Starting a business in
🇵🇹Portugal
Checked November 4, 2026 · How we score
Corporate tax
19%
Top income tax
48%
Setup from
$1,500
all-in, first year
Time to form
7 days
can be done remotely
Taxes in Portugal
| Corporate income tax | 19% 19% on mainland in 2026, falling to 18% in 2027 and 17% in 2028. SMEs pay 15% on the first EUR 50,000. Municipal surcharge up to 1.5% and state surcharge of up to 9% on high profits. Madeira and Azores have lower regional rates. |
|---|---|
| Personal income tax (top) | 48% Progressive 12.5%–48%, plus a solidarity surcharge of 2.5% above EUR 80,000 and 5% above EUR 250,000. IFICI gives a 20% flat rate on Portuguese-source employment/self-employment income from qualifying activities. |
| Tax system | Worldwide income |
| Capital gains tax | 28%Flat 28% on gains from shares and similar assets (or progressive rates by choice); property gains 50% taxable at progressive rates. Non-resident rate 28%. |
| Dividend withholding (non-residents) | 25% |
| VAT / GST | 23% |
| Social security | Employers pay 23.75% and employees 11%. Self-employed workers pay 21.4% on 70% of income (first-year exemption). Dividend withholding is 25% for corporate recipients and 28% for individuals before treaty relief. |
Forming a company in Portugal
| Usual entity | Sociedade por Quotas (Lda) |
|---|---|
| Minimum capital | $1 |
| Setup cost (all-in) | $1,500–$3,500 |
| Annual running cost | $2,500–$5,500 |
| Time to incorporate | 7 days |
| Form remotely as a foreigner | Yes |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | Yes |
| Statutory audit for small companies | No |
| Business banking for non-residents | Moderate |
Residency and visas
D8 requires income of about 4x Portugal's minimum wage (about EUR 3,700/month). The Golden Visa (ARI) no longer accepts real estate; funds require EUR 500,000 in qualifying investment. Non-EU nationals also need a NIF and a tax representative.
| Digital nomad visa | D8 Digital Nomad Visa, $4,200/month income |
|---|---|
| Golden visa | Yes, from $575k |
| Ease of residency for founders | 3/5 (1 = easiest) |
Special tax regimes
IFICI (NHR 2.0)
20% flat rate on Portuguese-source income from qualifying jobs and innovation for 10 years, with foreign-source income often exempt; replaced NHR for new arrivals from 2024.
Legacy NHR
Closed to new entrants after 31 Dec 2023, with transitional access for people with pre-2024 commitments; holders keep 10-year benefits.
Madeira International Business Centre
Reduced corporate tax (around 5%) for approved licensed companies creating jobs, subject to the EU state-aid time limit.
Startup visa and SME rate
15% corporate tax on the first EUR 50,000 and startup visa for founders of innovative companies.
Pros and cons
Why founders pick Portugal
- 19% CIT falling to 17% and 15% SME rate
- IFICI 20% flat tax for qualifying professionals
- Digital nomad D8 visa and EU residency path
- Good quality of life and English proficiency
Watch out for
- Worldwide taxation and progressive rates up to 48% for residents
- NHR is closed; IFICI has strict eligibility
- Bureaucracy: NIF, fiscal representative, and bank account hurdles for non-residents
- Social security of 21.4% for freelancers (23.75% for employers)
- Golden Visa no longer accepts property
Best for: Remote workers and freelancers relocating to Europe · Founders wanting EU residency and good living costs · Researchers and tech professionals eligible for IFICI
Portugal: common questions
What is Portugal's IFICI regime?
IFICI is the successor to NHR. It gives a 20% flat tax on Portuguese employment or self-employment income from qualifying professions (researchers, startup staff, tech and other eligible roles) for 10 years. Foreign income is often exempt but pensions and some capital income may be taxed.
What is the corporate tax rate in Portugal in 2026?
19% for mainland companies in 2026, 18% in 2027 and 17% in 2028. SMEs pay 15% on the first EUR 50,000 of profit, and surcharges of up to 9% apply to high profits.
Can a foreigner open a company in Portugal remotely?
Yes. You need a Portuguese tax number (NIF), a fiscal representative if non-EU, and typically a power of attorney for a lawyer. Companies can be created online or at Empresa na Hora in 1–7 days; opening a bank account remains the bottleneck.
Is NHR still available in 2026?
Not for new applicants. NHR closed to new registrations after 31 December 2023 (with limited transitional rules). Most newcomers now rely on IFICI or standard residency taxation.
How much does a Portuguese Lda cost?
Typically USD 1,500–3,500 to set up including fees and lawyer, and USD 2,500–5,500 per year for a mandatory certified accountant and filings.
Sources
- Autoridade Tributária (Portal das Finanças)
- ePortugal – Create a company
- PwC Worldwide Tax Summaries – Portugal
Compare Portugal
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.