How to Start a Business in Portugal: 2026 Guide
International entrepreneurs are increasingly discovering Portugal as a compelling base. Foreigners can set up businesses before even becoming Portuguese residents, thanks to access to the European Union, a growing startup ecosystem and a relatively simple company formation process.
However, when starting a business in Portugal, you need to make a few more decisions than simply registering a company.Foreign entrepreneurs will have to take into account the legal structure, tax registration, banking, accounting and, for non-EU nationals planning to move, immigration requirements.
Here’s what foreigners need to know about starting a business in Portugal in 2024.
Can a Foreigner Start a Business in Portugal?
Yes. Foreign nationals can establish and own Portuguese companies, and Portuguese citizenship or permanent residence is not generally required simply to become a shareholder.
The immigration question is separate.
An American, British or Canadian entrepreneur, for example, can own a Portuguese company without automatically obtaining the right to live in Portugal. If the objective is to relocate and actively operate the business from Portugal, an appropriate residence route will normally also be necessary.
EU, EEA and Swiss citizens benefit from European free-movement rules, although registration requirements apply when establishing longer-term residence.
Choosing the Right Business Structure
One of the first decisions is whether to operate individually or create a company.
The Sociedade por Quotas (Lda.) is a common structure for small and medium sized businesses, and is broadly comparable to a private limited company.It is possible to organize a company with only one shareholder as a Sociedade Unipessoal por Quotas.
Larger businesses, or those with more complicated investment structures, may choose to use the Sociedade Anónima (S.A.).
Not every entrepreneur needs a company. Consultants, designers, developers and other independent professionals may find that operating as a self-employed professional is simpler.
A guide to how to register as a freelancer in Portugal can help entrepreneurs compare self-employment with incorporating a Portuguese company.
Getting a Portuguese NIF
Foreign entrepreneurs will generally need a Portuguese tax identification number, known as the Número de Identificação Fiscal, or NIF.
The NIF is fundamental to Portuguese financial and administrative life. It is used for activities from tax matters and contracts to banking and property transactions.
Depending on where the entrepreneur lives and his/her circumstances, there can be additional requirements for tax representation or registration.
A NIF early on generally facilitates the subsequent company formation process.
Registering a Company in Portugal
Once the structure has been selected, the business needs to be formally incorporated.
Portugal has simple incorporation procedures, such as Empresa na Hora, which can enable companies to be set up relatively quickly if the necessary documentation and arrangements are in place.
On incorporation, the company is allocated a corporate identification number known as the NIPC.The information on beneficial ownership must also be registered in the Central Register of Beneficial Ownership of Portugal, or RCBE.
Companies must also ensure that their business activity is correctly registered with the Portuguese tax authorities and Social Security where applicable.
Foreign founders should decide in advance who will be shareholders and directors and how ownership will be divided.
Opening a Portuguese Business Bank Account
Banking is often one of the more time-consuming parts of establishing a business.
Portuguese banks are subject to anti-money laundering and Know Your Customer requirements. Foreign shareholders and directors may therefore need to provide identification, proof of address, information about professional activities and evidence concerning the origin of funds.
The bank may also request company documents and details about the expected business activity.
Entrepreneurs should not assume that company registration automatically guarantees approval for a bank account. The bank conducts its own compliance assessment.
Understanding Portuguese Business Taxes
Tax planning should be addressed before the company begins trading.
Portuguese companies may be subject to corporate income tax, VAT, Social Security contributions and other obligations depending on their activities, turnover, location and structure.
An accountant, or contabilista certificado, plays an important role in the Portuguese system and is normally essential for companies subject to organised accounting.
International entrepreneurs should also consider their personal tax residence. Owning a Portuguese company and becoming personally tax resident in Portugal are different matters, but they can interact.
This becomes particularly important where shareholders receive salaries or dividends or continue to own companies and investments abroad.
The D2 Visa for Foreign Entrepreneurs
Starting a company does not itself give a non-EU national Portuguese residency.
Foreign entrepreneurs who intend to relocate to Portugal to establish or develop a business may consider the D2 residence visa.
Unlike investment residence programs with a fixed high investment threshold, the D2 focuses on a genuine entrepreneurial project and the applicant’s ability to establish and operate it.
A credible business plan, financial resources and evidence supporting the proposed activity are important parts of the application. Entrepreneurs considering relocation should therefore understand the Portugal D2 entrepreneur visa before deciding how to structure their business.
The company formation and immigration processes should ideally be planned together.
Should You Create a Company or Work as a Freelancer?
The answer depends on the type and scale of the activity.
A consultant working independently with a small number of international clients may find self-employment more practical. An entrepreneur hiring employees, bringing in partners or building a business intended to grow may prefer the structure and liability protection of a limited company.
Taxation should not be the only consideration. Administration, accounting costs, liability, investment plans and the possibility of eventually selling the business should also influence the decision.
Professional accounting and legal advice can be particularly valuable before choosing between the two.
Where to Start a Business in Portugal
Lisbon remains Portugal’s largest business and startup hub, with strong international connections and access to investors, professional services and skilled workers.
Porto has also developed a significant technology and entrepreneurial ecosystem, often with lower operating costs than Lisbon.
Braga, Aveiro and other regional cities can offer attractive alternatives for technology, manufacturing and service businesses.
For digital businesses serving international clients, the physical location may be less important than access to talent, transport and the lifestyle preferred by the founders.
Conclusion
Starting a business in Portugal is open to foreign entrepreneurs, whether they already live in the country or are establishing a European operation from abroad.
The process typically begins with obtaining a NIF and choosing between self-employment and a company structure, followed by registration, banking, accounting and tax compliance.
For non-EU entrepreneurs who also want to live in Portugal, immigration planning is equally important. Establishing a company and obtaining Portuguese residence are separate processes, and coordinating them from the beginning can make the overall transition considerably smoother.