Doing business in Portugal

Portuguese company formation runs through the commercial registry, with fast counter and online routes, and beneficial owners must be declared in the RCBE. Tax is administered by the Tax and Customs Authority, with lower rates in Madeira and the Azores. As an EU member, Portugal applies EU customs, data protection and sanctions law. Key bodies include AICEP for investment, the Competition Authority (AdC), CNCS for cybersecurity and INPI for industrial property. Several areas rely on secondary sources because official pages could not be reached run.

Key facts

Corporate income tax

19% mainland (2026), plus surtaxes

VAT

23% standard (mainland)

Main entity form

Sociedade (unipessoal) por quotas, minimum capital EUR 1 or EUR 2

Foreign ownership

Generally unrestricted; no local partner needed

Profit repatriation

No limits

Data protection

GDPR

New York Convention

Party since 1995 (reciprocity reservation)

Minimum wage (2026)

EUR 920 a month

Portugal has few restrictions on foreign investors and no local partner requirement. Private limited companies can be formed with minimal capital, at a counter or online, and must register within 10 days and declare beneficial owners within 30 days.

Key facts

• A single-member private limited company needs EUR 1 capital and a multi-partner one EUR 2; a public limited company needs EUR 50,000.

• No Portuguese partner is required, and a branch is available without creating a new entity.

• Empresa na Hora (EUR 360) and Empresa Online 2.0 (from EUR 220) offer fast formation.

• Register within 10 days; the company binds third parties only after registration.

• Declare beneficial owners in the RCBE within 30 days of registration.

Who handles this in PortugalSetting up and running a companyContracts and commercial law

Corporate income tax (IRC) is 19 percent on the mainland in 2026 and legislated to fall to 17 percent by 2028, with municipal and state surtaxes on top. VAT is 23 percent on the mainland. Figures are from a secondary source because tax authority pages could not be retrieved.

Key facts

• Budget for IRC at 19 percent (15 percent on the first EUR 50,000 for SMEs) plus municipal surtax of up to 1.5 percent and state surtax on profits above EUR 1.5 million.

• The rate is legislated to fall to 18 percent in 2027 and 17 percent in 2028.

• Standard VAT is 23 percent on the mainland, lower in Madeira and the Azores.

• Outbound dividends, interest and royalties bear 25 percent withholding (35 percent for blacklisted jurisdictions) unless a treaty or EU exemption applies.

• Large groups fall under the Pillar Two regime enacted by Law 41/2024.

Who handles this in PortugalTax and structuringAccounting and annual filings · Hugo Ribeiro

The 2026 minimum wage is EUR 920 a month. Contracts are permanent by default and dismissal requires cause, so termination planning matters. Employer social security is 23.75 percent.

Key facts

• Pay at least EUR 920 a month from 1 January 2026.

• Budget employer social security at 23.75 percent; employees pay 11 percent.

• Use fixed-term contracts only where justified; open-ended contracts are the default and dismissal needs cause.

• Non-EU employees typically come in on D1 or D3 visas.

Who handles this in PortugalEmployment, payroll and immigration

Foreign investors may own real estate without restriction, and property rights must be registered within two months. Specific activities may need their own registration, and the SIFIDE II R&D incentive has been extended through 2026.

Key facts

• Foreign buyers can acquire real estate freely but usually need a Portuguese tax number first.

• Register property rights with the Land Registry within two months.

• Check sector-specific registration before starting regulated activities.

• SIFIDE II R&D tax relief is available through 2026.

Who handles this in PortugalLicences, permits and regulators

Profits and dividends can be sent abroad without limits. Foreign shareholders need a Portuguese tax number, and non-EU/EEA residents must appoint a representative or use electronic notifications.

Key facts

• Repatriation of profits and dividends is not limited.

• Obtain a NIF for each foreign shareholder before formation and account opening.

• Screen payments against EU sanctions, which national authorities enforce.

Who handles this in PortugalBanking and capitalPayments and currency

Portugal applies EU customs law. Importers need an EORI number, and exports of listed dual-use items need authorisation.

Key facts

• Customs law is the EU Union Customs Code.

• Obtain an EORI number from the Portuguese customs authority before the first customs operation.

• Check Annex I to the EU Dual-Use Regulation before exporting.

Who handles this in PortugalCustoms, trade and export controls

The GDPR applies with Act 58/2019 as the national law. According to the European Commission's page, Portugal had not fully notified NIS2 transposition, and CNCS is the national cybersecurity authority. PDF invoices were expected to remain accepted to the end of 2026.

Key facts

• Apply the GDPR and Act 58/2019 to all processing in Portugal.

• Transfers outside the EU are simplest to adequacy countries.

• Monitor NIS2 transposition; CNCS and CERT.PT are the national contacts.

• PDF invoices were expected to remain accepted only until 31 December 2026; plan invoicing systems accordingly.

Who handles this in PortugalData protection and cyber

INPI is the national office for trademarks and designs. Portugal is part of the PCT and Madrid systems, so international filings can extend to Portugal.

Key facts

• File national trademarks and designs with INPI; trademarks last 10 years and renew indefinitely.

• Designs last five years, renewable up to 25 years.

• Portugal can be designated through the PCT (since 1992) and the Madrid Protocol (since 1997).

Who handles this in PortugalTrade marks, patents and brands

Mergers meeting market-share or turnover tests must be notified to the Competition Authority. Acquisitions of strategic assets by non-EU/EEA investors can be reviewed under Decree-Law 138/2014. These points come from a 2025 law firm guide.

Key facts

• Notify the AdC where a deal creates or reinforces a 50 percent share, or 30 to 50 percent with two parties above EUR 5 million turnover.

• Notify also where aggregate Portuguese turnover exceeded EUR 100 million and two parties each exceed EUR 5 million.

• Non-EU/EEA acquisitions of strategic assets may face government review.

• EU rules on FDI screening are being revised.

Who handles this in PortugalBuying, selling and investing

AML due diligence obligations are set by Law 83/2017, and GDPR fines can reach 4 percent of worldwide turnover. Anti-corruption and whistleblowing rules could not be confirmed run.

Key facts

• AML identification and due diligence rules come from Law 83/2017.

• Data protection breaches can cost up to 4 percent of worldwide turnover.

• Beneficial owners must be declared in the RCBE.

• EU sanctions apply and are enforced nationally.

Who handles this in PortugalAnti-bribery, sanctions and compliance

Portugal is a New York Convention state with a reciprocity reservation and recognises EU judgments without special procedure. Arbitration is governed by Law 63/2011, and mediation is voluntary.

Key facts

• Foreign arbitral awards from other Convention states are enforced under the New York Convention, in force since 1995.

• EU member state judgments are recognised and enforceable without a declaration of enforceability.

• Arbitration follows Law 63/2011, and tribunals must issue a final award within a year of constitution.

• Mediation under Law 29/2013 is voluntary.

Who handles this in PortugalDisputes and arbitration