals, so it is of course very important, the fact that we have an innovative business environment.
Also, in terms of the real estate markets, as you know, and the feedback we have received from US clients, for example, is that the prices are very competitive, there are low transaction costs comparatively with other European countries, and that is just some of the reasons.
In addition to the financial return, non-EU investors can also bet on their residence permits, commonly known as Golden Visa programs, and consequently access the European market and the Schengen area.
Why are private clients moving to and investing in Portugal?
Lorena Jimenez: When your clients looking at relocating, at investing in real estate – are they buying properties that qualify for the Portugal Golden Visa and – do they wish to rent them out? Or are they buying properties and making a move with families, so physically coming over to Portugal?
Frederico Gouveia e Silva: Well, I would say we have both situations that are;
1) the ones that are buying it for investment or just to get the visa, and the main goal is the visa, and;
2) those that want to relocate to Portugal and the visa is just a way to move to Portugal. They are buying the property for their own benefit, not as a financial investment that they are seeking an immediate return on – so it really depends.
Lorena Jimenez: Those clients that come in and purchase real estate for investment purposes to then rent it out – do they normally invest in properties that have a guaranteed rental return which is agreed with/contracted to them prior – or do they come in and have it fully managed by your team that do real estate management?
Frederico Gouveia e Silva: Well in mainland Portugal, you will be able to find that type of arrangements that state you have a contractual income, but in Madeira, it will be much more difficult to find those terms.
Therefore, we try to find a property that meets the client’s criteria, then we make a study to see what is the return they should expect, and then we will work with them to meet these expectations.
What is driving business owners to Portugal?
Lorena Jimenez: So that is in terms of private clients. You also mentioned you had concierge services – this is truly a full spectrum of services!
If we move on to corporate clients, you highlighted before that you served a couple of US multinationals as well – could you just give us some more insight on what exactly you do to support corporate clients?
Frederico Gouveia e Silva: Okay, starting from the beginning, the first step normally is to help in the company incorporation, which includes opening bank accounts, finding local directors – we do provide also the services of professional directors which are local directors that can help in managing the business from Portugal, and we have recruitment services.
Of course, we take care of all the compliance in terms of tax compliance, accounting services, etc. and as I already mentioned recruitment services. So, we have offices already equipped so that the client will be able to start working immediately – we do everything that is needed to facilitate the creation of a company and its management from Portugal.
Lorena Jimenez: In terms of digital nomads, is there some uptick in demand from this kind of clients? How are you supporting them? Are they coming from any specific markets/jurisdictions?
Frederico Gouveia e Silva: Yes, for digital nomads Portugal offers, I will say, the best trade-off between working and leisure time.
We have, as I mentioned, gorgeous natural landscapes, you can explore hikes, beaches, and some of the world’s best surfing spots. And Portugal is a diverse country, so these digital nomads find a unique environment in a small country with different environments/landscapes.
And so, it is easy to find a place where these digital nomads will feel at home, and then we help them as remote workers in finding a spot for them to work, and find a house.
For them, the main benefit is this special tax regime that Portugal offers that includes tax reductions and even exemptions for certain types of foreign-sourced income.
Lorena Jimenez: The 10-year non-habitual residence tax regime is what you are referring to then?
Frederico Gouveia e Silva: Yes.
Lorena Jimenez: But one of the defining elements of this calibre of client – digital nomads – is that they are looking at moving from time to time.
Do they come because of the Portugal Non-Habitual Resident tax regime, as that (mostly) makes sense if you are looking at making a move and setting up a (long-term) base in Portugal?
What is the profile of your digital nomad clients?
Frederico Gouveia e Silva: Yes, the digital nomad clients, when they come, they have this idea of just being here for several months and not becoming tax residents in Portugal.
Nevertheless, there are certain red flags and there is some red tape that has to be addressed and that’s what we do for them at NEWCO. Our job then is to try to convince them to stay to stay in Portugal and to become residents here.
Some of them approach us for this initial work and then they come back to us saying,
“You know, I want to be here for one or two years so therefore, I will be resident in Portugal for this time”.
Then, there are some tax obligations that need to be done in such cases, so they want somebody to guide them on this and that is what we do.
Lorena Jimenez: Next thing you know they never leave, I guess? Portugal has got that lure!
Frederico Gouveia e Silva: That is our goal!
Yes, people usually stay more than they initially planned.
Read more: A Brave New … One World Digital Tax
Why NEWCO is the ideal partner in Portugal
Lorena Jimenez: In your words, what would you say about your clients who can select working with a variety of different service providers, what is the reason that they end up working with NEWCO?
Frederico Gouveia e Silva: Well, the way I see it, moving to or investing in new countries is a complex process. This entails some risks, so seeking the help of an experienced and trusted partner I would say, is invaluable.
We have a highly specialized multidisciplinary team that has experience, we understand each client’s specific needs. And we have the know-how and the full range of services.
It is key to have a full range of services to help investors grasp the benefits of this great country which is Portugal, be it getting a Golden Visa or finding a property for investment or for second home purposes.
Whether it is setting up an operating company in Portugal, or an international business in the Madeira International Business Centre which has a special corporate tax regime. Or simply finding a place to work away from home for a short period.
We have experience with all these kinds of clients and cases, and with our multidisciplinary team we take care of everything – that is what they are looking for!
Lorena Jimenez: The must have that need to feel fully cared for by one (central) point or services provide!
Frederico before we wrap up, perhaps if you could just let us know, what would be the best place for our audience to reach out to you if they have any more questions or anything they need to ask with regards to Portugal.
Frederico Gouveia e Silva: I will say the best way to reach us is through our website at http://www.newco.pro. But you know, clients or potential clients can also follow us on social media be it Facebook, LinkedIn or Insta.
We regularly post news updates, guides on moving, and investing in Portugal.
We share a lot of information and I think it will make sense to start by checking our website or following us on social media. All our contacts are there and you can start engaging in a conversation!
Lorena Jimenez: Perfect. That is great, Frederico, thank you so much for going through all those points with us and giving us some more insight on both your company, NEWCO, and on Portugal.
From our end it was a pleasure having you on and thank you so much for joining in on the conversation
Frederico Gouveia e Silva: It was my pleasure, thank you.
Read more about NEWCO on The Washington Times (Read TWT Article Here) our conversation was initially recorded in September’ 22.
