What It Actually Costs to Start a Business in Portugal
Most people ask this question expecting a single number. There isn't one — it depends on whether you register as a freelancer, open a sociedade por quotas (Lda), or go through Empresa na Hora versus a lawyer and notary. But the honest range for a straightforward Lda, done efficiently, is somewhere between €400 and €1,500 to get the company legally standing, plus ongoing accountant fees from month one. Freelancers pay almost nothing to start. Below is the real breakdown, authority by authority, so you can budget properly before you commit.
The state fees, minimum capital and accountant obligation below are pulled live from our verified company formation & corporate-law data.
Freelancer (Recibos Verdes) — The Cheapest Route
If you're a solo consultant, designer, developer or similar, you don't need a company at all. You register início de atividade directly on the Portal das Finanças, and that registration itself is free. From that point you invoice clients through recibos verdes (green receipts).
Under the regime simplificado (the default up to €200,000 turnover), roughly 75% of your services income is taxed and about 25% is automatically deducted as a notional expense allowance — no receipts needed to justify it. If your real expenses run high, organised accounting can work out better, but it requires a certified accountant either way once you're above the small thresholds.
A few numbers that catch people out:
- VAT (IVA): you're exempt under Article 53 if turnover stays at or below €15,000 in 2026. Cross that and you must start charging IVA.
- Withholding on invoices to Portuguese clients: typically 25%, though this can be waived if your annual income is under roughly €15,000.
- Social security: 21.4% on 70% of relevant income — but the first 12 months of activity are generally exempt from contributions, which is a real saving in year one.
There's no incorporation fee here. Your only real cost is the accountant you'll likely need to file quarterly VAT and annual IRS — budget €50–€150/month for a freelancer-level engagement.
Setting Up an Lda — The Actual Fees
The sociedade por quotas (Lda) is the standard structure for anyone hiring staff, taking on partners, or wanting the liability separation a limited company gives you. Here's what the incorporation itself costs:
| Item | Cost | Notes |
|---|---|---|
| Empresa na Hora (in person, single appointment) | €360 | Flat state fee; the appointment is fast, but must be booked via SIGA and slots at busy desks run weeks to months out — see our appointment-reality guide |
| Empresa Online (remote, pre-approved model articles) | €220 | Cheaper option, but only available through the online channel, not in person |
| Empresa Online (remote, custom articles) | €360 | Same fee as Empresa na Hora, done remotely in roughly 1–2 weeks |
| Custom incorporation via lawyer + notary | €650–€1,025 | Market-rate estimate for bespoke articles or complex shareholder structures — confirm with your provider, not a government-set fee |
| Name reservation (certificado de admissibilidade) | €75 (standard) / €150 (urgent) | Skip this fee entirely by choosing a pre-approved name |
| Minimum share capital | €1 per quota | Legal minimum after reform; realistically fund €2,000–€5,000+ to cover early costs |
Empresa na Hora is available in person at Lojas do Cidadão and IRN offices, and the incorporation act itself is completed in a single sitting — but that sitting has to be booked in advance, and busy desks are often weeks or months out, so the effective lead time is the appointment date, not the same day. Going through a notary and lawyer instead runs roughly €650-1,025 (a market rate, not an official fee), which suits businesses needing customised statutes or more complex corporate structures. On the name front, if you want a customised company name you need IRN approval, costing €75 without urgency or €150 with urgency, valid for three months — or skip the fee by picking a pre-approved name from ePortugal.
On capital: the old €5,000 minimum is gone. Following legal reforms the previous €5,000 minimum was abolished, and the law now allows a minimum of €1.00 per quota — for a single-member company that minimum can be €1.00. Legally sufficient, rarely sensible — most lawyers still recommend capitalising with enough to cover your first few months of costs so the company isn't technically insolvent from day one.
The Ongoing Costs Nobody Mentions Upfront
Incorporation is the easy part. Running the company is where the real, recurring spend sits.
Certified accountant (Contabilista Certificado). Mandatory by law the moment your company is active — you cannot self-file. Typical monthly fees for small companies start around €150–€350 per month. Some advisors quote it differently on an annual basis, suggesting a baseline of roughly €3,000/year for basic bookkeeping, VAT and corporate tax filing once you're an active trading company.
Corporate income tax (IRC). For 2026, the standard mainland rate is 19%, but qualifying small and medium companies get a meaningful break: SMEs benefit from a reduced 15% rate on the first €50,000 of taxable income, with the standard rate applying above that. There's also a municipal surcharge (derrama) of up to 1.5%, and Madeira/Azores offer lower regional rates for companies genuinely based there.
Social security for directors and employees. Any company officer who manages the business and any hired staff must be registered with Segurança Social — this is a running payroll cost, not a one-off.
Virtual office / registered address. If you don't have Portuguese premises yet, budget roughly €30–€50/month for a compliant registered office service.
Annual filings. The IES (annual accounts declaration to the Commercial Registry and tax authority) typically costs an accountant fee on top of the basic monthly retainer — treat it as a separate line item, not included by default.
RCBE reconfirmation. The beneficial-ownership register isn't a one-off filing at incorporation: it must be updated within 30 days of any change to the declared data, and reconfirmed annually by 31 December even when nothing has changed. It's free to file yourself, but it's a recurring compliance task, not a set-and-forget one.
Startup Visa and IAPMEI-accredited Routes
If you're a non-EU founder building something genuinely innovative and scalable, the Startup Visa route runs alongside — not instead of — normal incorporation. It requires endorsement from an IAPMEI-accredited incubator, caps teams at five, and each founder needs roughly €6,270 (12× IAS) in demonstrable funds. The project has to target turnover or assets above €325,000 within about five years of incubation. This isn't a shortcut to cheaper incorporation — you still pay the same Empresa na Hora or notary fees — but it's the credential that unlocks the residence permit application through AIMA. Outcomes depend entirely on the incubator's assessment and AIMA's processing, so treat any timeline as a target, not a guarantee. See our full breakdown in the visas & residency pillar.
Lda vs Freelancer — Quick Comparison
| Freelancer (recibos verdes) | Lda (private limited company) | |
|---|---|---|
| Setup cost | €0 | €220–€1,025 |
| Minimum capital | None | €1 (legal minimum) |
| Liability | Personal, unlimited | Limited to capital contributed |
| Accountant required? | Only above thresholds/organised accounting | Always, from day one |
| Typical monthly compliance cost | €50–€150 | €150–€350+ |
| Best for | Solo consultants, freelancers | Hiring staff, partners, investor-ready structures |
Common Mistakes People Make
- Under-capitalising and then struggling to pay first invoices because the €1 minimum was taken literally instead of realistically.
- Skipping the accountant search until after incorporation — you need one lined up before you file início de atividade for the company.
- Assuming Empresa na Hora includes everything — social security registration and the bank account for share capital are separate steps you still have to complete.
- Ignoring VAT registration timing if turnover is likely to cross the exemption threshold early — retroactive registration creates headaches.
Frequently Asked Questions
No. The old €5,000 minimum share capital rule was abolished; the legal minimum is now €1 per quota. Most professionals still recommend starting with a few thousand euros in practice, purely to cover initial running costs rather than leave the company technically undercapitalised.
Freelancing is cheaper to start — registration is free and monthly accountant costs are lower. A company makes sense once you need limited liability, plan to hire, or want a structure that's easier for investors or larger clients to contract with.
The Empresa na Hora appointment itself is same-day if your documents and chosen name are ready — but the appointment has to be booked in advance via the SIGA system, and busy desks can run weeks to months out (see our appointment-reality guide). Empresa Online typically takes about one to two weeks and doesn't depend on a scarce slot. Either way, the full process — including a business bank account — often runs several weeks in practice.
Beyond incorporation, expect a certified accountant at roughly €150–€350/month, plus a registered office fee if you don't have Portuguese premises, plus social security contributions for any director or staff on payroll.
Company creation with job creation is one recognised Golden Visa route, and an IAPMEI-accredited Startup Visa is a separate path for qualifying founders. Neither guarantees approval — AIMA assesses each case, and processing can take many months, so plan the business case independently of the visa outcome.
For the tax side of running a Portuguese company or freelance activity, see our tax & NIF pillar, and for the residency angle if you're relocating to run the business, start with relocation and visas. If you'll be hiring, our banking guide covers opening the corporate account you'll need to deposit share capital. For official rules, check the Portal das Finanças (portaldasfinancas.gov.pt) for tax registration and IAPMEI (iapmei.pt) if you're pursuing Startup Visa accreditation.
Working through incorporation, accounting handover, or a Startup Visa application? Our company setup service handles the paperwork end-to-end — book it before you commit to a structure you'll have to unwind later.