Portugal is confidently among the European countries most attractive to investors from all over the world. Some of them consider the Pyrenean country as a place to relax or an opportunity to invest in real estate. And many seek to open a business in Portugal.
We figure out whether it is profitable and what advantages the presence of your own company in Portugal provides.
Why starting a business in Portugal
In subsequent years, the country's Government relied on attracting private investment in the economy, creating the most loyal conditions for doing business and reducing taxes.
Portugal ranked 40th out of 70 economies IMD World Competitiveness Ranking[1]Source: WCR results for 2026. The Portuguese system of quick registration ‘On the Spot Firm’ allows you to create a company in just over an hour, filling out just one form[2]Source: Official website of Empresa na Hora.
The Portugal Golden Visa offers residence permits by five investment options, including starting a business in Portugal.
Business opportunities in Portugal:
- possibility to obtain a residence permit under a simplified procedure and citizenship in 10 years;
- precise and fast procedure for opening a company;
- simple administration of the company;
- withdrawal of capital to the zone of economic stability and hard currency;
- doing business in a civilised and transparent environment, without corruption;
- attractive taxation system and working tax incentives;
- profitable industries, the ability to gain a foothold in the international market;
- accommodation in a comfortable climate, some of the best beaches in the world.
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Governmental support for starting a business in Portugal
The Portuguese Government has initiatives to support small and medium-sized companies. For example, a practical guide for your business provides information on how to start and manage a business in Portugal and other related information in English[3]Source: ‘Practical guide for your business’ from the Portuguese Government.
Startup Portugal is a link between the Government and entrepreneurs by identifying the ecosystem’s needs. It helps to design and implement public policies and private initiatives that react to the community and attract the best foreign talent, founders and investors[4]Source: The Startup Portugal official website.
In 2018, the Portuguese Government announced a new set of initiatives for startups and investors and, here are some of them:
- Startup Visa is a residence visa for entrepreneurs, which aims to attract investment, talent and capacity for innovation to Portugal[5]Source: Terms of the Startup Visa;
- Startup Voucher Innovate is a programme providing training, mentoring and financial support to help young graduates develop technology-based businesses[6]Source: Terms of the Startup Voucher Innovate programme;
- Tech Visa is a certification program designed for companies that wish to attract highly qualified and specialised staff to Portugal, nationals from non-Schengen Area countries[7]Source: Terms of the Tech Visa;
- Pitch Voucher promotes the strengthening of the relationship between start-ups and large undertakings. Through the Startup Centre platform, undertakings can raise technological challenges and start-ups can respond with innovative solutions[8]Source: Terms of the Pitch Voucher initiative;
- Semente provides tax benefits to investors who inject capital into early stage startups. Creating a more favourable tax regime for capital gains obtained through startup investment[9]Source: Terms of the Semente Programme.
Popular among the expats, the Startup Voucher program, Momentum programme and Incubation Valley are no longer active.
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What business to invest in Portugal
The tourism industry is the most popular among investors. In 2024, tourism’s estimated direct, indirect and induced contribution was 11.9% of Portuguese GDP[10]Source: Turismo de Portugal, Tourism Satellite Account 2024. In 2025, Portugal recorded approximately 29.9 million non-resident tourist arrivals[11]Source: Turismo de Portugal, data from Instituto Nacional de Estatística.
Other industries that are in demand for investment in Portugal include:
- grape growing and wine production;
- growing olives and citrus fruits;
- production of cork tree bark;
- production of meat, poultry and products from them;
- furniture manufacturing;
- production of ceramic products and tiles;
- port logistics;
- fishing and fish processing.
Where to open a business in Portugal
Portugal has nine regions, including the autonomous regions of the Azores and Madeira in the Atlantic Ocean[12]Source: Eurostat, NUTS classification.
Madeira operates an International Business Centre with a conditional preferential tax regime, and the Azores offer regional tax rates and investment incentives[13]Source: Portuguese Tax and Customs Authority, Tax Benefits Statute, Article 36-A. These are the most profitable regions for starting a business in Portugal in terms of taxation, benefits, import and export of goods, exemption from duties and free movement of capital.
The Portuguese Riviera, the Algarve, the Azores and Madeira attract investments in the hotel business in the seaside resorts. These regions are home to some of the most famous beaches in the world with a considerable number of luxury hotels.
Other popular regions. Recently, the Portuguese Government has stepped up the issuance of licences to develop certain deposits of precious metals, mainly in Alentejo. Port complexes, for example, in Aveiro, need investments. Traditionally attracts investors and the capital of Lisbon.
Company types in Portugal
Portuguese law provides several legal forms for conducting business, ranging from partnerships and single-owner structures to limited companies, public companies and cooperatives[15]Source: Portuguese Ministry of Justice, company types. The most commonly used commercial structures are the private limited company, or Sociedade por Quotas, and the public limited company, or Sociedade Anónima.
Legal forms differ significantly in terms of minimum ownership requirements, initial capital, management arrangements and the extent of members’ liability. In most cases, the entity must maintain a registered office in Portugal, while the applicable governance and capital rules depend on whether ownership interests are represented by quotas, shares or partnership interests.
The investor is not limited in choosing the form of a legal entity. But the appropriate form should be selected with regard to the proposed number of owners, capital requirements, management model and desired limitation of liability.
Forms of Portuguese legal entities
How to open a business in Portugal: step-by-step procedure
A company can be legally incorporated through Empresa na Hora, or On the Spot Firm, during a single appointment. However, completing the related tax, banking, beneficial-ownership and operational formalities usually takes around 5—10 business days. Businesses requiring sector-specific licences may need several additional weeks or months.
The time indicated for each step is an estimate for a straightforward application. Immigrant Invest can assist entrepreneurs throughout the entire registration process.
1—2 days
Choose the company type
The founders must select the appropriate legal structure before registration. Empresa na Hora can be used to establish:
- single-member private limited company, or sociedade unipessoal por quotas;
- private limited company, or sociedade por quotas;
- public limited company, or sociedade anónima.
The decision depends on the number of shareholders, the planned share capital, the management structure and the scale of the business.
The founders must select the appropriate legal structure before registration. Empresa na Hora can be used to establish:
- single-member private limited company, or sociedade unipessoal por quotas;
- private limited company, or sociedade por quotas;
- public limited company, or sociedade anónima.
The decision depends on the number of shareholders, the planned share capital, the management structure and the scale of the business.
1+ days
Select and approve the company name
The founders can select a name from the official list of pre-approved company names online or at an Empresa na Hora counter[17]Source: The proposed list of company names.
To use a customised name that is not on the list, the founders must obtain a certificate of admissibility from the National Registry of Legal Persons before the registration appointment. Once issued, the certificate is valid for 3 months[18]Source: Request Certificate of Admissibility on the official government website.
The founders can select a name from the official list of pre-approved company names online or at an Empresa na Hora counter[17]Source: The proposed list of company names.
To use a customised name that is not on the list, the founders must obtain a certificate of admissibility from the National Registry of Legal Persons before the registration appointment. Once issued, the certificate is valid for 3 months[18]Source: Request Certificate of Admissibility on the official government website.
7+ days
Prepare the documents
All shareholders should prepare their documents before attending the registration appointment.
Individual shareholders generally need:
- valid identity document;
- Portuguese tax identification number, or NIF.
Corporate shareholders must provide additional corporate documents, resolutions and identification documents for their representatives.
Preparation may take longer when foreign corporate documents require certification, legalisation, an apostille or translation into Portuguese.
All shareholders should prepare their documents before attending the registration appointment.
Individual shareholders generally need:
- valid identity document;
- Portuguese tax identification number, or NIF.
Corporate shareholders must provide additional corporate documents, resolutions and identification documents for their representatives.
Preparation may take longer when foreign corporate documents require certification, legalisation, an apostille or translation into Portuguese.
1 day
Incorporate and register the company
All shareholders or their authorised representatives attend an Empresa na Hora counter, select the appropriate pre-approved articles of association and sign the incorporation documents.
The company is entered in the Commercial Registry during the appointment. The standard articles generally do not require separate notarisation.
Once registration is complete, the founders receive:
- company’s articles of association;
- access code for the permanent commercial certificate;
- access code for the electronic company card;
- company’s Social Security identification number.
The official Empresa na Hora service is designed to complete the incorporation procedure at one counter during one appointment.
All shareholders or their authorised representatives attend an Empresa na Hora counter, select the appropriate pre-approved articles of association and sign the incorporation documents.
The company is entered in the Commercial Registry during the appointment. The standard articles generally do not require separate notarisation.
Once registration is complete, the founders receive:
- company’s articles of association;
- access code for the permanent commercial certificate;
- access code for the electronic company card;
- company’s Social Security identification number.
The official Empresa na Hora service is designed to complete the incorporation procedure at one counter during one appointment.
Within 5 business days
Deposit the share capital
The shareholders may deposit the share capital before incorporation. Otherwise, the capital must generally be deposited into the company’s bank account within 5 business days after incorporation. The obligation does not apply within that period where the shareholders declare that the capital will be delivered to the company’s cash holdings by the end of its first financial year.
Opening a corporate bank account may take longer if the bank conducts additional compliance or source-of-funds checks.
The shareholders may deposit the share capital before incorporation. Otherwise, the capital must generally be deposited into the company’s bank account within 5 business days after incorporation. The obligation does not apply within that period where the shareholders declare that the capital will be delivered to the company’s cash holdings by the end of its first financial year.
Opening a corporate bank account may take longer if the bank conducts additional compliance or source-of-funds checks.
Within 15 days after incorporation
Register the commencement of activity and appoint an accountant
The company must submit its declaration of commencement of activity to the Portuguese Tax and Customs Authority before beginning commercial operations.
A certified accountant can be appointed during the Empresa na Hora appointment. Alternatively, the declaration may be submitted to the Tax Authority after incorporation.
This registration must be done within 15 days after the company is incorporated and before it starts operating. Where organised accounting is mandatory, the declaration must be submitted by a certified accountant.
The company must submit its declaration of commencement of activity to the Portuguese Tax and Customs Authority before beginning commercial operations.
A certified accountant can be appointed during the Empresa na Hora appointment. Alternatively, the declaration may be submitted to the Tax Authority after incorporation.
This registration must be done within 15 days after the company is incorporated and before it starts operating. Where organised accounting is mandatory, the declaration must be submitted by a certified accountant.
1 day
Confirm the Social Security registration
The company receives its Social Security identification number as part of the Empresa na Hora procedure, so a separate initial application is generally unnecessary.
The company should nevertheless verify its registration and access to the Social Security system before employing staff. Each employee must also be reported to Social Security within the applicable employment-registration period.
The company receives its Social Security identification number as part of the Empresa na Hora procedure, so a separate initial application is generally unnecessary.
The company should nevertheless verify its registration and access to the Social Security system before employing staff. Each employee must also be reported to Social Security within the applicable employment-registration period.
Within 30 days after incorporation registration
Declare the beneficial owners
The company must submit its initial declaration to the Central Register of Beneficial Owners, or RCBE. The declaration identifies the individuals who ultimately own or control the company.
The declaration can be submitted by a manager, director, certified accountant, lawyer, solicitor or notary.
The procedure must be completed within 30 days after the company’s incorporation is registered. Online submission is free.
The company must submit its initial declaration to the Central Register of Beneficial Owners, or RCBE. The declaration identifies the individuals who ultimately own or control the company.
The declaration can be submitted by a manager, director, certified accountant, lawyer, solicitor or notary.
The procedure must be completed within 30 days after the company’s incorporation is registered. Online submission is free.
1—3 business days
Arrange workplace-accident insurance
Before the first employee begins work, the company must obtain workplace-accident insurance covering that employee. Private-sector employers are required to transfer responsibility for workplace accidents to an authorised insurer.
The time required depends on the company’s activities, number of employees, payroll and occupational-risk profile.
Before the first employee begins work, the company must obtain workplace-accident insurance covering that employee. Private-sector employers are required to transfer responsibility for workplace accidents to an authorised insurer.
The time required depends on the company’s activities, number of employees, payroll and occupational-risk profile.
Registration does not automatically authorise a company to carry out every type of economic activity. Depending on its sector, premises and operations, the company may need to:
- obtain an operating licence or authorisation;
- submit a prior notification;
- register with a sector regulator;
- satisfy municipal, environmental, health or fire-safety requirements;
- obtain recognition of regulated professional qualifications.
The necessary licences should be identified and, where required, obtained before the regulated activity begins. Official guidance and sector-specific requirements are available through the Entrepreneur’s Desk and the competent authorities.
Taxes for businesses in Portugal
In Portugal, companies pay a corporate, value-added, property, interest, and capital gains tax. Besides, social contributions are mandatory.
The procedure for paying taxes is described in the Portugal tax guide.
Corporate tax
The standard mainland corporate income tax rate is 19%. This rate is scheduled to decrease to 18% in 2027 and to 17% from 2028 onwards[19]Source: Portuguese Tax and Customs Authority, Corporate Income Tax Code, Article 87.
In the Azores and Madeira, the general regional rate is currently 13.3%, subject to the applicable regional rules.
Qualifying companies operating within the Madeira International Business Centre may benefit from a reduced rate of 5%, provided they meet stringent eligibility conditions.
Value-added tax
The value-added tax (VAT) has a standard rate of 23%.
In the restaurant and flower business, as well as partly in the production of food products, the rate is 13%. For individual enterprises that produce food products, and medical devices that provide services in the hotel business, there is a preferential rate of 6%.
Enterprises operating in insurance, education, financial and health services do not pay VAT.
VAT rates in the Azores and Madeira are lower than in mainland Portugal. Preferential rates apply to specific categories of goods and services[20]Source: Value Added Tax in Portugal.
VAT rates for businesses in Portugal
Other taxes for companies
Portuguese legal entities also pay the following taxes:
- 23.75% — social security contributions;
- 0.3 to 0.8% of the appraised value — the property tax;
- 28% — the tax on dividends for residents;
- 28%— the capital gains tax;
- 28% — the tax on interest.
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How to get a Portugal residence permit by business investment
If an entrepreneur wants to move or spend a relatively large part of their time in Portugal, they can open a company and get a Golden Visa.
The Golden Visa programme for investors has been operating in Portugal since 2013. Unlike ordinary applicants, the investor receives many advantages when applying for this status:
- there is no need to take a language proficiency or history exam;
- investors do not need to permanently reside in the country, as 7 days a year are enough;
- status is obtained by the investor’s entire family, including parents;
- investors can apply for Portuguese citizenship in 10 years;
- new residents can get tax benefits.
Entrepreneurs can choose one of the two investment options to obtain a Golden Visa:
- €500,000 + 5 new jobs — investments in a new or existing business;
- 10 new jobs — opening a company in Portugal.
The investor passes Due Diligence, receives a Portuguese tax number and undertakes to provide certified financial statements regularly. Health insurance is also required, covering all medical expenses, including emergency medical care and possible repatriation.
One can try to start a business in Portugal on their own, but their proposal may not be of interest to local authorities. Thus, the businessman will stand in line with hundreds of applicants, waiting for a “window” in quotas for residence permits.
Participation in the investment program is a real chance to get a residence permit in the European Union as quickly as possible.
Key considerations for starting a business in Portugal
- In Portugal, company registration is fast and inexpensive. Company formation generally takes 2—3 days, while the ‘On the Spot Firm’ stage takes about an hour and costs €360.
- Company structures have different obligations. Available legal forms vary in shareholder requirements, minimum capital, liability and the need for a Portuguese office.
- Location affects commercial and tax conditions. Madeira and the Azores offer free economic zones and lower tax rates, while tourism, agriculture, manufacturing and logistics remain prominent investment areas.
- Tax liabilities extend beyond corporate tax. Businesses may face corporate tax, VAT, social security contributions, property tax and taxes on dividends, capital gains and interest.
- Government support targets startups and investment. Startup Portugal connects entrepreneurs with public initiatives, including the Startup Visa, Tech Visa, Pitch Voucher and Semente programmes.
- Business investment can provide a residence route. The Golden Visa options require either a €500,000 investment with 5 new jobs or the creation of 10 new jobs.
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