Portugal at a glance
Portugal is one of the EU jurisdictions founders most often use today, especially while the EU-wide 28th Regime (EU Inc) is still a proposal. Below are the verified essentials: company types, tax, capital, timing and whether you can set up remotely.
Company types in Portugal
- Lda (Sociedade por Quotas) The standard private limited company for SMEs and foreign founders: one or more partners, limited liability, capital divided into quotas.
- Unipessoal Lda The single-member version of the Lda, for a sole owner.
- SA (Sociedade Anónima) A public limited company for larger operations: minimum capital EUR 50,000 and at least five shareholders (or one corporate).
| Corporate tax | 19% standard IRC on the mainland (cut from 20% in 2025), with a reduced 15% rate on the first EUR 50,000 of taxable income for SMEs. A municipal surtax (up to 1.5%) and a state surtax can apply to larger profits. Madeira and the Azores apply a 13% standard rate. |
|---|---|
| VAT rate | Standard VAT is 23% on the mainland, with reduced rates of 13% and 6%. Madeira is 22% and the Azores 16%. |
| Dividends & payroll taxes | Dividends to resident individuals carry a 28% flat tax. Personal income tax is progressive to 48%, and employer social security adds 23.75% on salaries. Personal-regime incentives have narrowed in recent years, so plan founder taxation separately from the company. |
| Minimum share capital | EUR 1 per shareholder for an Lda; the capital is freely set by the founders. The SA form requires EUR 50,000. |
| Setup time | 1 to 3 days via the Empresa na Hora same-day scheme; roughly 1 to 2 weeks for foreign founders who first need a Portuguese tax number (NIF). |
| Remote setup | Yes. A company can be set up online via the gov.pt portal or by power of attorney; share capital is deposited within five working days of incorporation. |
| Director / residency | No residency requirement. Non-residents need a Portuguese tax number (NIF), and non-EU founders generally need a fiscal representative. |
| Banking options | A local bank account is required to deposit share capital after incorporation; EMIs and fintech accounts are widely used by foreign founders. |
| Our formation service | from around €100 to €200 (estimated). You get a fixed quote in your free plan before you commit. |
IRC has been progressively cut (21% to 20% in 2025 to 19% in 2026). The Madeira International Business Centre offers a 5% corporate tax on qualifying income until 2027. Empresa na Hora enables same-day company creation.
How to register a company in Portugal
Step by step, this is how a Portugal formation actually runs:
- Get Portuguese tax numbers. Every founder needs a NIF (personal tax number); non-EU residents appoint a fiscal representative to obtain it.
- Choose the route. Empresa na Hora sets up an Lda in one sitting with a pre-approved name; the online gov.pt route or a power of attorney works from abroad.
- Sign and register. The company is registered on the spot (or within days online), with the commercial registry certificate issued immediately.
- Deposit capital and appoint an accountant. Share capital (from EUR 1 per shareholder) is deposited within five working days; appointing a certified accountant (contabilista certificado) is mandatory.
- Start of activity and VAT. The accountant files the declaration of start of activity with the tax authority, covering IRC and VAT registration.
We handle each step with licensed local counsel, so the paperwork, registered address and filings are done correctly the first time.
What company formation in Portugal costs
Empresa na Hora charges a flat EUR 360 registration fee. Getting a NIF through a fiscal representative typically costs EUR 100 to 300 for non-EU founders. The mandatory certified accountant is the main running cost, usually EUR 100 to 250 a month for a small Lda.
Form your Portuguese company in days
Tell us where you live and what you are building. Our formation service starts from around €100 to €200 (estimated); we confirm the right structure for Portugal, give you a fixed quote, and form the company with licensed counsel.
Get your free planWho can form a company in Portugal
Founders from outside the EU can own and run a Portuguese company, with the cross-border requirements handled for you. We flag any residency or local-agent rule for Portugal up front, so there are no surprises.
Portugal fits founders who actually live or hire there, remote-friendly teams drawn by the ecosystem, and anyone wanting a low-capital eurozone Lda with a falling headline CIT (19% in 2026, lower for the first SME profits). The NIF-plus-fiscal-representative step makes it slightly more paperwork-heavy for fully remote non-EU founders than Estonia or Ireland.
After registration: what Portugal expects each year
The corporate tax return (Modelo 22) is due by 31 May and the consolidated annual declaration (IES) by 15 July. VAT returns are quarterly or monthly by size. The mandatory accountant handles the calendar; audits only apply above size thresholds most small companies never reach.
Portugal and the 28th Regime (EU Inc)
EU Inc, the proposed 28th Regime, would let you register one company valid across all 27 EU member states. It is not law yet (expected around 2027-2028), so a Portuguese company is one of the ready options you can use today. Forming an EU company now also positions you to adopt EU Inc later, as we cover in how to prepare an EU Inc company. To weigh Portugal against other countries, see company formation in Europe.