Starting a Business in Portugal as a Foreigner: Methods, Costs, and Benefits

Thanks to its EU membership and supportive business environment, Portugal has become an increasingly attractive destination for entrepreneurs from around the world. 

However, for non-EU nationals, navigating the process of setting up a business in Portugal can be complex. It requires a solid understanding of legal structures, taxation, and business visa options.

This guide will walk you through the key steps to starting a business in Portugal as a foreigner. We’ll cover topics like eligibility criteria, visa requirements, the costs and tax implications, as well as the process of registering a company in Portugal.

Can a Foreigner Start a Business in Portugal?

Portugal allows and encourages foreigners to start a business in the country. The Portuguese government offers various visas and financial support programs to foster entrepreneurship and innovation in the country.

Your eligibility to establish a company in Portugal primarily depends on your nationality. EU nationals can start a business without a visa or a residence permit, whereas non-EU nationals must obtain a qualifying visa that will grant them Portuguese residency.

The complexity of the visa application process depends on the business visa you choose, as well as your personal and financial circumstances. 

Which Visas Allow You To Start a Business in Portugal?

Portugal offers several visas that enable foreigners to establish a company and receive a residence permit in exchange. 

The initial temporary permit is typically valid for two years and can be renewed for an additional three. Once you’ve been a Portuguese resident for five years, you can apply for permanent residency and even citizenship, as long as you meet specific criteria, such as passing the A2 language proficiency test.

Some of the available visas allow you to start your own company in Portugal, while others enable you to invest in existing businesses. 

Regardless of the visa you opt for, you must have a clean criminal record, valid health insurance, and accommodation in Portugal before you can apply.

The most popular Portuguese business visa options for foreigners are:

1. Startup Visa
2. Entrepreneur Visa
3. Golden Visa

Startup Visa

The Startup Visa allows expats from outside the EU, EEA, and Switzerland to start a business in Portugal. The company must be focused on technology and innovation, which means it should operate in fields like: 

• IT
• Biotech
• Healthcare
• Commerce

While this visa does not require a specific minimum investment, it includes other strict eligibility criteria, as outlined in the table below:

Startup Visa Requirements	Explanation
Financial requirements	You must have sufficient funds to prove that you can support yourself while residing in Portugal. This means you need at least €10,440 per year, based on the 2025 Portuguese minimum monthly wage of €870
Business requirements	You must submit a detailed business plan showing that your company can reach over €325,000 in assets or annual revenue within five years, expand into international markets, and create new job openings in Portugal
Residency requirements	To maintain your visa, you must reside in Portugal for a significant portion of the year, typically either six consecutive or eight non-consecutive months

The Startup Visa applicants are required to work with local startup incubators during and after the application process. These organizations evaluate your business plan before the visa approval and provide support for growing your business in Portugal.

Entrepreneur Visa

The Portuguese D2 or Entrepreneur Visa is similar to the Startup Visa; it enables non-EU nationals to start a business in Portugal and has no minimum investment requirements. 

Unlike the Startup Visa, the D2 Visa supports the establishment of both innovative and traditional businesses. It’s designed for freelancers, self-employed individuals, and entrepreneurs. 

To obtain the D2 Visa, you must provide a detailed business plan and start a business in Portugal. However, you can also take two alternative business routes to secure the visa:

1. Create a branch of an existing Portuguese company 
2. Purchase a registered company or its shares

Like with the Startup Visa, you need to demonstrate at least €10,440 per year in savings to support yourself while living in Portugal. While there’s no set minimum investment, demonstrating strong financial resources can improve your chances of approval.

Golden Visa

The Portuguese Golden Visa is primarily designed for high-net-worth investors from outside the EU. It grants a residence permit in exchange for an investment ranging from €250,000 to €500,000, depending on the chosen investment route.

One option is to allocate a minimum of €500,000 to an existing Portuguese company, which must create at least five full-time jobs within three years.

Alternatively, you can obtain the Golden Visa by creating at least ten jobs in Portugal (or eight jobs if you invest in low-density regions). This typically entails starting your own business and hiring employees.

The residency requirements under the Golden Visa are minimal; you must spend at least seven days in Portugal during the first year and 14 days total over the following two-year period. This flexibility makes the visa popular among entrepreneurs who don’t plan to relocate to Portugal immediately. 

Which Documents Do You Need to Start a Business in Portugal?

Obtaining a Portuguese business visa grants you the right to start a business. However, registering a company in Portugal is a separate process that requires specific documentation. 

Regardless of the visa you get, you generally need the following documents to register a business in Portugal:

• A company deed that includes the business’s name, address, objectives, and shareholders
• Articles of association that outline the company’s management structure, internal rules, and shareholder agreements
• A Portuguese tax number, known as the Número de Identificação Fiscal (NIF)
• Copies of each shareholder’s ID and tax number
• An acceptance declaration that proves the company directors and legal representatives accept their role in the company

Documentation requirements may vary slightly depending on the business type, but the above documents are required for most company registrations.

How To Start a Business in Portugal as a Foreigner: 8 Steps To Follow

To start a business in Portugal, you need to take the following steps:

1. Get a Portuguese tax number
2. Obtain a Social Security number
3. Choose your business structure
4. Name your company
5. Draft the articles of association
6. Open a Portuguese bank account
7. Register the company
8. Hire employees

1. Get a Portuguese Tax Number

Obtaining a Portuguese tax number (NIF) is necessary for conducting fiscal activities in the country. 

As a foreigner, you can get the NIF without visiting Portugal by using a power of attorney. This involves appointing a lawyer to act as your tax representative in Portugal. Once you sign the power of attorney, your lawyer has the legal right to apply for the NIF on your behalf.

The documents required to obtain the NIF typically include:

• Completed NIF application form
• Valid passport copy
• Bank statement proving the legality of your income
• Taxpayer identification number in your home country

The approval is typically received within two weeks. Once approved, you will get a nine-digit tax number and an account on the Portuguese tax service website.

2. Obtain a Social Security Number

Business owners who plan to employ workers in Portugal are required to have a Social Security Identification Number (NISS). Foreign nationals can apply for the NISS online by completing an application form. To do so, you must provide personal information, including:

• Full name
• Address
• Date and place of birth
• Gender and nationality
• Marital status
• Tax identification document number
• Proof of citizenship or residence in their home country

The NISS is required because you must make Social Security contributions for the employees at the company. You also have to notify the Social Security office when hiring employees.

After submitting your application, you will receive a letter notifying you to collect your NISS from the Social Security office. You can pick it up yourself with a valid ID or appoint a representative with a power of attorney. Appointments can be booked via the SIGA platform, on the SigaAPP, or via phone on 210 548 888 or 300 088 888.

3. Choose Your Business Structure

Portugal allows you to choose between various legal structures when starting a business as a foreigner. The structure you choose will depend on your company’s size and the number of owners. 

Companies also differ by degree of liability, as follows:

1. Limited companies: Business owners are liable for the funds they have invested in the company, and their personal assets are protected in case the business incurs debts
2. Unlimited companies: Company owners are responsible for all business debts and obligations, which means they must use personal assets to cover business liabilities if the company can’t pay its debts

These are the main available business structures:

Business Type	Minimum Capital	Minimum Number of Co-Founders	Liability	Best For
Sociedade por Quotas (LDA)(Private Limited Company)	€1 per shareholder	2	Limited to capital	Small businesses, consultants, freelancers
Unipessoal LDA (Single-Member Limited Company)	€1	1	Limited	Solo entrepreneurs, freelancers
Sociedade Anónima (SA) (Public Limited Company)	€50,000	5	Limited	Larger companies, startups, businesses operating globally
Sociedade em Nome Coletivo (General partnership)	No minimum	2	Unlimited	Partnerships wanting full control, e.g., family businesses
Empresário em Nome Individual (Sole Trader)	No minimum	1	Unlimited	Freelancers, self-employed individuals

4. Name Your Company

Once you select your company’s legal structure, you need to choose a name for your business. You can browse a pre-approved list of names or propose your idea for a name. 

Selecting a name from the pre-approved list is a straightforward process. You are required to choose up to three names. An employee at the Institute of Registries and Notary (IRN) will check their availability on the company registry the day before approving the name.

Those who wish to propose their own company name must take the following steps:

1. Complete a questionnaire and suggest three company names
2. Submit the name approval certificate (Certificado de Admissibilidade) to the Registo Nacional de Pessoas Coletivas (RNPC) 
3. Pay a fee of €75, or €150 if required urgently 

If approved, you will receive the certificate, valid for three months, which you can use to incorporate the company.

5. Get a Business Tax Number

Depending on the business structure you choose, you may need to obtain a business tax number. 

Sole traders, freelancers, and unincorporated partnerships can settle tax obligations using their own NIF. However, limited companies and other legal entities must have a NIPC (Número de Identificação de Pessoa Coletiva), which is a business tax number.

You can apply for NIPC online, but company owners typically receive it without an application once they register a business with the RNPC and the Portuguese Tax and Customs Authority.

6. Draft the Articles of Association

Before you can register a company, you need the company’s articles of association. These documents outline the basic rules that govern the company and include crucial information, such as:

• Shareholders’ names
• Company type
• Location of the registered offices
• Share capital

You can use pre-approved templates to draft the articles of association. The shareholders must sign the document to finalize the company incorporation. 

7. Open a Portuguese Bank Account

You must open a Portuguese bank account in the name of your company before registration. This can be done in person or through your tax representative, if permitted by your chosen bank. 

The documents you will need to open a business bank account include:

• Your passport
• The company’s registered address
• Proof of identity for all shareholders (if multiple)
• The company’s articles of association 
• Your NIF and the company’s NIPC (if applicable)

You may also need to pay a deposit and present a business plan and financial projections.

8. Register the Company

When registering a company in Portugal, you can choose between three options:

1. Commercial Registry Office: A traditional route that involves drafting and submitting documentation in person at the Commercial Registry Office or Conservatória. This route typically takes around two weeks and involves standard registration costs of about €525 or €455 if submitted online
2. “Empresa na Hora” (Company in an Hour): A fast-track service that allows you to incorporate on the spot (often on the same day), provided your company name is pre-approved and documentation is ready. This route includes a €360 fee
3. “Empresa Online” (Online Registration): A service that enables you to register your company online via the Portuguese online business portal, often within one or two days (though in some cases it can last up to 5–10 days). The fees vary depending on whether you’re using pre-approved articles of association, in which case they are €220, or a customized memorandum and articles of association, in which case you have to pay €360

How Much Does It Cost To Start a Business in Portugal?

When starting a company in Portugal, you generally have to pay a standard incorporation fee of €360 or €220 if your articles of association are pre-approved. 

However, the exact cost of establishing a business in Portugal as a foreigner depends on several factors, including:

• Your business visa: Some business visas, like the Startup Visa, have low financial requirements, while others, like the Golden Visa, may require an investment of at least €250,000
• The company’s structure: Different legal structures incur different minimum capital, which means you may have to pay €1, €5,000, or €50,000
• Legal and accounting support: The cost of professional financial services varies. For instance, hiring a fiscal representative can be anywhere between €50 and €1,000 per year, depending on the type of your company
• Location of your office: The monthly charge of renting office space is higher in areas like Lisbon and Porto

What Are the Tax Implications of Starting a Business in Portugal?

Most businesses in Portugal are liable for corporate income tax (IRC) at a flat 21%. A reduced IRC rate applies to companies in the Autonomous Regions of Madeira (20%) and Azores (16.8%). 

Small or medium-sized enterprises that operate in commercial, industrial, or agricultural economic activity in Portugal pay a 17% IRC rate on the first €25,000. Meanwhile, companies without a registered office in Portugal are typically subject to a rate of 25%.

You may also have to pay the following surcharges:

1. Local surtax (Derrama): The rate is up to 1.5% of taxable income
2. State surtax (Derrama Estadual): The rate of 3% applies to taxable profit over €1.5 million. The charge increases to 5% if taxable profit exceeds €7.5 million, or 9% if it’s more than €35 million

The surtax rates are slightly lower for those who establish a business in Madeira or the Azores.

In addition to this, a flat 23% value-added tax (VAT) rate applies to all goods and services. However, VAT is reduced to 13% for specific businesses, such as restaurants and flower shops, or 6% for individual enterprises that produce food or medical devices.

Other taxes, such as autonomous taxation, could also apply depending on the type of business you run, and you may be subject to taxation in your home country. For instance, the U.S. generally taxes its citizens on worldwide income, including business income, unless you claim tax relief.

To streamline the establishment of your business in Portugal and ensure tax compliance throughout the entire process, it is recommended to consult professionals at Nomad Capitalist. 

Partner With Nomad Capitalist and Start a Business in Portugal the Easy Way

Nomad Capitalist is an advisory firm that has helped over 1,500 high-net-worth individuals relocate abroad. We provide guidance on understanding your tax obligations, reducing cross-border tax liability, and protecting your assets. 

Our customized Action Plan ensures you achieve your entrepreneurial goals overseas. We create a strategy that aligns with your relocation objectives, assisting you with:

• Choosing the path most suited to your goals
• Finding the most suitable visa option 
• Developing a profitable investment plan
• Opening an offshore bank account
• Minimizing tax liability

To receive a personalized Action Plan, complete a quick online application form to determine if we’re a good fit. Once approved, we will:

1. Schedule a private onboarding call to discuss your relocation goals
2. Create and present a detailed step-by-step overview of your Action Plan
3. Implement the Plan and handle all the administrative work
4. Offer ongoing support with admin work and renewals

Our advisors will help select the most effective path forward and take over the heavy lifting to make the process as smooth as possible and help you achieve your business goals seamlessly. Create a custom international strategy today.