Incorporate · Europe

Company Formation in Portugal

EU base with fast online setup and incentive regimes such as Madeira. Review the legal form, tax position, treaty network and indicative cost, then talk to one team that structures it end to end.

Licensed CSP
50+ yrs combined experience
15+ jurisdictions

Corporate tax: 21%
VAT / GST: 23%
Formation: 1-2 weeks (same-day via Empresa na Hora)
Foreign ownership: 100% permitted
Tax treaties: 80+
Setup cost: USD 1,500 - 4,500

At a glance

Common entity: Private Limited Company (Lda)
Formation time: 1-2 weeks (same-day via Empresa na Hora)
Setup cost: USD 1,500 - 4,500
Annual cost: USD 2,000 - 5,000
Foreign ownership: 100% permitted
Tax treaties: 80+

SaaS and technologyE-commerceHolding companyConsulting and servicesIP and licensing

Best for

EU market access with lower running costs
Founders relocating to Portugal
Madeira IBC structures for qualifying activity

Less ideal for

Founders wanting the lowest headline tax
Structures without any local substance

Legal and formation

Legal system	Civil law
Common entity types	Private Limited Company (Lda), Public Limited Company (SA)
Formation timeline	1-2 weeks (same-day via Empresa na Hora)
Minimum capital	EUR 1 per shareholder (Lda)
Foreign ownership	100% permitted
Minimum shareholders	1
Minimum directors	1
Local presence	Registered office in Portugal and a local tax representative for non-residents
Public registry	Directors, shareholders and beneficial owners on the commercial and RCBE registers
Audit	Audit required above statutory size thresholds

Tax profile

Corporate income tax	21% (plus municipal and state surcharges on higher profits; reduced 5% on Madeira International Business Centre for qualifying activity)
VAT / GST	23%
Withholding, dividends	25% (0% under EU or participation exemption)
Withholding, interest	25% (treaty reduced)
Withholding, royalties	25% (treaty reduced)
Capital gains	Within corporate tax; participation exemption may apply
Territorial system	No
CFC rules	Yes
Participation exemption	Participation exemption on qualifying dividends and gains (10%+ holdings)

Every figure above is indicative. Rates, thresholds, minimum capital, ownership rules and timelines change and vary by activity, licence and structure. They are confirmed with the relevant authority and in a tailored quote before you rely on them. This is general information, not legal or tax advice.

How to set up in Portugal

1
Obtain Portuguese tax numbers (NIF) for shareholders and directors
2
Reserve the company name with the National Registry of Companies
3
Sign the articles of association (online, in person, or via Empresa na Hora)
4
Register with the commercial register and the RCBE beneficial-owner register
5
Register for VAT and social security, then open a corporate bank account

Banking reality

Account opening is workable but Portuguese banks require the tax number (NIF) and evidence of substance; remote onboarding is limited, so a visit or a local representative usually smooths the process.