How to Set Up a Company in Portugal as a Foreigner (2026)

Why Portugal

• Portugal is the EU's fastest-growing startup ecosystem after the major capitals. It offers:
• 21% standard CT with a 17% SME rate on first €50,000 of taxable profit (for companies with turnover ≤€25M)
• €1 minimum capital for a Sociedade por Quotas (Lda — the equivalent of a Ltd)
• 2–5 business days to incorporate online via the Empresa na Hora system
• Access to EU single market, EU directives, EU banking
• SIFIDE II: R&D tax credit (32.5% on qualifying R&D spend up to €1.5M; 50% for SMEs above this in incremental spend)
• IFICI regime (from 2024): A preferential tax regime for certain categories of qualifying workers/founders attracted to Portugal — replaces the NHR (Non-Habitual Residency) regime
• Portuguese as second language in Brazil, Angola, Mozambique, Cape Verde — significant advantage for founders targeting lusophone markets

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Step 1: Get a NIF (Número de Identificação Fiscal)

Every person or entity dealing with Portuguese tax matters needs a NIF — the Portuguese tax identification number.

For non-residents: Visit a Portuguese Finance Office (Serviço de Finanças) or Portuguese consulate in your home country. You'll need your passport and the appointment of a Portuguese tax representative (fiscal representative — required for non-EU residents). The fiscal representative is a Portuguese-resident person or company who receives tax correspondence on your behalf.

Cost: NIF is free. Fiscal representative services: €100–300/year.

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Step 2: Choose your structure

Sociedade por Quotas (Lda): Portugal's main private limited company. Minimum 1 quota (share) of €1. Minimum 1 partner (shareholder). No nationality restriction. The most common structure for SMEs.

Sociedade Anónima (SA): Portuguese public/large company equivalent (minimum capital €50,000). Only needed for larger structures.

Unipessoal Lda: Single-shareholder Lda. Same as Lda but explicitly for solo founders.

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Step 3: Incorporate — two methods

• Method 1 — Empresa na Hora (Company on the Hour):
• In-person at a Empresa na Hora counter (available at citizen shops and notary offices)
• Choose from a pre-approved list of company names (fastest) or a custom name (requires prior approval from RNPC)
• Use a standard articles template
• Completed within hours
• Fee: €180

• Method 2 — Online via Portal da Empresa (empresanahora.pt):
• Requires Portuguese digital identity or a qualified electronic signature
• Non-residents without Portuguese digital identity typically use Method 1 or go via a lawyer

Via a Portuguese lawyer/accountant: Most non-residents use a local accountant (contabilista) who handles the formation process on their behalf. Cost: €300–800 for the formation service.

Registration is with: Conservatória do Registo Comercial (Commercial Registry)

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Step 4: Tax registrations

• Portal das Finanças: Register the company for:
• IRC (Imposto sobre o Rendimento das Pessoas Colectivas — corporation tax)
• IVA (Imposto sobre o Valor Acrescentado — VAT): 23% standard rate; registration required when turnover exceeds €13,500 (threshold subject to change — verify)

Segurança Social (Social Security): Register if you have employees. Director-shareholders paying themselves a "gerência" (director's fee) are also subject to social security contributions.

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Corporate tax rates in detail

Derrama estadual (state surcharge): 3% on profits between €1.5M–€7.5M; 9% on profits above €7.5M. Not relevant for most SMEs.

Derrama municipal: Municipal surcharge up to 1.5% of taxable income; varies by municipality. Lisbon and Porto apply their rates.

Capital gains: Included in taxable income and taxed at normal IRC rates; 50% exemption available for qualifying reinvestment within 2 years.

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Step 5: Banking

• Traditional Portuguese banks (Millennium BCP, BPI, Novo Banco, Santander Portugal):
• Accept non-resident-owned Lda companies with proper documentation
• Typically require NIF, company documents, director/shareholder identification
• Timeline: 2–4 weeks

Digital alternatives: Wise Business (IBAN for EU payments), Revolut Business

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Real cost (Year 1)

Note: Portuguese law requires every company to appoint a certified accountant (contabilista certificado). This is not optional — you must have one. Budget at least €1,200/year for this service.