--- canonical: "https://euincnow.com/company-formation-portugal" dateModified: "2026-10-11" --- # Company Formation in Portugal: Types, Taxes and Costs Portugal offers Empresa na Hora and online company-formation routes. Foreign founders may first need Portuguese tax numbers and suitable signing or representation arrangements. An Lda has at least two partners, while an Unipessoal Lda has one; each quota needs at least EUR 1 of capital. Mainland corporate tax is 19%, with a reduced 15% band for qualifying SMEs. ## Portugal at a glance - Portugal is an EU member state with its own national company forms and registration rules. Compare company types, capital, tax, timing and signing requirements before you choose. The proposed 28th Regime (EU Inc) is a separate option that is not available yet. - Formation costs and filing requirements checked 11 October 2026. Other figures retain their earlier review dates. ### Company types in Portugal - Lda (Sociedade por Quotas) The standard private limited company for SMEs and foreign founders: at least two partners, limited liability and capital divided into quotas. A sole owner uses the Unipessoal Lda form. - 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). * Company formation in Portugal: key facts - 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 The minimum value of each quota is EUR 1. An Lda has at least two partners; an Unipessoal Lda has one. For these forms, capital not paid at formation can be covered by a declaration to pay within five working days or by the end of the first financial year. Capital is company funding, separate from registration fees. The SA form has different rules and 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 Online formation is available through Empresa Online. Direct individual applicants need supported Citizen Card or Chave Móvel Digital credentials with active digital signatures. A lawyer, solicitor or notary can use the authorised professional route. Confirm the documents and representation needed for your case before choosing a remote route. - Director / residency No residency requirement. Non-residents need a Portuguese tax number (NIF). Relevant individuals resident outside the EU or EEA may be able to use electronic tax notifications instead of a fiscal representative. Exceptions apply, including self-employed activity in Portugal. Confirm the requirement for each founder and the chosen NIF application route. - Banking options Check bank or payment-account eligibility for the Portuguese company form, your residence and business activity. Confirm with the provider and accountant that the account and evidence fit the capital-payment route chosen at formation. Compare fees, payment features and account protections; approval is not guaranteed. * 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: 1. **Get Portuguese tax numbers.** Arrange the founders' NIFs. The public NIF application is free; intermediary fees are separate. Confirm the application route and whether a fiscal representative or electronic tax notifications are required for each person. 2. **Choose the route.** Compare Empresa na Hora with Empresa Online. The standard online fee is EUR 220 with approved articles or EUR 360 with custom articles. Confirm the supported signatures or professional representation needed before filing. 3. **Sign and register.** The company is registered on the spot (or within days online), with the commercial registry certificate issued immediately. 4. **Arrange capital payment and an accountant.** For an Lda or Unipessoal Lda, follow the capital declaration made at formation: payment within five working days or by the end of the first financial year if not already paid. Arrange a certified accountant for the activity declaration, accounting and IES filing. 5. **Start of activity and VAT.** The accountant files the declaration of start of activity with the tax authority, covering IRC and VAT registration. ## What company formation in Portugal costs - Standard online formation costs EUR 220 with approved articles or EUR 360 with custom articles. Annual-accounts registration through IES costs EUR 80, separate from the certified accountant's work. A public NIF application is free; obtain quotes for any intermediary, representation, address and accounting services. Check VAT, package inclusions and renewal charges. Share capital and tax payments are separate. ## Who can form a company in Portugal - Check ownership eligibility separately from director, local-address and licensing requirements. Permission to own shares does not automatically give you permission to live or work in Portugal. The director and residency information above identifies the main formation conditions to review. - Portugal fits founders who live or hire there and want a eurozone company with low minimum capital. Plan the NIF, digital-signature or representation arrangements and ongoing accounting before incorporating. Mainland corporate tax is 19% in 2026, with a reduced band for qualifying SMEs. ## After registration: what Portugal expects each year - A certified accountant submits the IES/DA. The standard annual-accounts registration deadline is the 15th day of the seventh month after the financial year-end, normally 15 July for a calendar-year company. Check official extensions for the filing year. Plan the Modelo 22 corporation tax return, tax payments, VAT and payroll separately with the accountant. Audit requirements depend on the applicable rules and thresholds. ## Portugal and the 28th Regime (EU Inc) - EU Inc, the proposed 28th Regime, would add a harmonised company form in EU member states. Registration is not open and no launch date is confirmed. A national company in Portugal is available under existing rules, but a later EU Inc conversion would depend on the adopted law and eligibility. Read how to prepare an EU Inc company, or compare current options in company formation in Europe. ## Sources and review scope - Use the linked registries, authorities and specialist references to check the requirements for your company. A review of formation costs and filings does not replace a review of your tax position. - Formation costs and compliance checked on 11 October 2026. ### Reference links - [taxsummaries.pwc.com][1] - [justica.gov.pt][2] - [gov.pt][3] - [justica.gov.pt][4] - [justica.gov.pt][5] - [registo.justica.gov.pt][6] - [www2.gov.pt][7] - [info.portaldasfinancas.gov.pt][8] ## Frequently asked questions ### Can a foreigner open a company in Portugal? - No residency requirement. Non-residents need a Portuguese tax number (NIF). Relevant individuals resident outside the EU or EEA may be able to use electronic tax notifications instead of a fiscal representative. Exceptions apply, including self-employed activity in Portugal. Confirm the requirement for each founder and the chosen NIF application route. ### How long does company formation in Portugal take? - 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). ### What corporate tax does a company in Portugal pay? - The headline summary is 19% (15% SME band), with standard VAT of 23%. Company form, activity, size and where the business operates can change the treatment. Read the detailed tax information and confirm the rules for your case. ### Can I form a company in Portugal remotely? - Online formation is available through Empresa Online. Direct individual applicants need supported Citizen Card or Chave Móvel Digital credentials with active digital signatures. A lawyer, solicitor or notary can use the authorised professional route. Confirm the documents and representation needed for your case before choosing a remote route. ## Source URLs [1]: https://taxsummaries.pwc.com/portugal/corporate/taxes-on-corporate-income [2]: https://justica.gov.pt/Como-criar-uma-empresa-online/Quanto-custa [3]: https://www.gov.pt/informacoes-e-ajuda/criacao-da-empresa-online-perguntas-frequentes [4]: https://justica.gov.pt/Como-criar-uma-empresa-online/Capital-social [5]: https://justica.gov.pt/Como-criar-uma-empresa-online/Tipo-de-empresa [6]: https://registo.justica.gov.pt/Empresas/Registar-prestacao-de-contas [7]: https://www2.gov.pt/pt/servicos/pedir-o-numero-de-identificacao-fiscal-para-pessoa-singular [8]: https://info.portaldasfinancas.gov.pt/pt/apoio_ao_contribuinte/Cidadaos/Dados_pessoais_familia/Dados_pessoais/Representacao/Paginas/default.aspx