EU and Schengen membership
A Portuguese company is an EU company, and Portuguese residency comes with Schengen mobility (source: europa.eu).
PortugalDoing Business in Portugal: Your Expansion Guide
Portugal offers full EU and Schengen access, a competitive small-company tax rate, and one of the fastest incorporation processes in Europe. For founders and expats, doing business in Portugal comes down to two levers: the right residence route if you plan to relocate, and the right company structure whether you relocate or not. This hub gives you the panorama in three minutes, then routes you to the verified guides: Portugal visas and residency and company formation in Portugal.
19%
Corporate tax (standard)
About 1 hour
Incorporation time
€1
Min. share capital (Lda)
Why Portugal
Competitive taxes for small companies
Corporate tax is 19% standard, and SMEs pay a reduced 15% on the first €50,000 of taxable profit (Portal das Finanças; PwC Guia Fiscal 2026).
Fast, low-capital incorporation
The one-stop Empresa na Hora desk creates a company in about one hour, and the default Lda structure requires just €1 of share capital per quota (IRN; Código das Sociedades Comerciais).
Practical operating conditions
A euro-zone currency, a Western European time zone that overlaps with both the US morning and Asian afternoon, and English widely used in the business and tech scenes keep day-to-day friction low for international founders.
Talent and operating costs
Portugal combines a strong, multilingual talent pool, particularly in engineering and shared services, with operating costs that remain below those of the larger Western European markets, which is why so many international teams base nearshore operations in Lisbon, Porto and Braga.
Portugal by the numbers
- Currency
Currency: Euro (EUR)
- EU membership
- EU / Schengen member
EU / Schengen member: Yes / Yes
- europa.eu
- Corporate income tax (IRC)
Corporate income tax (IRC): 19% standard; 15% SME rate on first €50,000
- Portal das Finanças
- VAT (IVA)
VAT (IVA): 23% standard; 13% and 6% reduced
- Portal das Finanças
- Incorporation time
Incorporation time: About 1 hour (Empresa na Hora)
- IRN
- Minimum share capital, Lda
Minimum share capital, Lda: €1 per quota
- CSC Art. 219.º
- Business language
Business language: Portuguese; English common in business
- qualitative
Compare and choose
Where to start in Portugal
Two entry points cover almost every Portugal project. For each, we compare the providers and lay out the rules, so you can choose the right partner with confidence. Banking and accounting join later.
Visas and residency
Golden Visa, D7 passive income, D8 digital nomad, D2 entrepreneur, Startup Visa and work permits: every route compared with its real thresholds, presence rules and path to permanent residency and citizenship.
- Every route compared with real thresholds
- Presence rules and residency path
- Route to permanent residency and citizenship
Company formation
Lda, Unipessoal or SA; the free-name or custom-name choice; official fees; the non-resident remote workflow; and the compliance calendar that starts on day one. The right door if the company comes first, whether you relocate or run it as a non-resident.
- Lda, Unipessoal or SA structures
- Non-resident remote workflow
- Compliance calendar from day one
What it costs
High-level orientation only; each pillar carries the full, sourced tables. Two budgets shape every Portugal project: what the route itself costs and what it costs to keep it.
Residence routes Costs
D7 passive income
- €920 per month
D8 remote income
- €3,680 per month
Investment route
- From €250,000
- Total Residence routes
- From €920/month income to €250,000 investment
Figures verified August 2026 against Portal das Finanças and IRN; the linked pillars carry the full tables and disclaimers.
The regulatory basics
Three bodies cover most of the Portugal paperwork.
Frequently asked questions
General
No. Non-residents can fully own a Portuguese company. Incorporation can be done in person in about an hour, or remotely through a mandated lawyer; the practical workflow is in the company formation in Portugal guide.
The D2 entrepreneur route and the Startup Visa are built for founders; the D8 covers remote work for foreign clients. All are compared, with thresholds, on our Portugal visas and residency page.
Yes on both counts (source: europa.eu). A Portuguese company trades as an EU entity, and Portuguese residence permits include Schengen short-stay mobility.
Corporate tax is 19% standard, with a 15% SME rate on the first €50,000 of taxable profit; VAT is 23% standard with 13% and 6% reduced rates (Portal das Finanças). Municipal surcharges may add up to 1.5%.
The incorporation act takes about one hour at the Empresa na Hora desk, or 5 to 10 working days online. As a non-resident, plan 2 to 6 weeks end to end once identification numbers and banking are included.
All of them live in our Portugal business guides hub, alongside the two service pillars linked above.
Next steps
Pick your lever: residence first if you plan to move, the company first if you are setting up from abroad. When you are ready to move from reading to executing, our Portugal team handles both tracks end to end.
Residence first
If you plan to move, start with the residence route and map the visa that fits your profile.
Company first
If you are setting up from abroad, start with the company and the non-resident remote workflow.