Company registration in Portugal

Registering a company in Portugal is a good way to enter the large and promising European Union market. You will be able to conduct effective business in a jurisdiction with well-developed corporate legislation, a friendly attitude towards foreigners, a favourable legal environment and low taxes.

There is an option to register a company in Portugal remotely. Corporate law allows 100% foreign ownership and provides for various organisational and legal forms of doing business. The most suitable forms for non-residents are limited liability companies in Portugal — Sociedade Unipessoal por Quotas (SUQ, Lda) and Sociedade por Quotas (Lda), as well as joint-stock companies Sociedade Anónima (SA).

Registering a business in Portugal with the help of Imperial & Legal specialists is a simple and transparent process with minimal risks. The commercial or investment project that we will prepare and launch for you will fully comply with KYC/AML requirements and European/global regulations. At the client’s request, we will help open a corporate account in Portugal and offer extended services, including tax optimisation consulting, accounting support, preparation for participation in the Golden Visa programme, and other services. Our experienced specialists can answer all your questions related to the launch and setup of a commercial or investment project.

Advantages of registering a company in Portugal

Doing business in a reputable European jurisdiction can be profitable and promising not only for large multinational corporations. The main reasons are good reputation, access to the EU banking system, compliance with transparency standards, and a favourable attitude on the part of the national regulator.

But registering a business in Portugal also offers other advantages:

• simplified access to the EU market, the opportunity to work with European trading platforms, counterparties, suppliers and customers;
• quick and easy company formation in Portugal with minimal costs: registration in 1-3 days, remote format and fast-track Empresa na Hora (literally “company in an hour”) mode available, 100% foreign ownership allowed; no residency/citizenship requirements for directors and founders;
• Favourable fiscal climate: corporate tax in Portugal is only 21%, for small and medium-sized enterprises — 17% on the first €50,000 of profit, dividend payments to non-residents — 10%-15%, standard VAT rate — 23%;
• low operating costs for starting, setting up and maintaining a business;
• If you open a company in Portugal, you will be eligible to apply for a residence permit under the Golden Visa programme.
• Transparent and favourable regulatory environment: legislative protection of investments, European corporate law, financial and economic stability, and a very high reputation.

Who is business registration in Portugal suitable for?

There are no significant restrictions on areas of activity in the jurisdiction. Portuguese corporate law is designed to remove barriers, giving business people maximum freedom while remaining within the framework of modern trends in financial transparency and the fight against tax abuse.

However, for some areas of activity, setting up a company in Portugal will be particularly advantageous and promising:

Can a foreigner start a company in Portugal as quickly as possible and with minimal risk? There are no legal obstacles to this. You can always get additional information on the subject, extended targeted consultations and an approximate calculation of the timing and cost of implementing such a project from our experienced experts.

Legal forms of companies in Portugal

Corporate law does not restrict the freedom of choice for businesspeople and entrepreneurs. It is quite possible that several standard options may be suitable for launching a commercial project. Your choice will determine not only the procedure for registering a company in Portugal, but also the timing of opening a legal entity, costs, tax obligations and the availability of benefits.

Therefore, it is especially important at the preliminary planning stage to evaluate the available alternatives and select the format of the legal entity that will best meet your goals and objectives. After reviewing your request, Imperial & Legal specialists will select suitable options, explain their advantages, budget requirements and potential features in relation to your specific situation. Only then will we begin to prepare the documents for registering your company in Portugal.

The main legal forms of doing business:

The most common types of companies in Portugal chosen by non-residents are Sociedade Unipessoal and Sociedade por Quotas. There are several reasons for this: no residence permit is required, 100% foreign ownership is permitted, Lda is suitable for obtaining a business residence permit, there is an option for remote registration, and there should be no significant problems when opening a bank account for a company in Portugal.

When opening a business in the SA format, non-residents may encounter two problems. These are poor compatibility with the business residence permit programme and difficulties in opening a corporate bank account. The main reason is KYC requirements regarding transparency. Our specialists can open a corporate account for you in Portugal, but such a project requires more in-depth work and the use of a pre-approval service, which involves sending preliminary applications to several financial and credit institutions at once.

The formats of sole proprietorship and full/limited partnership are practically unsuitable for non-residents, although their participation in business is possible:

• SA. Focused on large businesses with high turnover and several owners who are not involved in operational management. Possible reasons for choosing an SA include plans to attract third-party investment and the advantages of a complex corporate structure.
• ENI. Can be used to start a small business if the founder already has a Portuguese residence permit. However, it should be remembered that the sole proprietorship format is not suitable for non-residents without a residence permit, and the level of liability is unlimited.

Basic corporate requirements

The possibility of registering a company in Portugal as a non-resident, who will have virtually the same rights as local business people, is an important advantage of the jurisdiction. Considering the option of simplified business visa acquisition, there are not many viable options for foreigners. After all, Golden Visa programmes in Europe are either being closed down almost everywhere or their conditions are becoming much stricter. Typical examples include Spain, Latvia, Ireland, the Netherlands, Malta, and Cyprus.

However, for your project to develop successfully, it is important to take into account the requirements for registering a company in Portugal, especially when they affect individuals — founders (shareholders) and directors of Lda / SA:

• from 1 founder for Lda, from 2 or more for SA, individuals and legal entities, resident status or jurisdiction of registration are irrelevant, a residence permit is not required;
• minimum 1 director, but for SA usually at least 3, no residence permit requirements, the director may be a founder;
• Portuguese NIF (Número de Identificação Fiscal, tax identification number) is mandatory for founders and directors; if there are non-residents, a tax representative is required — an individual or company with a NIF;
• A company secretary is not required, but for an SA, we recommend providing for such a position.
• The liability of founders is limited to their shares or stocks (for Lda and SA), while directors have personal, tax and management liability, and SA directors also have liability to shareholders. The risks to private property and assets are minimal.

Authorised capital in Portugal and ownership structure for Lda and SA

The requirements of the corporate regulator are quite lenient, especially for an onshore European jurisdiction. They are more stringent for SAs, so we recommend this format only for large businesses, where expanded capabilities are more important than ease of launch and minimal budget requirements.

Features of share capital distribution:

Bank account for a company in Portugal

The country has a well-developed financial services sector. Residents and citizens can open a corporate account in Portugal with virtually no problems. Foreigners should be aware of the stricter banking compliance requirements, as KYC/AML checks will be more rigorous. However, if the company is established in Portugal in compliance with applicable law, the ownership structure is transparent, and the business is open, significant difficulties can usually be avoided.

There are several options for opening an account. The first is an account with a traditional Portuguese or foreign bank, preferably in one of the European Union jurisdictions. You get the maximum set of options: SEPA, SWIFT, corporate debit and credit cards, and a wide range of payment options. The approximate time frame is 2 to 6 weeks.

The second is digital payment systems for businesses in Portugal. This option is the most convenient for non-residents, as it allows for relatively quick account opening and is usually not associated with significant bureaucratic delays. However, you need to consider potential limitations in the choice of options and services, as well as image risks, which are especially critical for SA companies. Organisational procedures usually take no more than 5 days.

The third option is a combination. When setting up a company in Portugal, we will first open an account for it in a digital bank and then submit an application to a traditional financial institution.

Basic conditions for opening a bank account for a company in Portugal using the example of the legal forms Lda / Unipessoal Lda and SA:

• a full set of constituent documents will be required, including the company’s articles of association (Contrato de Sociedade for Lda, Estatuto for SA) and registration certificate (Certidão do Registo Comercial);
• a corporate NIF is mandatory;
• the bank will check all founders and directors, especially non-residents;
• a personal visit by directors and founders is mandatory when opening an account with a traditional bank; in digital financial structures, the procedure is usually carried out remotely;
• the commission for traditional banks is from €10 to €50 per month, for digital banks — no more than €20, additional services are paid separately, for example, issuance and maintenance: debit or credit cards, online payments, international transfers;
• Stricter compliance rules apply to non-residents: the bank may check the source of capital, request a business plan or information on current and completed contracts, etc.

Personal taxation

Portugal is a modern European onshore jurisdiction. The state budget for 2026 provides for tax breaks and special tax conditions for individuals, and there are tools for legal tax optimisation. This is a special regime for young people, IRS Jovem, which establishes full or partial exemption from personal income tax for persons under 35 years of age.

The Former Tax Residents Regime, introduced in 2019 to encourage emigrants to return to the country, remains in force. Its essence is a 50% personal income tax relief. We would also like to mention the IFICI (Incentivo Fiscal à Investigação Científica e Inovação) option for researchers and scientists. It replaced the previous NHR (Non-Habitual Residents) regime, and its main task is to attract highly qualified specialists to Portugal, primarily scientists.

To qualify for tax resident status, either of the following two criteria must be met:

• residence in Portugal for at least 183 days per year throughout the reporting year, either continuously or with trips abroad;
• having a permanent place of residence in Portugal — owned property, long-term lease or accommodation provided by an employer.

If either of these conditions is met, the individual will be considered a tax resident of Portugal from the first day of their stay in the country. The personal income tax rate is progressive, with fixed deductions and additional allowances for tax residents — standard, personal, for expenses via e-Fatura, and for families. Their applicability depends on the specific situation. Non-residents of Portugal pay tax at a fixed rate of 25%, with only income received in the jurisdiction itself included in the tax base.

In 2025, special rules were introduced for high-income individuals. If the taxable base exceeds €80,000, a solidarity rate of 2.5% will be added, and if it exceeds €250,000, a rate of 5% will be added. Special rules for calculating tax liabilities also apply to investment income or capital gains.

Current personal income tax rates for 2026:

In addition, the employer must withhold social security contributions from the employee’s salary at a rate of 11%. If necessary, these funds are used to support families, pay pensions and provide unemployment benefits. The rate is 9.3% for board members and 21.4% for the self-employed.

In Portugal, there are no separate taxes on net asset value, inheritance or gifts. A stamp duty of 10% is levied on the transfer of property free of charge, but there are some exceptions if both parties are close relatives. At the municipal level, there is a property tax, the rate of which depends on the registered value.

Taxes for companies in Portugal

The rules for determining legal entity status are typical for the European Union. If the actual decision-making centre (sede de gestão efectiva) is located in Portugal or the company’s registered address (sede social) is located in the country, then it is considered a tax resident. In both cases, the provisions of double taxation agreements may apply. Companies registered in the European Union are subject to residency and tax transparency regulations.

Legal and fiscal consequences:

• The company is a tax resident of Portugal. Corporate tax is paid on all/worldwide profits, international tax relief may apply, and the submission of the annual Modelo 22 tax return is mandatory.
• The company is a non-resident for tax purposes in Portugal. Only income received in Portugal itself is subject to taxation, and separate tax forms are filed for non-residents.

Corporate income tax in Portugal

For resident companies, there is a federal rate of 21% on worldwide income. An additional surcharge of 0%-1.5% may be applied at the municipal level. For small and medium-sized enterprises (PME, Pequenas e Médias Empresas), a preferential rate of 17% applies to the first €25,000 of profit. Sectoral taxes may apply. An example is the distribution of profits to resident shareholders. The calculation rules for non-residents are similar. The main difference is the absence of the PME benefit.

For companies with high income, a state surcharge (Derrama Estadual) applies, the key condition being tax resident or non-resident status with a permanent establishment:

Other taxes for companies in Portugal

The resident status of a legal entity mainly affects the rules for calculating corporate tax. Other mandatory fees and payments depend more on assets or operations in Portugal and the specifics of commercial activities. Therefore, there is usually no significant difference between residents and non-residents with PE (Permanent Establishment).

Other corporate taxes in Portugal:

• stamp duty: 0.04% for loans and credits, 0.04%-0.6% for guarantees, 4% for bank commissions, fixed rates for contracts;
• VAT in Portugal: mainland — 23%; Madeira — 22%; Azores — 16%, reduced rates are provided for;
• social security contributions from the employer — 23.75%;
• municipal property tax (IMI) — from 0.3% to 0.45% for cities, 0.8% for rural areas, additional property purchase tax (IMT) for commercial properties — up to 6.5%; progressive rate for housing; if the property price exceeds €600,000, a special tax (AIMI) of 0.4% is levied;
• capital gains tax — usually included in corporate income tax;
• there are also environmental and special taxes — Carbon Tax, Plastic Tax, Energy Taxes, their applicability depends on the company’s field of activity.

Taxation of dividends, interest and royalties in Portugal depends on the status of the company. Interest and royalty tax for residents is included in CIT (corporate income tax), for non-residents there is a standard rate of 25% with a possible reduction under double taxation agreements (DTT). Dividends are not taxed if the PE (Participation Exemption) relief applies. When there is no relief, WHT 25% is withheld first, and CIT 21% is charged on the remaining amount.

Residence permit through business in Portugal

The ARI (Authorised Residence Permit for Investment) programme provides for the possibility of simplified residence permit acquisition through investment in the economy. The option is aimed at citizens of countries that are not part of the European Union or the EEA. The option of investing in real estate was excluded in October 2023. The ARI programme is aimed at business people and investors who are interested not only in a Portuguese business visa, but also in the possibility of legally moving to the country for permanent residence.

Investment options:

• investment or venture capital fund — from €500,000;
• commercial company — from €500,000, at least 5 newly created permanent jobs;
• scientific research and development — from €250,000;
• arts, cultural heritage — from €250,000, with the possibility of a lower minimum threshold for areas with low population density.

For the first 2 years, you must live in Portugal for at least 7 days each year, and for the next 2 years — at least 14 days for the entire period. Until you actually obtain permanent residence or citizenship, you cannot withdraw your investment; the holding period is at least 5 years. You can include your husband or wife, minor children or financially dependent adults in your application.

The standard path to citizenship has become slightly more complicated following the adoption of the naturalisation law in 2025. The minimum period is 10 years, or 7 years for citizens of Portuguese-speaking countries. You must demonstrate knowledge of Portuguese at level A2 or above, as well as knowledge of the country’s culture and main traditions.

Business visas for Portugal:

Stages of registering a business in Portugal

The jurisdiction’s corporate legislation is well adapted to modern trends of transparency and openness. We can launch and set up a structure of any complexity. The cost and timing of registering a company in Portugal will depend on the specifics of the business, the ownership/management structure, the chosen legal form, and the residency status of the participants. You can discuss all the details of the practical implementation of the project with the experienced specialists at Imperial & Legal.

Comprehensive support for company registration in Portugal, step by step:

Steps to take after registering a company in Portugal

There is very little left to do to start your real business. We will register your company with the tax authorities and social security funds — CIT, IVA if necessary, and Segurança Social for employees. Next, at your request, we will help you open a permanent bank account, obtain licences and permits, and register with Segurança Social.

We understand that every business is unique. That is why we offer our clients comprehensive support for company registration in Portugal:

• accounting advice;
• legal support for business in Portugal;
• recommendations on tax optimisation;
• comprehensive support after registering your business in Portugal.

If you have any questions or would like to clarify the terms of cooperation, please contact us in any convenient way.