Portugal is the easiest English-friendly EU country to incorporate in, the hardest one to bank in, and the one whose tax story has changed more in the last 18 months than in the previous 18 years. This is what is actually true in 2026.
The four routes in
- EU/EEA passport. Walk in, register, incorporate. No visa required. If you hold one, skip to "Incorporation" below.
- D2 — Entrepreneur Visa. For founders with a viable business plan and proof of capital (typically €5,000+ in the company, plus €9,840+ personal savings for a year). Approval depends on the consulate; Lisbon-friendly consulates run 3–6 months.
- StartUp Visa. Government-backed program for tech-flavored ventures. Requires endorsement from a certified Portuguese incubator (Beta-i, Startup Lisboa, UPTEC, BGI, others). The incubator review is the real gate.
- HQA Visa. Highly Qualified Activity. Faster (often 2–3 months), but requires a Portuguese university or research-center partnership and €175,000 of capital invested into the project.
Incorporation, step by step
- Get a NIF. Portuguese tax number. Non-residents need a fiscal representative (any Portuguese accountant offers this for €80–€200/year). Allow 1–2 weeks remote, same-day in person at a Finanças office.
- Pick a structure. Lda (sociedade por quotas) is the default — limited liability, €1 minimum capital, 1–5 partners. SA (sociedade anónima) is for €50k+ capitalised companies or future public-listing paths.
- Empresa na Hora. €360, same day, pre-approved company name. Or use Empresa Online if you want a custom name — adds 3–10 business days.
- Bank account. The bottleneck. Millennium BCP, Novobanco, ActivoBank, and Bison Bank all open business accounts for foreign-owned Ldas, but expect to visit in person at least once. Fintechs (Revolut Business, Wise) are good as the second account, not the first — they will not accept your tax-authority filings.
- Social Security + accountant. Mandatory monthly bookkeeping. A competent TOC (certified accountant) costs €80–€200/month and handles all IVA (VAT), IRS, and Social Security filings.
The post-NHR tax landscape
NHR (Non-Habitual Resident) closed to new applicants in 2024. The replacement is IFICI, branded informally as NHR 2.0. It is materially narrower: eligibility is sector-restricted (R&D, tech, certified startups, higher education, specific export-oriented activities) and benefits cap at a 20% flat IRS rate on Portuguese-source professional income plus broad exemption on most foreign-source income for 10 years.
For founders running a Portuguese Lda: standard corporate tax (IRC) is 21% federal + municipal surtax + state surtax on profits over €1.5M. There is a 17% reduced rate on the first €50,000 of profit for SMEs in mainland Portugal, and 12.5% in Madeira's IBC zone (with substance requirements).
Lisbon vs Porto — the honest version
Lisbon: better international flight connections, more English-speaking talent, every VC and incubator has an office, rent in Príncipe Real or Estrela now rivals Berlin. Operating burn for a 2-founder venture: €4,000–€7,000/month all-in.
Porto: tighter community, UPTEC and Porto Tech Hub are excellent, rent is 30–40% lower, weather is meaningfully worse 4 months/year. Operating burn for a 2-founder venture: €2,500–€4,500/month all-in.
Madeira: the underrated third option. Funchal has a serious digital nomad scene, the IBC offers 5% corporate tax with substance, and the cost base is closer to Porto than Lisbon. Trade-off: a small talent pool and a single airport.
What RFUD does with this
We work with founders moving to or building from Portugal — usually as part of a two-jurisdiction setup: a Wyoming or Estonian holding company for IP and US/EU banking, and a Portuguese Lda as the operating layer where the founder physically lives and the team is hired. Open the RFUD Launch Assistant to walk through your specific situation — visa, structure, and the right sequence to do them in.
- Can a foreigner start a business in Portugal?
- Yes. EU/EEA citizens can incorporate and operate freely. Non-EU founders need a residence permit — typically the D2 Entrepreneur Visa, the StartUp Visa (via certified incubators), or the HQA Visa (Highly Qualified Activity). Company formation itself is open to non-residents through a Portuguese fiscal representative.
- What is the cheapest way to incorporate?
- Empresa na Hora — same-day incorporation at a counter or online — costs €360 and gives you a Lda (limited liability company) with €1 minimum share capital. You still need a NIF (Portuguese tax number), a Portuguese bank account, and an accountant on retainer (€80–€200/month). Realistic all-in first-year cost: €2,000–€4,000.
- Is NHR still available?
- The original NHR regime closed to new applicants in 2024. Its replacement, IFICI (Incentivo Fiscal à Investigação Científica e Inovação) — also called NHR 2.0 — gives qualifying applicants a 20% flat rate on Portuguese-source professional income for 10 years, plus exemption on most foreign-source income. It is narrower than NHR: you must work in a qualifying sector (R&D, tech, higher education, certified startups).
- Lisbon or Porto for a startup?
- Lisbon has the talent pool, the international flights, and the price tag — expect Berlin-level rents in Príncipe Real or Marvila. Porto is 30–40% cheaper, has a strong tech scene around UPTEC, and a tighter founder community. For a remote-first venture, Porto wins on burn rate. For VC fundraising and partner access, Lisbon still leads.
- How long does the StartUp Visa take?
- Realistically 4–9 months end-to-end: 2–4 months for incubator selection and IAPMEI approval, then 2–5 months for the SEF/AIMA appointment and residence card. The visa requires endorsement from a certified Portuguese incubator — the application is to the incubator first, not the government.
- Do I need to physically live in Portugal?
- To run a Portuguese Lda from abroad: no. To use a D2, StartUp, or HQA visa for residency or future citizenship: yes — minimum 8 months per year (or 6 consecutive + 8 non-consecutive over the 5-year residency period that leads to citizenship eligibility).