Starting a business in Portugal
- Rank of 25
- =09
- Index score of 100
- 79
The case for Portugal
Portugal suits an owner who wants to run a real business inside the EU and live in it too. The standard rate of corporate income tax (IRC) is 19% for 2026 and is legislated to fall to 17% by 2028, with 15% on the first €50,000 of profit for small and medium companies. A Sociedade por Quotas (Lda) can be formed the same day at an Empresa na Hora counter for €360, with share capital of €1 per partner. Every company needs a certified accountant, and each partner needs a Portuguese tax number (NIF).
Portugal suits less well a pure holding or SPV structure looking for a low headline rate, because municipal and state surcharges can lift the total rate on larger profits well above 19%. The old non habitual resident (NHR) regime closed to new applicants in 2024, and its replacement, IFICI, only covers specific qualifying jobs. The main drawback is administration: the immigration agency AIMA has long backlogs, and since May 2026 most foreigners need 10 years of residence before they can apply for citizenship.
How a company is taxed
IRC is 19% for 2026, falling to 18% in 2027 and 17% from 2028. Small and medium companies pay 15% on the first €50,000. A municipal surcharge of up to 1.5% and a state surcharge of 3% to 9% on profit above €1.5 million can apply. VAT is 23% on the mainland. Progressive IRS rates reach 48% on taxable income above €86,634 in 2026, plus a solidarity surcharge of 2.5% above €80,000 and 5% above €250,000. Gains on shares are usually taxed at a flat 28%.
Setting up and running a company
Same day
Empresa na Hora forms a company the same day at a registry counter for €360, with all partners present. Empresa Online costs €220 with pre-approved articles. Minimum capital is €1 per quota holder.
Certified accountant
A company needs a registered office in Portugal and a certified accountant (contabilista certificado). Directors need not be resident, but each partner and director needs a Portuguese tax number (NIF).
Legitimate interest access
Since November 2025 the RCBE beneficial ownership register is open online only to those who show a legitimate interest, and every access is logged for five years. The declaration is due within 30 days of formation.
D2 entrepreneur visa
An owner can apply for a D2 entrepreneur visa through a Portuguese company. The Golden Visa remains from €500,000 in a qualifying fund, but real estate no longer qualifies. Remote workers earning €3,680 a month can use the D8.
Fees shown are government registry fees only. Agent, licence, office, audit and professional costs are additional and usually make up most of the cost of setting up.
Life in Lisbon
- Flights
- Lisbon Humberto Delgado airport serves about 151 destinations in 52 countries and handled 36.1 million passengers in 2025.
- Healthcare
- Legal residents can register with the national health service (SNS), and many expats add private health insurance for faster access to specialists.
- Banking
- Opening a business account needs the company's registry certificate, NIF numbers and beneficial ownership details; in person visits are common for non EU owners.
Wealth, inheritance and a family home
- Inheritance and gift tax
- Portugal has no separate inheritance tax, but gifts and inheritances are charged 10% stamp duty, with spouses, children, parents and grandparents exempt, and an extra 0.8% applies to gifts of property.
- Wealth tax
- There is no net wealth tax, but the additional property tax (AIMI) charges individuals 0.7% on residential property value between €600,000 and €1 million, 1% up to €2 million and 1.5% above that.
- Capital gains
- Residents usually pay a flat 28% on gains from shares, with part of the gain excluded on listed securities held for two years or more, while only 50% of a resident's gain on Portuguese property is taxed, at progressive rates.
- Personal income tax
- Rates rise to 48% on taxable income above €86,634 in 2026, plus a solidarity surcharge of up to 5%, while qualifying newcomers under IFICI pay 20% on eligible work income for 10 years.
- Tax information exchange
- Portugal exchanges financial account data under the OECD Common Reporting Standard and EU directives, and its banks report US account holders under a FATCA agreement.
- Buying a home
- Foreigners can buy property freely, paying property transfer tax (IMT) on a sliding scale plus 0.8% stamp duty, and real estate no longer qualifies for the Golden Visa.
The Portugal dossier
About 30 pages on business and life there, with official sources.
Questions people ask about Portugal
The standard IRC rate is 19% for tax periods starting in 2026, under Law 64/2025. It falls to 18% in 2027 and 17% from 2028. Small and medium companies pay 15% on the first €50,000 of taxable profit.
Yes. Municipalities can levy a surcharge (derrama) of up to 1.5% of taxable profit. A state surcharge adds 3% on profit between €1.5 million and €7.5 million, 5% up to €35 million and 9% above that.
Empresa na Hora forms a company the same day at a registry counter, with all partners present, for €360. Empresa Online costs €220 with pre-approved articles. Share capital must be paid into the company's bank account within five working days, unless partners declare it will be paid by the end of the first financial year.
The minimum is €1 per quota holder. A Sociedade por Quotas has two or more partners; a single owner can use a Sociedade Unipessoal por Quotas.
Yes. Each individual partner must give a Portuguese tax number (NIF) and an identity document. Non residents usually obtain the NIF through a tax representative or a local adviser before incorporation.
Yes. Companies keep organised accounts through a certified accountant (contabilista certificado). One can be chosen from the registry's pool at formation, or the start of activity declaration must be filed with the tax office within 15 days.
Not any more. Decree Law 115/2025 replaced public access to the RCBE with a legitimate interest test from November 2025, following the 2022 ruling of the EU Court of Justice. Every access is recorded for five years.
NHR closed to new applicants in 2024. Its replacement, IFICI, gives a 20% flat rate on qualifying Portuguese employment and business income for 10 years, and exempts most foreign income, but only for set roles such as researchers, qualified staff of certified startups and innovative exporting companies. Applicants must not have been resident in the previous five years.
Thinking about Portugal?
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