Your Guide to Starting a Business in Portugal as a Foreigner

Who can start a business in Portugal?

Starting a business in Portugal as a foreigner is open to all entrepreneurs, freelancers, and investors. Portugal welcomes foreign entrepreneurs from every country, regardless of nationality.

This includes:

• EU/EEA and Swiss citizens, who can start a business freely without a visa
• Non-EU nationals, who can also set up a business but must hold a valid residence visa or permit (such as the D2 Entrepreneur Visa, D8 Digital Nomad Visa, or other Portugal visas)
• Foreign companies that want to move their branch or expand their operations across the Portuguese business landscape

Why start a business in Portugal?

According to the 2025 European Commission report, Portugal ranks 16^th among other EU Member States for business innovation and performance, with a score of 90.7 percent of the EU average.

Overall, starting a business in Portugal as a foreigner is considered a smart choice due to the country’s ease of doing business. Registering a company is straightforward, especially with the Empresa na Hora program. The program allows you to set up a private single-person, limited, or joint-stock company online in less than an hour.

Portugal ranks 39th among 190 economies in the World Bank‘s ease of doing business rankings, based on the most recent annual ratings. Its ranking has fluctuated over the years, peaking at 48 in 2009 and dipping to a low of 23 in 2014, with an average ranking of 32.5 between 2008 and 2019.

Based on StartupBlink’s 2025 Global Startup Ecosystem Index, the start-up ecosystem in Portugal experienced a 15.6 percent annual growth rate from April 2024 to April 2025. With roughly 1,021 active startups, Portugal represents about two percent of all startups in Western European countries.

Business Opportunities in Portugal

The tourism industry is often considered the best business in Portugal for foreigners. By 2035, the tourism and traveling industry is estimated to provide over €74.6 billion to Portugal’s gross domestic product (GDP), which is 22.6 percent of the national economy.

Other notable business opportunities in Portugal include:

• Wine production and grape harvesting
• Cork harvesting and processing
• Citrus and olive farming
• Furniture design and manufacturing
• Meat and poultry production and processing
• Ceramic and tile manufacturing
• Commercial fishing and fish product processing
• Maritime logistics and port services

Where to open a business in Portugal?

Portugal is split into seven regions, including two autonomous regions in the Atlantic Ocean. They offer various advantages for Portugal commercial real estate.

The Azores and Madeira are attractive locations for starting a business in Portugal, especially for startups. These areas offer tax incentives, import and export benefits, and duty exemptions through their free economic zones.

The tourism and hospitality sector also attracts investors, especially in seaside resorts along the Portuguese Riviera, the Algarve, the Azores, and Madeira. These regions boast world-famous beaches and numerous luxury hotels.

Portugal is rich in metal deposits. Many companies are applying for licenses to explore for copper, lead, gold, zinc, and silver in the Alentejo region. These initiatives are part of the EU Commission‘s goals to develop the country’s mineral resources.

Port facilities, such as those in Aveiro, can also provide a lucrative investment. However, high-net-worth investors who prefer access to a large and well-developed market target Lisbon’s city center and the wider metropolitan area.

How to Start a Business in Portugal as a Foreigner: A Step-by-Step Guide

Opening a business can be a complicated process, especially if you are unfamiliar with the legal process and registration requirements. Below, we provide a step-by-step guide on how to start a business in Portugal.

Step 1: Legal requirements

The first step to starting a business in Portugal as a foreigner is to check your residency requirements.

All applicants must demonstrate that they are permitted to live and work in Portugal. This applies to both temporary and permanent residency and is required for any foreign direct investment projects.

Secure residency

If you are a non-EU citizen, you must obtain residency through one of the visas. Some of these include the Portugal Golden Visa (residency-by-investment program), the D2 Visa (Entrepreneur Visa), and the D7 Visa (Passive Income or Retirement Visa).

The Portugal Highly Qualified Activity (HQA) Visa is another residency program for non-EU citizens. Also known as the D3 Visa, it attracts skilled professionals, entrepreneurs, and researchers to move to Portugal. The HQA Visa requires a qualifying job offer or contract in Portugal. Check our ultimate guide for more information on how to get Portuguese residency.

If you are an EU, EEA, or Swiss citizen, you don’t need a visa. But you must get a residence certificate (Certificado de Registo de Cidadão da UE) if you are staying longer than three months. After five years of legal residency, you may apply for permanent residency or Portuguese citizenship.

For those planning to immigrate to Portugal, we suggest you get in contact with our migration and consultancy subdivision at Global Citizen Solutions. Their experts can advise you on which visa to choose based on your personal needs.

Get your NIF (tax number)

A NIF is your Portuguese tax identification number. Also known as Número de Identificação Fiscal, you will need it for almost all legal and financial activities, such as opening a bank account, starting a business, signing rental contracts, or paying taxes.

A NIF is required for all shareholders or directors. You must apply at a Portuguese tax office or through a local service provider or accountant. Non-residents must have a Portuguese tax representative to get a NIF in Portugal.

Social Security registration

If you want to work or start a business in Portugal, you need a social security number (Número de Identificação da Segurança Social or NISS). You can use it to gain healthcare, pensions, unemployment benefits, and other social protections.

Step 2: Name your business

You can choose a company name by requesting a Denomination Approval Certificate from the Portuguese government.

However, if you haven’t decided on a name yet, check the list of pre-approved company names by the National Registry of Collective Persons (RNPC).

Step 3: Choose a business structure

Figure out your business set-up in Portugal, such as:

• Who runs and owns the business
• Business growth and scalability
• Access to funding or investors
• Risk and liability management
• Tax obligations
• Succession planning
• Paying taxes
• The company’s social obligations

Step 4: Register the company

There are three main ways to set up a company in Portugal. Empresa Online lets you create the company fully online, and the registration usually takes a few days, but you must use a digital key or Citizen Card to sign documents.

Empresa na Hora lets you register in person at a service desk and usually finishes the process on the same day, as long as you bring all your required documents.

The traditional way to enter the Portuguese market means you prepare your paperwork first, apply for a Certificate of Admissibility for your company name, and then submit everything to the commercial registry, which can take longer.

After you register the company, the Portuguese tax authorities (Finanças) will record it for tax purposes. This includes corporate tax, VAT (if applicable), and social security contributions.

Step 5: Open a business bank account

When it comes to banking in Portugal, it is best to research your options, compare the different banks, and consider factors like interest rates, online services, fees, and international reach. Choose a bank with experience in the industry your business aims to target.

To open a business bank account in Portugal, you will need your company registration certificate, proof of NIF number, proof of identity, and articles of association. In certain cases, the bank may request additional documents, such as a business plan.

Exploring Business Taxes in Portugal

If you are considering setting up a business in Portugal, you must manage your personal and business assets accordingly. For more information on the procedures and current personal income tax rates, check our guide on taxes in Portugal.

Corporate Income Tax (CIT) in Portugal

As a business owner, you must pay corporate income tax (CIT). Companies resident in Portugal are taxed on their worldwide income. The standard Portugal corporate tax rate is 19 percent on taxable profits in mainland Portugal. In Madeira and the Azores, the rate is 13 percent, according to PWC Portugal.

Small and medium-sized companies (SMEs) pay a reduced rate of 15 percent on the first €50,000 of taxable profit. Start-ups and SMEs operating in inland regions could make use of a 12.5 percent rate. However, certain zones in Madeira and the Azores can reduce the rate to 8.75 percent on the first €50,000.

Other taxes may include:

• Local surtax (Derrama): up to 1.5 percent of taxable profit, depending on the municipality
• State surtax (Derrama Estadual): 3 percent on profits of €1.5 to €7.5 million, 5 percent on profits of €7.5 to €35 million, 9 percent above €35 million
• Regional surtax (Derrama Regional): different rates for Madeira (2.1 to 6.3 percent) and Azores (2.4 to 7.2 percent)

Companies with foreign permanent establishments (PEs) may apply an optional regime to avoid double taxation, under certain conditions.

Certain expenses are taxed separately under autonomous taxation, including representation, mileage, per diem, non-documented expenses, and company cars. Rates vary from 5 to 50 percent (or 70 percent) depending on the expense type.

Portugal also implements the Pillar Two Global Minimum Tax for multinational and large domestic groups with annual revenue ≥ €750 million. This regime includes rules for undertaxed profits and minimum top-up taxes and applies from 2024 onward.

Corporate tax returns are often submitted by the end of May each year through the local finance office (Autoridade Tributária e Aduaneira). We highly recommend you work with an experienced tax advisor to manage your savings and personal assets.

Social Security (TSU) in Portugal

If you want to hire employees in Portugal, you can provide permanent or temporary employment contracts. By Portuguese business laws, you must pay at least the minimum wage, which is €920 per month in 2026. The standard workweek is 40 hours, similar to many other European countries.

As an employer, you must also pay social security contributions. Register your business with the Social Security office and report new hires. Employees pay about 11 percent of their salary, and employers pay roughly 23.75 percent. These contributions fund pensions, unemployment benefits, family support, and healthcare.

VAT (IVA) in Portugal

There are three value-added tax (VAT) rates for businesses in Portugal:

• Standard rate: 23 percent in mainland Portugal, 22 percent in Madeira, and 16 percent in the Azores
• Reduced rate: 13 percent in mainland Portugal, 12 percent in Madeira, and 9 percent in the Azores. The reduced VAT rate affects restaurants, take-away food, musical instruments, and farm tools.
• Super reduced rate: 6 percent in mainland Portugal, 4 percent in Madeira, and 4 percent in the Azores. The super-reduced VAT rate applies to essential items like some food, books, medicines, farm products, magazines, and passenger transport. It also applies to It also applies to equipment for solar, wind, and geothermal energy, and to electricity if the contracted power is 6.9 kVA or less.

Note: Exports and sales to other EU countries are tax-free (zero-rated).

How to get a Portugal residence permit by business investment?

If you want to move to Portugal and open a business, you will need a residency permit. EU citizens don’t need a visa, only a registration certificate (Certificado de Registo de Cidadão da UE) for long-term stays.

Non-EU citizens must apply for a visa, such as the:

• Portugal Golden Visa: This residency by investment program allows you to live in Portugal by making a qualifying minimum capital investment. For example, you can create 10 full-time jobs or invest €500,000 in an existing or new Portuguese business. However, there are other routes to choose from, such as donations to innovation and scientific research, arts and culture, and investment funds.
• D2 Visa: This Entrepreneur Visa allows you to move to Portugal by starting or investing in a business. It requires a viable business plan and sufficient funds.
• D7 Visa: This Passive Income or Retirement Visa requires proof of stable income or sufficient savings (around €11,040 per year for a single applicant), which can come from pensions, rental income, investments, or remote work, to support yourself while living in Portugal.
• Portugal Start-up Visa: If your innovative business is linked to a certified incubator, you can use the Start-up Visa. It requires sufficient funds to support yourself while managing your business in Portugal.

Advice and Support for Opening a Business in Portugal

If you want to open a business in Portugal, we recommend that you consult a lawyer, obtain business insurance, and obtain the necessary licenses or permits.

Securing the services of a lawyer

A Portuguese lawyer can guide you through company formation, tax registration, and compliance with local laws. For example, a legal representative can help set up an individual limited liability establishment or navigate the requirements for a sole proprietorship.

Portuguese business insurance

Business insurance protects Portuguese companies from risks such as property damage, liability claims, or employee accidents. For example, if you own a company in a high-risk industry, like mining, manufacturing, or construction, you will need workplace accident insurance.

Business licenses and permits

Some businesses in Portugal need a license or permits. For example, if you are opening a restaurant, you will need a health and safety license. If you work with a construction company, you will need a building and zoning permit, while a retail store requires a municipal opening license.

How can Goldcrest help you?

Starting a business in Portugal can be an excellent opportunity for investment. But if you don’t choose the right location, you can’t reap the full benefits.

A buyer’s agent like Goldcrest can research the property market in Portugal, find off-market properties, and negotiate prices on your behalf. We also provide property management services for long-term rentals.

Our team has a wide network of local experts and can introduce you to real estate lawyers, tax advisors, and local contractors. We can simplify the buying process for you and compile the necessary paperwork.

Contact us today and let us help you tap into the Portuguese real estate market.