Startup Portugal is a non-profit public benefit organization that aims to promote Portuguese entrepreneurship.
In 2024, Startup Portugal provided support to 120 national startups, including 50 through the Business Abroad program, which raised 100 million € in investment and employ more than 600 workers.
For Startup Portugal, this data shows “the potential of these Portuguese companies that aspire to international expansion”
In addition to the companies supported under Business Abroad, Startup Portugal supported “over 70 startups at these events, through initiatives to connect with the local economy, promoting contact with other countries.
According to the organization, Business Abroad is a program that “supports the presence of Portuguese startups at major global technology events” for their internationalization.
Since the program began, Business Abroad has supported more than 320 startups at international technology events and in the most relevant markets for this sector.
Based in Porto, Portugal, Oporto Accounting offers comprehensive support for setting up your startup in the country. Our team of accountants and lawyers guides entrepreneurs, investors, and corporations through every step of business formation, helping you choose the best legal structure and providing HR, accounting and grant services.
Portugal emerged as the leader in business creation in the European Union during the second quarter of 2024, according to data released by Eurostat.
According to Eurostat, looking at European Union countries,Portugal led the registration of new businesses, with an increase of 7.6% compared to the first quarter.
The number of new business registrations decreased by 2.1% in the EU compared to the first three months of 2024.
Significant increases were observed in Portugal’s information and communication sectors, which saw a 4.8% rise in new businesses. The transportation sector grew by 1.6%, while accommodation and food services experienced a 1.1% increase in business creation.
Portugal’s success in business creation reflects the effectiveness of its policies aimed at supporting startups and simplifying business registration processes, positioning the country as a dynamic hub for innovation and entrepreneurship in Europe.
At Oporto Accounting, based in Portugal, we’re here to help with our expert services in company formation, accounting, and HR consultancy. Let us guide you in successfully establishing and growing your business in Portugal.
The Portuguese Government has new proposed law exempts to start-up multinational groups from a supplementary 15% minimum tax for their first five years of international operations. This aims to support groups beginning their global expansion without financial strain.
The regime requires multinationals and large groups with revenues of 750 million€ or more in the initial phase of business activity are excluded from the application of the 15% minimum supplementary tax for the first five years.
However, according to the law, the supplementary tax due by a final parent entity is “equal to zero” for the first five fiscal years. In addition, it establishes that this exemption also applies to large national groups that became newly qualified due to increased turnover.
However, according to the law, the supplementary tax due by a final parent entity is “equal to zero” for the first five fiscal years. In addition, it establishes that this exemption also applies to large national groups that became newly qualified due to increased turnover.
The Portuguese Government also stipulates that multinational groups with parent entities located outside Portugal also benefit from a zero supplementary tax rate during their initial international phase.
OportoAccounting services helps foreign entrepreneurs and investors to setting up in Portugal their Startup and business, providing services such as company incorporation, accounting, bookkeeping and payroll. Companying in every stage of the company formation process.
As an accounting and payroll English speaking firm in Portugal, OportoAccounting observes that the number of exporting companies is currently 40,000, has risen successively over in recent years in Portugal, a growing trend that was only interrupted in the pandemic years. The notable increase has been “especially significant” in the last two years, with more than 4,000 companies doing business abroad. By 2022, these companies contributed to 94 billion euros in exports, that is, about 40% of Portugal’s Gross Domestic Product (GDP).
A recent analysis reveals that between 2019 and 2022 the turnover of exporting companies grew faster than in companies that focused exclusively on domestic market, having registered an average annual rate of 11% in annual terms. This growth underscores the dynamic nature and resilience of Portugal’s export sector.
These regular exporters play a crucial role, representing 90% of the total value of Portugal’s foreign business in the last year. The consistent rise in the number of exporting companies and their significant contribution to the economy reflects Portugal’s growing presence in the global market, driving economic growth.
As English speaking accountant in Portugal, OportoAccounting is a firm that does business with international companies and foreign clients, also assist other companies in setting up in Portugal.
As an English-speaking accounting and payroll firm based in Porto, Portugal, Oporto Accounting notes that Portugal is the seventh most peaceful country in the world according to the Global Peace Index 2024 and ranked in the fifth position in Europe.
The Global Peace Index (GPI), produced by the Institute for Economics and Peace (IEP), is the world’s leading measure of global peacefulness. The 2024 GPI ranks 163 countries based in three main areas: militarization, societal safety and security, and ongoing domestic and international conflict.
Portugal excels in these domains, ranking 2nd globally in militarisation. In societal safety and security, the country achieved a low score, indicating a high level of safety for its citizens. Additionally, with also a low score in ongoing domestic and international conflict, Portugal demonstrates a remarkable state of peace with very few internal orexternal conflicts.
Produced by the international think tank, the Institute for Economics and Peace, the report presents the most comprehensive analysis to date of peace, economic value, trends, and ways to develop peaceful societies, covering 99.7% of the world’s population through analysis of 23 qualitative and quantitative indicators.
The incentive for non-residents approved by the Portuguese government will be extended to more activities and companies. At the moment, around 20 areas are covered.
The Portuguese government has announced the define the qualified professions of non-residents (immigrants and Portuguese citizens with an address outside the country for at least five years) by a tax incentive program, eligible professions will be entitled to a reduced tax rate of 20%.
To benefit from this incentive, non-resident workers in these professional areas must have at least completed secondary education and at least five years of duly proven experience. The program aims to attract high-value professionals to Portugal, enhancing the country’s economic growth and competitiveness.
List of non-resident professionals considered to have high added value, and which can benefit from the tax free are:
• General director and executive manager of companies; • Directors of administrative and commercial services; • Production and specialized service directors; • Directors of hotels, restaurants, commerce and other services; • Specialists in physical, mathematical, engineering and technical sciences; • Doctors; • Dentists and stomatologists; • University and higher education teachers; • Information and communication technology specialists; • Authors, journalists and linguists; • Creative and performing arts artists; • Intermediate-level science and engineering technicians and professionals; • Information and communication technology technicians; • Market-oriented farmers and skilled agriculture, animal production workers; • Market-oriented skilled workers in forestry, fishing and hunting; • Skilled workers in industry, construction and crafts, in particular skilled workers in metallurgy, metalworking, food processing, wood, clothing, crafts, printing, precision instrument manufacturing, jewelers, artisans, electrical and electronic workers; • Plant and machine operators and assembly workers, in particular fixed plant and machine operators.
OportoAccounting stands out by its expertise in tax laws and its ability to offer tailored solutions that prevent double taxation and optimize clients’ tax structures for our clients and companies.
In recent years, Portugal has emerged as an attractive destination for entrepreneurs looking to establish their businesses in Europe.
With its strategic location, vibrant culture, and favorable business environment, Portugal offers opportunities for those seeking to start their own ventures. However, navigating the complexities of company incorporation in Portugal can be daunting, especially when it comes to understanding local regulations and tax laws. This is where reliable English-speaking accountants play a crucial role, providing invaluable assistance to entrepreneurs looking to establish their presence in Portugal.
Why Portugal?
Before delving into the intricacies of setting up a company in Portugal, it’s essential to understand why this country has become an increasingly popular choice for entrepreneurs.
Geographic Advantage: Portugal boasts a strategic geographic location, serving as a gateway to both European and International markets. Its membership in the European Union provides businesses with access to a vast consumer base and facilitates trade with other EU member states.
Stability and Infrastructure: Additionally, Portugal’s stable political environment, well-developed infrastructure, and skilled workforce make it an attractive destination for foreign investment.
Supportive Business Environment: Portugal offers a competitive business environment with a range of incentives, EU grants and other supporting measures for entrepreneurs. From favorable tax regimes to various funding opportunities, the Portuguese government has implemented policies aimed at fostering innovation and entrepreneurship.
How to set up a company in Portugal?
(step by step)
Setting up a company in Portugal can be a straightforward process, if you understand the necessary steps and requirements.
Below is a comprehensive guide to help you navigate through the process effectively:
Define Your Business Structure:
Before starting the registration process, decide on the most suitable legal structure for your business.
Three most common options are:
Limited Liabilty Company (Sociedade Por Quotas)
Single-person Limited Liability Company (Sociedade Unipessoal por Quotas)
Public Limited Company (Sociedade Anónima)
Each structure has its own legal implications, tax obligations and liability.
Choose Your Company Name:
Select a unique name for your company that complies with Portuguese regulations. Ensure that the chosen name is not already in use by another company and that it accurately represents your business. You can also request a certificate of admissibility to the IRN, to guarantee that the name of your company is accepted by the commercial registry. The IRN also allows the incorporation of companies with approved names from a public list.
Prepare the Necessary Documentation:
Identification documents of the company’s shareholders
Tax identification numbers (NIF) of shareholders
NIPC of the shareholders, in case that they are companies.
Draft the articles of association that will regulate the company legal structure;
Decide who will be the manager of the company;
Decide the social capital of the company;
Registration of Company:
Registration and submission of documentation to the Portuguese Commercial Registry office (Registo Comercial).
Open a Bank Account:
Open a corporate bank account for your company where the social capital will be paid. Portuguese law mandates that company funds be deposited in a bank account under the company’s name.
What to do after company is incorporated?
Register activity of company at the Tax Office
Initiate tax compliance, which includes submission on a monthly, quarterly and yearly basis of mandatory statements, namely corporate income tax, value-added tax (VAT), and other relevant tax statements based on your business activities.
Register company at Social Security
After company incorporation a number of identification of Social Security – NISS (Número de identificação da segurança social) will also be provided
Fulfill Other Legal Requirements:
Depending on the nature of your business, you may need to obtain additional licenses or permits to operate legally in Portugal. Ensure compliance with all relevant regulations and obtain any necessary permits before commencing business activities.
Following these steps with the assistance from Oporto Accounting legal and accounting professionals, you can successfully set up and operate your company or start up in Portugal.
English speaking accountants play a crucial role in assisting you to incorporate in Portugal, they will provide essential support and guidance to entrepreneurs throughout the process.
Language Assistance: By offering their services in English, these professionals can help entrepreneurs navigate the complexities of the Portuguese legal and regulatory system.
Comprehensive Support: From assisting with company formation and registration to providing ongoing accounting and tax support, English-speaking accountants offer a comprehensive range of services tailored to the needs of foreign entrepreneurs.
Choosing an Accountant:
When selecting an accountant to assist with the establishment and operation of a company in Portugal, there are several factors to consider:
Qualifications and Experience: It’s essential to choose a qualified and experienced professional with a strong understanding of Portuguese tax and accounting laws.
Language Proficiency: Consider the level of English proficiency of the accountant and their team. Effective communication is crucial when working with an accountant, so it’s essential to choose someone who can clearly and confidently communicate in English.
Range of Services: Consider the range of services offered by the accountant and whether they align with the needs of your business. From basic bookkeeping to strategic financial planning, choose an accountant who can provide the level of support and expertise you require to succeed in Portugal
In the dynamic landscape of company formation and business establishment in Portugal, having the right support is paramount. Oporto Accounting emerges as the beacon of reliability and proficiency, offering unparalleled services tailored to meet the diverse needs of entrepreneurs venturing into Portugal.
At Oporto Accounting, we understand that no two businesses are alike. Tha t’s why we offer tailored solutions designed to meet the specific needs and objectives of each client. Whether you’re a startup looking to establish your presence in Portugal or a multinational corporation expanding into a new market, we have the expertise and resources to support you every step of the way. From initial company incorporation to ongoing accounting and tax compliance, Oporto Accounting provides comprehensive services to ensure the smooth and successful operation of your business in Portugal. Our team of experienced professionals will guide you through the entire process, handling all aspects from incorporation and business registration to accounting and payroll.
Expertise You Can Trust With years of experience in the field of accounting and business consulting, Oporto Accounting offers expertise in accounting, payroll and business consulting that you can rely on. Our team of English-speaking accountants possess depth knowledge of Portuguese regulations and tax laws, allowing us to provide accurate and up-to-date advice tailored to your specific needs.
At Oporto Accounting, we believe in building strong and lasting relationships with our clients. That’s why we take the time to understand your unique business needs and goals, offering personalized suppor t and guidance every step of the way. From answering your questions and addressing your concerns to providing strategic advice for growth and expansion, we’re committed to helping you achieve success in Portugal.Transparent Communication and AccessibilityTransparency and communication are at the heart of everything we do at Oporto Accounting. We believe in keeping our clients informed and involved throughout the entire process, ensuring that you always have a clear understanding of your financial situation and compliance status. Our team is accessible and responsive, ready to assist you whenever you need us.
Starting in early 2026, the Portuguese Electronic Passport (PEP) will have a validity period of ten years at the beginning of 2026, instead of the current five years.
Reasons such as the short period of validity and the existence of “high quality” counterfeits of the current PEP model led the Portuguese Government by doubling the passport’s validity,
This extension is part of a new measures to reduce bureaucracy announced by the Portuguese government, with the aim of promoting the “standardization, simplification and digitalization of public services, reaching more and more citizens and companies”.
Due to “the existence of evidence of high-quality forgeries of the current Portuguese Electronic Passport (PEP) model, which represent serious security and control flaws”, and given that the “limited period of five years requires frequent renewals by citizens”, the Portuguese Government decided to proceed with the extension, will be implemented within the first three months of 2026.
Despite the change for adults, passports issued to minors will continue to have a five year validity period, aligning with practices in most Schengen area countries.
OportoAccounting also helps foreign companies and clients to assist with our exceptional law and regulations, ensuring compliance and seamless administrative support.
The new measure will take effect on August 1, 2024.
The Republic President of Portugal has promulgated a government diploma that allows young people up to the age of 35 to be exempt from paying the Municipal Property Transfer Tax (IMT) and Stamp Tax (IS) when purchasing their own permanent house.
This measure applies exclusively to the purchase of the first home of both owners, it is also restricted to the purchase of urban buildings or autonomous fractions of urban buildings intended exclusively for personal and permanent housing, leaving out the acquisition of land for construction.
The diploma authored by the Portuguese Government provides full exemption for houses worth up to the4 th IMT bracket meaning up to €316,772. To be eligible, young buyers must also not have been considered dependents for tax purposes in the year of the home purchase.
At OportoAccounting we provide to foreign individuals and companies, professional services such as annual compliance of tax filling as well banking assistance, helping you out with Portuguese law and regulations.
The Portuguese government plans to reintroduce tax incentives for non-habitual residents as part of a broader economic stimulus package. This initiative aims to support companies and the economy, being the focus to attract foreign professionals by offering a fixed rate of 20% income tax rate on salaries and professional income, excluding dividends, capital gains, and pensions, according to Miranda Sarmento, an economist.
Portuguese Finance Minister revealed that this measure is designed to high valueadded Professionals to the country as part of a package of measures aimed to support economy growth. The reintroduction of the non-habitual resident regime is expected to play a key role in this strategy.
Additionally, the government will present gradual reduction measures to stimulate the economy, including a reduction in corporate income tax reducing it by two percentage points per year, up until it reaches 15%. This comprehensive package demonstrates the government’s commitment to fostering a more attractive business environment.
OportoAccounting, an accounting and payroll firm in Portugal can assist you by providing additional information on the new expected NHR tax program.
