Starting a business in Portugal: the 2026 setup guide
Portugal has become a serious base for founders and freelancers entering the EU market — strong talent, a workable cost base and structured routes to set up and stay. This hub covers how to choose a structure, incorporate (remotely if you like), stay compliant, hire, and fund a business here, with the detailed guides and the in-house team to do it for you.
On this page: Why Portugal · Company types · How to incorporate · Costs & timelines · Accounting, VAT & tax · Hiring · Funding & grants · Founder visas · Business ideas · FAQ
Why base a business in Portugal
Access to the EU single market, an educated and increasingly technical workforce, competitive costs and a supportive startup ecosystem — home to companies like OutSystems and a growing base of scale-ups. Our neutral overview of companies that put Portugal on the tech map gives the context, and why start a business in Portugal makes the fuller case.
Choosing a company type
| Structure | Best for | Liability |
|---|---|---|
| Freelancer / sole trader (ENI) | Solo service providers, small activity | Unlimited (personal) |
| Unipessoal Lda | Single founder wanting limited liability | Limited |
| Lda (private limited) | Two or more partners, most real businesses | Limited |
Freelancing rather than incorporating? See how to register as a freelancer and freelancer tax.
How to incorporate
You can form a company on the spot through Empresa na Hora, online through the Empresa Online portal, or fully remotely via a power of attorney — which is how we set companies up for clients abroad. The full walkthrough is in how to open a company step by step and ways to incorporate remotely.
Costs & timelines
State incorporation costs are modest (around €360 via Empresa na Hora). Beyond that you will budget for a certified accountant and, if you use us, a fixed service fee. A straightforward company can exist within a day; remote setups take a little longer for the power of attorney and banking.
Accounting, VAT & corporate tax
Portuguese companies must keep certified accounts and meet monthly and quarterly obligations. Corporate tax (IRC) is around 21% on the mainland with a reduced rate on the first slice of SME profit; you will also handle VAT (IVA) and social security. Our accounting retainer keeps an Lda compliant from €299/month — see services.
Hiring & employment
Planning to build a team? Portugal has meaningful worker protections. Start with employment contracts, understanding contracts and hiring & employment law.
Funding & grants
Public innovation funding flows through Portugal 2030 and Horizon Europe, alongside private venture capital and instruments like the SIFIDE R&D incentive. See funding & grants.
Visas for founders & hires
Non-EU founders and staff have dedicated routes: the Startup Visa, the D2 entrepreneur visa, and the Tech Visa for skilled hires. Compare everything in the visas hub.
Looking for inspiration?
If you are still deciding what to build, our 10 business ideas to start in Portugal is a practical, opinionated place to begin.
Business rules and tax rates change with each budget — confirm current requirements with IAPMEI and Portal das Finanças.
Every company & business guide
Incorporation, freelancing, accounting, hiring, funding and founder visas.
10 Business Ideas to Start in Portugal in 2026
8 min read9 Startups That Put Portugal on the Tech Map
3 min readEmployment Contracts in Portugal Explained (2026 Guide)
5 min readHiring & Employment Law in Portugal: 2026 Guide
6 min readHow to Open a Company in Portugal: Step-by-Step 2026
5 min readHow to Register as a Freelancer in Portugal: 2026 Steps
6 min readRemotely Incorporate Your Startup in Portugal (2026)
6 min readStartup Funding & Grants in Portugal: 2026 Guide
6 min readWhat Are the Different Employment Contracts in Portugal?
5 min readWhy Start a Business in Portugal: A 2026 Guide
6 min readFrequently asked questions
Can I open a company in Portugal without living there?
Yes — incorporation can be done remotely with a power of attorney, and we manage the whole process, including the company NIF and bank setup.
How much does it cost to start a company in Portugal?
State costs are modest (around €360 via Empresa na Hora). Our service fee is €1,290, or €1,690 for the full Start-in-Portugal bundle with NIF and first-year setup.
Lda or sole trader — which should I choose?
A sole trader (ENI/freelancer) is simplest for small solo activity; an Lda (or single-shareholder Unipessoal Lda) gives limited liability and is standard for real businesses.
Do I need a Portuguese accountant?
Yes — companies are legally required to have a certified accountant (TOC/contabilista certificado). Ours is in-house.
How long does incorporation take?
A simple company can be formed in a day via Empresa na Hora once documents are ready; remote setups take a little longer for the power of attorney and bank steps.
The complete Portugal relocation checklist
Every step, document and deadline — from NIF to residency — in one printable guide.
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