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What are the benefits of starting a business in Portugal
According to the latest report, more than one million companies are based in Portugal. It is relatively easy for a foreign national to start a business in Portugal and there are numerous benefits related to starting a company in Portugal or opening a subsidiary of an existing company.
This guide will highlight the benefits of starting a business in Portugal for a foreign national and how international lawyers can help.
Click on the links below to jump to that section:
Discover what the business culture is like in Portugal, and why many businesses start a business there.
Find out about the advantages of starting a business in Portugal, and what businesses should consider.
Read about the various business structures in Portugal, and which one your business should be.
Discover the benefits of international lawyers when setting up a business in Portugal
Read about the most frequently asked questions on starting a business in Portugal.
Is Portugal a good place to start a business?
Although Brexit, which came into effect on the 1 January 2021, changed the way the United Kingdom interacted with the European Union, it has not stopped companies from international expansion.
Business culture in Portugal typically consists of face-to-face meetings, which are preferred to rather than telephone or email communication. This often helps to strengthen the interaction with local suppliers and other business associates when initially starting a company in Portugal. Also, a formal approach is important; the English language is commonly spoken by Portuguese businesses. However, local and small businesses may only speak Portuguese.
Some of the most common industry sectors are food and agriculture, textiles, as well as tourism and technology wholesale, retail, and agriculture.
Contact Giambrone & Partners today to find out more about starting a business in Portugal.
What are the benefits of starting a business in Portugal?
Portugal attracts a wide range of businesses, including large conglomerates such as Google and Vodafone. Despite being a relatively small country, there are several benefits for non-nationals when setting up a company in Portugal.
Tax incentives
In an effort to boost its economy, the Portuguese government has spent the last decade developing strategies to encourage overseas businesses to invest in the country. This includes providing tax incentives and reducing VAT rates for non-nationals.
In addition, the Portuguese government have developed; seed programmes in technology start-ups and small businesses; tax schemes for non-habitual residents; research and development (R&D) initiatives; and deductions for retained and reinvested profits.
Visa opportunities
Before April 2023, the Portuguese Golden Visa programme benefited foreign investors who were aiming to start a business in Portugal. The Portugal Golden Visa programme is currently being revised, and it is possible that certain commercial aspects will be retained. However, this has yet to be settled.
The D2 Visa is aimed at entrepreneurs looking at starting a business in Portugal. There is no minimum investment, but you must obtain a NIF number, Portuguese bank account and proof of Portuguese accommodation.
At Giambrone & Partners, our multi-lingual lawyers will help you apply for a Portuguese visa when starting a company in Portugal.
Find out more about our Portuguese services here.
Strong business infrastructure
Portugal provides businesses with ready-to-develop sites. There are a number of business parks, commercial buildings, and shopping centres that offer space for companies to start up in Portugal. Also, there are good lines of travel through highways and airports from Portugal to other nations.
Good location
Portugal is in a prime location enabling business opportunities, through the ties with Europe, North Africa, and both North and South America. This exposes businesses to a variety of markets, and leads to expanded trading opportunities.
Easy process
Setting up a company in Portugal is a straightforward process. British citizens, as non-EU citizens, must apply for a visa, which typically is a D2 visa. Then, entrepreneurs must show that they have a solid viable business plan, proof that the plan is economically sound and can demonstrate that they have experience in the relevant sector.
Find out more about the necessary documents for starting a business in Portugal here.
To ensure that the process proceeds without errors, seek legal advice as soon as possible. Our Portuguese lawyers can provide all the advice and guidance to help you achieve your objective.
Contact Giambrone & Partners today to find out more information.
What types of business structures are there in Portugal?
Portugal offers various legal structures (forma legal) that are set-up in various ways, depending on whether the business is solely owned or it is a partnership.
Sole Ownership
The different business structures for sole ownership of a Portuguese business are individual entrepreneurs, an individual limited liability establishment, and sole proprietorship by shares.
Collective ownership
Depending on the number of partners, there may be an increase in the amount of share capital required. For example, in a general partnership, there is no share capital, and each partner is liable. A private limited company requires at least two partners that will invest a minimum of €5,000, and both a public limited company and a limited partnership require an investment of at least €50,000.
Sole partnership companies are easier to register than those with multiple partners. For collective companies, consider seeking legal advice from international lawyers who can help you through each stage and help guide you as to the necessary documentation.
Find out more about how to start up a business in Portugal here.
How can international lawyers help you set up a business in Portugal?
Regardless of the legal entity, it is crucial to instruct English speaking Portuguese lawyers when setting up a business in Portugal. This ensures your application is accurate with the correct documentation and your Portuguese business will operate legally. They can also act on the company’s behalf in front of the Portuguese government or legal system.
If you would like to set up a company in Portugal, contact Giambrone & Partners today for more information.
Frequently asked questions
Can a foreigner start a business in Portugal?
Yes. Even if you are not a Portuguese national, you can start a business in Portugal. However, extra steps are required. Giambrone & Partners can advise and guide you.
Find out more about the issues foreign nationals may have when setting up a business in Portugal here.
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