Prepare for success: Why clients should probably start thinking about having a Personal Holding

Entrepreneurs in Portugal are still very reluctant in preparing for success, meaning having a Personal Holdings.

However, these structures are a legal and legitimate way to manage profit distributions form operating companies. Here’s why they might be the right move for you:

✅ Cash Out Tax-Free: With a Personal Holding, receiving dividends from your operating company or selling your stake in the company can be done (most of the cases) fully tax-free at the holding level. Meaning you can delay final taxation until the timing suits you better: whether because you want to reinvest these proceeds or you are just looking for a better time to fully cash-out.

✅ Succession Made Simple: Preparing for the future becomes much easier. A Personal Holding can centralize assets, offering a more straightforward way to pass on wealth to the next generation.

✅ Manage Tax Transparency: Personal Holdings can even help (in some cases) to better manage tax transparency at the level of the operating company.

But here’s the kicker: whether a Personal Holding is right for you depends on your unique situation.

✅ Ownership stake: A small stake is not worth putting in a Personal Holding.

✅ Company size: Your operating company is a micro or small company? Holding directly might actually save you more taxes.

✅ Life cycle stage: If you’re scaling up or preparing to sell, a Personal Holding can be invaluable.

Portugal offers legitimate and legal pathways to enhance your entrepreneurial success—why not explore them? 💡