dalboy

hi all

I am seriously considering moving to portugal. I have holiday'ed there every year for the last 10 years and stay near armacao.

I have enough savings to live there without having to work for around 2/3 years.

I am an IT Director in London, and have over 15 years experience in IT. My plan is to possibly setup as a sole trader offering IT repairs, consultancy etc. to both local small businesses and ex-pats living in the Algarve (Villamoura, Albufeira etc.). I could offer free home callouts etc.

To drum up business I was thinking of handing out flyers in the above areas to both members of public and local restaurants, as well as a facebook page.

I was thinking of doing a "test run" this september when i go over for a week, just to see if there is interest. I understand there are probably other local companies offering something similar, but I am hoping my knowledge and character will help stand out!

Just wanted to see what peoples thoughts are and is there any legalities i need to be aware of? I just have this vision that all the UK ex-pats over there would have some sort of tech that they would need help with at some point. Anyone out there currently to advise?

I wouldnt move permanently unless something like the above had potential to keep me ticking over.

I currently own a property in the UK which I would rent out to cover the mortgage on that front.

Many thanks in advance!
Darren

liveaboard

Your odds of success are fairly slim; a similar business [or two] just folded.
but the economy is picking up now, so I wouldn't say you have no chance.

The Portuguese don't seem to use the internet much for business, most websites are static adverts that are not even maintained. Many businesses have no website at all, so potential customers don't bother to look.
There's not much action, but there is potential for growth.

EMR

There is a similar operation in Lagoa, it might be worth you way talking to them.

dalboy

Thanks both

liveaboard - my target isnt really websites. its more of technical issues with hardware / software etc. I would be suprised if most people dont own a PC / Laptop / Smart Phone / Tablet etc.

AllanB

Whether or not the business is viable is one thing, I am quite interested in the actual setting up of the business, as I may be doing it myself.

I have a small manufacturing business in the UK that I may need to transfer to Portugal, as my current staff may be moving country.

In the UK it easy very easy to work from home, but some countries have a lot of state red tape, licenses etc.

macliam

Yep, that'll be Portugal.

Just spoke to my German gardener friend..... he knows someone who has lived in Portugal since age 2, so speaks fluent Portuguese and knows the system. He is a qualified spark, so set up as a one-man band. Basically he hands half his hourly rate to the government and to pay all the required expenses (insurance, accountant, etc. etc.) - and the most he can charge is €15 an hour. So he ends up getting the same as my friend gets cash-in-hand - about €8......

captainflack

I moved to Portugal about 3 years ago. I work self employed in IT, but mainly software and web development with my customers in the UK and elsewhere.

Most malls have small stores that do PC repair and those kinds of things, so I am not sure it's necessarily a market that is not already dealt with.

Relying on the local market here is tough - the cost of living is relatively low, but so is the income. The ideal scenario is to live here (sun, lower cost, etc.) but have your income largely from the UK or outside of Portugal.

If you're an IT director, is it possible you can do that job remotely? Or take a related (maybe lower paid job) with the same company on a remote basis? If you have all that experience, they're unlikely to want to lose you. I know a few people now working like this, remotely, including a UK lawyer who's in her 20s. If you can get reasonable money, you can even budget on doing a few day trips or overnights back on easyjet each month if you get the rest of the time in Portugal. I certainly wouldn't walk out on a good UK job and try to start doing something really small which will be a struggle in Portugal, if you can find something much more closely related to your skills and CV that would let you work remotely. Even if you take a big pay cut, you'll still earn more than you would in portugal.

Love Armacao btw, was a big part of my childhood, my grandparents had a place in Senhora da Rocha, and my uncle has an apartment on the front in Armacao.

dalboy

Thanks for this.

Doing my role remotely is a no go as I dont work for an IT company, I run the IT infrastructure. They are a small business (circa 45 staff) and wouldnt give me the option of even considering remote work as someone is needed on-site to deal with clients.

Yes I guess a UK paid job with remote work is ideal but not sure how realistic that is! I will research into it though.

EDIT: And yes, I understand there are malls and other outfits offering a similar service, but to be frank, where isnt that the case? How many english speaking people with years of IT knowledge are there in the Algarve who can site visit ex-pats etc.?

I thought as test when i am next out there i could hand out some flyers to see if it drums up any interest.

EMR

Remember the expat market in UK terms is very small with just 50,000 living in Portugal.
Expats are currently very well served by an overcapacity of Brits offering most services.
Have you looked at the English speaking press and the adverts from those already in your market.
Not sure handing out flyers will go down well with the local competiton.
Try mail box drops in areas where expats live.

AllanB

I thought as much, back to the UK for staff then. UK tax is easy too.

Mike

Sorry to be the harbinger of doom but your outlined plan will fail miserably.
There are many companies set up by expats who offer similar services.
You have also completely overlooked the fact that there are even more companies run by locals who are, at least, bilingual.
An IT professional handing out flyers? Really?
You need a better plan Darren.

dalboy

Yes I understand that.

My point was before jumping in, was to see if there was any interest with locals. Surely the cheapest and most direct way is to ask around / hand out business cards, flyers etc. Not really an issue in my eyes.

AllanB

I would/will begin by finding out the formalities of setting up a company in Portugal.

Without being personal, I would have though, based on you current job in the "smoke" you are going to take a massive hit in income, even if you do get some business.

Your 2-3 years of savings will be diminishing even when you are up and running, unless you are here for the "Good Life".

I have read a lot about retiring/working in Portugal and the consensus is that while the former is highly desirable, the latter is almost impossible.

The clue is the massive Portuguese Brain Drain, though if too many have left there could be a gap..

Mike

If you really want to get an answer try asking this question on the Facebook Group Anything & Everything Algarve.

macliam

Be careful if undertaking anything that could be construed as "touting for work" unless you have already registered as self-employed with the Finanças.

In Portugal you MUST declare yourself as self-employed to the Finanças BEFORE you start working and inform them if you stop. They will require you to provide a projection of earnings. If you do not do this you may be assumed to be attempting to avoid taxation and fined.

The questions anyone needs to ask themselves are

a) What do I have to offer, what is my USP?
b) Who are the customers I am targeting?
c) Why would the customer buy from me?
d) What would my outgoings be?
e) What would my likely income be?
f) Is this a viable scenario?
g) What is my "Plan B"?

They are not easy questions and they do not have easy answers. They will be different for everyone. Good luck.