Company Formation & Corporate Services in Portugal
Portugal is one of the quickest places in the EU to register a company, and it has become a genuine base for technology, services and European trading businesses. What it isn’t is a tax shortcut: the incentives are real but conditional, and the old non-habitual-resident regime has been replaced. We set Portugal up for what it actually offers.
Best For / Think Twice If
Best for
Technology and services businesses wanting an EU base, European trading companies, and founders relocating to Portugal who need their company and residence plans to line up.
Think twice if
You want an EU company with no people or activity in Portugal — tax residence and banking both depend on real management and substance here.
Ownership & Tax Snapshot
Portugal permits 100% foreign ownership, with no residency requirement for shareholders or managers. Every shareholder and manager needs a Portuguese tax number (NIF); non-EU residents generally obtain it through a tax representative. Beneficial owners must be declared in the central register (RCBE).
The general corporate income tax (IRC) rate is 19% for 2026, falling to 17% by 2028, with a 15% rate on the first €50,000 of taxable profit for qualifying small and medium companies. Municipal and state surcharges can apply on top. VAT is 23% on the mainland, with lower rates in Madeira and the Azores. The Madeira International Business Centre offers a reduced rate for licensed entities, subject to substance, job-creation and EU state-aid conditions.
The Setup Process
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Structure decision: Lda or S.A., and whether a Madeira licence is relevant.
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Portuguese tax numbers (NIF) for every shareholder and manager.
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Company name and registration with the commercial registry, often same-day through Empresa na Hora.
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Beneficial owner declaration (RCBE) and start-of-activity declaration with the Tax Authority.
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Social security registration and certified accountant appointment.
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Bank account opening and share capital deposit.
Free Zones & Registrars
| Role | |
|---|---|
| Institute of Registries and Notary (IRN) | Commercial registry and Empresa na Hora same-day registration |
| Tax and Customs Authority (AT) | NIF, IRC, VAT and start-of-activity declaration |
| Central Register of Beneficial Owners (RCBE) | Declaration of the company’s beneficial owners |
| Madeira International Business Centre | Reduced-rate regime for licensed entities meeting substance conditions |
Ongoing Compliance Calendar
Annual
- Corporate income tax return (Modelo 22)
- Annual accounting and tax declaration (IES)
- Approval and filing of annual accounts
As applicable
- VAT returns, monthly or quarterly
- Payroll and social security filings once you hire
Ad hoc
- RCBE update within 30 days of a change in beneficial ownership
Portugal At A Glance
Main Industries
Why Choose This Market
- Fast EU registration: A company can be registered in a day once tax numbers are in place.
- A falling corporate tax rate: The general IRC rate is scheduled to drop each year to 17% by 2028.
- Talent and quality of life: A growing technology workforce and a strong draw for relocating founders.
Questions We Are Actually Asked
Your question is not here? Put it to an advisor who works on Portugal every week.
Book a ConsultationHow fast can I register a company in Portugal?
Registration itself can be completed in a day through the Empresa na Hora service once every shareholder and manager has a Portuguese tax number. Getting those tax numbers and opening the bank account usually takes longer, so we start there.
Do I need to live in Portugal to own a Portuguese company?
No. Shareholders and managers can live anywhere. You will need a Portuguese tax number, and non-EU residents usually need a tax representative to get one.
What is the corporate tax rate in Portugal?
The general IRC rate is 19% for 2026 and is scheduled to fall to 17% by 2028. Qualifying small and medium companies pay 15% on the first €50,000 of taxable profit. Municipal and state surcharges can apply on top, depending on location and profit level.
Is the Madeira International Business Centre still available?
Yes, for licensed entities that meet its conditions, including substance and job-creation requirements. The reduced rate applies within EU state-aid limits, so we assess whether your activity qualifies before recommending it.
Does the non-habitual-resident (NHR) regime still apply?
No longer for new applicants. It has been replaced by a narrower incentive for qualifying scientific and innovation roles. It is a personal tax matter, separate from your company, but we flag it when founders are relocating.
Checked against Portuguese Tax and Customs Authority (AT) guidance on IRC rates and NIF registration, and the Institute of Registries and Notary (IRN) on company registration, 17 Oct 2026.
Primary source Portal das Finanças (portaldasfinancas.gov.pt)
Regulatory and tax rules change. This page is general information about Portugal, not tax or legal advice — we confirm the current position for your activity before you commit to a structure.
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Explore →Not Sure Which Structure Fits?
Bring us the business you actually plan to run in Portugal, and we will tell you honestly whether this is the right jurisdiction for it — and which structure inside it makes sense.