The Real Guide to Starting a Business in Portugal (That Locals Will Actually Take Seriously)

How to go from idea to incorporation without getting lost in translation, red tape or wishful thinking

Portugal has quietly become one of the world’s most intriguing business frontiers, not just for people chasing a slower life but for those ready to build something smarter in a country that’s still finding its rhythm between old and new.

Beyond its historic charm lies a modern truth: Portugal needs more builders – entrepreneurs who see the gaps between what is and what could be. Whether you are starting a creative agency in Lisbon, an eco-retreat in the Azores or a logistics startup in Évora, the opportunity is real.

This is the real roadmap. No fluff. No clichés. Just a step-by-step breakdown of how to legally and successfully start a business in Portugal, from the visa to your first employee, based on real government data, legal references and expat-tested experience.

🧭 Step 1: Start With Your Right to Be Here

If you are not from the EU, EEA or Switzerland, you need legal residency before doing business.

Portugal’s D2 Visa (Entrepreneur or Self Employment Visa) is your best bet. It’s designed for founders who plan to build or invest in businesses that add value to the Portuguese economy.

You’ll need:

• A viable business plan showing economic impact or job creation
  
• Proof of savings or investment funds
  
• Proof of accommodation in Portugal
  
• A clean criminal record, valid passport, and health insurance
  

Apply at your Portuguese consulate before entering the country. Once approved, you’ll get a 120-day entry visa. On arrival, book your residence appointment with AIMA (Agência para a Integração, Migrações e Asilo).

Your residence permit is valid for two years, renewable and leads to permanent residency or citizenship after five years.

⏱️ Timeline: 3–6 months
📎 Sources: vistos.mne.gov.pt, lvpadvogados.com

🪪 Step 2: Get Your Identity in the System

Everything in Portugal starts with a number. You’ll need these before you can do anything.

1. NIF (Número de Identificação Fiscal)

This is your tax ID. Get it at any Finanças office with your passport and address. If you’re abroad, use a fiscal representative (a lawyer or accountant). It takes one day.

2. Social Security Number (Segurança Social)

Register with Instituto da Segurança Social if you’ll work or hire employees. It connects you to Portugal’s welfare and pension system.

You’ll also declare your ownership details with the RCBE (Beneficial Ownership Registry) at rcbe.justica.gov.pt.

🏗️ Step 3: Choose the Right Legal Structure and Idea

Portugal’s business culture rewards practicality. Flashy ideas rarely last, but solutions that fill visible needs thrive.

Structure	Description	Liability	Ideal For
Empresário em Nome Individual	Sole trader	Unlimited	Freelancers, service providers
Sociedade por Quotas (LDA)	Limited liability company	Limited	Most startups and small firms
Unipessoal LDA	Single-member LDA	Limited	Solo founders
Sociedade Anónima (SA)	Corporation	Limited	Larger ventures
Branch of foreign company	Portuguese extension	Parent company	International firms

Most expats start with a Unipessoal LDA — it’s affordable, simple, and legally separate from personal finances.

💶 Cost: Around €360 via the Empresa na Hora service.
📎 Source: eportugal.gov.pt

🏛️ Step 4: Register Your Company

Portugal’s Empresa na Hora system lets you register a business in hours, no endless appointments or translations.

You’ll need:

• Your NIF and passport
  
• Company name (pre-approved)
  
• Articles of Association
  
• Proof of address
  
• Share capital deposit
  
• Optional lawyer or accountant
  

You can register in person at Empresa na Hora offices or online via Empresa Online.

You’ll automatically receive a corporate tax number (NIPC) and be registered with the Tax Authority and Social Security.

⏱️ Timeline: 1–3 business days
💶 Cost: €360–€400

🧾 Step 5: Get Licenses and Permits

Not all businesses can start operating immediately. Some industries require approval from municipal or national regulators.

Examples:

• Food and hospitality: Health, hygiene, and fire inspections via Câmara Municipal
  
• Tourism: Registration with Turismo de Portugal
  
• Healthcare: Authorization from Infarmed or Direção-Geral da Saúde
  
• Construction: Environmental and safety clearances
  
• Finance or crypto: Supervised by Banco de Portugal or CMVM
  

⏱️ Timeline: 2–4 weeks
📎 Official resource: gov.pt business guide

💳 Step 6: Banking, Accounting, and Invoicing

Now you exist legally. Time to exist financially.

• Open a business bank account with your registration certificate and NIF. Popular choices: Millennium BCP, Novo Banco, ActivoBank.
  
• Hire a certified accountant (contabilista certificado). This is mandatory for all LDAs.
  
• Use certified invoicing software approved by the Tax Authority.
  

Your accountant will handle VAT, payroll, and annual filings. In Portugal, a good accountant is as essential as your business license.

⏱️ Setup time: 1–2 weeks

👥 Step 7: Hiring and HR Basics

If you plan to hire, understand that Portugal’s labor system is formal and structured.

• Register employees with Segurança Social
  
• Employer contribution: 23.75%
  
• Employee contribution: 11% (withheld)
  
• Offer paid vacation, Christmas bonuses, and standard benefits
  
• Termination requires notice and often severance pay
  

📎 Source: portugal.com

💼 Step 8: Taxes You’ll Actually Pay

Portugal’s taxes can look intimidating, but they are consistent once you understand the rhythm.

Tax	Description	Rate
Corporate Tax (IRC)	On company profits	21% (mainland)
Small-Business Rate	On first €25,000 profit	17%
VAT (IVA)	Value-added tax	23%, 13%, or 6%
IMI (Property Tax)	Annual on owned property	0.3–0.45%
Social Security	Employer + employee	34.75% combined

Reporting calendar:

• VAT: monthly or quarterly
  
• Corporate tax: annually (by May)
  
• Social security: monthly
  

📎 Sources: Autoridade Tributária, Global Citizen Solutions

✅ Pro tip: Keep all records – invoices, contracts, and bank statements – for 10 years.

🚀 Step 9: Renew, Scale or Exit

Your D2 residence permit is valid for two years, renewable, and after five years you can apply for citizenship (Portuguese language test required).

To scale, you can:

• Open new branches
  
• Apply for EU funds (Portugal 2030)
  
• Join accelerators like IAPMEI or Startup Portugal
  

If you close or sell, handle it through the Commercial Registry, Finanças, and Social Security portals, all can be done online.

🧠 Step 10: Surviving Bureaucracy Without Losing Faith

Portugal’s red tape is real but it’s not personal. Bureaucracy rewards patience, consistency and face-to-face relationships.

Show up to the same office. Learn names. Bring duplicates. Smile through the signatures.

Behind the paperwork is a country that actually wants entrepreneurs to stay. The system is imperfect but it’s not closed.

If you come ready to build with empathy, structure and respect, you’ll find that Portugal opens up in ways no tourist ever experiences.

📇 Essential Contacts

Office	Role	Website
AIMA	Immigration and residence permits	aima.gov.pt
ePortugal Portal	Company registration and licensing	eportugal.gov.pt
Autoridade Tributária (Finanças)	Tax authority	portaldasfinancas.gov.pt
Instituto da Segurança Social	Social security and payroll	seg-social.pt
Turismo de Portugal	Tourism registration	turismodeportugal.pt
Banco de Portugal	Financial regulation	bportugal.pt

Portugal doesn’t just need entrepreneurs. It needs builders who understand the beauty of systems, even when those systems ask for one more photocopy.

If you bring patience, persistence and purpose, this small country will give you room to create something big.