I
Portugal

Portugal

Company Formation in Portugal

Portugal

Formation Time
1–2 weeks
Min. Capital
€1 (Lda)
Corporate Tax
21% standard / 5% Madeira FTZ
Foreign Ownership
100%

Overview

Portugal has firmly established itself as one of Europe's most vibrant technology, startup, and remote-work destinations. Centered around Lisbon—Europe's 'Silicon Valley by the Sea' and host of the global Web Summit—and the emerging tech cluster of Porto, Portugal offers an enviable combination of low operational costs, a highly educated multilingual engineering workforce, and unmatched lifestyle quality. An Lda (Sociedade por Quotas) can be incorporated with just €1 in share capital. For international enterprises seeking premier tax efficiency, Portugal's Madeira Free Trade Zone (MIBC) delivers an EU-approved 5% corporate tax rate guaranteed until 2027.

€1 minimum share capital
Lisbon tech hub (Web Summit)
5% tax in Madeira FTZ
IFICI / NHR 2.0 flat 20% tax
79 double tax treaties

Why Choose Portugal

1

Host of Web Summit and home to Europe's most dynamic tech startup ecosystem

2

€1 minimum statutory share capital requirement for a Portuguese Lda

3

Madeira Free Trade Zone (MIBC) — guaranteed 5% corporate tax rate fully approved by the European Commission

4

IFICI / NHR 2.0 regime — 20% flat tax on employment and freelance income for qualifying tech founders and specialists

5

Full European Union and Eurozone membership offering seamless single-market trade

6

Portugal D8 Digital Nomad Visa and D2 Entrepreneur Visa providing clear pathways to EU citizenship in 5 years

7

Over 79 bilateral double taxation avoidance treaties worldwide

Business Entity Types

EntityOwnershipDirectorsCapitalTaxBest For
Lda (Sociedade por Quotas - Private Limited Company)100%1 managing director (Gerente)€1 per quota (€1 minimum total)21% standard mainland CIT (17% on first €50,000 for SMEs); 5% in Madeira FTZStartups, tech companies, consulting, digital agencies, e-commerce, services
SA (Sociedade Anónima - Corporation)100%Board of directors or sole director€50,000 (minimum 30% paid up at incorporation)21% standard CITLarge commercial enterprises, investment funds, institutional holding vehicles
Branch of Foreign Company (Sucursal)100%1 legal representativeNone21% on Portuguese-attributable branch profitsInternational corporations expanding operational presence into Portugal

Step-by-Step Formation Process

1

Obtain Portuguese NIF & Tax Representation

2–5 days

Secure NIF numbers for all founders and appoint fiscal representative if non-EEA.

2

Company Name Approval

1–3 days

Obtain Name Admissibility Certificate from National Registry of Collective Entities (RNPC).

3

Articles of Association & Remote Execution

1–2 days

Execute Articles of Association via Empresa Online or notarial deed via PoA.

4

Commercial Registration (Certidão Permanente)

1–2 days

Register company with Commercial Registry and receive Permanent Certificate.

5

Tax Registration & Bank Account Setup

1–3 weeks

Register with Autoridade Tributária (AT) for IRC/IVA and open corporate multi-currency bank account.

Costs & Fees

Government / License FeeEUR 360+
Our Service FeeUSD 3,000 – 4,500
Annual RenewalUSD 2,000+

Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.

Get Custom Quote

Banking

Portuguese domestic banks (Millennium BCP, Caixa Geral de Depósitos, Novo Banco) offer full commercial banking facilities. For international tech companies and foreign directors, digital banks like Wise Business and Revolut Business provide fast digital onboarding.

Account Opening Time
1–2 weeks (Digital / EMI); 2–4 weeks (Traditional Commercial Bank)
Multi-Currency
Yes — multiple currencies supported

Recommended Banks

Millennium BCPCaixa Geral de DepósitosNovo BancoWise BusinessRevolut Business

Tax Overview

Corporate Tax
21% standard mainland CIT (17% reduced rate on first €50,000 for qualifying SMEs); 5% corporate tax rate in Madeira Free Trade Zone (MIBC)
Personal Income Tax
14.5% to 48% progressive rate; 20% flat tax on employment/freelance income under the IFICI / NHR 2.0 regime
VAT / Sales Tax
23% standard mainland IVA rate (16% in the Autonomous Region of the Azores; 22% in Madeira)
Capital Gains Tax
Standard 21% CIT; 100% exemption under Participation Exemption on qualifying holdings (10%+ held for 1+ year)
Withholding Tax
25% standard dividend withholding tax (0% under EU Parent-Subsidiary Directive and for Madeira FTZ entities)
Double Tax Treaties
79 countries

Under the Tax Incentive for Scientific Research and Innovation (IFICI), qualifying tech founders, researchers, and executives benefit from a flat 20% personal tax rate for 10 years.

Visa & Residency

Portugal D8 Digital Nomad Visa

1–2 years, leading to permanent residency & citizenship in 5 years

For remote workers earning at least 4x Portuguese minimum wage (~€3,280/month)

Portugal D2 Entrepreneur Visa

2 years, renewable for 3 years

For entrepreneurs setting up an active operational business in Portugal

Portugal Tech Visa

Up to 5 years

Fast-track work authorization for certified tech companies hiring specialized non-EU staff

Family visa: AvailableProcessing: 6–12 weeks

Frequently Asked Questions

What is the minimum share capital required to form a Portuguese Lda?
Under Portuguese corporate law, an Lda (Sociedade por Quotas) can be formed with a minimum capital of just €1 per quota holder (meaning €1 for a single-member Unipessoal Lda, or €2 for a company with two partners). The capital must be deposited into the corporate bank account within 5 business days after registration.
What replaced Portugal's NHR regime in 2024–2026?
The old Non-Habitual Resident (NHR) regime was succeeded by the Tax Incentive for Scientific Research and Innovation (IFICI), colloquially known as NHR 2.0. Under IFICI, qualifying tech founders, researchers, software engineers, and executives moving to Portugal enjoy a flat 20% personal income tax rate on their employment and professional earnings for a period of 10 consecutive years.
What is a Portuguese NIF and why is it needed before incorporation?
A NIF (Número de Identificação Fiscal) is a Portuguese tax identification number. Every foreign director, shareholder, and beneficial owner must obtain a NIF before the company can be incorporated. Non-EU/EEA residents also require a local fiscal representative. Incorp International arranges your NIF and fiscal representation remotely.
What are the tax advantages of the Madeira Free Trade Zone (MIBC)?
The International Business Centre of Madeira (MIBC) is an EU-approved special economic zone in Portugal offering a guaranteed 5% corporate tax rate until 2027, 0% withholding tax on dividends paid to non-resident shareholders, and full access to EU Directives and Portugal's 79 double tax treaties, subject to minimal local job creation and substance requirements.
Do I need a licensed Portuguese accountant (TOC)?
Yes. Portuguese law mandates that every corporate entity (Lda or SA) must appoint a certified statutory accountant (Contabilista Certificado / TOC) from the date of incorporation to sign off on tax declarations and maintain compliant local books.
Can a Portuguese company be registered in 24 to 48 hours?
Yes. Using the 'Empresa na Hora' (On-the-Hour Company) or 'Empresa Online' procedure, a Portuguese Lda can be officially registered in 24 to 48 hours once all founders' NIF numbers and identity documents are prepared.