Starting a business in Portugal has never been more appealing for international entrepreneurs. With a growing tech scene, strong ties to the EU market, and a lifestyle that blends affordability with quality, the country continues to attract founders from all over the world. 

Whether you’re looking to build a startup, open a boutique company, or relocate an existing business, Portugal offers a clear set of pathways and support systems to help you get established.

Why Start a Business in Portugal?

Portugal has become one of Europe’s rising business hubs, and it’s easy to see why. As a member of the EU, it gives entrepreneurs full access to a vast single market while offering a lifestyle and business climate that feel both modern and welcoming. 

Its strategic position at the edge of Europe connects you effortlessly to Africa and the Americas, making Portugal a natural gateway for global expansion. The country’s economy has remained stable and diverse, with strong sectors like tourism, tech, renewable energy, and agriculture attracting investors from around the world.

The startup ecosystem has also grown rapidly, boosted by major international events such as Web Summit, which continues to place Portugal on the global innovation map. 

The country’s infrastructure makes day-to-day operations smooth—fast WiFi coverage is widespread, transportation links are reliable, and Lisbon’s international airport is only about 10 minutes from the city center, making global travel incredibly convenient.

Entrepreneurs also benefit from a talented, highly educated workforce trained in fields such as engineering, science, and technology. Local universities and research centers are deeply connected to the business world, creating a steady pipeline of skilled professionals ready to support growing companies. 

Adding to this, Portugal’s tax regime is designed to encourage investment, offering competitive incentives for those interested in opening a business in Portugal.

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Business Structures in Portugal

There are multiple structures available for starting a business in Portugal. You just need to choose the one that is suitable for your situation.

Individual Ownership

Sole Trader: Referred to as Empresario em Nome Individual, this form of self-employment involves one person conducting business activities. There’s no minimum capital requirement, but sole traders bear unlimited liability for business debts.

Single-Member Limited Company: Known as Sociedade Unipessoal por Quotas, this structure allows one person to operate a business with debt liability limited to business assets. It necessitates a minimum capital investment of €5,000.

Individual Limited Liability Establishment: Recognized as Estabelecimento Individual de Responsabilidade Limitada, this resembles a Single-Member Limited Company. However, the €5,000 capital investment must comprise at least two-thirds cash.

Partnership

Private Limited Company: Identified as Sociedade por Quotas, this type requires a minimum of two partners and a €5,000 capital investment. Shareholders must contribute a minimum of €100 per share and are collectively responsible for debts covered by business assets.

Partnership: Known as Sociedade em Nome Colectivo, this structure mandates a minimum of two partners, whose liability extends to personal assets for covering company debts.

Public Limited Company: Referred to as Sociedade Anomina, this entity requires at least five shareholders and a minimum capital investment of €50,000. Shareholders are liable for debts up to the value of their shares.

How to Open a Company in Portugal: Step-by-Step Guide

Starting a company in Portugal, as a new country can feel overwhelming, so we’ve created a simple step-by-step guide to make starting a business in Portugal easier. The process is straightforward, and having a lawyer assist you can speed things up and ensure everything is done correctly.

1. Get Your Portuguese Tax Number (NIF)

The NIF (Número de Identificação Fiscal) is the first step in opening a company in Portugal, and every shareholder or director needs one, even if they don’t live in the country. 

Non-EU founders must appoint a Portuguese tax representative—typically a lawyer or accountant—to obtain it on their behalf. The process is simple: fill out a short form, provide a passport copy, and show proof of your address. 

The best part is that it can be done remotely through a power of attorney, so there’s no need to travel to Portugal just to get your NIF.

2. Choose the Right Company Structure

At this stage, you’ll need to decide what type of company Portugal you want to create—whether you’ll be the sole owner or bringing in partners. The most common choice for foreign entrepreneurs starting a company in Portugal is the Sociedade por Quotas (Lda), similar to an LLC. 

It’s flexible, easy to manage, and ideal for small to medium businesses, startups, and service-based companies. Another benefit is the low share capital requirement, which can start at just €1 per quota, although many founders opt for €1,000–€5,000 to present a stronger business profile.

For most foreign owners of business in Portugal, —whether you’re launching a consulting firm, tech project, online service, or holding company—an Lda is usually the most practical and cost-effective option.

You’ll also need to define a few key details:

  • Company name, either chosen from a pre-approved list or proposed independently by requesting a Denomination Approval Certificate.
  • CAE code, which is the official business activity classification and determines how your company is registered and taxed.

3. Prepare the Company Details

Before starting a company in Portugal, you need to define the “identity” of the company: You’ll decide on the following:

  • Company name
  • Registered address in Portugal 
  • Shareholders and their participation 
  • Managers/Directors (Gerentes in an Lda)
  • Share capital amount and how it is divided

Your lawyer will then draft the Articles of Association (Contrato de Sociedade).

4. Open a Business Bank Account

The next step of opening a business in Portugal, is to open a corporate bank account in the company’s name. Most banks begin by creating a capital deposit account, where you transfer the initial share capital. 

Once the funds are in, the bank issues a deposit declaration confirming that the capital has been paid—an essential document for completing the company incorporation.

Some banks in Portugal also offer remote onboarding, either through a lawyer or via their own online platform, once they’ve completed the required due-diligence checks on your documents.

5. Register the Company

Once the documents are ready and the capital is deposited, you move to formal incorporation. There are two main ways:

  • Empresa na Hora – a “company in an hour” service in person at specific counters, using a pre-approved template
  • Through a lawyer / notary – more common for foreigners, especially when done remotely

At this stage the company is registered with the Commercial Registry and You receive:

  • Commercial Registration Certificate (Certidão Permanente)
  • Company Tax Number (NIPC) – this is the company’s NIF
  • Official company extract with details of shareholders, activity.

6. Register for Social Security

You are required to appoint a certified accountant (TOC/Contabilista Certificado) who will handle your company Portugal submissions, deadlines, VAT returns, and overall compliance (this is not optional). 

Once appointed, your accountant will proceed with the necessary registrations, including tax activation, VAT setup (if applicable), and social security registration when needed.

Tax Registration (AT – Autoridade Tributária)

  • Declare the start of activity
  • Choose the appropriate VAT regime (if applicable)
  • Define your accounting regime and accountant (mandatory)

Social Security (Segurança Social)

  • If the company will have employees, it must be registered as an employer
  • Directors (gerentes) may also have social security obligations depending on structure and remuneration
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Cost of Opening a Company in Portugal

The cost of opening a company in Portugal varies depending on your business structure, but you should plan for both initial setup expenses and ongoing operational costs.

Setup Costs of Starting a Business in Portugal

Setup costs begin with the government registration fees. If you choose the online route using a pre-approved company name and standard articles, incorporation usually costs around €220. If you prefer a custom company name or bespoke articles of association, the fee rises to about €360.

When it comes to share capital, an Lda—the most common structure for foreign entrepreneurs starting a business in Portugal—can legally be created with as little as €1 per quota, though many founders choose to deposit between €1,000 and €5,000 to present a stronger financial profile.

If you hire a consultancy or law firm to handle the full setup, including incorporation, bank account assistance, tax registration, and compliance, you should consider a budget in the range of €5,000 depending on the level of support.

Ongoing Costs

Owning a company Portugal will bring you ongoing costs mainly involving accounting and compliance. Portuguese companies must appoint a certified accountant, and monthly accounting fees typically start between €100 and €300, depending on the size and complexity of your business.

Taxes for Starting a Business in Portugal

Navigating Portuguese tax laws and regulations can be intricate, and it’s crucial to grasp your tax responsibilities as a business owner in Portugal. Here are some essential points to consider:

Personal Income Tax

Individuals are subject to personal income tax (Imposto sobre o Rendimento das Pessoas Singulares, or IRS) on their worldwide income. Tax rates are progressive and range from 13% to 48%.

Corporate Income Tax

Businesses are liable for corporate income tax (Imposto sobre o Rendimento das Pessoas Coletivas, or IRC) on their profits. The standard corporate tax rate is 20%, with reduced rates for small and medium-sized enterprises.

Value Added Tax (VAT)

Value Added Tax (Imposto sobre o Valor Acrescentado, or IVA) is imposed on the sale of goods and services in Portugal. The standard VAT rate is 23%, with reduced rates of 13% and 6% for certain goods and services.

Social Security Contributions

Employers and employees are required to make social security contributions (Segurança Social) to fund various social benefits, including healthcare, pensions, and unemployment benefits. The Single Social Tax (TSU) amounts to 34.75% of each worker’s gross salary. Within this, companies cover 23.75%, while employees contribute 11%.

Register as a Freelancer in Portugal

If you’re planning to work as a freelancer in Portugal — whether as a self-employed professional or sole trader — you must first have a residency permit that allows you to live and work in the country. To apply for residency and register as a freelancer, you’ll need the following:

  • A Portuguese NIF number
  • A Portuguese bank account
  • A social security number
  • Accommodation in Portugal

Once registered, freelancers are responsible for managing their own tax obligations. This includes paying personal income tax and making social security contributions on their earnings. It’s important to stay compliant, as freelancers handle these payments independently.

What Business to Start in Portugal?

Portugal offers solid opportunities for entrepreneurs, especially in sectors that serve tourism, international clients, and lifestyle-driven demand.

Popular options include tourism-related businesses such as short-term rental management, guided tours, and boutique accommodation. Service-based businesses like consulting, IT, digital marketing, and online services work well due to low operating costs and access to international markets.

Real estate support services, food and beverage concepts with a clear niche, and wellness or lifestyle businesses are also in demand, particularly in major cities and coastal areas. Tech and remote-work solutions continue to grow alongside Portugal’s startup ecosystem.

For a full overview and more business ideas, you can refer to our guide on Top 10 Best Business Ideas to Start in Portugal.

Starting a Non-Profit Business in Portugal

Starting a non-profit business in Portugal is possible for both locals and foreigners, but it follows a different legal structure than a traditional business. Non-profits are typically set up as associations (associação) or foundations (fundação), depending on the purpose, scale, and funding model.

An association is the most common option. It requires at least two founding members and is suitable for cultural, social, educational, environmental, or charitable activities. A foundation is more complex, requires dedicated initial assets, and is usually used for larger or long-term projects.

The process generally includes:

  • Defining the non-profit purpose and statutes
  • Formally incorporating the entity (often through a notary or online process)
  • Registering with tax authorities
  • Applying for public-interest status if relevant

Non-profits in Portugal can operate legally, hire staff, apply for grants, and receive donations. However, profits must be reinvested in the organization’s mission and cannot be distributed to members.

Intellectual Property in Portugal

Intellectual property (IP) rights are crucial for safeguarding innovations and creative works in Portugal. Here’s an overview of IP in Portugal:

Trademark

Trademarks distinguish the products and services of one business from those of others. Once registered in Portugal, a trademark grants exclusive usage rights, preventing unauthorized use by other entities. Trademarks are subject to renewal and expire after five successive years of non-use.

Patent

Patents in Portugal protect unique inventions with inventive steps that are applicable for industrial use. They are valid for 20 years, granting exclusive rights to the patent holder. This includes the right to prevent others from manufacturing or distributing the invention without permission.

Copyright

Governed by the Portuguese Copyright Office (IGAC), copyright safeguards intellectual creations in various fields such as literature, science, and the arts. Copyright owners hold exclusive rights and can commercially exploit their works or authorize others to do so with consent.

Registering a Trademark in Portugal

To register a local trademark in Portugal, you must submit an application to the INPI (Portuguese Institute of Industrial Property). The INPI is the sole authority in Portugal authorized to grant exclusive rights to trademarks at a national level. Its role is to safeguard industrial property, including patents, designs, and trademarks. 

Like in many other countries, trademark registration in Portugal is obligatory to secure trademark rights. Additionally, if your trademark registration is approved by the INPI in Portugal, it automatically extends to Madeira and the Azores.

Hiring and Employment Conditions in Portugal

After starting a company in Portugal you may decide torecruit staf. When hiring in Portugal, employers must follow the country’s established labor rules. The national minimum salary is €870 per month, and the standard working schedule is 40 hours per week. 

Both employers and employees are required to contribute to the social security system: employees pay around 11%, while employers contribute approximately 23.75% on top of the gross salary. These contributions cover benefits such as healthcare, unemployment, and pensions, and form an essential part of the hiring process in Portugal.

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Visa and Immigration Options for Portugal

You don’t need a residency permit to starting a business in Portugal. You can hold 100% of the business, appoint a local representative, and operate it from abroad while receiving dividends without living in the country. 

If you eventually decide to relocate and manage the company from Portugal, you can explore options like the D2 Entrepreneur Visa, the D7 Passive Income Visa other residency pathways that fit your profile.

D2 Entrepreneur Visa

The D2 Visa Portugal is ideal for entrepreneurs, freelancers, and small business owners who want to opening a business in Portugal. There is no fixed minimum income, but you must show that your business is viable and that you have sufficient financial means, typically at least €10,440 per year for the main applicant, plus extra for dependents.

D7 Passive Income Visa

The Portugal D7 Visa is designed for individuals with passive or stable income, such as pensions, rentals, dividends, or remote income. To qualify, you must show a minimum passive income of €870 per month for the main applicant, with additional amounts required for family members.

D1 Work Visa

The D1 Work Visa is for those who secure a job offer from a Portuguese company. To qualify, the employment contract must meet the legal minimum conditions, including at least the national minimum salary of €870 depending on updates, and full compliance with Portuguese labor rules.

How We Can Help

Local Expertise

We know Portugal. Due to our extensive local knowledge, we believe that concentrating our services in a single country destination is the best way to give you the most thorough and useful information.

Honest Guidance

We recommend what’s best for you based on an extensive process experience that saves time and money to clients. Our pricing is clear and competitive, and we don’t sell services that make us more money.

All-in-One Solution

One single channel of communication for the entire process. We provide you with a comprehensive service that covers all aspects of your move, from identifying the ideal residency visa to finding your new home or helping you to settle.

Seamless Process

Technology plays a very important role in our company. We minimize our clients’ involvement in paperwork. We are customers ourselves and we know how to serve you.

Frequently Asked Questions

Yes, you can move to Portugal and start a business as a foreign entrepreneur. Portugal offers various residency and visa options for individuals looking to relocate and establish a business in the country such as the D2 Visa or Digital Nomad Visa.

Foreigners can start a business in Portugal by following specific steps, including choosing a business structure, registering the company, obtaining necessary permits, and complying with tax and legal requirements.

Common business structures in Portugal include sole trader, limited liability company (LDA), and public limited company (SA). Each structure has its own advantages and requirements.

 

Requirements for registering a business in Portugal typically include choosing a unique company name, obtaining a taxpayer number (NIF), drafting incorporation documents, and registering with the Portuguese Commercial Registry.

Yes, Portugal offers various incentives and support programs for foreign entrepreneurs, including tax incentives, grants, and funding opportunities. These programs aim to encourage investment and stimulate economic growth.

Starting a business in Portugal entails tax obligations such as corporate income tax, value-added tax (VAT), and social security contributions. It’s important for entrepreneurs to understand their tax responsibilities and seek professional advice if needed.

The time required to start a business in Portugal can vary depending on factors such as the chosen business structure, the complexity of the registration process, and the efficiency of completing required documentation. On average, it can take several weeks to several months to complete the registration process.

Yes. Portugal offers political stability, access to the EU market, a skilled workforce, and a relatively straightforward company formation process. Costs are generally lower than in many Western European countries, and the country is attractive for tech, tourism, services, and export-focused businesses.

No. Portugal is not a tax haven. The former Non-Habitual Resident (NHR) regime ended for new applicants in 2023. It has been partially replaced by a more limited incentive (often referred to as NHR 2.0 or IFICI), focused mainly on specific professions and activities. Portugal remains tax-efficient in some cases, but it is fully transparent and aligned with EU and OECD tax rules.

There is no single “best” business, but some sectors stand out:

  • Tourism and short-term accommodation
  • Restaurants and hospitality (with the right concept and location)
  • Technology and startups
  • Professional services (consulting, IT, digital services)
  • Import/export and e-commerce

Yes. Americans can freely own and operate a business in Portugal. You will need:

  • A Portuguese tax number (NIF)
  • A company structure (most commonly Lda.)
  • A residence visa if you plan to live in Portugal (such as the D2 entrepreneur visa)

Yes. Portugal offers several public and semi-public support programs, including:

  • Startup Portugal (startup ecosystem support)
  • IAPMEI (support for SMEs, incentives, and funding)
  • Portugal 2030 / EU funds (grants and incentives for qualifying projects)

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