Business angels want tax incentives
Portuguese business angels want Portugal to follow the example of countries such as France, United Kingdom and the United States of America, which have the possibility of 20 to 25% tax deductions on investments made into unquoted start-ups. According to Francisco Banha, chairman of the National Federation of Business Angels Associations (Federação Nacional de Associações de Business Angels - FNABA), “this measure would be vitally important in stimulating more investment from Portuguese business angels". FNABA’s chairman also believes that “the trade income tax exemption at the outlet of investment, as proposed by the Securities Market Commission (Comissão do Mercado de Valores Mobiliários - CMVM) has no practical effect, and only the possibility of tax exemption at the inlet of investment would constitute an efficient incentive for business angels to invest”.
However, FNABA does not believe that the desired tax relief features in the new legislation for business angels’ activity. Still, Francisco Banha agrees that the publication of the legislation will have great merit. “The fact that legislation about this activity is being published is in itself a public acknowledgement of the importance of business angels at a time when there are still many hurdles against business", states the chairman of FNABA.
Rui Pedras, chairman of CMVM, confirms that the new legal framework was motivated by the “need to legally introduce the concept of business angels, and because it is necessary to promote competitiveness in the venture capital market at a time when the banks continue to have most of the venture capital funds". The chairman of the regulatory body for the sector also believes that the new legislation will contribute to an increase in employment in Portugal, as it supports the development of venture capital and the activity of business angels, who in turn support the creation of new enterprises.
|
European Business Angels Week 
