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%. |
| 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
The process is straightforward and, in Portugal, largely digital. In outline:
- Choose your company type and name. Most founders pick the Lda (private limited); we confirm the name is available.
- Verify your identity. 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.
- File the incorporation. Once documents are signed, registration usually completes in around 1-3 days.
- Open a business account and register for tax/VAT. A local bank account is required to deposit share capital after incorporation; EMIs and fintech accounts are widely used by foreign founders.
We handle each step with licensed local counsel, so the paperwork, registered address and filings are done correctly the first time.
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 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.