The Key to the Algarve Economy

With the mission of strengthening support to the community of foreign residents and boosting investment in Portugal, Sophie Sadler talks to the founding partners of Kleya, Vasco Silva and Alexandra Cesário.

In a time when discussing the economy is likely to fill you with feelings of apprehension, I tackled Vasco Silva on what the future holds for the Algarve. “We need to create a system which allows foreigners to invest in different types of ventures which reinforce tourism but are not governed by it.”

I agree we are now probably all on board with the idea that the Algarve needs to move away from the beach, sun, golf model that has governed it since the 1970s, but what other options are there?

“The Algarve now needs to be smart about how it comes out of the COVID-19 crisis,” reflects Vasco. “It needs to focus on economic activity that goes beyond tourism and creates value for the area all year round. It needs to focus on how to bring funds and investment to the area.” This is where Kleya comes in.

They aim to provide a one-stop-shop for legal and tax advice so people can set up home here and achieve their business goals. Thus capturing and retaining the country’s international assets in terms of residence, investment, work and education.

To assist foreign residents in Portugal they have just launched the Kleya Membership, a digital platform to give support to foreigners residing in Portugal.

“This platform becomes even more relevant, considering the particular needs that have emerged in the current context marked by COVID-19. With exclusive services designed for foreigners who want to live or invest in Portugal, we believe it is a fundamental element in the sustained recovery of the Portuguese economy and local communities.”

I point out to Vasco that most foreigners fall at the first hurdle when trying to start businesses as they are unable to negotiate their way through the bureaucracy. “We are a bureaucratic country, but you need the knowledge and planning to succeed within this framework. Many foreigners are badly advised. A process that should take three months can sometimes take three years. For example, few lawyers know the ins and outs of urban law; it’s all about knowing what you can and cannot do.”

Kleya can also offer a bespoke service to fit your business concept into the law and provide you with the best advice. “People think they can fix things by getting a friend to put a word in, or offer bribes. This is no longer the case in Portugal; there is a great deal of scrutiny, so you need to go about things correctly.”

What about the other killer hurdle, Portugal’s hefty tax bills? “We do have a different tax model to the UK and US, but we can help create a vehicle like SME which can offset tax within the law.”

They have noticed the Algarve has become a popular destination for digital nomads. “It is an attractive location for digital startups because of the lifestyle. There needs to be more focus on this to diversify economic activity, and there is more that educational institutions like Faro university could do to facilitate this.”

Alexandra observes that the internet connections in the Algarve are world-class, “This is one of the reasons the web summit was hosted here: Portugal could offer free wi-fi everywhere, which not all countries can match.”

Through an online subscription, Kleya Membership allows access to an exclusive online marketplace, ensuring all useful and necessary services for foreigners to live in any region of Portugal. The user can access specialised service providers covering areas such as relocation services, tax consultancy, legal advice, home search, investment advice or health services, education, leisure activities and wellbeing. The Kleya Membership is available in English, French, Italian and Spanish, to cover several of the main linguistic worlds.

Could Kleya be the key to the Algarve’s future success?

+INFO: kleya.eu/en